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CFC’s Financial Webinar SeriesPlanning:

A Key to the Future.

Financial Webinar Series

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CFC’s Financial Webinar SeriesPlanning:

A Key to the Future.


“Planning…is bringing the future into

the present so that you can do something about it now.” Alan Lakein

“Organizing is what you do before you

do something, so when you do it, it is

not all mixed up.” AA Milne


Today’s speaker:

Dan Kessler, CFC

Regional Vice President,

CFC


• List the keys to successful planning.

• Describe a SWOT Analysis.

• List the stakeholders in the planning

process.

• Describe the importance of the employees

and the directors in the planning process.

Planning: A key to the future.

As a result of this session you will be able to:


What famous French physician was born on this date?

• Louis Pasteur

• Armand Trousseau

• Albert Schweitzer

• Michel de Notredame

Polling Question


Dan Kessler,

Regional Vice President,

CFC


10

Planning- A Key to the Future

“Nothing stops an organization faster…

than people who believe that the way

you worked yesterday… is the best way

to work tomorrow!”


1. It begins with Strategic Financial Planning

2. Engineering fundamentals & Planning…

3. Plan for an appropriate Financial Balance…

4. Focus on Employees and Directors…

5. Develop a Plan for Accountability…

6. Create an Engaged and Loyal membership

7. Embrace Technology…

8. Attend to Diversified Services

Keys to Future Success


12

Strategic Financial Planning…an ongoing activity-NOT a singular event

• Provides the cooperative the direction to address known and unknown challenges

• Is future focused

• Provides for a high level of organizational involvement

• Meant to be flexible, yet prescriptive in terms of

detailing work to be accomplished and whom is responsible for what


Strategic Financial Planning is a

Key…

• Proactive management vs. issue “d’jour”

• Sets corporate direction for future

• Regular check ups on plan’s progress

(Modify as the environment changes…)


Strategic Financial Planning

Why do it?

• More Complex (utility environment)

• Less Predictable…

• “Need” for Planning



“Traditional” Responsibilities

• Load forecasting

• Energy/demand forecasting

• Construction planning

• Budgeting

• Tariff design

• Program development



“Today’s” Cooperative’s…

• Demographic changes

• Changing member needs

• New roles or services

• Deregulation, re-regulation, competition

• Renewable resource emphasis, cost of

energy

• War on terrorism, disaster planning



Boards & Management Must:

• Think critically!

• Ask constantly:

- Where are we now?

- Where are we going?

- How will we get there?



Develop

Implement

Update

“Chart the Course”



What is it?...Simply put it’s…

• Mission

• Vision

• SWOT Analysis

• Strategic Initiative’s/Goals

• Strategies/Objectives

• Action Plans/Implementation

( Most Important…)



• Mission

- What does the cooperative do now,

for whom, and how do we do it?

• Concise

- Appeal to values and emotion

Ex: “The mission of ____________ is

to________________



• Vision

- Can look as far down the road as 3-5

years…can (might be) shorter

Determined by leadership’s assessment

(discuss potential…existing needs

…issues…growth…priorities…attitudes,

etc.)


SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats



• SWOT Analysis

- Defined as Strengths, Weaknesses, (positive

and negative aspects…you control…)

Opportunities, and Threats, (positive and negative aspects…you don’t fully control…)

- Initiative’s/Goals (“key issues”consistent with Mission)

- Ranking (priorities)



• Strategies/Objectives

- Consistent with Mission

- High Priority Efforts

““Think about Think about what you have to dowhat you have to do to to

accomplish your Goalsaccomplish your Goals””



• Action Planning (perhaps most important…)

- Where the commitment to “get the

plan done” takes place…

- Board should hold management accountable

for implementation and results…

*Schedule – *Responsibility – *Budget -*Update



• When you decide to get started?

- Discuss the need to plan and expectations…

- Who’s involved?

- Develop Board Policy…

- Set meeting dates with appropriate audience…

- Involvement of staff…

- Develop a “draft” plan…

- Get final approval/adoption…



• Regular reporting to board on progress…

• Discuss the need for changes…

”update”…

• REMEMBER:

““Strategic Plans help chart the course for Strategic Plans help chart the course for

longerlonger––term direction of the cooperative term direction of the cooperative

……dondon’’t forget about the dayt forget about the day--toto--day activity day activity

that continues to change, and must be that continues to change, and must be

addressedaddressed…”…”


Planning- A Key to the Future

“Tools”… and Planning


Successful Systems Know…

1. It begins with Strategic Financial “Planning”

2. Engineering Fundamentals & “Planning”…

3. Plan …for an appropriate Financial Balance

4. Focus on Employees and Directors

5. Develop a “Plan” for Accountability…

6. Create an Engaged and Loyal membership


8. Attend to Diversified Services


Engineering Fundamentals…• Providing reliable electric service

– Load “forecasting” (Power Requirements studies)

– Long-range engineering “planning”

– Construction “planning”

– “Planning” for storms and emergencies

– System maintenance practices/”planning”

• Meeting increased expectations of

members – Large commercial loads/ Key Accounts

– Consumers want 24/7 reliability

Balancing With Financial Realities!


Plan for Financial Balance

• Financial best practices and policies…we asked…

• Financial Management Policy

• Equity Management Plan (3 decision points)

• Electric rates (Cost of Service-Rate Study)

• Financial Forecast (Compass, or other…)

• Debt Portfolio Management

• Budgeting (Budget Pro, or other…)

• Utilize (other) tools: financial presentations, KRTA’s


Focus on Directors & Employees

“Plan for Development”…

• Increase competence – a continuous

process

• Recognize expectations of changing

generations

• Compensation planning (wages & benefits)

• Succession planning/career development


Plan for Accountability from…

• Board (self-evaluation, board goals)

• CEO/GM– Updated job-descriptions, clear expectations

– Evaluations…

• Executive team/ Key Staff

• Vendors

• Consultants

• Affiliated organizations


Engaged & Loyal Membership

• “Communicate” with your members

• Survey the members

– Understand members’ increasing expectations

– Understand members’ changing sophistication

• Educate your members…

• Be open and listen to them…

• Treat members as “owners”…

• Communication Planning

*(“Internal and External”)


Embrace Technology…

• New ways to gather data

• Make better decisions

• Track results

• Safety issues

• Provide additional Services

• Add convenience

• Develop a Technology Plan…

*Better Service/Value For Your Members!


• Ask why you want to provide this business and/or service

- Does it align with our mission, core business goals

and skills of staff?

- Does the business provide value to electric

members?

• Complete a solid “Business Plan”• Analyze and track performance• Make changes as necessary• Comprehensive “Exit Plan”

Diversified Services


1. Engineering Fundamentals and Planning…

2. Plan to achieve Financial Balance…

3. Focus on Employees and Directors…

4. Emphasize Accountability…

5. Create an Engaged and Loyal Membership


7. Attend to Diversified Services…

…Part of Strategic Planning is Using

“Tools”


Now…let’s turn it over to our audience!


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