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CFC’s Financial Webinar SeriesPlanning:
A Key to the Future.
Financial Webinar Series
How to Submit Your Question
Step 2: Click on the Send button.
Step 1: Type in your question here.
Financial Webinar Series
CFC’s Financial Webinar SeriesPlanning:
A Key to the Future.
Financial Webinar Series
“Planning…is bringing the future into
the present so that you can do something about it now.” Alan Lakein
“Organizing is what you do before you
do something, so when you do it, it is
not all mixed up.” AA Milne
Financial Webinar Series
Today’s speaker:
Dan Kessler, CFC
Regional Vice President,
CFC
Financial Webinar Series
• List the keys to successful planning.
• Describe a SWOT Analysis.
• List the stakeholders in the planning
process.
• Describe the importance of the employees
and the directors in the planning process.
Planning: A key to the future.
As a result of this session you will be able to:
Financial Webinar Series
What famous French physician was born on this date?
• Louis Pasteur
• Armand Trousseau
• Albert Schweitzer
• Michel de Notredame
Polling Question
Financial Webinar Series
Dan Kessler,
Regional Vice President,
CFC
Financial Webinar Series
10
Planning- A Key to the Future
“Nothing stops an organization faster…
than people who believe that the way
you worked yesterday… is the best way
to work tomorrow!”
Financial Webinar Series
1. It begins with Strategic Financial Planning
2. Engineering fundamentals & Planning…
3. Plan for an appropriate Financial Balance…
4. Focus on Employees and Directors…
5. Develop a Plan for Accountability…
6. Create an Engaged and Loyal membership
7. Embrace Technology…
8. Attend to Diversified Services
Keys to Future Success
Financial Webinar Series
12
Strategic Financial Planning…an ongoing activity-NOT a singular event
• Provides the cooperative the direction to address known and unknown challenges
• Is future focused
• Provides for a high level of organizational involvement
• Meant to be flexible, yet prescriptive in terms of
detailing work to be accomplished and whom is responsible for what
Financial Webinar Series
Strategic Financial Planning is a
Key…
• Proactive management vs. issue “d’jour”
• Sets corporate direction for future
• Regular check ups on plan’s progress
(Modify as the environment changes…)
Financial Webinar Series
Strategic Financial Planning
Why do it?
• More Complex (utility environment)
• Less Predictable…
• “Need” for Planning
Financial Webinar Series
Strategic Financial Planning
“Traditional” Responsibilities
• Load forecasting
• Energy/demand forecasting
• Construction planning
• Budgeting
• Tariff design
• Program development
Financial Webinar Series
Strategic Financial Planning
“Today’s” Cooperative’s…
• Demographic changes
• Changing member needs
• New roles or services
• Deregulation, re-regulation, competition
• Renewable resource emphasis, cost of
energy
• War on terrorism, disaster planning
Financial Webinar Series
Strategic Financial Planning
Boards & Management Must:
• Think critically!
• Ask constantly:
- Where are we now?
- Where are we going?
- How will we get there?
Financial Webinar Series
Strategic Financial Planning
Develop
Implement
Update
“Chart the Course”
Financial Webinar Series
Strategic Financial Planning
What is it?...Simply put it’s…
• Mission
• Vision
• SWOT Analysis
• Strategic Initiative’s/Goals
• Strategies/Objectives
• Action Plans/Implementation
( Most Important…)
Financial Webinar Series
Strategic Financial Planning
• Mission
- What does the cooperative do now,
for whom, and how do we do it?
• Concise
- Appeal to values and emotion
Ex: “The mission of ____________ is
to________________
Financial Webinar Series
Strategic Financial Planning
• Vision
- Can look as far down the road as 3-5
years…can (might be) shorter
Determined by leadership’s assessment
(discuss potential…existing needs
…issues…growth…priorities…attitudes,
etc.)
Financial Webinar Series
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Financial Webinar Series
Strategic Financial Planning
• SWOT Analysis
- Defined as Strengths, Weaknesses, (positive
and negative aspects…you control…)
Opportunities, and Threats, (positive and negative aspects…you don’t fully control…)
- Initiative’s/Goals (“key issues”consistent with Mission)
- Ranking (priorities)
Financial Webinar Series
Strategic Financial Planning
• Strategies/Objectives
- Consistent with Mission
- High Priority Efforts
““Think about Think about what you have to dowhat you have to do to to
accomplish your Goalsaccomplish your Goals””
Financial Webinar Series
Strategic Financial Planning
• Action Planning (perhaps most important…)
- Where the commitment to “get the
plan done” takes place…
- Board should hold management accountable
for implementation and results…
*Schedule – *Responsibility – *Budget -*Update
Financial Webinar Series
Strategic Financial Planning
• When you decide to get started?
- Discuss the need to plan and expectations…
- Who’s involved?
- Develop Board Policy…
- Set meeting dates with appropriate audience…
- Involvement of staff…
- Develop a “draft” plan…
- Get final approval/adoption…
Financial Webinar Series
Strategic Financial Planning
• Regular reporting to board on progress…
• Discuss the need for changes…
”update”…
• REMEMBER:
““Strategic Plans help chart the course for Strategic Plans help chart the course for
longerlonger––term direction of the cooperative term direction of the cooperative
……dondon’’t forget about the dayt forget about the day--toto--day activity day activity
that continues to change, and must be that continues to change, and must be
addressedaddressed…”…”
Financial Webinar Series
Planning- A Key to the Future
“Tools”… and Planning
Financial Webinar Series
Successful Systems Know…
1. It begins with Strategic Financial “Planning”
2. Engineering Fundamentals & “Planning”…
3. Plan …for an appropriate Financial Balance
4. Focus on Employees and Directors
5. Develop a “Plan” for Accountability…
6. Create an Engaged and Loyal membership
7. Embrace Technology…
8. Attend to Diversified Services
Financial Webinar Series
Engineering Fundamentals…• Providing reliable electric service
– Load “forecasting” (Power Requirements studies)
– Long-range engineering “planning”
– Construction “planning”
– “Planning” for storms and emergencies
– System maintenance practices/”planning”
• Meeting increased expectations of
members – Large commercial loads/ Key Accounts
– Consumers want 24/7 reliability
Balancing With Financial Realities!
Financial Webinar Series
Plan for Financial Balance
• Financial best practices and policies…we asked…
• Financial Management Policy
• Equity Management Plan (3 decision points)
• Electric rates (Cost of Service-Rate Study)
• Financial Forecast (Compass, or other…)
• Debt Portfolio Management
• Budgeting (Budget Pro, or other…)
• Utilize (other) tools: financial presentations, KRTA’s
Financial Webinar Series
Focus on Directors & Employees
“Plan for Development”…
• Increase competence – a continuous
process
• Recognize expectations of changing
generations
• Compensation planning (wages & benefits)
• Succession planning/career development
Financial Webinar Series
Plan for Accountability from…
• Board (self-evaluation, board goals)
• CEO/GM– Updated job-descriptions, clear expectations
– Evaluations…
• Executive team/ Key Staff
• Vendors
• Consultants
• Affiliated organizations
Financial Webinar Series
Engaged & Loyal Membership
• “Communicate” with your members
• Survey the members
– Understand members’ increasing expectations
– Understand members’ changing sophistication
• Educate your members…
• Be open and listen to them…
• Treat members as “owners”…
• Communication Planning
*(“Internal and External”)
Financial Webinar Series
Embrace Technology…
• New ways to gather data
• Make better decisions
• Track results
• Safety issues
• Provide additional Services
• Add convenience
• Develop a Technology Plan…
*Better Service/Value For Your Members!
Financial Webinar Series
• Ask why you want to provide this business and/or service
- Does it align with our mission, core business goals
and skills of staff?
- Does the business provide value to electric
members?
• Complete a solid “Business Plan”• Analyze and track performance• Make changes as necessary• Comprehensive “Exit Plan”
Diversified Services
Financial Webinar Series
1. Engineering Fundamentals and Planning…
2. Plan to achieve Financial Balance…
3. Focus on Employees and Directors…
4. Emphasize Accountability…
5. Create an Engaged and Loyal Membership
6. Embrace Technology…
7. Attend to Diversified Services…
…Part of Strategic Planning is Using
“Tools”
Financial Webinar Series
Now…let’s turn it over to our audience!
Financial Webinar Series
How to Submit Your Question
Step 2: Click on the Send button.
Step 1: Type in your question here.
Financial Webinar Series
Please take a minute to complete
the NRECA survey.
If you are requesting CPE credits, this is If you are requesting CPE credits, this is
a requirement.a requirement.
Financial Webinar Series
WWW.NRUCFC.COOP
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