CHAPTER 11
Plan Section 6: Management and Organizational Structure IF
EVERYONE IS THINKING ALIKE, THEN SOMEBODY ISN’T
THINKING.
– GEN. GEORGE PATTON
or the most talented group of product developers cannot succeed without good company management and an appropriate organizational structure. In reality, wise investors will not take a serious look at any business plan that does not include participation by an experienced team of professional managers. Even if the plan is strictly internal to the company, describing team and management players is important. Each should have a proven track record in the specific industry or functional activity. Management and organization issues are particularly demanding for global companies and should always be analyzed in great detail in the business plan. Sadly, this area is often ignored while the plan drafter spends most of the time discussing new products. Good ideas are easier to find than good managers.
EVEN THE BEST PRODUCT
Senior Managers and Owners If your plan is being written in part for outside investors it should include an extensive description of the company’s senior managers and owners, including: ■ ■ ■ ■
Management team’s names, skills and experiences Recruitment and compensation of senior managers Directors’ names and experience Owners’ names and ownership structure
MANAGEMENT TEAM’S NAMES, SKILLS AND EXPERIENCES
The business plan should list the names of the managers in such a way that surname and given name are easily distinguished. This can have serious consequences when working with transnational/multicultural teams. Gender indicators should also be used to avoid confusion and embarrassment. Next, describe the skills, experience and performance record of the senior managers, and then relate these background items to the company’s needs. Do not merely list education and job titles, but also describe how they are related to their position and duties at the company. Investors want to know if managers’ experiences are applicable to the company’s purposes. To evaluate, they must understand the person’s previous career history. In addition, they want to see if the skills of the managers will carry the company through its takeoff. They do not want to worry about replacing managers soon after funding.
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