ADDITIONAL INFORMATION ON PLANNING BUDGETS PLANNING PROCESS CRUCIAL DIFFERENCES Traditional Organizations Indian Organizations 1. Begin with the determination of an historical posture which examines products and market status, and uses statistical data to determine the company s strengths and weaknesses. 2. Extrapolate from past performance to estimate probable development. 3. Modify the extrapolation reflect environmental restraints. 4. Compare modified extrapolations to idealized set of company goals. 1. Indian Organizations have no historical posture in the sense used by a non-indian organization. They must begin by assessing human, material, and monetary resources to determine their relative strengths and weaknesses. Where an outside organization might ask, What do we have to sell and is there a market for it?, the Indian organization, in addition, must ask With what and whom do we have to work? 2. The Indian organization has no sales record available and, therefore, must extrapolate on the basis of most efficient usage of all resources coupled with most favorable market conditions for the tribal organization s products and services. 3. Most favorable assumptions have to be replaced with most likely, and these assumptions reduce the extent of probable development. 4. Reality will cause the council members to compare what is most likely to what they would like to see if all went well. What can you expect from your organization? Where do you want it to be five or ten years from now? How will you tell whether or not your management is doing a good job? What goals will you set for management? What is the Directing Step of Strategic Planning? Strategies and plans for organizational achievement grow out of the basic purpose of the organization. If the organization does not have a mission statement, council members can use the planning function as a good opportunity for developing one or for reviewing an existing statement that has not been updated for some time. Falmouth Institute 1
BASIC BUDGETING FOR TRIBAL ORGANIZATIONS The following think questions can aid in clarifying the mission statement, whether for purposes of development or updating: What business are we in? Why do we exist? Who are our primary and secondary customers/clients/users? What are our principal products/services? What are our principal markets/outlets/distribution channels? What is different about our organization from what it was 5-10 years ago? What will/should be different about our organization 5-10 years in the future? What are our principal sources of funding (income and capital)? What philosophical issues are important to our organization (e.g., company image, leadership in the community, environment, innovation/risk taking, quality, timeliness, organization structure, management, administrative practices, cultural relevance)? What special considerations do we have in regard to: o Stockholders o Parent organization o Employees o Customers/clients/users o General public o Community o Others (specify) BUILDING A TRIBAL ORGANIZATION THE MISSION STATEMENT Creating Your Road Map to Success You ve set sail on a course to develop the tribal organization but you re starting to lose sight of your goals. So before putting away the compass you used to chart your plan, take some time to plot out the major ports on your journey in a written mission statement. When your tribal organization hits rough seas, a mission statement will safely guide you to your destination. Equally important, the statement signals what your organization is all about to clients, employees, suppliers and the community. Falmouth Institute 2
Additional Information on Planning Budgets Exactly what is a mission statement? In a few succinct sentences this tool captures the essence of your organization s goals and the philosophies underlying them. It reflects every facet of your organization; the range of services you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. Words of Wisdom Your tribal organization has its own special niche, and your mission statement should reflect that uniqueness. The statement of mission is a good statement for the tribal organization. It is a basic definition of the purpose of the organization and the direction of the tribe s activity. It should be defined in terms of the people (market and clients) to be served and the relative volume of business in specific categories. It should define the basis of competition, as well as the characteristics of products/services provided and their mix. The statement of mission should be broad enough to cover all significant areas of performance, and it must demonstrate the ongoing nature of the activity. You too can come up with a statement that encompasses all the major elements of your organization. Start by asking the right questions and giving some serious thought to the answers. What is the purpose of your tribal organization? The most important and often the most difficult question is, What organization are you in? Too many organizations misdirect their energies and resources because they fail to answer this question. Answering the following questions will help you blend the real with the ideal to create a verbal picture of your tribal organization s mission. 1. Why are you in business? What do you want for your clients? Think about the spark that ignited your decision to start the organization? What will keep it burning? 2. Who are your clients? What can you do for them that will enrich their lives now and in the future? 3. What image of your tribal organization do you want to convey? Clients, suppliers, employees and the public will all have perceptions of your organization. How will you create the desired picture? Falmouth Institute 3
BASIC BUDGETING FOR TRIBAL ORGANIZATIONS 4. What is the nature of your products and services? What factors determine services and quality? Consider how these relate to the reasons for your organization s existence. How will all this change overtime? 5. What level of service do you provide? Most organizations believe they offer the best service available, but do your clients agree? Define what makes your service so extraordinary. 6. What roles do you and your employees play? Wise captains develop a leadership style that organizes, challenges and recognizes crew members in ways that can empower Herculean feats. 7. What kind of relationships will you maintain with clients and funding sources? Every organization is in partnership with both. When you succeed, so do they. 8. How do you differ from competitors? Many organizations forget they are pursuing the same dollars as their competitors. What do you do better, cheaper or faster then others? How can you use those competitors weaknesses to your advantage? 9. How will you use technology capital, processes, products and services to reach your goals? A succinct description of your strategy will keep your energies focused on your goals. 10. What underlying philosophies or values guided your responses to the previous questions? Some organizations choose to list these separately. Writing them down clarifies the why behind your mission. THE DEVELOPING PROCESS The process of crafting the mission statement is as beneficial as the final statement. It helps solidify what you are doing, and reinforces the reason we are in business is to help people. Like anything with lasting value, a mission statement requires time, thought and planning. Here are some tips to make yours the best it can be: Involve those connected to your organization. Other people can help you see strengths, weaknesses and voids within the organization structure that you might miss. Consider knowledgeable members of your network bankers, lawyers, accountants or employees. Be sure, however, to choose only positive, supportive people who truly want you to succeed. Falmouth Institute 4
Additional Information on Planning Budgets Set aside several hours a full day, if possible. Mission statements are short typically more than one sentence, but rarely exceeding a page. Still, writing one is not a short process. It takes time to come up with language that simultaneously describes an organization s heart and soul and serves as an inspirational beacon to everyone involved in the business. Large organizations often spend an entire weekend crafting a statement. Plan a date. Set aside time to meet with the people who ll be helping you. Write a list of topics to discuss or think about. Find a quiet, comfortable place away from phones and interruptions. Get started. If you have several people involved, come equipped with refreshments, extra lists of topics, paper and pencils. Because not everyone understands what a mission statement is all about, explain its meaning and purpose before you begin. Start brainstorming. Consider every idea, no matter how silly it sounds. Stimulate ideas by looking at sample mission statements. If you re working with a group, use a flip chart to record responses so everyone can see them. Ask everyone to write individual mission statements for your organization. Read the statements, select the best bits and pieces, and fit them together. Use radiant words. Once you have the basic idea in writing, polish the language of your mission statement. Every word counts. The statement s effect should create dynamic visual images and inspire action. If you want clients to boast about your goods and services, say so along with the reasons why. Some organizations include a glossary that defines the terms used in the statement. Spread the word. Once your mission statement is complete, convey it to others inside and outside the organization to tell everyone you know where you are going and why. Post it in your office, where you, employees and visitors can see it every day. Print it on company materials, such as your brochures, your organization plan or even your letterhead. In today s competitive world, you can t afford to lose sight of your organizations objectives. By always keeping your mission statement in front of you, you ll keep your goals in mind and ensure smooth sailing. The identification of organizational goals and objectives is the critical first step in establishing a mission statement. Falmouth Institute 5
BASIC BUDGETING FOR TRIBAL ORGANIZATIONS MANAGEMENT BY OBJECTIVES Management by objectives (MBO), a professional approach to management, is based on a planning technique that aims to identify personal and organizational objectives and to coordinate those objectives for increased productivity. Used as a planning approach, MBO determines: What must be done establishing priorities after analyzing why it must be done; How it must be done steps or actions needed to accomplish the activities; When it must be done time scheduling; How much it will cost; What represents a satisfactory performance level; How much progress has been achieved relative to a standard; What controls and corrective actions are needed, and when and how to initiate them. Falmouth Institute 6