Integrated

Strategic Business Plan (ISBP)

- Guidelines -

The expectation is that the ISBP offers an analytic insight into the enterprise, its
ambitions and plans to achieve such. Substantiating evidence is included in annexes
and only the outcome of the analysis of data and information is included in the main
text. The use of visual tools is encouraged. Drafters of the ISBP should critically
assess what text is pertinent for inclusion in the ISBP. The document should not
exceed 50 pages and preferably kept below 30 pages (excluding annexes). The quality
of the ISBP lies in good information, solid data analysis and succinctness. Less is
more.
The enterprise will report against the ISBP on an annual basis, explaining deviations
against financial and non-financial targets, and as and when necessary propose for
approval by the Shareholder representative the adjustment of targets in a well-
motivated and transparent manner.
The ISBP will instill the much-desired discipline in the management of public
enterprises whereby results-reporting is against clearly defined strategic objectives
and targets to facilitate long overdue accountability management.

The Integrated Strategic Business Plan covers a period of 5 years and

should at minimum include the following sections: (where found
practical, items can be combined into one section)
1. Cover Page and Table of Contents:
• Title of the ISBP
• Stipulate the period covered by the plan
• Numbered Table of Contents

2. Executive Summary:
• Present the key strategic direction and targets set for the enterprise
during the ISBP period, highlighting key assumptions about the internal
and external environment and anticipated risks and challenges.
• Provide a concise summary of the pertinent points contained in the
ISBP.
• The reader is directed only to pertinent issues set out in the ISBP.

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WHY?
3. Purpose, Vision and Strategy:
• Provide a description of the business (and organizational structure),
explaining the raison d’etre of the enterprise and its role and function
in the sector in which it operates, giving a succinct overview of the
sector/industry in which the enterprise operates including its
competitive landscape. This may include a short overview of
company’s historic background and current status. A company fact
sheet may be included as annex.
• In clear terms set out the mission and vision of the enterprise, and its
high level goals and targets as guided by its key business principles and
enterprise core values, canvassing the enterprise’s strength and
responding to challenges, risks and opportunities identified in the
SWOT. The SWOT in summary format may be included in the main text
but detailed analysis should preferably be attached in Annex
• The drivers for the strategic direction of the enterprise are made
explicit and so the risks related to these drivers.
• The strategic direction chosen for the enterprise determines the ideal
governance and organizational structure of the enterprise. However,
the limitations on human capital need to be considered when eking out
the strategic goals and objectives.
• The reader gains insight into the envisioned direction and values of the
enterprise, and how the enterprise will realize its Purpose, Vision and
Strategy against identified challenges and opportunities as per the
SWOT.
WHO?
4. Governance, Organisation & Management:
• Financiers back and fund management teams, not spreadsheets and
business plans. While the governance, organizational set-up and
management are ideally a function of the enterprises strategic
direction, goals and more immediate objectives, much emphasis should
be placed on who will take the Public Enterprise from loss-making to
break-even and beyond, or from just balancing the books to greater
heights.
• The governance structure of the enterprise needs to be responsive to
the outcome of the SWOT analysis and allow for an optimal pursuit of
the enterprise’s strategic objectives. Minor or more extensive
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 adjustments may need to be made to the enterprise and management
structure and human capital. This may include a rightsizing strategy
and plan, and must include the enterprise’s response to compliance
requirements for the enterprise and/or sector (e.g. compliance with the
Public Enterprises Governance Act, Ministry of Public Enterprises
directives, Sector Ministry policies and directives, the Procurement Act,
etc.).
• The reader will appreciate how the governance structure of the
enterprise will create the enabling environment for the enterprise to
achieve its goals and targets set for the ISBP period.


WHAT&WHEN?
5. Key Performance Indicators:
• Present the Key Performance Indicators at enterprise level for the ISBP
period. These relate to financial performance and industry-specific
indicators.
• Enterprises are encouraged to integrate relevant development impact
indicators related to the positive intended socio-economic impacts
(employment, gender balance, uptake on down- and upstream
opportunities, cross-sector benefits, up-scaling of innovation, etc.)
and/or intentional positive impacts on the environment in the KPI table.
• The KPIs are best presented in a table format that includes the baseline
value for each indicator and annual targets. The indicators are selected
carefully – using international benchmark and kept to a manageable
number as guided by the KIS (keep-it-simple) principle.
• The reader understands how the enterprise executives will hold
themselves accountable for the performance of the enterprise during
the ISBP period, both in terms of important conventional financial,
sector-relevant and development impact KPIs, while allowing for
integrated reporting by including development impact indicators.

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 HOW&WHEN?

6. Five-Year Business Implementation Plan:

• In this section of the ISBP the enterprise’s ambitions are translated into
actionable implementation plans, keeping a keen eye on risks and
challenges. These Implementation Plans demonstrate realistic resource
requirements and timelines. At minimum, they cover:
o Marketing Plan (guided by demand analysis, to be included as
annex);
o Operations Plan (to cover fixed assets, tools and equipment,
other movables, maintenance);
o Investment Plan (to cover all intended investments, with
explanation on purpose of investment, estimated cost and
priority ranking);
o Financial Projections (cash flow, income statement, balance
sheet taking into account the financial impact of
restructuring/rightsizing as required, clearly stipulating the
assumptions that drive the projections, and preferably including
optimistic, likely and pessimistic scenarios);
o Work Force Plan and Skills Development (Transfer) Plan;
o Financing Plan (how will the Business Implementation Plan –
ongoing operations, and investments be financed); and
o Risk Management Plan.
• The reader can visualize how and by when the enterprise will achieve
its targets over the planning period, translating the strategic objectives
to a reasonable level of detail to guide implementation.

7. Supporting Documentation:
Below are a number of recommended annexes. The enterprise may elect to include
additional annexes.

1) Company Fact Sheet

In this fact sheet the key variables of interest are included, such as:

• Year of establishment
• Relevant legislation (Establishing Act and/or Companies Act)
• Composition of the Board (and term)

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 • No. of employees (current)
• Financial performance history
• Level of Government subsidies
• Capacity
• Industry-relevant key indicators
• Compliance status
• Other relevant facts
2) SWOT Analysis

In a bold and succinct manner analyze the external and internal environment of the
enterprise and present the key strengths, weaknesses, opportunities and threats for
the business. In the SWOT, the enterprise’s existing market and future potential,
infrastructure and production/service capacities and opportunities for growth,
internal efficiencies and inefficiencies, the appropriateness of the existing
governance structure, challenges and opportunities posed by the socio-economic
environment, issues of compliance, capacity to source funding, human capital
strengths and weaknesses, etc. are interrogated in an objective and candid manner.
There is a balanced focus on growth and expansion, and improved (cost) efficiencies
for/in the enterprise.

The reader understands the current status of the enterprise and appreciates its
potential for growth and improved efficiencies while clearly seeing obstacles and
challenges in the way of such growth and expansion.

3) Organogram

4) Detailed Financial Projections (with summary tables in the main text)

5) Market Analysis (with marketing strategy/plan in the main text)

6) Details to support the business plan components