Business Planning in the Public Sector
By Jennifer Bean and Lascelles Hussey
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About this ebook
This book is one of a series of books entitled “Essential Skills for the Public Sector”. It sets out the process of identifying a clear vision, SMART objectives, strategies and action plans for public sector and not-for-profit organisations. Business planning is an essential process to ensure the long term future viability and sustai
Jennifer Bean
Jennifer Bean is a highly experienced consultant with an excellent track record of working with non-profit and public sector organisations. She is a UK Chartered Accountants and holds a Masters in Business Administration. Her expertise is in taking business principles and best practice and applying them to public sector organisations in a practical way.
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Book preview
Business Planning in the Public Sector - Jennifer Bean
Chapter 1
INTRODUCTION
All organisations should plan for the future to establish how to achieve their goals. Successful planning ideally results in the development of a written document; the business plan. Business planning has always been essential for the private sector which has to produce business plans for raising funds and supporting requests for borrowing.
Business planning is equally important for the public sector as for the private sector, even though the motivation for undertaking their activities is different. Whereas it is common place for most private sector businesses to maximise profit as the primary objective, the business of the public sector is largely driven by the need to deliver services to fulfil social, political or economic objectives.
In the public sector the term service or development plan
is sometimes used instead of the term business plan
. In the light of continuing pressure on public services to become more efficient, the business plan is increasingly seen as an important tool which will assist in identifying how service delivery can be maximised given limited or constrained resources.
Business planning is now a common feature within the management of many public services. This book will outline good practice in the development and preparation of business plans, indicating how they should be used both as an internal and external document.
The following chapters set out the important features of business planning, including establishing aims and objectives, the key components of the content, and the financial implications. It should be emphasised, however, that the format of the plan must be individual to the organisation. Although ideas with respect to formats will be given, they must be tailored to meet the organisation’s needs.
This book is one of a series of Essential Skills for the Public Sector
titles. The series aims to assist public sector managers become more efficient and effective in carrying out their important management responsibilities. We consider this book to be an important part of the tool kit for public sector management development.
Chapter 2
THE CORPORATE FRAMEWORK
Having a Vision
In order to commence the planning process, it is important to have a vision of what the future of the organisation should be. This vision should encompass all aspects of the organisation including its services, size, culture, and performance. In a commercial enterprise it is normally the proprietors that are responsible for developing the vision and disseminating it throughout the organisation. In the public sector, it is less clear as to who should be responsible for creating and promoting the vision. In many circumstances, it will be the person or group of people at the top of the organisation. This could be the Chief Executive, the management board, or where there is a political environment, as with local authorities, the ruling party. If a group of people are developing the vision, then it should be a shared vision and may require compromises to be made.
The vision is the starting point for any planning and should be kept very simple for ease of communication. In addition, the vision will vary greatly depending on the goals or aspirations of the organisation. For example, a business proprietor may have a vision of the business being a market leader in terms of service quality, whilst a public sector organisation may have the vision of making the service(s) accessible to all members of the community. In both cases, any planning undertaken should be with respect to realising these visions.
Many public sector organisations provide a range of services, and hence having a single simple vision to cover all services sometimes proves difficult. In such cases it may prove easier to concentrate the vision on more general areas such as organisational culture. For example, there may be a vision to be a responsive
or a quality
organisation (where quality must be defined). Alternatively, it may be necessary to have different visions for each aspect of the service.
The vision should percolate through to the organisation’s mission statement, objectives, policies and procedures, and can sometimes be presented in the form of a vision statement
. Examples of vision statements are given as follows:
The Council’s overall priority for the period 2010-2015 will be to achieve a recognised improvement in the quality of its services, as defined in the Council’s Mission, with an overall budget substantially reducing in real terms.
A London Borough
The public funders of health research are committed to working together to improve the competitiveness of UK health research, speed up the translation of basic science to patient benefit and create an environment attractive to the life sciences industry.
A Strategic Health Research