DCM StrategicPlanning PedroCorreia

DIPLOMA IN CLUBMANAGEMENT

Strategic Planning


Pedro Correia


01. MSc in Marketing and Strategic Management

• Católica Lisbon School of Business and Economics

• ISCTE and Macao University

02. Working in sports and events for over 20 years

• 5 FIFA World Cups• 4 UEFA European Championships

• Summer Olympic Games, Rugby World Cup, etc.

• Secretary-General Portuguese Football League

• FIFA, UEFA, FIBA, CIES and other entities

03. International Sports Consultant

Lecturer profileINTRODUCT ION


01 02The evolution offootball

The importance ofhaving a strategy

AgendaI n t roduc t ion

03The basics ofstrategicmanagement

04 05The strategic plan The strategic and

operational planningcycles

06Examples fromthe footballworld

4

SUN TSU

“Every battle is won before it is fought.”

BENJAMIN FRANKL IN

“By failing to prepare, you are preparing to fail.”


5

01The evolution of football



Changes over last 30 yearsEvo lu t ion o f footba l l

Player costs Style of play Competitions profile

Broadcasting Sponsorship approach Professionalisation structures

Training methodology Player development Technology & science

Attendances Globalisation Fan engagement

Other aspects Multiple club ownership


Value drivers in club managementEvo lu t ion o f footba l l

Competition(s) format

Club revenues

T H E T R A D I N G L O O P

H I G H R I S K / H I G H R E T U R N

T H E F I N A N C I A L L O O P

L O W R I S K / F I X E D R E T U R N

Attendances / sponsors

• Number of matches• Matches of meaning• Matches of balance• Matches of quality

Matchday & commercial

T H E P E R F O R M A N C E L O O P

H I G H R I S K / H I G H R E T U R N

League position

Broadcast money

International performance Prize money

Squad strength Player transfers

• Player purchase• Player retention• Player development


Football nowadaysEvo lu t ion o f footba l l

EXCITMENT

PASSION

ENTERTAINMENT

BRAND

COMPETITION

BUSINESS

DIPLOMA IN CLUBMANAGEMENTDIPLOMA IN CLUBMANAGEMENT

02The importance of having a strategy


Importance of having a strategy

• Make future decisions easier & allocation resources

• Reduction uncertainty & risk management

• Increase internal understanding and focus

• Motivate employees and fans

• Increase legitimacy and identification

• Setting yourself apart

• Allows to measure performance

Provide direction

Business aproach

Reduce uncertainty


Strategy types in football industry

Different strategy perspectivesImpor tance o f hav ing a s t ra tegy

Corporate strategies

Follow the leaderOffensive

Fortify and defendDistinctive image

DefensiveOur-is-better

Niche specialist

CommercialMarketing

BrandFan engagement

eSportsFinancial

GrassrootsTechnology

Organisational Strategy


The organisational strategyImpor tance o f hav ing a s t ra tegy



03The basics of strategic management



The strategic drivers modelBas i c s o f s t r a teg i c management

Monitoring

Vision

DriversConstraints

Critical success factors

Current situation


The four questions of strategic managementBas i c s o f s t r a teg i c management

Where are we currently?

Where do we want to go?

How do we get there?

Are we getting there?

Internal assessment

External Assessment

Strategic Plan

Resources, Budget, Structure

Monitoring

Evaluation

Vision and Mission

Values

Goals

Objectives

Assessment

Implementation

Monitoring

Strategy

Critical Success Factors


The strategic pyramidBas i c s o f s t r a teg i c management

VisionAspiration of the organisation

MissionReason for being of the organisation

StrategyWhere the organisation is, where it aims to go and how to reach it

Goals & objectives - Strategic PlanBased on identified pillars, targets that the organisation aims for

StructureTo implement the strategy, based on responsibilities, timings and resources

Stakeholders

Values

Critical Success Factors


Long-term – 5 years

Future tense

Directional

Original

Foundational

Connection staff

Audacious Memorable

VISION – Where ? MISSION – Why ?

Descriptive

Short and concise

Vision and missionBas i c s o f s t r a teg i c management


04The strategic plan


§ Used to define how human, financial and physical resources will be allocated to achieve short-term goals and tactical objectives over the course of the next 12 months

OPERATIONAL PLANNING

§ Used to set long-term goals and objectives following an internal and external situation analysis

§ Articulated Plan

§ Strategic differentiation

§ Organisational engagement

§ Organisational transformation

STRATEGIC PLANNINGOPERATIONAL PLANNING

Strategic planning vs operational planningS t ra teg i c p l an


A 4 year strategic plan requires 4 operational plans funded by 4operating budgets

Strategic elementsS t ra teg i c p l an


Desired outcomesClear

objectivesQuality standards

Activities to be delivered

Staffingrequirements

Resourcerequirements

Leadership approval

Implementationtimetables

Monitoring process

Characteristics of a successful strategic planS t ra teg i c p l an


TIPS

No more than 5 to 6 objectives per goal – modular approach

Use RACI approach

Linked to budgets

Yearly approach works best

SMART objectivesS t ra teg i c p l an


Statement of strategy

Annual operational

plans & budget

Departmental objectives

Individual objectives

Impact of strategic planningS t ra teg i c p l an


ACTIVITIES

Means by which objectives are implemented

Specify what will be done, when it will be done, who will do it, what it will cost and what it will achieve

Typically of one year orientation

Allocation of resources

Links to the setting of annual budgets

Action planS t ra teg i c p l an


Values: Transparency, accountability, integrity, solidarity, courage, justice and democracy

Vision:Making football truly global

Mission: Ensure a clean sport where fair-play and the core values are applied

throughout the pyramid structure from FIFA to the grassroots of football

04Education,

Football Development &

Social Responsibility

030201

Competitionsand events

Corporate governance

Footballgovernance

4 Core Areas

11 Goals

44 Objectives

4 yearly plans

Strategic House Model – FIFA Strategic Plan 2020-23S t ra teg i c p l an


Communication planS t ra teg i c p l an

• Is an important part throughout the planning and implementation processes

• Involve the stakeholders in disseminating the message

• Report in a timely manner• Report progress and successes• Consider adapting the message to the

target group


PDCAcycle

DO

PLAN

ACT

CHECK

Establish the Strategic Plan

Plan processes, resources and timings

Corrective actions

Analyse the differences

Develop and implement the plan

Execute the processes

Study the actual results

Compare against the expected results - baseline

Monitoring and reportingS t ra teg i c p l an


Communication planS t ra teg i c p l an

• Timely progress monitoring• Quantitative & qualitative information• Link project & budget• Detail adequacy• Adapt when necessary • As automated as possible• Stakeholder engagement• Communication plan


05The strategic and operational planning cycles



The Strategic planning cycleP lann ing cyc l e s

STRU

CTU

RE

S t r a t e g i c p l a n n i n g c y c l e( 4 - 5 y e a r s ) – B o a r d l e v e l

OUTPUT

INITIAL


The Operational planning cycleP lann ing cyc l e s

A n n u a l o p e r a t i o n a l p l a n n i n g c y c l e – M a n a g e m e n t l e v e l

OPERATIONALPLAN

• Functional structure

• Projects / pillars• Goals• SMART

objectives• Activities

OPERATIONAL BUDGET

• Revenues vs costs• Statutory vs

managerial• Top-down vs

bottom-up• Cost centres• Cost drivers• Expense nature• Cash-flow

ACTIVITY REPORT

• Functional structure

• Projects• Achievements• Explanation

deviations• Hints next

operational plan• etc

YEAR END FINANCIAL ACCOUNTS

• Revenues vs costs• Statutory vs

managerial reporting

• Compliance laws and regulations

• Financial result• Cash flow• Deviations• etc

Aligned

STRU

CTURE

Aligned

Compare and evaluate

32


06Examples from the

football world


The world of football - VISIONExamp les

To be the best football club in the world both on and off the pitch, and to help us achieve this we live by the UNITED values:

• United• Non-discriminatory

• Innovative

• Team-orientated• Excelling

• Determined

Become the most admired, loved and global sports institution in the World

• Sporting excellence • Social impact • Commercial development

A chance to change the World of sport


The world of football - VISIONExamp les

More than a club – we want it to be a community

We envisage the consolidation of the club in the highest category through promotion and strengthening in the sporting, economic and infrastructural dimensions and having a strong emphasis on social aspects


The world of football - MISSIONExamp les

A club which is a world leader in football and basketball that, through its sporting achievements, fulfils the expectations of all of its supporters both nationally and internationally, that preserves its important historical legacy, that manages its heritage with rigour and transparency to benefit its members, and that acts with social responsibility and good corporate management

To facilitate the development of sporting activities in Hong Kong


The world of football - MISSIONExamp les

1. The name of our club is and will remain Football Club Gelsenkirchen-Schalke 04 e.V. It is and will remain a club within the meaning of the German law on clubs, societies and associations.

2. Our club colours are and will remain blue and white. Whenever possible, this should also be the playing kit of the club’s teams.

3. As Schalker we reject discrimination and violence. We show racism the red card and actively promote tolerance and fairness.

4. Our collective goal is sporting success. In pursuit of this goal, however, no one may endanger the existence of our club or violate the values set forth in this mission statement.

5. The roots of our future lie in our past. We wish to actively shape them, especially in the areas of:

• Sporting development • Retention of members, fans, employees and sponsors

• Business development • Social responsibility

A sense of proportion, responsibility and endurance are the prerequisites for ensuring Schalke remains our Schalke in the future.


Sportsmanship Sporting excellence Team philosophy & professionalism

Innovation Developing young people

Social & economical responsibility

Respect Transparency & integrity

Acceptance & inclusion

The world of football - VALUESExamp les


The world of football – GOALS & OBJECTIVES


The world of football – GOALS & OBJECTIVESExamp les


The world of football – IMPLEMENTATION FRAMEWORKExamp les


KEY LEARNINGS



The need and importance of strategic management in the football industryThe steps necessary to define and implement a strategy

The interaction between strategic and operational planning

The key elements of strategic planning

Key learningsS t ra teg i c p l ann ing

The structure should follow strategyThe importance of communication

The examples from the football industry


Thank you!


Documents

DCM StrategicPlanning PedroCorreia