business plan development and evaluation

Strategy Evaluation Process: Comprehensive Guide + Examples

The process of strategy evaluation is often overlooked in the overall strategic management process . After the flurry of activity in the initial planning stages, followed by the reality check of executing your strategy alongside business-as-usual, strategy evaluation is often neglected.

When this happens, strategies quickly become outdated and out-of-sync with the changing face of the organization.

On the contrary, when an efficient strategy evaluation process is set in place, businesses can benefit from insights and learnings from past performance to inform more efficient decision-making .

What Is Strategy Evaluation?

Strategy evaluation is the process of analyzing a strategy to assess how well it's been implemented and executed. It’s an internal analysis tool and should be used as part of a broader strategic analysis for the organization when making strategic decisions.  

Typically, the strategy evaluation process involves answering questions such as:

• Are we moving forward towards achieving our core business metrics ?
• How much progress have we made towards our Vision ?
• Are our Strategic Focus Areas still relevant?
• Which of our Objectives have we completed?
• Do we have sufficient Projects to deliver incomplete Objectives?
• Are our KPIs still effective for measuring progress towards our Objectives?
• Where did we fall short of our targets? Why did this happen?

At the very least, you need to evaluate your strategy twice a year—or better yet, every quarter. Even if you feel as though your existing company strategy is 'too far gone' and needs a fresh start, you'll want to perform a thorough strategy evaluation to understand what went wrong and use this information for your new strategy.

The mistake that people often make when it comes to strategy execution , is thinking of their strategy as a linear set of steps. In reality, the strategic planning process requires constant iteration and evolution, with strategy evaluation serving as a pivotal factor in shaping strategy formulation.

💡 Pro Tip: A good strategy should never really 'end'. Rather, it should morph into something more ambitious and sophisticated as goals are met.

Steps For a Successful Strategy Evaluation Process

There is no one-size-fits-all in terms of strategy evaluation, so we encourage you to think about how your own process would look like. However, after working on countless strategies with our customers, these are the steps we suggest you follow for a successful evaluation process.

Step 1: Evaluation starts at the start

It may sound counter-intuitive, but ideally, you'll be kicking off your strategy evaluation process back in the planning stage . Strategy evaluation is essentially the process of figuring out:

• What did we do well?
• How can we improve upon what we did well?
• What did we learn about ourselves and the external environment along the way?

One of the best ways to answer these questions is by setting effective KPIs (Key Performance Indicators) in your planning stage so you’ll be able to clearly measure performance in the following stages.

Let’s look at an example:

Imagine "EcoWise," a company with a vision to lead global sustainable living. One of their core business metrics is market share , and they aim to expand their eco-friendly products into new international markets.

One of their focus areas could be “International Market Expansion” driven by the following objectives:

• Enter and secure a 5% market share in Europe.
• Launch at least five new eco-friendly products annually.

To understand progress towards the objectives, they set the following KPIs:

• Market Share Growth
• Product Adoption Rate
• Sustainability Ratings

By having clear KPIs that set a benchmark and allow to measure actual results, EcoWise will be able to answer fundamental questions during the strategy evaluation process:

• Did we meet our KPI?
• Why did we fall short?
• Was this even the right KPI?

👉🏻 How Cascade can help?

With Cascade’s planner feature, you can ensure you set all the important elements of your strategic plan with structure and ease and assign measurable targets at the initiative and project levels.

Step 2: Implement consistent processes and tools

Not to sound too much like a broken record, but effective strategy evaluation requires planning that goes beyond the setting of good KPIs. You'll also need to plan out your 'strategy rhythm'—things like:

• How often will we measure progress against our goals?
• What standardized set of reports will be used throughout the business?
• What level of detail shall we capture in our written commentary on progress against the plan?

💡 Pro Tip: It’s important to determine these types of things up front and implement a regime of meetings and reports throughout the organization.

We like to call this process your ' strategy rhythm ' as it should form the backbone of your organization's activities, and be maintained regularly and consistently throughout the year.

Here is an example you can use provided by Cascade’s team of experts:

Step 3: Empower teams to evaluate their own strategies

Empowerment plays a critical role in the strategy evaluation process. Rather than have the leadership team alone participate in your strategy evaluation, invite stakeholders from different areas and departments to prepare their own evaluation of how the team performed against the strategy.

Provide them with a simple framework to conduct the analysis and address essential questions like:

• Did we meet our goals?
• What was it that helped us to succeed?
• What challenges made us fall short?
• Were our goals well set, and have they brought us closer to achieving our overall vision?

Ideally, you'll have your teams present using the tools you defined in step 2 . This includes any strategic dashboards or standardized reports that you agreed on previously.

Cascade’s dashboards and reports in real-time give you and your teams an accurate picture of the strategic performance to aid in your strategy evaluation process.

Step 4: Take corrective action

Steps 4 and 5 (below) are somewhat intertwined and should be performed largely in conjunction with each other. If you find that you're not meeting one of your goals, you'll want to do two things:

• Start by figuring out if the goal is still the right one.
• If it is, take corrective action to address any shortcomings.

Assuming you're still convinced the goal you've set is the right one, you need to implement an action plan to get yourself back on track.

There are many reasons why you might be struggling to hit your goals, ranging from relatively simple issues such as:

• Lack of resource allocation (human or financial)
• Conflicting priorities
• Ineffective tracking of targets
• Misalignment or understanding of the goal

Or your challenges may be more complex and relate to:

• Increased competition
• A significant capital shortfall
• Regulatory pressures
• Lack of internal innovation

Whatever the case, the sooner you can identify these issues, the sooner you can start to take corrective action to ensure a more effective strategy implementation that will get you closer to achieving your desired results.

How to identify the issue?

There are tools and frameworks you can use during the strategy evaluation process that can give you more information about internal and/or external factors that may be hindering your progress.

For example, a SWOT analysis can be useful to reveal what you excel at and where you need improvement. Identifying your weaknesses is key to understanding what might be holding your strategy back.

Another best practice is conducting a competitive analysis to gain insights into what your competitors are doing better. By comparing your strengths and weaknesses against theirs, you can understand where you hold the competitive advantage and where you have gaps that need addressing.

Step 5: Iterate your plan

There are two scenarios where you'll want to iterate your plan as part of your strategy evaluation—one being significantly more positive than the other:

Scenario 1: When you achieve your goals

In an ideal world, your plan evolves because you've successfully checked off some or all of your strategic goals. Your plan isn't set in stone; it's flexible and can take unexpected turns.

For instance, you might reach certain goals much earlier than anticipated. When that happens, you shouldn't wait around for the entire plan to play out. Instead:

• If you've met all your goals, it's time to ask if your broader focus area is complete. If not, it's time for new goals within that focus area.
• Or, if you've successfully nailed all your focus areas, it's time to ponder if you're closer to your vision. If not, new focus areas should come into play.

Scenario 2: When you fall short of your goals

Now, let's consider a different scenario, where you didn't quite hit all your goals. But here's the thing: just because you missed a goal doesn't automatically mean you need to take immediate corrective action.

One of the key outcomes of effective strategy evaluations is the recalibration of Key Performance Indicators (KPIs).

Going back to the example in step 1 , let’s say that EcoWise effectively launched 5 new products, but this did not effectively translate into them gaining significant market share (which was the key metric they were aiming for).  

In this case, it suggests the original KPI might not have been quite right. But you wouldn't have known that without either the KPI in the first place or the process of strategic evaluation.

The platform allows for a flexible setup of your strategy to easily make changes to the plan if needed after the insights learned from your strategic evaluation process. By providing full visibility, your teams and other stakeholders will be aware of the changes in real-time!

Step 6: Celebrate successes

We've saved the most fun part of the strategy evaluation process for last—celebrating success.

Given that your strategy will never ‘finish,’ it’s important to celebrate the successes along the way to keep your teams motivated and engaged. The first time you achieve a KPI or even focus areas— enjoy it!

Celebrating the success of a strategic goal is not only great for morale, but it also sends a strong message that the execution of the plan really really matters .

Strategy Evaluation Framework Example

Let's imagine how a supply chain company could tackle the evaluation of its quarterly supply chain plan:

• KPIs analysis : First, they examine their KPIs to decipher which goals they've attained and which ones are still a work in progress.
• Team performance report : The teams get to work on crafting performance reports, offering insights into their achievements and areas requiring additional focus.
• Further analysis : When certain KPIs fall short, they conduct a deeper analysis to uncover the root causes of these performance gaps. In some cases, they even realize that the initial KPIs might not have been the best fit.
• KPI evolution : If they’ve successfully met a KPI, they adapt and introduce a new one to further advance toward key business metrics.
• Evolving the plan : With insights and learnings from their strategy evaluation, they refine their strategic plan, making tweaks and adjustments as needed.

Centralized Observability: The Key To Effective Strategy Evaluation

In the realm of strategic business management, the journey to success is all about adaptability, evolution, and continuous improvement. A pivotal aspect of this journey is the capability to gain a holistic, centralized view of your strategy.

Centralized observability plays a pivotal role in successful strategy evaluation, empowering organizations to:

• Monitor KPIs and goals in real time.
• Understand how teams work together toward achieving the overarching business goals.
• Quickly spot areas that may need adjustments.
• Foster a culture of transparency and accountability, as teams can see how their efforts impact the broader strategy.

This unified perspective simplifies the process of assessing strategy effectiveness and provides invaluable insights for more effective decision-making.

This is where Cascade , the world’s leading Strategy Execution Platform , comes into play as your strategic ally. Cascade enables centralized observability by offering key features for goal management, performance tracking, and strategy alignment. It streamlines the strategy evaluation process, providing real-time data for confident decision-making.

Discover how Cascade can help! Sign up today for free or book a guided 1:1 product tour with one of Cascade’s in-house strategy execution experts.

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Business Plan Evaluation

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What is Business Plan Evaluation?

A business plan evaluation is a critical process that involves the assessment of a business plan to determine its feasibility, viability, and potential for success. This process is crucial for entrepreneurs, investors, and other stakeholders as it helps them make informed decisions about the business. The evaluation process involves analyzing various aspects of the business plan, including the business model, market analysis, financial projections, and management team.

The purpose of a business plan evaluation is to identify strengths and weaknesses in the plan, assess the feasibility of the business idea, evaluate the potential for profitability, and determine the likelihood of achieving the business objectives. The evaluation process also helps identify areas where improvements can be made to enhance the chances of success. This process is particularly important for solopreneurs who are solely responsible for the success or failure of their business.

Importance of Business Plan Evaluation

The evaluation of a business plan is an essential step in the business planning process. It provides an opportunity for the entrepreneur to critically examine their business idea and identify potential challenges and opportunities . The evaluation process also provides valuable insights that can help improve the business plan and increase the chances of success.

For investors, a business plan evaluation is a crucial tool for risk assessment. It allows them to assess the viability of the business idea, the competence of the management team, and the potential for return on investment. This information is vital in making investment decisions.

For Solopreneurs

For solopreneurs, the evaluation of a business plan is particularly important. As they are solely responsible for the success or failure of their business, it is crucial that they thoroughly evaluate their business plan to ensure that it is feasible, viable, and has the potential to be profitable.

The evaluation process can help solopreneurs identify potential challenges and opportunities, assess the feasibility of their business idea, and determine the likelihood of achieving their business objectives. This information can be invaluable in helping them make informed decisions about their business.

For Investors

Investors use the evaluation process to determine whether or not to invest in a business. They look at various aspects of the business plan, including the business model, market analysis, financial projections, and management team, to assess the potential for success. If the evaluation reveals that the business plan is solid and has a high potential for success, the investor may decide to invest in the business.

Components of a Business Plan Evaluation

A business plan evaluation involves the analysis of various components of the business plan. These components include the executive summary, business description, market analysis, organization and management, product line or service, marketing and sales, and financial projections.

Each of these components plays a crucial role in the overall success of the business, and therefore, they must be thoroughly evaluated to ensure that they are realistic, achievable, and aligned with the business objectives.

Executive Summary

The executive summary is the first section of a business plan and provides a brief overview of the business. It includes information about the business concept, the business model, the target market, the competitive advantage, and the financial projections. The executive summary is often the first thing that investors read, and therefore, it must be compelling and persuasive.

In the evaluation process, the executive summary is assessed to determine whether it clearly and concisely presents the business idea and the plan for achieving the business objectives. The evaluator also assesses whether the executive summary is compelling and persuasive enough to attract the attention of investors.

Business Description

The business description provides detailed information about the business. It includes information about the nature of the business, the industry, the business model, the products or services, and the target market. The business description also provides information about the business's competitive advantage and how it plans to achieve its objectives.

In the evaluation process, the business description is assessed to determine whether it provides a clear and comprehensive description of the business. The evaluator also assesses whether the business description clearly outlines the business's competitive advantage and how it plans to achieve its objectives.

Methods of Business Plan Evaluation

There are several methods that can be used to evaluate a business plan. These methods include the SWOT analysis, the feasibility analysis, the competitive analysis, and the financial analysis. Each of these methods provides a different perspective on the business plan and can provide valuable insights into the potential for success.

It's important to note that no single method can provide a complete evaluation of a business plan. Therefore, it's recommended to use a combination of these methods to get a comprehensive understanding of the business plan.

SWOT Analysis

SWOT analysis is a strategic planning tool that is used to identify the strengths, weaknesses, opportunities, and threats related to a business. This method involves examining the internal and external factors that can affect the success of the business.

In the evaluation process, a SWOT analysis can provide valuable insights into the potential for success of the business. It can help identify the strengths and weaknesses of the business plan, as well as the opportunities and threats in the market.

Feasibility Analysis

A feasibility analysis is a process that is used to determine whether a business idea is viable. This method involves assessing the practicality of the business idea and whether it can be successfully implemented.

In the evaluation process, a feasibility analysis can provide valuable insights into the feasibility of the business plan. It can help determine whether the business idea is practical and whether it can be successfully implemented.

In conclusion, a business plan evaluation is a critical process that involves the assessment of a business plan to determine its feasibility, viability, and potential for success. This process is crucial for entrepreneurs, investors, and other stakeholders as it helps them make informed decisions about the business.

The evaluation process involves analyzing various aspects of the business plan, including the business model, market analysis, financial projections, and management team. The purpose of a business plan evaluation is to identify strengths and weaknesses in the plan, assess the feasibility of the business idea, evaluate the potential for profitability, and determine the likelihood of achieving the business objectives.

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• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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What is management by objectives (MBO)?

Effective Business Evaluation: A Comprehensive Guide

At its core, business evaluation involves a systematic assessment of various aspects of a company’s operations, financial health, and market presence. It encompasses the collection and analysis of data from multiple sources, enabling decision-makers to gain a comprehensive view of their organization. The benefits of business evaluation are multi-fold, ranging from enhanced operational efficiency and optimized resource allocation to the identification of potential risks and the formulation of effective growth strategies. By harnessing the insights derived from business evaluation, companies can position themselves for long-term success in an ever-evolving business landscape.

Business evaluation stands as a pivotal practice that enables companies to navigate the complex challenges of today’s business world. It provides a structured framework for critically analyzing a company’s performance and making well-informed decisions based on tangible data and insights. As markets evolve, consumer behaviors shift, and technologies advance, businesses must adapt and evolve to remain competitive. Business evaluation equips leaders with the tools they need to understand their current position, identify areas for improvement, and capitalize on emerging opportunities.

Essential Data Collection and Analysis

Importance of accurate data for evaluation.

Accurate and reliable data serve as the bedrock upon which informed decisions are built. Whether it’s assessing financial performance, gauging operational efficiency, or identifying market trends, the quality of data directly impacts the validity of evaluation outcomes. Inaccurate or outdated data can lead to flawed conclusions and misguided strategies, potentially hindering a company’s growth trajectory. Therefore, meticulous attention to data accuracy, validity, and relevance is paramount in ensuring the effectiveness of the evaluation process.

Types of Data: Financial, Operational, Market

Successful business evaluation necessitates the collection and analysis of a diverse range of data. Financial data, including income statements, balance sheets, and cash flow statements, offer insights into a company’s fiscal health and profitability. Operational data delves into the efficiency and effectiveness of internal processes, shedding light on potential bottlenecks and areas for improvement. Market data, encompassing customer behavior, competitive landscape, and industry trends, provides a holistic view of the external forces shaping a business’s environment. By combining these different data streams, decision-makers can develop a comprehensive understanding of their organization’s strengths and vulnerabilities.

Analyzing Financial Health

The financial health of a business serves as a critical barometer of its overall well-being and potential for growth. This section delves into the key concepts and methods involved in assessing a company’s financial performance, equipping you with the tools to dissect financial statements, interpret key ratios, and draw meaningful conclusions.

Key Financial Ratios

Financial ratios are fundamental tools that enable decision-makers to gain insights into various aspects of a company’s financial health. Liquidity ratios, such as the current ratio and quick ratio, assess a company’s ability to meet short-term obligations. Solvency ratios, including the debt-to-equity ratio and interest coverage ratio, shed light on the company’s long-term financial stability and its capacity to manage debt. Profitability ratios, such as gross profit margin and net profit margin, provide insights into the company’s ability to generate profits from its operations. Efficiency ratios, including inventory turnover and receivables turnover, gauge the effectiveness of resource utilization.

Evaluating Liquidity, Solvency, and Profitability

Liquidity ratios help determine a company’s ability to cover its short-term liabilities, ensuring smooth day-to-day operations and financial stability. Solvency ratios, on the other hand, provide insights into the company’s capacity to manage long-term debt and meet its obligations over time. These ratios play a pivotal role in evaluating the company’s financial risk and its ability to weather economic downturns. Profitability ratios reveal how efficiently the company generates profits relative to its revenue and costs, indicating its potential for sustained growth and value creation.

Operational Efficiency

Operational efficiency is a critical driver of a company’s success and competitive advantage. This section explores the essential components of operational evaluation, guiding you through the process of identifying bottlenecks, optimizing workflows, and enhancing overall efficiency to propel your business forward.

Process Bottlenecks and Inefficiencies

Every business consists of a complex web of processes, from production and supply chain management to customer service and administrative tasks. Identifying bottlenecks and inefficiencies within these processes is key to streamlining operations and maximizing productivity. Bottlenecks, where resources are constrained and processes slow down, can hinder timely delivery and customer satisfaction. Uncovering these bottlenecks requires a thorough examination of workflows, resource allocation, and potential chokepoints.

Operational Improvements and Overall Performance

Efficiency improvements in specific operational areas have a cascading effect on the overall performance of the company. Optimizing processes not only enhances productivity but also reduces costs, shortens lead times, and improves the quality of products or services. Moreover, streamlined operations free up valuable resources that can be redirected toward innovation and growth initiatives. By connecting operational improvements to broader business goals, you create a virtuous cycle of continuous enhancement.

SWOT Analysis for Strategic Insights

A SWOT analysis stands as a powerful tool for gaining a comprehensive understanding of your business’s internal strengths, weaknesses, as well as external opportunities and threats. This section will guide you through the process of conducting a SWOT analysis, enabling you to unearth valuable insights that can shape your strategic decisions and pave the way for growth.

Exploring Internal Strengths and Weaknesses

Internal factors form the core of a SWOT analysis, encompassing the strengths and weaknesses inherent to your organization. Strengths are the attributes and capabilities that give your business a competitive edge – it could be a strong brand, a dedicated workforce, or proprietary technology. Conversely, weaknesses are areas where your business may lag – perhaps limited resources, outdated processes, or a lack of expertise. Identifying these internal factors provides a clear picture of your company’s current standing and where it can improve.

Identifying External Opportunities and Threats

External factors involve the opportunities and threats presented by the broader business environment. Opportunities are trends, market shifts, or emerging technologies that you can capitalize on to propel your business forward. Threats, on the other hand, encompass external forces like competition, regulatory changes, or economic fluctuations that could potentially hinder your progress. By identifying these external factors, you gain a holistic view of the challenges and possibilities that lie ahead.

Informed Decision-Making and Continuous Improvement

The insights derived from a comprehensive business evaluation serve as a compass that guides decision-makers through the complex landscape of choices and possibilities. When faced with critical decisions such as resource allocation, expansion strategies, or new product launches, the data-driven insights from evaluation provide a solid foundation upon which to build informed choices. By minimizing guesswork and relying on objective analysis, decision-makers can enhance the likelihood of positive outcomes and mitigate potential risks.

Business evaluation is not a one-time event, but rather an ongoing practice that fuels continuous improvement. As markets evolve, consumer preferences shift, and technologies advance, businesses that remain stagnant risk falling behind. Embracing a culture of ongoing evaluation enables companies to adapt swiftly to changing circumstances, capitalize on emerging opportunities, and address evolving challenges proactively. By regularly assessing performance, identifying areas for enhancement, and fine-tuning strategies, businesses position themselves for sustained growth and resilience.

Key TakeAway

Harnessing the power of business evaluation.

The knowledge acquired through business evaluation is not meant to reside within spreadsheets and reports; it is meant to inform action. By translating evaluation insights into strategic initiatives, you can harness your company’s strengths, address its weaknesses, and seize the opportunities that lie on the horizon. Whether it’s optimizing operations, exploring new markets, or refining customer experiences, the data-driven approach derived from evaluation serves as the bedrock of strategic success.

The business landscape is a dynamic arena, subject to shifts and transformations. To thrive in this environment, businesses must embrace the ethos of continuous improvement. Ongoing business evaluation becomes the cornerstone of this philosophy, enabling you to stay nimble, responsive, and attuned to emerging trends and challenges. Just as a ship’s captain adjusts the sails to navigate changing winds, so too must businesses adapt their strategies based on the insights garnered from constant evaluation.

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• Comprehensive Guide to Developing a Robust Monitoring and Evaluation Plan in 13 Steps
• Learning Center

Developing a Monitoring and Evaluation Plan can be a complex process. These general steps can help get you started: Define your project, identify key performance indicators, set targets, determine data collection methods, establish a timeline, analyze and interpret data, use findings to inform future decisions, and more steps. Creating a solid Monitoring and Evaluation Plan can help ensure project success and improve resource allocation. Let’s get started!

Table of contents

Step 1 Identify your evaluation audience or stakeholders 

Step 2 identify program goals and objectives, step 3 define the evaluation questions.

• Step 4 Developing Evaluation Objectives
• Step 5 Identify monitoring Questions

Step 6 Define Indicators to Include in Evaluation Plan

Step 7 define data collection methods and timeline – creating a methodology, step 8 identify m&e roles and responsibilities.

• Step 9 Identify who is responsible for data collection and timelines

Step 10 Create an Analysis Plan and Reporting Templates

Step 11 review the m&e plan, step 12 implementing and monitoring the evaluation plan.

• Step 13 Using Results to Make Informed Decisions ( Plan for Dissemination and Donor Reporting)

The audience or stakeholders for an evaluation can vary depending on the program or project being evaluated. However, some common stakeholders that may be involved in an evaluation include:

• Program managers and staff: Program managers and staff are responsible for implementing the program and are often the primary users of evaluation findings. They may use evaluation findings to make program adjustments or improvements, and to report on program progress to other stakeholders.
• Funders: Funders are often the primary source of funding for a program and may require evaluations to ensure that the program is meeting its intended goals and outcomes. Evaluation findings can be used to inform funding decisions and may be included in funding reports or proposals.
• Beneficiaries: Beneficiaries are the individuals or communities that are directly impacted by the program. Their perspectives and feedback are important in evaluating the effectiveness of the program and can help to identify areas for improvement.
• Other stakeholders: Other stakeholders may include partners, collaborators, policymakers, and the broader community. They may have an interest in the program and its outcomes and may use evaluation findings to inform their own work or decision-making.

It is important to consider the needs and perspectives of all stakeholders when conducting an evaluation. Evaluation findings should be communicated in a way that is clear and accessible to all stakeholders and should be used to inform decision-making and improve program effectiveness.

Program goals and objectives are critical components of a program design and evaluation. Program goals are broad statements that describe the overarching purpose or intended outcome of the program. Objectives, on the other hand, are more specific and measurable statements that describe the steps that will be taken to achieve the program goals.

Here are some examples of program goals and objectives:

Program Goal: To improve access to clean water in rural communities.

Program Objectives:

• To install 50 new water filtration systems in rural communities by the end of the year.
• To provide training on water sanitation and hygiene practices to 500 community members by the end of the year.

Program Goal: To reduce food insecurity in the local community.

• To establish a community garden program that will provide fresh produce to 100 families by the end of the year.
• To distribute food baskets to 200 families in need each month.

Program Goal: To improve academic performance of at-risk students.

• To provide after-school tutoring services to 50 at-risk students each week.
• To increase the graduation rate of at-risk students by 10% within the next 2 years.

Program Goal: To increase access to healthcare services in underserved communities.

• To establish 3 new health clinics in underserved communities within the next 3 years.
• To provide health education and screening services to 500 community members within the next year.

Program goals and objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). These criteria help to ensure that the program is focused, achievable, and measurable, and that progress towards the goals and objectives can be tracked and evaluated.

Key questions to be asked to determine if an M&E plan is working include the following:

• Are the M&E activities progressing as planned?
• Are M&E questions being answered sufficiently? Are other data needed to answer these questions? How can such data be obtained?
• Should the M&E questions be re-framed? Have other M&E questions arisen that should be incorporated into the plan?
• Are there any methodological or valuation design issues that need to be addressed? Are there any practical or political factors that need to be considered?
• Are any changes in the M&E plan needed at this time? How will these changes be made? Who will implement them?
• Are appropriate staff and funding still available to complete the evaluation plan?
• How are findings from M&E activities being used and disseminated? Should anything be done to enhance their application to programs?

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 Step 4 – Developing Evaluation Objectives

Developing evaluation objectives is a critical step in creating a comprehensive monitoring and evaluation plan. Evaluation objectives specify what the evaluation will assess and define the criteria for success.

Evaluation objectives should be aligned with the project’s overall goals and objectives, and they should be specific, measurable, achievable, relevant, and time-bound.

Sure, here are some examples of evaluation objectives as a step in the development of a monitoring and evaluation plan:

• Specific: To assess the effectiveness of a new training program by measuring the increase in job performance and knowledge among participants.
• Measurable: To determine the impact of a community development project by measuring the increase in access to essential services such as healthcare, education, and clean water among the target population.
• Achievable: To increase website traffic by 20% within six months by optimizing website content and implementing a targeted digital marketing campaign.
• Relevant: To improve employee retention by 15% within one year by implementing new professional development opportunities and increasing employee engagement.
• Time-bound: To reduce customer complaints by 25% within the next quarter by improving customer service response times and implementing a customer feedback system.

These are just a few examples of evaluation objectives, and they can be adapted to fit the specific needs and goals of each project or program.

By developing SMART evaluation objectives as a step in the development of a monitoring and evaluation plan, you can ensure that the evaluation process is focused, achievable, and aligned with the project’s overall goals and objectives. This will help ensure that the monitoring and evaluation plan is effective in assessing progress and providing valuable insights for project improvement and decision-making..

Step 5 Identify the monitoring questions

Monitoring questions are an important part of any project, as they help to ensure that the project is moving forward in the right direction. In the case of a project to improve customer service, the monitoring questions might include:

• How satisfied are customers with the current level of service?
• What areas need improvement?
• What resources are available to support customer service improvement?
• What processes are in place to ensure customer service is consistently meeting customer needs?
• What metrics are being used to measure customer service performance?

These questions will help to identify areas for improvement, and provide guidance on how to best implement changes. By regularly monitoring these questions, the project team can ensure that customer service is always improving and meeting customer needs.

Indicators are specific, measurable variables or metrics that can be used to assess progress towards achieving the objectives of a project or program. In an evaluation plan, indicators are essential components that help determine whether a project is achieving its intended outcomes and objectives. To define indicators to include in an evaluation plan, follow these steps:

• Identify the objectives of the project: Review the project’s goals and objectives to determine what specific outcomes the project is intended to achieve.
• Determine the data needed to measure progress: Identify the data needed to assess progress towards achieving each objective.
• Develop measurable indicators: Develop specific, measurable indicators that will allow you to track progress towards achieving each objective.
• Ensure that the indicators are relevant: Ensure that the indicators selected are relevant to the objectives of the project and that they provide meaningful information that can be used to inform decision-making.
• Consider data availability and collection methods: Ensure that data is available for the selected indicators and that collection methods are practical and cost-effective.
• Establish a baseline: Establish a baseline measurement for each indicator to determine the starting point for tracking progress.

Here are some examples of indicators that could be included in an evaluation plan:

Program Objective: To install 50 new water filtration systems in rural communities by the end of the year.

Indicators:

• Number of water filtration systems installed
• Number of community members with access to clean water
• Water quality tests results

Program Objective: To establish a community garden program that will provide fresh produce to 100 families by the end of the year.

• Number of families participating in the community garden program
• Number of pounds of fresh produce harvested
• Number of families reporting improved food security

Program Objective: To provide after-school tutoring services to 50 at-risk students each week.

• Number of at-risk students attending tutoring sessions
• Average increase in grades of at-risk students
• Percentage of at-risk students passing core subjects

Program Objective: To establish 3 new health clinics in underserved communities within the next 3 years.

• Number of new health clinics established
• Number of community members served by the new health clinics
• Number of community members reporting improved access to healthcare services

Overall, it is important to choose indicators that are meaningful, measurable, and aligned with program goals and objectives. This will help to ensure that the evaluation is able to accurately assess program effectiveness and identify areas for improvement.

By defining indicators to include in an evaluation plan, you can ensure that the evaluation process is focused and effective in providing valuable insights for project improvement and decision-making.

Creating a methodology is a crucial step in developing a monitoring and evaluation plan. In this step, you define the data collection methods and timeline for the evaluation. To do this, you need to identify the data that needs to be collected to assess progress towards achieving each objective. Then, you can select appropriate data collection methods that are appropriate for the data being collected and the resources available. Common methods include surveys, interviews, focus groups, observation, and document review.

Once you have identified the data and the appropriate data collection methods, you can establish a timeline for data collection and evaluation that aligns with the project’s overall timeline and key milestones. This timeline should be realistic and consider the availability of resources and the time required to collect and analyze the data.

It is also important to assign responsibility for each aspect of the methodology, including data collection, analysis, and reporting. You should ensure that the individuals responsible have the necessary skills, resources, and support to carry out their assigned tasks effectively.

To ensure data quality, you should develop strategies to ensure that data is accurate, reliable, and valid, and that any biases or errors are minimized. Establishing a baseline measurement for each indicator is crucial to determine the starting point for tracking progress.

By creating a methodology that defines data collection methods and timeline, you can ensure that the monitoring and evaluation plan is effective in assessing progress and providing valuable insights for project improvement and decision-making.

This step involves defining the roles and responsibilities of individuals or teams involved in the monitoring and evaluation process to ensure that everyone knows what is expected of them.

To begin, it is important to identify the key stakeholders involved in the project and determine their respective roles and responsibilities in the M&E process. This includes identifying the project manager or coordinator, data collectors, data analysts, and decision-makers who will use the M&E findings to inform project decisions.

Once the stakeholders have been identified, it is necessary to define their specific roles and responsibilities. For example, the project manager or coordinator may be responsible for overall project management and ensuring that the M&E plan is implemented as intended. Data collectors may be responsible for collecting and managing data, while data analysts may be responsible for analyzing and interpreting data. Decision-makers may be responsible for using the M&E findings to inform project decisions.

It is also important to establish communication channels and protocols for sharing information and M&E findings among stakeholders. This includes defining the frequency and format of progress reports, as well as procedures for addressing any issues or challenges that arise during the M&E process.

By identifying M&E roles and responsibilities, you can ensure that everyone involved in the monitoring and evaluation process understands their roles and responsibilities, which helps to ensure the effective implementation of the M&E plan and the project’s success.

Step 9 Identify who is Responsible for Data Collection and Timelines

This step involves determining the individuals or teams responsible for collecting and managing the data required to assess progress towards achieving project objectives, as well as defining the timelines for data collection.

To identify who is responsible for data collection, it is important to review the project goals and objectives and determine what data needs to be collected to assess progress. The individuals or teams responsible for data collection may include project staff, external consultants, or other stakeholders with relevant expertise.

Once the individuals or teams responsible for data collection have been identified, it is necessary to establish a timeline for data collection that aligns with the project’s overall timeline and key milestones. This timeline should be realistic and consider the availability of resources and the time required to collect and analyze the data.

In addition to establishing a timeline, it is also important to define the specific data collection methods that will be used and ensure that those responsible for data collection have the necessary resources and support to carry out their assigned tasks effectively. This may include providing training on data collection methods, ensuring access to necessary equipment or software, and establishing protocols for data management and quality control.

By identifying who is responsible for data collection and timelines, you can ensure that data is collected in a timely and efficient manner, which is crucial for the effective implementation of the M&E plan and the success of the project.

This step involves determining how data will be analyzed and reported, including the selection of appropriate methods and the development of reporting templates to ensure that data is presented in a clear and concise manner.

To create an analysis plan, it is important to review the project objectives and identify the key performance indicators that will be used to assess progress. This will help determine what data needs to be analyzed and what statistical methods will be used to analyze the data. The analysis plan should include a detailed description of the statistical methods that will be used, including any assumptions or limitations associated with these methods.

Once the analysis plan has been developed, it is necessary to create reporting templates to ensure that data is presented in a clear and concise manner. Reporting templates should include the key performance indicators and the specific data that will be reported, as well as any graphs, charts, or tables that will be used to present the data. Reporting templates should be designed to provide a clear picture of progress towards achieving project objectives, and should be easy to read and understand.

It is also important to establish protocols for data sharing and reporting to ensure that data is shared in a timely and effective manner. This may include establishing a timeline for reporting, identifying the stakeholders who will receive the reports, and determining the format and level of detail required for each report.

By creating an analysis plan and reporting templates, you can ensure that data is analyzed and reported in a systematic and standardized manner, which is crucial for the effective implementation of the M&E plan and the success of the project.

This step involves a comprehensive review of the M&E plan to ensure that it is aligned with the project’s overall goals and objectives, and that it is practical and feasible to implement.

To review the M&E plan, it is necessary to first review the project’s goals and objectives and ensure that the M&E plan is aligned with these. This includes reviewing the performance indicators and ensuring that they are relevant, measurable, and appropriate for tracking progress towards achieving project objectives.

Next, it is necessary to review the data collection methods and analysis plan to ensure that they are practical and feasible to implement. This includes reviewing the data collection timeline, the individuals or teams responsible for data collection, and the resources required to collect and manage the data.

In addition to reviewing the M&E plan itself, it is also important to review the communication and reporting protocols to ensure that they are effective and efficient. This may include reviewing the reporting templates, the stakeholders who will receive the reports, and the frequency and format of progress reports.

Overall, the goal of reviewing the M&E plan is to ensure that it is practical, feasible, and effective in assessing progress towards achieving project objectives. This step is critical for the success of the project, as it ensures that the M&E plan is aligned with the project’s overall goals and objectives and that it is designed to provide valuable insights for project improvement and decision-making.

This step involves carrying out the data collection, analysis, and reporting activities defined in the M&E plan, as well as monitoring progress towards achieving project objectives.

To implement the evaluation plan, it is necessary to follow the protocols and procedures defined in the M&E plan. This may include assigning responsibilities to individuals or teams involved in data collection, analysis, and reporting, and providing training and support as needed.

Monitoring progress towards achieving project objectives involves tracking the performance indicators defined in the M&E plan and comparing them to the baseline measurements to determine progress. This may involve conducting regular progress reports and reviewing data for any trends or issues that may require further attention.

Throughout the implementation and monitoring of the evaluation plan, it is important to maintain open lines of communication among stakeholders and to address any issues or challenges that arise in a timely manner. This may involve revising the M&E plan as needed to ensure that it remains aligned with project objectives and is effective in assessing progress towards achieving them.

Overall, implementing and monitoring the evaluation plan is critical for the success of the project, as it provides valuable insights for project improvement and decision-making. By following the protocols and procedures defined in the M&E plan and monitoring progress towards achieving project objectives, you can ensure that the project is on track to achieve its intended outcomes and objectives.

Step 13 Using Results to Make Informed Decisions

Using results to make informed decisions is a critical step in the monitoring and evaluation process. This step involves analyzing the data collected through the evaluation plan and using it to make informed decisions about the project’s future direction. It also involves disseminating the findings to relevant stakeholders, including donors, to demonstrate the project’s impact and to inform future funding decisions.

To plan for dissemination and donor reporting, it is important to first analyze the data collected through the evaluation plan and identify the key findings and insights. This includes identifying any successes or areas for improvement and determining what actions can be taken to address these.

Once the key findings have been identified, it is necessary to develop a plan for disseminating the findings to relevant stakeholders. This may include developing reports, presentations, or other materials that summarize the key findings and insights in a clear and concise manner. It may also involve identifying the stakeholders who will receive the findings and determining the best way to reach them.

In addition to disseminating the findings, it is important to report the results to donors to demonstrate the project’s impact and to inform future funding decisions. This may involve developing donor reports that summarize the key findings and insights and provide an overview of the project’s progress towards achieving its objectives.

Overall, using results to make informed decisions is critical for the success of the project, as it ensures that the project is on track to achieve its intended outcomes and objectives. By planning for dissemination and donor reporting, you can demonstrate the project’s impact and ensure that it receives continued support from donors and other stakeholders.

To Conclude

The 13 steps outlined in this article provide a comprehensive framework for developing a robust monitoring and evaluation plan that can effectively assess progress towards achieving project objectives and provide valuable insights for project improvement and decision-making.

Key steps in developing a monitoring and evaluation plan include defining the purpose and scope of the evaluation, identifying stakeholders and their roles and responsibilities, developing SMART evaluation objectives, identifying indicators to measure progress, defining data collection methods and timelines, creating an analysis plan and reporting templates, reviewing the M&E plan, implementing and monitoring the evaluation plan, using results to make informed decisions, planning for dissemination, and donor reporting.

By following these steps, organizations can ensure that their monitoring and evaluation plans are practical, feasible, and effective in assessing progress towards achieving project objectives. Additionally, the insights gained from monitoring and evaluation can help to inform decision-making and improve project outcomes, leading to greater success and impact. Ultimately, investing in monitoring and evaluation is crucial for any organization that wants to achieve its goals and have a meaningful impact in the world.

In conclusion, it’s important to remember that no plan will be effective without the right monitoring and evaluation strategies in place. Without an effective plan, you won’t be able to track the progress of your project or measure its success. Take the time to plan out your monitoring and evaluation plan, as this will help ensure that your project is successful and that it meets the desired outcomes.

Simana KONE

Very hepfull and great usefull tool

Santo Obina

This is helpful and a resourceful tool

Fation Luli

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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What Is Business Development?

• Business Development Basics
• Areas of Development
• Business Development Process
• Creating a Plan
• Skills Needed

The Bottom Line

• Small Business
• How to Start a Business

Business Development: Definition, Strategies, Steps, and Skills

Why more and more companies worldwide are embracing this planning process

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills CURRENT ARTICLE
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

10'000 Hours / Getty Images

Business development is the process of planning for future growth by identifying new opportunities, forming partnerships, and adding value to a company. It involves understanding the target audience, market opportunities, and effective outreach channels to drive success.

Business development may involve objectives around sales growth, business expansion, strategic partnerships, and increased profitability. The process impacts every department, including sales, marketing, manufacturing, human resources, accounting, finance, product development, and vendor management.

Key Takeaways

• The overarching goal of business development is to make a company more successful.
• It can involve many objectives, such as sales growth, business expansion, the formation of strategic partnerships, and increased profitability.
• The process impacts every department, including sales, marketing, manufacturing, human resources, accounting, finance, product development, and vendor management.
• Business development leaders and team members need a diverse range of both soft and hard skills to meet these objectives.

How Business Development Works

Business development strives to increase an organization’s capabilities and expand its reach to achieve financial and strategic goals. This process can significantly impact various departments within the organization, utilizing their specialized skills to drive growth.

Business development serves as the thread connecting all of a company’s functions or departments. It helps a business grow and improve in areas such as sales, revenue, product offerings, talent acquisition, customer service, and brand awareness.

Business development encourages teamwork and strategic planning across all departments, ensuring that the organization grows cohesively and sustainably.

Sales and Marketing

Sales personnel often concentrate on specific markets or clients, aiming to achieve targeted revenue numbers. For example, a business development team might assess the Brazilian market and determine that $1.5 billion in sales is achievable within three years. With this goal, the sales department develops strategies to target the new market’s customer base .

Business development often requires a longer-term approach than traditional sales strategies. The Society for Marketing Professional Services describes sales as akin to hunting, while business development is more like farming—a long-term investment of time and energy without immediate payoff.

Marketing supports sales by promoting and advertising the company’s products and services. A business development leader and their team can help set appropriate budgets based on the opportunities involved.

Higher budgets enable aggressive strategies like cold calling , personal visits, roadshows, and free sample distribution. Lower budgets tend to focus on more passive strategies, such as online, print, and social media ads, as well as billboard advertising.

Legal and Finance

To enter a new market, a business development team must decide whether to go solo by navigating all required legal formalities or to form a strategic alliance or partnership with firms already operating in that market. Assisted by legal and finance teams, the business development group weighs the pros and cons of each option and chooses the one that best serves the business.

Finance may also become involved in cost-cutting initiatives. Business development is not just about increasing market reach and sales, but also about improving the bottom line.

For example, suppose an internal assessment reveals high spending on corporate business travel. In that case, the team may change travel policies such as hosting videoconference calls instead of on-site meetings or opting for less expensive transportation modes. The outsourcing of noncore work, such as billing, technology operations, or customer service, may also be part of a development plan.

Project Management/Business Planning

International business expansion involves critical decisions about whether to establish a new facility in the target market or manufacture products in the base country and import them. If opting for the latter, it may also require assessing the need for an additional facility in the base country.

The business development team evaluates and finalizes such decisions based on cost and time assessments. Once a decision is made, the project management and implementation team can begin working on the desired goal.

Product Management and Manufacturing

Regulatory standards and market requirements can vary across regions and countries. For example, a medication permitted in India may not be allowed in the United Kingdom. This can necessitate a customized or entirely new product for the new market.

Almost all countries require specific documentation and have regulations that must be met to ensure the safety, quality, and conformity of imported products.

These requirements drive the work of product management and manufacturing departments, which are influenced by the business strategy. Cost considerations, legal approvals, and regulatory compliance are all critical aspects assessed during the development process.

Vendor Management

Will the new business need external vendors ? For example, will shipping require a dedicated courier service, or will the company partner with an established retail chain for sales? What are the costs associated with these partnerships?

The business development team collaborates with relevant internal departments to address these questions and determine the best strategies for external engagements.

10 Potential Areas for Business Development

Business development often requires employees from various departments to collaborate, facilitating information flow, strategic planning, and informed decision making. Here is a summary of potential areas where business development may be involved, depending on the organization:

• Market research and analysis : Identifying new market opportunities and developing effective strategies
• Sales and lead generation : Prospecting, qualifying leads, and coordinating with the sales team to convert leads into customers
• Strategic partnerships and alliances : Forming strategic alliances, joint ventures, or collaborations that create mutually beneficial opportunities
• Product development and innovation : Conducting market research, gathering customer feedback, and collaborating with internal teams to drive innovation
• Customer relationship management : Implementing customer retention initiatives and loyalty programs, and gathering customer feedback, to enhance satisfaction and drive repeat business
• Strategic planning and business modeling : Identifying growth opportunities, setting targets, and implementing strategies to achieve sustainable growth
• Mergers and acquisitions : Evaluating potential synergies, conducting due diligence , and negotiating and executing deals
• Brand management and marketing : Creating effective marketing campaigns, managing online and offline channels, and leveraging digital marketing techniques
• Financial analysis and funding : Exploring funding options, securing investments, or identifying grant opportunities
• Innovation and emerging technologies : Assessing the potential impact of disruptive technologies and integrating them into the organization’s growth strategies

The Business Development Process in 6 Steps

While the specific steps in the business development process will depend on the particular company, its needs and capabilities, its leadership, and its available capital, some common steps include:

Step 1: Market Research/Analysis

Begin by conducting comprehensive market research to gain insights into market trends, customer needs, and the competitive landscape. Analyze data and gather additional information to identify potential growth opportunities and understand market dynamics.

Step 2: Establish Clear Goals and Objectives

Leveraging that research, define specific objectives and goals for business development efforts. These goals could include revenue targets, market expansion goals, customer acquisition targets, and product or service development. Setting clear goals provides a focus and direction for the business development process.

Step 3: Generate and Qualify Leads

Use various sources, such as industry databases, networking , referrals, or online platforms, to generate a pool of potential leads. Identify individuals or companies that fit the target market criteria and evaluate them based on predetermined criteria to determine their suitability and potential value.

Step 4: Build Relationships and Present Solutions

Initiate contact with qualified leads and establish relationships through effective communication and engagement. Utilize networking events, industry conferences, personalized emails, or social media interactions to build trust and credibility.

As your relationship forms, develop and present tailored solutions that align with the client’s needs. Demonstrate the value proposition of the organization’s offerings and highlight key benefits and competitive advantages.

Step 5: Negotiate and Expand

Prepare and deliver proposals that outline the scope of work, pricing, deliverables, and timelines. Once the client agrees, collaborate with legal and other relevant internal teams to finalize and execute the contract to ensure all terms are clear and agreed upon. Maintain communication with the client throughout this process to address any questions or concerns.

Step 6: Continuously Evaluate

Continuously monitor and evaluate the effectiveness of business development efforts. Analyze performance metrics , gather feedback from clients and internal stakeholders, and identify areas for improvement. Regularly refine strategies and processes to adapt to market changes and optimize outcomes.

While it’s common for startup companies to seek outside assistance in developing the business, as a company matures, it should aim to build its business development expertise internally.

How to Create a Business Development Plan

To effectively create and implement a business development plan, the team needs to set clear objectives and goals—ones that are specific, measurable, achievable, relevant, and time-bound (SMART). You can align these objectives with the overall business goals of the company.

Companies often start by analyzing their current state through a  SWOT analysis , evaluating their strengths, weaknesses, opportunities, and threats. This helps identify target markets and customer segments and define a unique value proposition.

The external-facing stages of a business development plan are crucial. These stages should outline sales and marketing strategies to generate leads and convert them into customers. They should also explore potential strategic partnerships and alliances to expand reach, access new markets, or enhance offerings.

Teams should also conduct a financial analysis and resource planning to determine the resources needed for implementing the plan. Once implemented, progress should be tracked against the key performance indicators (KPIs) you’ve chosen to ensure the plan’s effectiveness.

Skills Needed for Business Development Jobs

Business development requires a wide range of hard and soft skills.

Leaders and team members in business development need well-honed sales and negotiation skills to interact with clients, understand their needs, and influence their decisions. They must build rapport, handle challenges, and close deals. Effective communication, both verbal and written, with customers and internal stakeholders, is crucial.

Business development specialists should be thoroughly aware of the market in which they operate and keep up with market dynamics, competitive activities, and industry developments. They need to identify potential opportunities, make informed decisions, and adjust strategies as necessary, requiring strong analytical skills.

Internally, business development practitioners must clarify priorities, set realistic deadlines, manage resources efficiently, and monitor progress to guarantee the timely completion of tasks.

Finally, business development professionals should conduct themselves with high ethical standards. They must maintain confidentiality, act legally and ethically, and build trust with customers and stakeholders.

Why Is Business Development Important?

In addition to its benefits to individual companies, business development is important for generating jobs, developing key industries, and keeping the economy moving forward.

What Are the Most Important Skills for Business Development Executives?

Development executives need to have leadership skills, vision, drive, and a willingness to work with a variety of people to get to a common goal.

How Can I Be Successful in Business Development?

Having a vision and putting together a good team are among the factors that help predict success in business development. A successful developer also knows how to write a good business plan, which becomes the blueprint to build from.

What, in Brief, Should a Business Development Plan Include?

A business development plan, or business plan , should describe the organization’s objectives and how it intends to achieve them, including financial goals, expected costs, and targeted milestones.

Business development is key to companies’ growth and achievement of their goals. It involves setting clear objectives, leveraging market research, forming strategic partnerships, and aligning efforts across all departments to drive success.

A well-executed business development plan not only supports short-term revenue growth but also ensures long-term sustainability. As companies across various industries increasingly recognize its importance, the role of business development continues to grow.

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Evaluation Plan

A proposal for a major project that outlines all necessary details needed for its implementation or development

What is an Evaluation Plan?

An evaluation plan is part of the planning for a project – the part that is related to deciding how the project will be monitored and assessed to determine the project’s success and effectiveness. An effective evaluation plan should show how the project will be monitored and how its objectives will be met.

To effectively complete or implement most projects, an evaluation plan is needed. There are two basic types of evaluation plans:

Formative Evaluation Plan

A formative evaluation plan is completed before or during the project. A formative evaluation has the following characteristics:

• Evaluates upcoming or continuing activities of a project
• Covers activities from development to implementation stages
• Contains reviews from principal investigators , evaluators, and governing committees

Summative Evaluation Plan

A summative evaluation plan “sums” up the project. As such, it is written at a project’s completion. A summative plan is characterized by having the following features:

• Evaluates whether the goals that were achieved are the goals that were set. If not, the evaluation should state the extent of the variation and the reasons for it.
• Contains the details of the outcomes and information obtained during the project.
• Reports the outcome of the project to the principal investigator of the project, evaluators, and any governing committees.

There are some common content elements that should be included in an evaluation plan regardless of whether it is classified as formative or summative. They are as follows:

• The project to be evaluated
• Purpose of evaluation
• Key evaluation questions
• Notation of methods used, including methods for collecting and analyzing all the necessary data
• The reports and reviews of the stakeholders and investors directly involved in the project
• Resources needed to fund and facilitate the project
• Expected findings and outcomes of the project, as well as the expected time of the final report

How to Write an Evaluation Plan

Before writing an evaluation plan for your business, it is advisable to consult prior plans to see if certain formats are preferred. In general, however, the plans should include methods such as interviews, administration of questionnaires, and consultation that will be carried out during the project. Other items include:

• Clear title – The recommended way of writing the title is that you should write it on a page of its own. The title page should contain a recognizable name of the project, dates of the project, and the general focus of the evaluation plan.
• Uses and Users of the Evaluation Plan – It is essential to describe the use of the evaluation plan clearly. For transparency and accountability, under this section, you should clearly show the users of the plan. Again, you should describe the involvement of stakeholders and the financiers of the project in this same section.
• Project Description – Under this section, the developer of the evaluation plan should critically assess and describe what the entire project is all about. Here, it is essential to state what the project focuses on achieving, and the process for evaluating how successfully the project met its goals.
• Methodology – In this section, an evaluation plan should clearly state the methods that will be used to collect data, expected data sources, and the roles and responsibilities of each participant in the project. This is the section that should also describe which methods will be used to ensure that the project is completed successfully.
• Analysis – This section contains a thorough analysis of the project. It will show findings and reasons for any unexpected outcomes. It may also contain data analyses done before the projection’s completion and how it affected the project’s continuation.
• Sharing Plan – In most cases, the sharing plan section is often overlooked, despite the fact that it can play a major role. Toward the end of the plan, there should be a proper way of sharing evaluation findings. This section should also state how the findings and outcomes of the project will reach (be reported to) the involved stakeholders.

The Importance of an Evaluation Plan

• An evaluation plan is a valuable asset that can help ensure that a project runs smoothly. A well-documented plan states the roles of all participants in the project and the sources of all resources. This implies that there should be minimal delays. as everything should have been communicated ahead of time. Furthermore, if the plan clearly states the dates on which specific activities should take place, then the involved participants will be encouraged to be right on schedule.
• A good evaluation plan should cater to the smooth running of the project from its initial stages to its completion.
• An effective evaluation plan will also ensure better results in upcoming projects of the same nature.
• A well-documented evaluation plan enhances transparency and accountability. Involved participants, contractors, and stakeholders share the plan among themselves. The methodology section clearly outlines and describes how they obtained each finding and outcome.
• The practice of using evaluation plans should improve the success and effectiveness of projects undertaken by an organization. If the plans are well documented and filed, the organization can learn from previous projects and be able to better gauge the success of certain projects and project practices. The plans can also come in handy in helping the foundation or organization make critical decisions. This is because the information in the plan is not just gathered randomly – it is obtained after thorough research and evaluation of the project.
• A written evaluation plan is good for future references and for greater transparency and accountability.
• It is recommended that the data recorded in the plan be quantitative. However, the incorporation of both qualitative and quantitative data is important.
• Information in the evaluation plan describing the input, output, and activities of the project or program is vital. A table often makes it easier to obtain information at a glance.
• Be brief and straightforward in descriptions.
• It is advisable to keep the evaluation plan simple and concise. Information should be obtained from the plan with ease.

Additional Resources

CFI is a leading provider of  financial certifications and analyst training. To continue learning and advancing your career, these additional CFI resources will be helpful:

• Audit Materiality
• Due Diligence
• Payback Period
• Project Budget Template
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How to Evaluate a Business Plan

by Evangeline Marzec

Published on 16 Oct 2019

Whether you're an investor, an entrepreneur or a business skills teacher, you'll be exposed to a wide variety of business plans and should have a solid, somewhat standard approach to conducting a business plan assessment. Analyze each section individually, and then look at the plan as a whole to determine the viability of the business and the likelihood of its success in the manner proposed. Also consider the writing skills and attention to detail that went into formulating the plan.

Read and Understand the Executive Summary

The first step in a business plan assessment is reading the business' executive summary. This should be a concise "elevator pitch", not a summary of the business plan. In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity. The executive summary should excite you and make you want to turn to the next page. If it doesn't, the entrepreneur might lack marketing or writing skills, or it may indicate that the idea itself is not going to fly.

Analyze Opportunity in the Market

Evaluate the market opportunity. Ideally, the market should be growing at least 10% per year and have a substantial potential relative to the size of the business and investment. For example, a small company seeking an investment of $50,000 should see a potential market of $5 million.

The larger the potential market and the faster it is growing, the greater the opportunity in the market. Look to the exhibits and appendices to ensure that the business actually has done the necessary market research and can back up any claims.

Evaluate the Company's Business Strategy

Examine the company strategy for capturing its market. The plan must clearly describe the problem the company is solving or need it is meeting for customers, and then propose a solution. This is the crux of a business plan assessment.

Closely examine the alignment between problem and solution. Will the company actually address that need? This evaluation must take into account the product or service being offered, the operational capacity and efficiency with which the business actually can produce its product, and the quality of the proposed marketing efforts.

Examine the Business Environment

The business plan should describe the competitive landscape in which the company operates, preferably by referencing Porter's 5 Forces or another well-established tool. Look for detailed breakdowns and analyses of each of it competitors, and of how the company is different and better than the competition in a particular niche. This section should include the regulatory environment and mention any costs or necessary delays associated with regulations.

Porter's 5 Forces is an evaluation model that looks closely at the five competitive forces at play in the business landscape. These forces are present in every industry and by evaluating how they manifest in an individual industry, one can gauge that industry's strengths and weaknesses. Porter's 5 Forces are:

• Competition in the industry
• Potential of new entrants in the industry
• Power of suppliers
• Power of customers
• Threat of substitutes

Evaluate the Leadership Team

Look for experience, integrity and passion in the executive team. Read bios and brief highlights of each executive's strengths and expertise should accompany standard business information such as headquarters and corporate structure. The company should have experienced advisers, either formally or informally.

It is paramount that the principals involved in the business convey their passion and drive toward success with this project. If the founders haven't invested their own capital into the business, or plan on keeping their “day jobs” while running the business, they might lack faith in the project.

Crunch the Numbers and Understand the Finances

Ensure that the financial projections are both promising and realistic. Most entrepreneurs vastly overstate their company's potential, starting with the market size and market share. Financial figures should be based on historical data if available, or very conservative projections if the company is not yet profitable. Entrepreneurs that project capturing 20% market share in the first two years probably have unrealistic expectations.

Investigate the returns provided by the investment. Good business plans include exit strategies for pulling the initial investment back out of the company, and have a realistic valuation of their shares.

View the Business Plan as a Living Document

Evaluate the business plan as a whole document, and as a reflection of a real-world company. Determine whether the market need is adequate, the company's offerings are compelling, the management team experienced and committed, and the financial statements realistic. Does this company as a whole have a chance of success?

12 Key Performance Indicators for Business Development Manager

Key Performance Indicators (KPIs) serve as vital benchmarks in evaluating the success and effectiveness of professionals in various roles within an organization. 

For Business Development Manager(BDM), KPIs play a crucial role in measuring their impact on the company’s growth, revenue generation, and client acquisition. 

By tracking and analyzing specific metrics, BDM can gain insights into their performance, identify areas for improvement, and align their strategies with organizational objectives. 

This blog post explores the essential Key Performance Indicators for Business Development Manager, highlighting the key areas of focus that drive success in their role. 

Whether you are a BDM aiming to enhance your performance or an organization seeking to establish meaningful performance metrics, this guide will provide valuable insights to help you measure and optimize business development efforts.

Let’s learn more about this

Role and Responsibilities of a Business Development Manager

A Business Development Manager (BDM) is a key player in driving the growth and success of an organization. They are responsible for identifying new business opportunities, cultivating relationships with potential clients, and expanding the company’s market presence. 

The role of a BDM may vary depending on the industry and organization, but some common responsibilities include:

• Identifying and Prospecting Opportunities: BDMs actively seek out potential clients, markets, and business opportunities. They conduct market research, analyze industry trends, and identify target markets to pursue.
• Building and Maintaining Client Relationships: BDMs establish and nurture relationships with existing and prospective clients. They engage in strategic networking, attend industry events, and leverage their connections to expand the company’s client base.
• Sales and Revenue Generation: BDMs are responsible for driving sales and generating revenue for the organization. They develop sales strategies, negotiate contracts, and close deals to meet or exceed sales targets.
• Developing and Implementing Business Development Strategies: BDMs create and execute comprehensive business development plans aligned with the organization’s goals. They identify key areas for growth, devise strategies to penetrate new markets, and explore partnerships and collaborations to expand the company’s reach.
• Collaboration with Internal Teams: BDMs collaborate with various internal departments such as marketing, product development, and finance to ensure alignment and support for business development initiatives. They work closely with cross-functional teams to leverage resources and optimize the overall business development process.

What is significance of Key Performance Indicators (KPIs) for Business Development  

Key Performance Indicators (KPIs) hold significant importance for Business Development Managers (BDMs) in several ways:

• Measurement of Performance: KPIs provide measurable metrics to evaluate the performance and effectiveness of BDMs in achieving their objectives. They serve as tangible benchmarks for assessing progress, identifying areas of improvement, and tracking the success of business development initiatives. KPIs offer a clear picture of the BDM’s contributions to the organization’s growth and enable data-driven decision-making.
• Goal Alignment: KPIs help BDMs align their activities and strategies with the overall goals and objectives of the organization. By setting specific KPIs that are directly tied to business objectives, BDMs can ensure that their efforts are focused on driving outcomes that contribute to the company’s success. KPIs enable BDMs to prioritize their actions and allocate resources effectively to achieve desired results.
• Performance Evaluation and Accountability: KPIs provide a framework for evaluating the performance of BDMs objectively. They enable BDMs to assess their own performance, identify strengths and weaknesses, and take proactive steps for improvement. KPIs also facilitate performance reviews and discussions with supervisors and stakeholders, fostering transparency, accountability, and constructive feedback.
• Strategic Decision-Making: KPIs offer insights and data-driven information that BDMs can leverage to make informed strategic decisions. By tracking KPIs related to revenue generation, market expansion, client retention, and other critical areas, BDMs can identify emerging trends, market opportunities, and potential risks. This information empowers BDMs to adjust their strategies, adapt to market changes, and capitalize on growth opportunities.
• Continuous Improvement: KPIs promote a culture of continuous improvement within the business development function. By regularly monitoring and analyzing KPIs, BDMs can identify areas where they are falling short or underperforming, allowing them to take corrective actions and refine their approaches. KPIs provide a feedback loop that encourages BDMs to iterate, learn from past experiences, and strive for ongoing growth and success.

You can further read: A step-by-step guide on how to develop key performance indicators

Essential Key Performance Indicators for Business Development Manager

Following are important key performance indicators for Business Development Manager.

Revenue Generation KPIs  

• Monthly/Quarterly Sales Revenue: Monthly or quarterly sales revenue is a crucial KPI that measures the total revenue generated by the sales team during a specific period. It provides a clear snapshot of the company’s financial performance and sales effectiveness within a given time frame. Tracking sales revenue allows Business Development Managers to evaluate the success of their sales strategies, identify revenue trends, and make data-driven decisions to drive growth. By setting revenue targets for each period, BDMs can monitor progress and take corrective actions if necessary to meet or exceed those targets.
• New Client Acquisition: New client acquisition is a key KPI that measures the number of new clients acquired within a defined timeframe. It indicates the effectiveness of the BDM’s prospecting and lead generation efforts. By tracking this KPI, BDMs can evaluate the success of their business development strategies in attracting and converting new customers. Increasing new client acquisition demonstrates the BDM’s ability to identify and engage with potential clients, build trust, and close deals. This KPI is vital for expanding the customer base and driving revenue growth.
• Revenue Growth Rate: Revenue growth rate measures the percentage increase in revenue over a specified period, usually year-on-year or quarter-on-quarter. It provides valuable insights into the company’s overall growth trajectory and the BDM’s ability to drive revenue generation. A high revenue growth rate indicates that the BDM is effectively implementing sales and business development strategies that result in increased revenue. Monitoring this KPI helps BDMs assess the impact of their efforts and make informed decisions to sustain or accelerate revenue growth. Additionally, comparing revenue growth rates with industry benchmarks can provide valuable insights into the company’s competitive position and market dynamics.

Pipeline Management KPIs  

Pipeline Management KPIs focus on tracking and optimizing the various stages of the sales pipeline. These KPIs provide insights into the effectiveness of lead generation, conversion rates, and sales cycle efficiency. Let’s explore each of them:

• Number of Leads Generated: The number of leads generated measures the total quantity of potential customers or prospects that enter the sales pipeline within a specific timeframe. This KPI helps Business Development Managers assess the success of their lead generation strategies and campaigns. By monitoring the number of leads, BDMs can identify trends, evaluate the effectiveness of marketing initiatives, and make adjustments to optimize lead generation efforts. Increasing the number of high-quality leads can ultimately lead to more opportunities for conversion and revenue growth.
• Conversion Rate: The conversion rate is a critical KPI that measures the percentage of leads or prospects that successfully convert into paying customers. It reflects the effectiveness of the sales team’s efforts in turning leads into closed deals. A high conversion rate indicates that the BDM and the sales team are effectively engaging with leads, addressing their needs, and successfully closing sales. Monitoring the conversion rate helps BDMs identify bottlenecks in the sales process, refine sales strategies, and provide targeted training or resources to improve conversion rates. Increasing the conversion rate can result in a higher return on investment (ROI) for marketing and sales efforts.
• Average Sales Cycle Length: The average sales cycle length measures the average time it takes for a lead to progress through the sales pipeline, from initial contact to deal closure. This KPI helps BDMs evaluate the efficiency and effectiveness of the sales process. A shorter sales cycle indicates streamlined processes, effective sales strategies, and efficient lead nurturing. On the other hand, a longer sales cycle may suggest areas for improvement, such as potential bottlenecks, ineffective communication, or the need for additional resources or support. By monitoring the average sales cycle length, BDMs can identify opportunities to accelerate the sales process, improve efficiency, and reduce the time-to-revenue.

Relationship Building KPIs 

Relationship Building KPIs focus on measuring the success of Business Development Managers in building and maintaining strong relationships with clients. These KPIs assess client retention, satisfaction levels, and opportunities for upselling and cross-selling. Let’s explore each of them:

• Client Retention Rate: The client retention rate measures the percentage of clients that continue to do business with the company over a specific period. It reflects the BDM’s ability to cultivate and maintain long-term relationships with clients. A high client retention rate indicates client satisfaction, trust, and the ability of the BDM to meet client needs effectively. Monitoring this KPI helps BDMs identify any issues that may impact client retention and take appropriate actions to enhance client relationships, such as providing exceptional customer service, addressing concerns promptly, and continuously delivering value.
• Customer Satisfaction Score (CSAT): The Customer Satisfaction Score (CSAT) is a KPI that measures the level of satisfaction among clients. It typically involves surveys or feedback mechanisms to gather direct input from clients regarding their experience with the company’s products or services. CSAT scores provide valuable insights into how well the BDM and the organization are meeting customer expectations and delivering on promises. By monitoring CSAT scores, BDMs can identify areas for improvement, address any gaps in customer satisfaction, and make strategic decisions to enhance overall customer experience.
• Upselling/Cross-selling Opportunities: Upselling and cross-selling opportunities refer to the potential to generate additional revenue by selling higher-value products or services to existing clients or introducing complementary offerings. This KPI focuses on the BDM’s ability to identify and leverage opportunities to increase the customer’s lifetime value. Tracking the number of successful upselling and cross-selling opportunities showcases the BDM’s skills in understanding client needs, identifying suitable solutions, and effectively communicating the value of additional offerings. By maximizing upselling and cross-selling opportunities, BDMs can contribute to revenue growth and deepen client relationships.

Market Expansion KPIs

Market Expansion KPIs focus on measuring the success of Business Development Managers in expanding the company’s market presence and driving growth in new markets. These KPIs assess market share growth, penetration into new markets, and the development of strategic partnerships. Let’s explore each of them:

• Market Share Growth: Market share growth measures the percentage of the total market that a company controls. It reflects the BDM’s success in gaining a larger portion of the market compared to competitors. Increasing market share indicates that the BDM’s strategies and efforts are effectively positioning the company as a leader in the industry. This KPI helps BDMs evaluate the success of market expansion initiatives, assess market dynamics, and make informed decisions to capture a larger market share. By monitoring market share growth, BDMs can identify opportunities for improvement, refine market strategies, and allocate resources accordingly.
• New Market Penetration: New market penetration measures the success of the BDM in entering and establishing a presence in previously untapped markets. It reflects the company’s ability to expand beyond its existing customer base and reach new target markets. BDMs need to identify viable new markets, develop market entry strategies, and execute effective marketing and sales initiatives to penetrate those markets successfully. Monitoring the progress of new market penetration allows BDMs to evaluate the effectiveness of their expansion efforts, identify potential challenges, and adjust strategies to maximize growth potential.
• Strategic Partnership Development: Strategic partnership development measures the BDM’s success in identifying and cultivating partnerships with other organizations to drive mutual growth and create synergies. These partnerships can take various forms, such as joint ventures, alliances, or collaborations. Developing strategic partnerships allows the company to leverage complementary strengths, access new markets, and enhance its competitive advantage. BDMs play a crucial role in identifying potential partners, negotiating agreements, and nurturing productive relationships. Monitoring the number and quality of strategic partnerships established provides insights into the BDM’s ability to expand the company’s reach and create strategic growth opportunities.

Monitoring and Tracking KPIs 

Monitoring and tracking Key Performance Indicators (KPIs) effectively is crucial for Business Development Managers (BDMs) to assess their performance and make data-driven decisions. Here are three essential practices for monitoring and tracking KPIs:

A. Establishing a Performance Tracking System: BDMs need to establish a robust performance tracking system to effectively monitor KPIs. This involves defining clear metrics, setting targets, and implementing a process to collect and analyze relevant data. BDMs should collaborate with stakeholders to determine the most appropriate tracking methods and establish a system that allows for consistent and accurate measurement of KPIs. This may include using customer relationship management (CRM) software, spreadsheets, or other tracking tools to centralize and streamline the data collection process.

B. Regular Reporting and Analysis: Regular reporting and analysis of KPIs are essential for gaining insights into performance trends and identifying areas for improvement. BDMs should establish a routine for reporting KPIs to relevant stakeholders, such as management or the executive team. Reporting should be done at regular intervals, such as monthly or quarterly, to track progress over time. BDMs should analyze the data and provide meaningful interpretations, highlighting successes, challenges, and actionable recommendations. Regular reporting and analysis foster transparency, facilitate data-driven discussions, and enable stakeholders to make informed decisions based on KPI performance.

C. Utilizing Technology and Automation Tools: Technology and automation tools can greatly enhance the monitoring and tracking of Key Performance Indicators for Business Development Manager. Utilizing CRM systems or business intelligence platforms can automate data collection, streamline reporting processes, and provide real-time visibility into KPI performance. These tools can generate dashboards, visualizations, and reports, making it easier to track multiple KPIs and analyze trends. Automation also reduces manual errors and saves time, allowing BDMs to focus on interpreting data and taking strategic actions based on insights gained from the KPIs.

Final Words

Key Performance Indicators (KPIs) play a vital role in the success of Business Development Managers (BDMs) by providing measurable metrics to evaluate their performance, align their activities with organizational goals, and drive strategic decision-making. Through the monitoring and tracking of Key performance indicators for Business Development Manager, can assess their progress, identify areas for improvement, and make data-driven decisions to optimize their business development efforts.

KPIs such as revenue generation, pipeline management, relationship building, market expansion, and personal development serve as quantifiable benchmarks that enable BDMs to measure their success and contribute to the organization’s growth. These KPIs provide insights into revenue growth, customer acquisition and retention, market share, and strategic partnerships. They foster accountability, performance evaluation, and a culture of continuous improvement.

About The Author

Tahir Abbas

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How to create an employee development plan [With real-life examples]

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Investing in a structured employee development plan can unlock your team’s full potential and propel your organization to new heights. This comprehensive guide will equip you with a step-by-step framework and real-life employee development plan examples to cultivate a culture of continuous learning to propel your business forward.

Introduction to employee development plans

An employee development plan is a structured program that outlines the steps for an employee to enhance their skills, knowledge, and overall performance. It is a collaborative effort between the employee and their manager, focusing on aligning individual aspirations with organizational goals.

Companies can foster a more engaged and productive workforce by providing employees with opportunities to grow. Development plans can encompass various learning methods, including on-the-job training, mentoring programs, online courses, workshops, and formal education.

The benefits of implementing employee development plans

A culture of continuous learning and development is not just beneficial – it’s essential for survival.  Implementing robust employee development plans is a strategic imperative for organizations aiming to thrive in the face of constant change and fierce competition. Let’s explore the multifaceted benefits that underscore the importance of prioritizing employee growth.

A well-structured employee development plan acts as a powerful retention tool .  When employees perceive a genuine investment in their career trajectories, their loyalty strengthens significantly.

In fact, research indicates that retention is 34% higher among employees who have opportunities for professional development .

By nurturing talent from within, organizations can cultivate a highly engaged workforce that’s less likely to seek opportunities elsewhere. This directly translates to reduced recruitment and onboarding costs, ensuring the retention of valuable institutional knowledge.

Furthermore, development plans empower employees to acquire new skills and enhance existing ones. This continuous upskilling not only elevates individual performance but also feeds directly into organizational growth. As employees become more adept in their roles and expand their skill sets, they contribute to increased productivity, efficiency, and innovation across the board. This internal capacity building enables companies to navigate industry shifts confidently, adopt emerging technologies, and maintain a competitive edge.

Investing in employee development also fosters a culture of learning and ambition. When employees see a clear path for advancement and skill development, they are more likely to be engaged and motivated. This, in turn, creates a positive work environment where individuals feel valued, challenged, and empowered to reach their full potential.  A compelling 94% of employees stated they would stay longer at a company that invests in their careers, highlighting the profound impact of development initiatives on loyalty and engagement.

By addressing skill gaps and nurturing future leaders, organizations can proactively prepare for future workforce needs.  Succession planning , facilitated by robust development programs, ensures a pipeline of qualified individuals ready to step into leadership roles. This strategic foresight minimizes disruption during transitions and ensures continuity in leadership, maintaining organizational stability and long-term success.

Comprehensive guide to creating an employee development plan

A well-structured employee development plan serves as a roadmap for both the employee and the organization to achieve shared goals. Here’s a step-by-step guide to crafting an effective plan:

Identifying business and individual goals

The first step in creating a development plan example is aligning individual aspirations with organizational objectives. Begin by identifying key business goals. Determine the skills, knowledge, and competencies required to achieve these goals. Simultaneously, encourage employees to reflect on their career aspirations, strengths, and areas they wish to develop. This collaborative approach ensures that individual growth contributes to overall business success.

Conducting a skills gap analysis

A skills gap analysis helps pinpoint the discrepancies between the current skill set of your workforce and the competencies needed to meet future demands. This analysis should encompass both hard and soft skills . For instance, if your business aims to implement a new software system, evaluate whether your team possesses the necessary technical expertise. Similarly, assess if your team has the communication and collaboration skills needed to work effectively on cross-functional projects.

Setting clear, achievable objectives

Once you’ve identified the skills gaps, establish clear, measurable, achievable, relevant, and time-bound (SMART) objectives for employee development. For example, instead of a vague objective like “improve communication skills,” a SMART objective could be “attend a public speaking workshop within the next quarter and deliver a presentation to the team by the end of the fiscal year.” This level of specificity provides employees with a tangible target to strive for.

Designing action plans tailored to individual needs

Each employee’s development plan should be unique, catering to their specific roles, career goals, and identified skill gaps. This is where having diverse development plan examples for employees can be very beneficial. A combination of on-the-job training, mentoring programs, online courses, workshops, and conferences can be incorporated.

For someone looking to enhance leadership skills, enrolling in a leadership development program could be beneficial. Whereas, for an employee aiming to specialize in a particular technical area, pursuing a relevant certification would be more appropriate.

Involving managers and mentors for support

Managers and mentors play a crucial role in supporting employee development. They can provide guidance, resources, and opportunities for employees to practice new skills. Regular check-ins and coaching sessions can help employees stay on track with their development planning example and make necessary adjustments along the way. This collaborative approach fosters a culture of continuous learning and development within the organization.

Monitoring progress and providing feedback

Employee development is an ongoing process, not a one-time event. Regular monitoring of progress and providing constructive feedback are essential for its success. Utilize performance reviews, one-on-one meetings, and 360-degree feedback to track progress and identify areas for improvement.

Recognizing and celebrating achievements along the way can boost employee morale and motivation.  Remember, feedback should be specific, timely, and actionable, empowering employees to continue growing and developing their skills.

Types of employee development plans with examples

Navigating the landscape of employee development requires a tailored approach, recognizing that one size does not fit all.  Let’s explore some prominent types of employee development plan examples, each addressing specific needs and objectives:

Goal-based development plans

As the name suggests, goal-based development plans center around achieving specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals are often tied to an employee’s role, department objectives, or overall company strategic goals.

Example: A marketing assistant aiming to step into a content writing role might have a goal-based development plan focusing on enhancing their writing skills. Their plan could include completing online content writing courses, attending industry workshops, and shadowing senior content creators.

Skill-based development plans

Skill-based development plans prioritize bridging the gap between an employee’s current skills and the competencies needed for future roles or enhanced performance. These plans often leverage training programs, workshops, or online courses.

Example: A customer service representative struggling to effectively handle challenging customer interactions could benefit from a skill-based development plan.  This plan might incorporate training on conflict resolution, active listening skills, and empathy building.

Leadership and succession planning

Investing in leadership and succession planning is crucial for the long-term health and sustainability of any organization. These development plans focus on identifying and nurturing high-potential employees, preparing them to assume leadership roles within the company.

Example: High-impact leadership organizations spend up to three times more on management development than their peers.

Leadership training has been shown to increase participants’ capacity for learning by 25% and their performance by 20% .  A company might create a leadership development plan for a high-performing individual contributor, enrolling them in leadership training, assigning them mentorship opportunities with senior leaders, and providing them with opportunities to lead projects and teams.

Career pathing and role transition plans

Career pathing and role transition plans support employees in navigating their career journeys within the organization. These plans provide a clear roadmap outlining potential career progressions and the skills, experiences, and development opportunities needed to achieve their career aspirations.

Example: An employee expressing a desire to move from sales to marketing could work with their manager to create a career pathing plan. This plan would identify the necessary skills and experience for a marketing role and outline the steps the employee can take, such as cross-functional projects or relevant training, to make a successful transition.

Innovative examples from industry leaders

Leading companies continuously seek innovative approaches to employee development .  These examples showcase the power of creative and forward-thinking development initiatives:

• Mentorship programs with a twist : Some companies are moving beyond traditional mentorship models to create reverse mentoring programs, pairing junior employees with senior leaders to foster knowledge sharing and diverse perspectives.
• Gamified learning platforms :  Introducing elements of gamification, such as points, badges, and leaderboards, into online learning platforms can increase employee engagement and motivation.
• Personalized learning journeys : Leveraging technology and data analytics, companies can now curate personalized learning journeys for employees, recommending relevant courses, articles, and resources based on their skills, interests, and career goals.

Key components of an effective development plan

A well-structured employee development plan is crucial for its success. Here’s a breakdown of key components:

• Clear objectives : Begin by defining specific, measurable, achievable, relevant, and time-bound (SMART) objectives. These objectives should align with both the employee’s career aspirations and the organization’s strategic goals. For instance, if an employee aims to become a team leader, their development plan might include objectives related to improving communication, delegation, and conflict-resolution skills.
• Personalized learning paths : Each employee has unique strengths and areas for improvement. Tailor development plans to address these individual needs. This personalization might involve a combination of on-the-job training, mentoring, online courses, workshops, or conferences. For example, a software developer looking to enhance their coding abilities could benefit from a learning path that includes online coding courses and participation in hackathons.
• Timeline and milestones : Establish a clear timeline for achieving each objective, breaking down large goals into smaller, manageable milestones. This approach provides employees with a roadmap for their development journey and allows for regular progress checks. Suppose an employee aims to become proficient in data analysis. The timeline could include milestones such as completing a data analysis course within three months, applying those skills to a work project within six months, and independently leading a data analysis project within a year.
• Regular feedback and evaluation : Continuous feedback is essential to keep employees motivated and on track. Incorporate regular check-ins with managers or mentors to discuss progress, provide constructive criticism, and make any necessary adjustments to the plan. Performance reviews can also serve as opportunities to formally evaluate progress and set new goals. Using DevSkiller TalentBoost’s manager assessment feature, managers can gain detailed insights into their team’s skills, making these conversations much more data-driven and objective.
• Flexibility and adaptability : Recognize that individual circumstances and career goals can evolve over time. Build flexibility into the development plan to accommodate these changes. Be open to revisiting and revising objectives and learning paths as needed to ensure the plan remains relevant and engaging for the employee. For instance, if an employee discovers a passion for a different area within the company, the development plan should be adaptable enough to explore new opportunities and adjust career goals accordingly.

Employee development plan examples

Don’t reinvent the wheel when you can learn from the best! Streamlining your HR processes becomes significantly easier with well-structured templates. To help you get started with creating your own employee development plans, I have provided two development plan examples.

Template 1: Simple employee development plan examples

This first template offers a simple, straightforward approach, ideal for organizations just beginning to implement formal development plans.

Employee Name: [Employee Name]

Job Title: [Job Title]

Department: [Department]

Date: [Date]

Development Goal: [Clearly state the specific skill, knowledge, or competency the employee aims to develop].

Example: Improve presentation skills to deliver engaging and informative presentations to clients.

Action Steps: [List 3-5 concrete actions the employee will take to achieve the development goal].

1. Attend a workshop on effective presentation techniques.

2. Practice delivering presentations to colleagues and gather feedback.

3. Shadow a senior team member during client presentations.

Resources: [Identify resources available to support the employee, such as training programs, mentorship, online courses, or budget for external workshops].

• Company-sponsored training on presentation skills.
• Mentorship from the Marketing Manager.
• Access to online resources like Coursera for public speaking courses.

Timeline: [Establish a clear timeframe for achieving the development goal, including deadlines for each action step].

• Complete presentation skills workshop within the next quarter.
• Practice and deliver a presentation to colleagues within two months.
• Shadow the Marketing Manager during client presentations for the next two quarters.

Measurement: [Define how the employee’s progress and the success of the development plan will be evaluated].

• Improvement in presentation skills assessed through feedback from colleagues and the Marketing Manager.
• Successful delivery of a client presentation (evaluated based on client satisfaction and project outcomes).

Template 2: Comprehensive development plan example

This comprehensive sample of employee development plans provides a more detailed framework, suitable for organizations seeking a robust system to foster employee growth.

Employee Information

• Employee Name:
• Department:

Development Goals

• Goal 1: [Clearly state the development goal].
• Description: [Provide a concise explanation of the goal].
• Metrics for success: [Define how progress and achievement will be measured].
• Action plan: [Outline specific steps, timelines, and resources].
• Goal 2: [Repeat for each development goal].

Competency Development

• Core competencies: [List the core competencies required for the employee’s current role and their current proficiency level].
• Target competencies: [Identify areas for improvement and set target proficiency levels].
• Development activities: [List specific activities to bridge the competency gap, including training courses, on-the-job experiences, mentoring, etc.].

Career aspirations

• Short-term goals: [State the employee’s short-term career goals (e.g., within 1-2 years)].
• Long-term goals: [State the employee’s long-term career goals (e.g., beyond 2 years)].
• Potential career paths: [Explore potential career paths within the organization aligned with the employee’s aspirations].

Support and resources

• Manager/supervisor support: [Outline how the manager will support the employee’s development].
• Mentorship opportunities: [Identify potential mentors within the organization].
• Training and development Budget: [Specify the allocated budget for the employee’s development activities].

Review and evaluation

• Review schedule: [Establish regular check-in points to review progress, provide feedback, and make adjustments to the plan].
• Performance evaluation: [Link the development plan to the employee’s performance evaluation process].

By providing your employees with development plan examples like these, you provide a clear roadmap for success, paving the way for both individual and organizational growth.

Employee Development Platforms: Enhancing the Learning Experience

In today’s rapidly evolving business landscape, embracing technology isn’t just an option—it’s an imperative.

This rings especially true for employee development .  As companies strive to foster a culture of continuous learning and upskilling, integrating a dedicated employee development platform can be transformative. But what exactly do these platforms offer, and how do they elevate the learning experience?

An employee development platform like DevSkiller provides a centralized hub for all development activities. Forget about disjointed spreadsheets and manual tracking. These platforms streamline the entire process, from identifying skill gaps and recommending relevant training to monitoring progress and measuring the impact of learning initiatives.

Let’s consider the impact of such a platform. Imagine accessing a comprehensive library of learning resources tailored to specific roles and skills, all within a single platform. DevSkiller, for example, leverages state-of-the-art skills ontologies to map over 4000 digital and IT skills. This empowers employees to acquire new knowledge and skills at their own pace, facilitated by personalized learning paths and engaging content formats.

Maintaining momentum: Following up on development plans

Creating a stellar employee development plan is a significant first step. However, the real magic happens when you prioritize consistent follow-up and evaluation. Without these elements, even the most meticulously crafted plans can lose their impact. Think of it like embarking on a road trip with a GPS but never bothering to check the directions – you might eventually reach your destination, but it will likely be a longer, less efficient journey.

Regular check-ins are crucial to ensure employees are on track to meet their objectives. These can be informal one-on-one meetings, quick progress reports, or even leveraging technology for digital check-ins. The frequency can vary depending on the plan’s complexity and the individual’s learning pace. Remember, the goal is to provide support, address roadblocks, and celebrate milestones, not to micromanage.

Feedback is another critical component of successful follow-up.  It’s not enough to simply ask, “How’s it going?” Instead, encourage open and honest conversations about what’s working well and where adjustments might be needed.  Remember, feedback is a two-way street. Encourage employees to share their insights and perspectives, fostering a collaborative approach to development.

By embedding a culture of continuous learning and development into the fabric of your organization, you’re not just investing in your employees’ futures – you’re investing in the future of your business.

Frequently asked questions about employee development plans

Navigating the terrain of employee development plans often brings up a few common questions. Let’s address these head-ons, providing clarity and practical insights.

What is the ideal duration for an employee development plan?

There’s no one-size-fits-all answer, as the timeframe should align with the specific goals, individual learning pace, and organizational context. However, a good starting point is to consider a plan spanning 6 to 12 months. This duration offers a balance between short-term achievements and long-term growth. For instance, a plan focused on acquiring a specific technical skill might have a shorter timeframe, while one geared towards leadership development could extend over a year or more.

How frequently should employee development plans be reviewed and updated?

Regular check-ins are crucial to keep the development journey on track.  A best practice is to schedule quarterly reviews as a starting point. These sessions provide a structured opportunity to discuss progress, address challenges, and make adjustments based on evolving needs or priorities.

How can I measure the effectiveness of our employee development program?

Measuring the impact of your development initiatives is essential to demonstrate their value. Consider employing a blend of qualitative and quantitative metrics. Track factors such as:

• Employee engagement and retention rates: Are employees more engaged and likely to stay with the organization after participating in development programs?
• Performance improvement:  Have you observed tangible improvements in individual or team performance metrics after implementing development plans?
• Goal attainment:  What percentage of employees successfully achieved the objectives outlined in their development plans?
• Feedback and surveys: Gather feedback from both employees and their managers to assess the perceived value and impact of the development initiatives.

By analyzing this data, you gain insights into the effectiveness of your program and identify areas for continuous improvement.

Concluding remarks: The future of employee development

Employee development plans are no longer optional but essential for navigating this dynamic environment. Organizations that prioritize investing in their employees’ growth will be best positioned to adapt and thrive in the future.

This forward-thinking approach requires embracing innovative learning methods, leveraging technology, and fostering a culture of continuous feedback and improvement.  By empowering employees to reach their full potential, businesses pave the way for both individual and organizational success. The future of work belongs to those who prioritize continuous learning and development. Get in touch with DevSkiller and learn more about how to develop and manage development plans or watch our 5-min demo .

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Top 11 competency assessment tools in 2024

Understanding the competencies of your workforce is more crucial than ever. Competency assessment tools help organizations identify their employees' strengths and areas for development, ensuring that they have the right skills to meet their strategic goals. 

In this article, we will explore the top 11 competency assessment tools in 2024, providing you with a comprehensive guide to make an informed decision.

Top 20 competency management software in 2024

Staying ahead of the curve is no longer a luxury—it's a necessity. As organizations navigate the complexities of a competitive market, one thing remains clear: a highly skilled and adaptable workforce is paramount to success. But how can businesses ensure their employees possess the competencies needed to thrive in this dynamic environment? 

This is where competency management software emerges as a game-changer. This software empowers organizations to unlock their full potential by providing a structured and proactive approach to identifying, developing, and leveraging employee skills.  This article delves into the top 20 competency management software solutions in 2024 , guiding you toward informed decisions to cultivate a future-ready workforce.

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Training Industry

5 key principles of modern learning and development.

In today’s world of change, where skills are the new currency, effective learning and development (L&D) has become a strategic imperative. As organizations strive to remain competitive and innovative, investing in the continuous growth and development of their employees is essential. However, effective L&D is not just about providing training or educational programs; it is about strategically aligning these initiatives with the core needs and goals of the organization and its employees.This is where the key principles of modern L&D come into play.

These tenets — continuous learning, alignment with business goals , an employee-centric approach, rigorous measurement and evaluation, and adaptability and innovation — provide a robust framework for designing and implementing effective L&D programs. By adhering to these principles, organizations can create dynamic learning environments that foster individual and organizational growth, increase employee engagement, and drive long-term success.

5 Key Principles of Modern L&D Programs

1. alignment with business objectives.

Strategic alignment ensures that L&D initiatives are not only educational, but also make a strategic contribution to the organization’s goals. By focusing resources on developing skills and knowledge that directly impact business performance and competitiveness, organizations can optimize their resources effectively. This alignment helps achieve organizational goals by ensuring that employee development supports common objectives.

Example: Amazon’s Leadership Principles Training

Amazon’s L&D programs are deeply integrated with its 16 leadership principles , such as “Customer Obsession” and “Deliver Results.” Training, workshops and onboarding programs are designed to reinforce these principles. By aligning L&D initiatives with these core business values, Amazon ensures that every employee understands and embodies the company’s strategic priorities. This alignment helps maintain a consistent culture and drives behaviors that directly contribute to Amazon’s business success.

2. Continuous Learning

In today’s business environment, continuous learning helps employees adapt to change, acquire new skills and stay relevant. It fosters a culture of innovation where employees are constantly improving and applying new knowledge. Organizations that promote continuous learning tend to have higher employee satisfaction and retention rates.

Example: Google’s “20% time” Policy

Google encourages employees to spend 20% of their work time on projects they are passionate about, but not necessarily related to their primary job responsibilities. This policy encourages continuous learning by allowing employees to explore new areas, develop new skills and innovate. Some of Google’s most successful products, such as Gmail, have emerged from these projects. Employees remain engaged and motivated, fostering a culture of continuous improvement and innovation.

3. Employee-Centered Approach

Programs designed around employee needs and preferences are more engaging and effective. Tailored learning experiences address individual learning styles and career aspirations, increasing motivation and participation. Showing employees that the organization values their growth and well-being leads to higher morale and productivity.

Example: Deloitte’s Personalized Learning Platform

Deloitte uses a platform called “Deloitte University” which provides personalized learning paths based on each employee’s role, career aspirations and skills gaps. The platform uses AI to recommend courses and learning modules tailored to each employee’s needs. This approach ensures that each employee’s learning experience is highly relevant and engaging, increasing their motivation to participate in L&D activities. As a result, employees feel valued and supported in their professional development, leading to higher job satisfaction and retention rates.

4. Measurement and Evaluation

Providing data to justify investment in L&D programs and demonstrate their value to stakeholders is essential. Identifying areas for improvement ensures that programs remain effective and relevant. Tracking the progress and effectiveness of learning initiatives links them to business results.

Example: AT&T’s Skills Transformation Initiative

AT&T launched a massive reskilling program to address the skills gap caused by rapid technological advances. The program includes online courses, university partnerships and boot camps. AT&T tracks the effectiveness of this initiative through detailed metrics such as course completion rates, skill acquisition, and impact on job performance and career progression. By measuring these outcomes, AT&T ensures the effectiveness of the program and makes data-driven decisions to continually improve it. The initiative has helped AT&T retain talent and improve its bottom line.

5. Adaptability and Innovation

Keeping L&D initiatives current and effective in addressing new challenges and opportunities is critical. Leveraging the latest technologies and methodologies creates innovative learning experiences that differentiate the organization. Preparing employees to adapt quickly to disruptions and changes in the market or industry is essential for resilience.

Example: Unilever’s Digital Learning Hub

Unilever has implemented a digital learning hub that uses AI to match employees with short-term projects, assignments and learning opportunities across the company. The platform promotes adaptability by providing employees with diverse learning experiences and opportunities to work in different areas of the business. It also encourages innovation by exposing employees to new challenges and perspectives. The program helps employees develop a broad range of skills and adaptability, preparing them for future roles and challenges. It also fosters a culture of continuous learning and cross-functional collaboration across Unilever.

Embedding the central tenets of learning and development into organizational strategies is essential to creating robust, impactful and forward-looking L&D programs. By aligning L&D initiatives with business goals, promoting continuous learning, focusing on the needs of employees, rigorously measuring and evaluating results and embracing adaptability and innovation, organizations can ensure that their workforce is well prepared to meet current and future challenges. These principles not only enhance employee skills and satisfaction but also drive overall business success, innovation and resilience in an ever-changing landscape. By embracing these principles, organizations can create dynamic learning environments that support both individual and organizational growth, ultimately leading to sustainable long-term success.

• #Adaptable training
• #Align Training With Business Objectives
• #continuous learning
• #Employee-Centered training

Syed Karhani

Syed Sunny Karhani is an expert in L&D and human resource development based in Germany. He excels in eLearning, instructional design and project management. Syed has delivered training to thousands globally, and held leadership roles at Capline Healthcare, Intrainco and others.

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Solicitation 72011724R10016 Development Program Specialist (Budget)

Opening and closing dates.

SOLICITATION NUMBER: 72011724R10016

ISSUANCE DATE: August 9, 2024

CLOSING DATE/TIME: September 5, 2024, at 11:59 pm Chisinau Time

SUBJECT: Solicitation for a Development Program Specialist (Budget) Cooperating Country National Personal Service Contractor (CCNPSC - Local Compensation Plan)

Dear Prospective Offerors: The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking offers from qualified persons to provide personal services under contract as described in this solicitation. Offers must be in accordance with this solicitation. Incomplete or unsigned offers will not be considered. Offerors should retain copies of all offer materials for their records. USAID will evaluate all offerors based on the stated evaluation criteria. USAID encourages all individuals, including those from disadvantaged and under-represented groups, to respond to the solicitation. This solicitation in no way obligates USAID to award a PSC contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of the offers. Any questions must be directed in writing to the Point of Contact specified in solicitation.

Sincerely, Matthew Corbin Contracting Officer

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• Financial Advisor

Financial Planning Basics

Updated: Jun 26, 2024, 4:51pm

No matter the size or scope of your financial goals, a financial plan can help make them a reality.

Financial planning is the process of looking at the current state of your finances and making a step-by-step plan to get it where you want it to be. That may mean devising a plan to become debt-free or figuring out how to save enough money for a down payment on a new home.

This process can include many aspects of personal finance, including investing, debt repayment, building savings, planning for retirement and even purchasing insurance.

Anyone can engage in financial planning—it’s not just for the wealthy. You can get started on making financial goals on your own, and if you choose, you can work with a financial professional to help devise the smartest plan to make those goals a reality.

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5 Steps to Create a Financial Plan

A financial plan is devised of smaller goals or tasks that will help support you along your financial journey. Create a financial plan with these five steps:

1. Identify Your Financial Goals

By identifying your financial goals, you’ll have a clear idea of what you need to accomplish to make them happen. Your goals should be realistic and actionable and include a timeline of when you want to accomplish them.

Making a goal to pay off credit card debt by a certain date, for example, would be an appropriate financial goal that will set you up for success.

2. Set a Budget

Having a clear picture of your finances will make it easier to achieve any financial goals. A budget can help you understand where your money is going each month. It can also help you identify where you may be overspending, giving you opportunities to cut back and allocate that money elsewhere.

One of the easiest budgets to start with is the 50/30/20 budget . This budget plan allocates your monthly income into three buckets: mandatory expenses (50%), savings and debt repayment (20%) and discretionary spending (30%). This is just one of many types of budgeting plans out there.

A budget should be a guide to help you understand your monthly finances and devise smaller goals that will bring you closer to your long-term financial goals. You likely won’t always follow your budget down to every single penny; keeping this in mind will help you stay on track, rather than get discouraged and give up on budgeting altogether.

There are apps out there that make budgeting much easier by helping you visualize your spending and savings choices each month. Some budgeting apps even give you the option to enter your financial goals directly into their platform to help you stay on track. A fully featured budgeting app allows you to track spending, manage recurring bill payments, set savings goals and manage your monthly cash flow.

3. Build an Emergency Fund

Building an emergency fund will help make sure that a financial emergency doesn’t become a catastrophic financial event.

Experts usually recommend having six months’ worth of living expenses saved to cushion you, should the unfortunate unexpected happen, such as losing a job. But six months’ worth of money can be unattainable for those who may be struggling financially, or those living in tight financial means each month.

You can start building an emergency fund by setting a few dollars aside each paycheck. You can start with a small fund goal of $100 to $200 to establish your fund. From there, you can create other smaller goals that will add up to a larger financial cushion. Some budgeting and savings apps also give you the option of rounding up to the nearest dollar in transactions and funnel that spare change toward your savings.

4. Reduce Your Debt

Having to make debt payments each month means you’ll have less money to allocate toward your purchase goals. Plus, carrying credit card debt can be expensive; every month, you’re accruing interest on your balance, which can make it take longer to pay off.

There are a variety of debt payoff methods out there. Two of the most popular include the debt snowball and debt avalanche methods . With the snowball method, you’ll pay off your smallest balance debts first, then make your way to the ones with the higher balances. The debt avalanche, on the other hand, starts with higher interest rate debts first.

5. Invest for the Future

Although risky, investing can help grow your money, even if you’re not wealthy. You can get started with investing by enrolling in your company’s 401(k) plan or opening a low-or-no fee account through an online broker .

Keep in mind that investing always involves some risk; you could end up losing the money you invest. There are also robo-advisors that automatically recommend investments based on your goals and risk tolerance.

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Bottom Line

A financial plan is composed of a series of smaller goals that will help you achieve a larger financial goal, such as purchasing a home or retiring comfortably. A solid financial plan includes identifying your goals, creating a budget, building an emergency fund, paying off high interest debt and investing.

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Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.

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Lead consultant for ministry of finance and development planning (mfdp) mel support.

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Liberia Data, Evaluation, Learning, and Technical Assistance (DELTA) Activity

Liberia DELTA Overview:

USAID awarded IBI the five-year Liberia Data, Evaluation, Learning, and Technical Assistance (DELTA) Activity on January 31, 2022. Social Impact (SI) is partnered with International Business Initiatives (IBI) for the five-year DELTA activity to provide innovative analytical and advisory services to USAID/Liberia’s Office of Program and Project Development and its Development Objective teams. The project will also support the Mission’s project design, performance monitoring and evaluation, and operational learning and adaptation. SI will assist USAID/Liberia in its data collection and reporting processes and deliver high-quality monitoring, evaluation, and learning reports and assessments.

Duration : September 1, 2024 - February 28, 2025

Background The Ministry of Finance and Development Planning (MFDP) has requested USAID/Liberia's assistance to strengthen its National Monitoring and Evaluation (M&E) Unit. This support will focus on improving planning, monitoring, assessing, and reporting practices through the implementation of best practices and emerging development methodologies.

With assistance from the University of Witwatersrand (South Africa), the Center for Learning on Evaluation and Results-Anglophone Africa (CLEAR-AA) conducted a Monitoring and Evaluation Situational Analysis (MESA) of Liberia in 2020. Among other findings, the assessment confirmed the existence of national and sub-national evaluation systems and highlighted lack of coordination between structures within the systems leading to an ad hoc approach to evaluation.

Based on the assessment findings, DELTA will work with USAID and MFDP to provide tailored capacity support to the MFDP M&E Unit. DELTA is seeking to recruit a Lead Consultant to lead the process to support the MFDP in designing a robust Monitoring, Evaluation and Learning System and framework for its national development agenda and goals in collaboration with the MFDP consultants. This Lead Consultant will also lead a cascaded capacity strengthening plan development at the national level, collaborating with the MFDP consultants, with other line ministries, and at county and other sub-national levels. The Lead Consultant will be closely supported by a MEL Specialist and management from the DELTA team. The Lead Consultant and Technical Expert will also work with MFDP and its consultants to develop the MFDP MEL Policy and Plan (which will include the MEL Framework).

· Work collaboratively with MFDP consultants to design, develop and implement the Monitoring, Evaluation, and Learning (MEL) framework for Liberia's National Development Agenda

· Lead MFDP Staff Capacity Assessment and capacity strengthening activities in collaboration with MFDP consultants

· Provide strategic guidance and technical leadership in all aspects of MEL support to MFDP along with MFDP team

Responsibilities · Stakeholder Engagement: Work closely with MFDP leadership, technical staff, other ministries, and other stakeholders to understand the strengths, challenges, and needs for coordinated national and sub-national M&E structures and systems. Lead and coordinate stakeholder engagement efforts to ensure that technical support is consultative, inclusive of broad perspectives, user-driven, and decisions are made and owned by GOL. Ultimately, the MFDP must steward the MEL framework. As such, the approach must ensure that the MFDP drives each step of the process.

· MEL Framework Development: Oversee the development of a comprehensive MEL framework, including defining objectives, scope, indicators, data collection methods, and reporting systems.

· Capacity Strengthening: Design and implement capacity strengthening activities, including training sessions for MFDP staff and other stakeholders on MEL concepts, tools, systems, and processes.

· Data Management Systems: Lead collaboration with M&E Units across ministries to design/adaptation of data collection tools, data management systems, and data quality assurance mechanisms.

· Reporting and Communication: Develop standardized reporting templates and ensure regular communication and updates with stakeholders.

Deliverables · Develop a detailed activity plan (i.e., approach, deliverables, timelines, etc.)

· Comprehensive MEL framework document

· Comprehensive training plans, facilitation plans for each training, training materials, and learning measurement

· Data management and reporting systems

· Regular progress reports and a final report detailing the outcomes and impacts of the MEL support activities at the systems and staff level

· MFDP MEL Policy and Plan

· Lead regular coordination meetings for key GOL decision makers to keep them updated on progress, next steps, and gather input

Qualifications · Advanced degree in a relevant field (e.g., M&E, Demography, Statistics, Development Studies, Public Administration, Public Financial Management)

· At least 10 years of experience strengthening M&E systems and capacities, especially in public sector settings

· Demonstrated experience conducting needs assessments or capacity assessments and working consultatively with institutions to provide tailored technical assistance, trainings, and deliver user-owned outcomes

· Strong leadership, facilitation, and project management skills

· Familiarity with “thinking and working politically” or other governance framework lenses preferred

· Excellent communication and stakeholder engagement skills

· Strong knowledge of the Liberia development context and operating environment of its government ministries

How to apply

https://phg.tbe.taleo.net/phg02/ats/careers/v2/viewRequisition?org=SOCIIMPA2&cws=39&rid=4993

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U.s. department of the treasury announces up to $83 million in american rescue plan small business support to drive economic growth for 125 alaska tribes.

Unprecedented collaboration between Tribes has generated the largest small business financing consortium in the country.

WASHINGTON – Today, the U.S. Department of the Treasury announced the approval of up to $83 million in State Small Business Credit Initiative (SSBCI) funds for a consortium of 125 Alaska Tribes. Funded by the Biden-Harris Administration’s American Rescue Plan (ARP), this investment supports the nation’s largest Tribal SSBCI consortium and is part of the most expansive investment in small business financing for Tribal governments in history. The launch of intertribal SSBCI consortia has been critical to enabling small, remote, and capacity-constrained Tribes to access federal funding. Through the consortium, 125 Tribes will access critical economic development resources for Alaska’s Tribal economy.

The funds are anticipated to catalyze as much as $830 million in additional private sector investment across the state and in Native-owned businesses. The funding will be administered on behalf of the Tribal consortium by the Alaska Small Business Development Center (Alaska SBDC) within the University of Alaska Anchorage (UAA) Business Enterprise Institute (BEI).

For the first time ever, the ARP included dedicated SSBCI funding for Tribal governments. With today's announcement, Treasury has now approved SSBCI applications for up to $415 million to support more than 220 Tribes through the SSBCI Capital Program for small businesses and Tribal enterprises. 

“Today’s announcement reflects success that is only possible when federal agencies listen to Tribal Nations to understand their unique needs and incorporate their feedback in developing program policy and guidance. Through the flexibility of the consortium model, these Tribes will benefit from the historic opportunity that these resources for small businesses presents to Indian Country. These funds will serve some of the most rural populations in the United States, creating jobs and expanding capital access for Tribes across Alaska. We look forward to following this announcement with Treasury’s first official visit to an Alaska Native Village at Chickaloon Village,” said U.S. Treasurer Chief Lynn Malerba.

“Our Tribe is looking forward to the transformational impact this funding can have on the Tribal economy of Alaska. Rural Alaska is entrepreneurial. Our SSBCI consortium will address capital access barriers and unlock private financing for all of our small businesses that are ready to grow,” said Rena Greene, Deputy Director and Acting Executive Director of Nome Eskimo Community, one of the 125 consortium member Tribes.

“Alaska’s tribes are the backbone of our rural economies. The Alaska SBDC is proud to have worked with the Alaska Federation of Natives to bring 125 Alaskan tribes together in the largest tribal consortium in the nation. This collaborative effort over the last two years will result in hundreds of millions of dollars in private sector loans and equity investments flowing into rural and Alaska Native-owned businesses, drastically changing the economic landscape of some of the most remote communities in the nation,” says Alaska SBDC State Director Jon Bittner.

“When the American Rescue Plan Act was signed by President Biden, AFN set out to make sure that Alaska Tribes accessed as much of the funding as possible. Our Navigators worked closely with UAA to help over 100 Tribes access SSBCI, an unprecedented program for Tribal nations. We are proud of that work and proud of the over $80 million in small business funding that we are bringing to Native Alaska,” said Executive Vice President and General Counsel for the Alaska Federation of Natives Nicole Borromeo.

"Our local and Alaska-Native centric economies thrive and rely on homegrown small businesses—from coffee shops to electricians. This funding invests in what’s already working here in our state and helps us grow our economies the Alaska way, not the Lower 48 way,” said Congresswoman Mary Sattler Peltola.

Reauthorized and expanded as part of the ARP, SSBCI is a nearly $10 billion program to support small businesses and entrepreneurship in communities across the United States by providing capital and technical assistance to promote small business stability, growth, and success. SSBCI represents a transformational investment in American small businesses and is expected to catalyze at least $10 of private investment for every $1 of SSBCI Capital Program funding to increase access to capital to small businesses and entrepreneurs, including those in underserved communities.

The Alaska SSBCI Tribal Consortium offers four programs, approved for up to $83.1 million. The programs include a Loan Participation Program, a Loan Guarantee Program, a Collateral Support Program, and an Equity/Venture Capital Funds Program.

The Loan Participation and Loan Guarantee Programs, allocated $10.3 and $37.9 million respectively, are designed to reduce interest rates or risks associated with critical small business investments in Alaska and Native-owned businesses. The Collateral Support program, allocated $12.0 million, will provide collateral for small business lending. The program will incentivize loans to underserved borrowers across Alaska. Rural Tribal communities in Alaska depend on small businesses like fishing operations and tourism enterprises, and collateral support is expected to incentivize lenders to support those businesses. The equity/venture capital program, allocated $22.9 million, provides equity capital support to small businesses through a new venture capital program implementing a fund investment strategy, targeting Tribal member-owned businesses, mostly located in rural areas of Alaska.

The Treasury Department has worked across the Biden-Harris Administration to deploy historic support from the American Rescue Plan to Indian Country, including over $500 million in Tribal SSBCI funding and $20 billion allocated through the State and Local Fiscal Recovery Fund program to nearly 600 Tribal governments, the largest-ever single infusion of federal funding into Indian Country. The Biden-Harris Administration has also delivered the largest-ever infusion of federal capital to Native-serving CDFIs through the Emergency Capital Investment Program, Rapid Response Program and Equitable Recovery Program. Treasury invested $234 million in Native-owned and Native-majority shareholder depository institutions through the Emergency Capital Investment Program (ECIP), and Treasury projects that the investments across the ECIP portfolio could increase lending in Native communities by up to nearly $7 billion over the next decade based on preliminary analysis.

Lenders and small businesses who are interested in receiving more information about the consortium’s SSBCI programs can contact: [email protected] or [email protected] .