Five reasons to have a business plan:
- To map out the future plan for the development of the organisation.
- To set key strategic priorities as a focus for effort and monitoring.
- To develop and communicate a course of action to stakeholders.
- To set out priorities for investment in additional resources
- As a means to secure additional investment where available.
Why does it matter?
In 2014 the turnover of the average size business in the UK was just over £500,000 per annum . The revenue for a multi-academy trust (MAT) of 2000 pupils is likely to be in excess of £12 million per annum. Running an organisation of this size provides the platform and opportunity for system leadership to deliver the vision and mission of the trust but also many of the wider statutory responsibilities of running such a company. An academy trust is a charity, with the obligation that brings to deliver its charitable objects as set out in its articles of association. Unlike a commercial business it is not there to make a profit but it still has many of the same obligations: to plan for the future, manage risk, and deliver the best possible outcomes for those to whom it is accountable. What is important to note is that a business or strategic plan is not simply a school development plan or a collection of school development plans – it is the plan for the overall operation of the company and how it will move forward in the educational landscape to deliver what it set out to achieve.
What are the lessons learned?
Effective business plans are developed collaboratively by those who are going to have to implement them. So avoid one person going away to write it; instead make it the output of a process of engagement and review. Plans written in isolation tend to sit in a drawer and add little value to the trust.
In the early years of a trust there will be a real focus on developing the trust culture, creating a sense of collective identity and working through the benefits all are seeking to realise by being part of the trust.
Business plans will:
- Be focused on delivering for pupils and parents
- Start from a clear statement and understanding of where you are now, and where you are trying to get to
- Clearly define the environment in which you are operating - its opportunities and constraints
- Identify key strategic risks and the strategies to mitigate them
- Have some scenario modelling to understand the range of possible outcomes the business plan may deliver.
Key objectives should be limited to a handful. They should be about the strategic issues for the trust and cover the breadth of its operation from improving education performance through to people development and financial sustainability.
A business plan does not replace or duplicate individual academy improvement and development planning.
Academy-level planning gives the detailed objectives, outcomes and activity to drive forward school improvement. However it should be aligned with the overall priorities as a trust. For example, if the trust has a key objective to improve the performance of specific vulnerable groups, individual academy improvement plans should include how they are helping to address this issue.