2. Business Planning in
Associations
a theoretical approach and a practical case:
The BP of ESTRO
Alessandro Cortese, ESTRO CEO
ESAE Vice President

3. Profit Potential
+
Social Impact
Potential
+−
Old School
Corporation
Old School
Not for Profit
x
−
Profit with a Purpose
Social entrepreunership

4. Paths to growth are not idiosyncratic but
strategic
Any organization that wants to be
relevant, to deliver value at scale, and to
sustain itself must clearly articulate and
evolve its business model
Translate mission, vision, strategy and
business model into business plan
→Multi-year Plan (Long Term)
→Year Plan (Short Term)
Paths to growth
Challenges in Social Profit

5. Dual Focus
Challenges in Social Profit
Cultivate a distinct set of funders
Identify beneficiaries and create
value through programs
However, what is the difference
between shareholders and
stakeholders?
Provide clarity about
→how you will fund your mission
→how to deliver your programmatic
impact Often main focus on beneficiaries ↔
fundraising on an ad hoc basis

6. Identify beneficiaries and make
difference for them with programs
→Beneficiaries usually fund only part of your
mission
Key drivers to growth
Challenges in Social Profit
 Cultivate a distinct set of funders
→ Building and scaling sustainable financial
support
Key drivers to growth in non profit
→Choose right business model that is a natural match for your mission
→Choose transparant governance model to achieve your goals

7. Some elements to define a Business Plan
• The business plan is not abstract, uninformative, theoretical or
mysterious
• It’s a document that convincingly demonstrates that your
business can sell enough of its products or services to make a
satisfactory social profit and be attractive to potential backers
• it is a selling document
• The plan writers should have an in depth understanding of financial
pro forma statements, cost and cash flow analysis and revenue
modeling.

8. Definition
• A business plan is a formal statement of a set of business goals, the
reasons why they are believed attainable, and the plan for reaching those
goals.
• In non-profit organizations, creative tensions may develop in the effort to
balance mission with "margin”.
• a 3 to 5 year business plan is essential to any organization…

9. FUNDAMENTALS

10. FUNDAMENTALS
Multi-year Plan:
• Financial forecast over 3 to 5 years
• Key Performance Indicators forecast over the same period
• Detailed Program Plan
Annual Plan:
• Budget
• Description of key processes and procedures
• Include a cash flow analysis next to the P&L (costs & revenues)
Processes and Procedures:
• Standardization of operational activities
• Definition of accountabilities and controls

11. From Strategy to Business Planning
Mission
Vision
Strat.
LT
Plan
ST
Plan
Strategic Plan
Business Plan

12. THE PRINCIPLE OF DELEGATION OF POWERS
AND REPORTING
Transfer of authority by one person or group to
another person or group:
• Authority
• Accountability
• Responsibility
12

13. Why is strategic planning important?
• to bring everyone on board – to engage and to mobilize
towards the vision
• to be proactive vs reactive to external forces of the environment
• to guide decision making at all levels
• to be accountable to the key stakeholders and to the public
• to improve organizational learning and capacity
• to communicate to the public what is important

14. Business Model: the step to business planning
Mission
Vision
Strat.
LT
Plan
ST
Plan

15. Stakeholders Segments
For who are we creating value?
Who are our most important stakeholders?

16. Value Proposition
What value do we offer to the Stakeholders? Which one of our
stakeholders problem / need are we helping to solve? What bundle of
products and services are we offering to each stakeholders segment?

17. Channels
Through which channel do our shareholders want to
be reached? How do we reach them? Which channels
work best and which ones are the most cost-efficient?

18. Shareholders relationship
What type of relationship does each of our stakeholders segments
expect us to establish and maintain with them? Which ones have we
established? How are they integrated with our model?

19. Revenue Streams
For what value are our shareholders and customers really willing to
pay? For what do they currently pay? How much does each revenue
stream contribute to the overall revenues?

20. Key Resources
What key resources do our value proposition require? Our distribution
channels? Stakeholders relationships? Revenue streams?

21. Key Activities
What key activities do our value proposition require? Revenue
streams? Stakeholders?

22. Key Partners
Who are the key partners? Who are the key suppliers? What key
resources do we retain from partners? What key activities are performed
by partners?

23. Cost Structure
What are the most important costs inherent in our business model? Which
key resources are most expensive? Which key activities are most
expensive?

24. Architecture of the value creation, delivery, and capture mechanisms
The 9 building blocks of a business model
Stakeholder Segments
Stakeholder Relations
Channels
Revenue Streams
Cost Structure
Key Partners
Key Resources
Key Activities
Value Proposition

25. Fundamental Questions
• Where are we now? (Assessment)Where are we now? (Assessment)
• Where do we need to be? (Gap / Future EndWhere do we need to be? (Gap / Future End
State)State)
• HowHow will we close the gap (Strategic Plan)will we close the gap (Strategic Plan)
• HowHow will we monitor our progress (Balancedwill we monitor our progress (Balanced
Scorecard / KPIs)Scorecard / KPIs)
• HowHow will we integrate all components of thewill we integrate all components of the
organization in one model.organization in one model.
Business
Model
)

26. Mission
Vision
Strat.
LT
Plan
ST
Plan

28. Created in 1980
No little changes in Statutes
Environmental Changes in Oncology
From ‘Grocery store’ to ‘Supermarket’ …. To chain of supermarkets
From ‘ad hoc’ planning to growth modeling
ESTRO in 2009
Starting Prespective

29. Clear vision & mission of the social profit organisation
Clear strategy to involve stakeholders in the realisation of the organisation’s goals
Clear roles & positioning of the different functions
Clear delimitation of tasks between the different functions
Balanced and educated Board of Directors
Close attention for the decision-making process
Complementary tasks to the members of the Board
Integrity of management
Recommendations received
Key Paths to Growth

30. From Strategy to Business Planning
Mission
Vision
Strat.
LT
Plan
ST
Plan
Strategic Plan
Business Plan

31.  WP1: Review current organization
and governance model
 WP2: Review of laws and bye laws
(legal perspective)
 WP3: Review future objectives
 WP4: Consolidate observations and
present recommendations
 WP5: Draft action plans and provide
plan for implementation
MISSION: Organizational Audit and New Articles of
Incorporation and Internal Rules

32. VISION: New Statement

33. VISION: New Statement
ESTRO Vision for 2020
Vision
Every cancer patient in Europe will have access to state of the art radiation therapy, as part of a
multidisciplinary approach where treatment is individualised for the specific patient’s cancer, taking
account of the patient’s personal circumstances.
Vision 1.1: Optimal individualised patient care will be achieved by
integrating, new clinical and preclinical evidence from biology,
molecular/functional and anatomic imaging, and the use of novel systemic
agents together with the delivery of high-precision radiation therapy in a
safety-aware environment.
Vision 1.2: The majority of patients will live cancer free with minimal
toxicity following the use of radical radiation therapy when used as a single
curative modality of treatment or when used in combination with surgery,
systemic chemotherapy and/or systemic targeted therapeutics….
Every cancer patient in Europe will have access to state of the art
radiation therapy, as part of a multidisciplinary approach where
treatment is individualised for the specific patient’s cancer, taking
account of the patient’s personal circumstances.
In order to achieve this vision ESTRO will support the following
initiatives and model of clinical care as part of the future strategic
development of the Society:
1. All patients are entitled to access healthcare systems that
enable the highest quality radiotherapy delivered within a safe
healthcare environment, and on completion of treatment have
access to appropriate long term follow-up, advice and support
from members of the clinical radiation oncology team.
2. All patients are entitled to receive full information on the
primary benefit, and where unavoidable, the potential side effects
associated with their proposed radiation therapy treatment
programme.

34. Business Model: the step to business planning
Mission
Vision
Strat.
LT
Plan
ST
Plan

35. Vision Linked to the
Business Model

36. Vision Linked to the
Business Model
• vision linked to model
Economical Information
Influence Practices
Protection Practices

37. Vision Linked to the
Business Model
• vision linked to model
Economical Information
Influence Practices
Protection Practices

38. Vision Linked to the
Business Model
• vision linked to model
Economical
Information

39. Vision Linked to the
Business Model
• vision linked to model
Economical Information
Influence Practices
Protection Practices

40. Vision Linked to the
Business Model
Protection Practices:
•Patents
•Contracts
•IT platforms
•Membership
•…
•Legislation

41. Vision Linked to the
Business Model
• vision linked to model
Economical Information
Influence Practices
Protection Practices

42. Vision Linked to the
Business Model
Influence Practices:
•Lobbying
•Marketing
•Professional Practice standards
•Organizational models
•Patients awareness

43. Vision Linked to the
Business Model
• vision linked to model
Economical Information
Influence Practices
Protection Practices

44. Focus on ‘Vision initiatives’ with budgetary impact on reference period:
Action 2:
•To implement a renewed ICT platform
 To provide a solution for internal and external communication (in terms of responsibility,
management and affordability) according to state of the art modern technology
Action 3:
•To create a new structure (committee) that will enable an oncology intelligence /horizon scanning &
monitoring function for the society
Action 4:
•To create new categories of membership offering an expanded range of choices
Action 6:
•To invest in a stable, affordable and reliable engagement of young inside the ESTRO organisation
STRATEGY: 13 Actions

45. Membership
• The objective of ESTRO is to increase significantly its representation factor by
growing its membership reaching a higher percentage of the total Radiation
Oncologists, physicists, radiobiologists and RTT in Europe, focusing on providing
relevant benefits and services, and linking those to the ESTRO activities.
• ESTRO can count on a basis of around 4.400 members in good standing and on a
base of over 8000 persons which every year attend an event or a teaching course
or are members without participating to any activity.
• Three Membership programmes exist today: individual, joint and corporate. A
new Programme will be launched to meet the growth opportunity with a revised
set of categories.
•
• Based on the previous considerations, ESTRO aims at reaching the ambitious goal
of 8000 members in a three to five years timeframe.
STRATEGY: 3 years KPIs, translating vision in measurable objectives

46. Education: Teaching Courses
• The educational offering of ESTRO is one of the most important “stars” of the
Society, having grown steadily in the last years.
• Over the years the number of Teaching Courses offered by ESTRO hasn’t stopped
increasing. For 2010, 31 courses and 4 pre-meeting courses are scheduled. Out of
those, 3 are new courses.
• The faculty of ESRO is today made of over 190 teachers. Plateau?
• The offering of teaching courses is planned to grow to 33 in 2011 and to 35 in
2012.
STRATEGY: 3 years KPIs, translating vision in measurable objectives

47. Multi year and annual Plans
Mission
Vision
Strat.
LT
Plan
ST
Plan

48. FINANCIAL PLANNING : THE CONCEPT
Starting point of the model:
• Input = budget based on actual figures and averages on long term
• Explanations for the deviations between the budget and the actual
figures
To facilitate decision making, the model should:
• Allow working with changing assumptions
• Allow measuring the expected revenues and costs of a single scenario
• Include a cash flow analysis next to the P&L (costs & revenues)

49. In order to be a working instrument, the model should be made dynamic, allowing to:
1. Verify the financial impact of strategic choices
2. Verify the actual economic investment and return of a single action
3. Allow assumptions and scenario changing
4. Allow variable input
5. Allow comparison with actuals
6. Payroll cost is normally split over different levels
7. Allocation of indirect costs is normally on a more activity based
principle
8. Include measurements for KPI’s, both qualitatively and quantitatively
9. Include both P&L and cash flow analysis
FINANCIAL PLANNING : OBJECTIVES

50. • The budget of the plan has been based on historic data (accounting data for previous
years or meetings)
• Assumptions are based on the strategic choices made by the board or are based on
assessing specific information by management, such as:
• Clustering activities, and their respective revenues and costs
• Indirect costs (overhead)
• Growth of the organization (FTE)
• Specific information (eg: estimation of forum costs and revenues, negotiations with
Elsevier…)
• Indirect costs:
• Based on historical data
• Calculated as an amount per FTE
• Together with salary costs, fixed at 110 Keur / FTE
• Evolution in FTE and turnover is possible
FINANCIAL PLANNING : PRINCIPLES

51. New dynamic budgeting and controlling tool:
• Starts from historic and audited data
• Consolidates data against a structure to accomodate new strategic plan
• Defines assumptions for each component of the budget
• Defines a growth model through dynamic scenarios
51
FINANCIAL PLANNING : OUTCOME

59. Q&A