Strategic Plan Captus5 - Doctor Whitehead's Version of Strategy Paper

Captus 5 – Strategic Plan 1
Captus 5 – Strategic Plan
Gordon Whitehead
December 19, 2005

EXECUTIVE SUMMARY .........................................................................................................................................4

COMPANY BACKGROUND ....................................................................................................................................6
BUSINESS NEED .........................................................................................................................................................6
CORE PRODUCTS AND SERVICES ...............................................................................................................................7
Coaching Practice ...............................................................................................................................................8
HRP Practice .......................................................................................................................................................9
Courses .............................................................................................................................................................. 10
Seminars ............................................................................................................................................................ 11
Management Consulting Practice .................................................................................................................... 11
Technology Management Practice ................................................................................................................... 12
INDUSTRY FOCUS ..................................................................................................................................................... 13
VISION STATEMENT ............................................................................................................................................. 14
MISSION STATEMENT .......................................................................................................................................... 14
VALUES STATEMENT ........................................................................................................................................... 14
LEADERSHIP ............................................................................................................................................................ 14
PEOPLE FIRST .......................................................................................................................................................... 14
TEAMWORK ............................................................................................................................................................. 15
INNOVATION ............................................................................................................................................................ 15
POISE ....................................................................................................................................................................... 15
THE DIVING CATCH ................................................................................................................................................. 15
ENVIRONMENTAL ANALYSIS ............................................................................................................................ 15
REMOTE ENVIRONMENT .......................................................................................................................................... 16
Economic Trends .............................................................................................................................................. 16
Social Trends ..................................................................................................................................................... 16
Political Trends ................................................................................................................................................. 17
Technological Trends ........................................................................................................................................ 17
Ecological Trends.............................................................................................................................................. 18
INDUSTRY ENVIRONMENT ....................................................................................................................................... 18
Entry Barriers.................................................................................................................................................... 18
Supplier Power .................................................................................................................................................. 18
Buyer Power ...................................................................................................................................................... 18
Substitute Availability ....................................................................................................................................... 18
Competitive Rivalry ........................................................................................................................................... 19
OPERATING ENVIRONMENT ..................................................................................................................................... 19
Competitors........................................................................................................................................................ 19
Creditors ............................................................................................................................................................ 20
Customers .......................................................................................................................................................... 20
Labor.................................................................................................................................................................. 20
Suppliers ............................................................................................................................................................ 20
INTERNAL ENVIRONMENT SUMMARY ...................................................................................................................... 20
Strengths ............................................................................................................................................................ 20
Weaknesses ........................................................................................................................................................ 20
EXTERNAL ENVIRONMENT SUMMARY ..................................................................................................................... 21
Opportunities ..................................................................................................................................................... 21
Threats ............................................................................................................................................................... 21
LONG TERM OBJECTIVES .................................................................................................................................. 22
CORPORATE STRATEGY ........................................................................................................................................... 22
GENERIC/BUSINESS STRATEGY: DIFFERENTIATION ................................................................................................ 22
GRAND STRATEGY: CONCENTRATED GROWTH ...................................................................................................... 22

LONG-TERM OBJECTIVES ........................................................................................................................................ 24
STRATEGIC ANALYSIS AND CHOICE .............................................................................................................. 25
Strength / Opportunity Match ........................................................................................................................... 25
Strength / Threat Match .................................................................................................................................... 26
Weakness / Opportunity Match ......................................................................................................................... 26
Weakness / Threat Match ................................................................................................................................. 26
Opportunity / Threat Match .............................................................................................................................. 26
Strength / Weakness Match .............................................................................................................................. 26
PLAN GOALS AND IMPLEMENTATION ........................................................................................................... 26
SHORT-TERM OBJECTIVES ....................................................................................................................................... 26
FUNCTIONAL TACTICS ............................................................................................................................................. 29
Functional Tactics: Marketing ......................................................................................................................... 29
Functional Tactics: Operations ........................................................................................................................ 30
Functional Tactics: Business Development ..................................................................................................... 30
Functional Tactics: Service Delivery ................................................................................................................ 30
Functional Tactics: Finance ............................................................................................................................ 30
EMPOWERMENT ....................................................................................................................................................... 31
REWARDS ................................................................................................................................................................ 31
Bonus plan and accelerator plan ...................................................................................................................... 32
ORGANIZATIONAL AND LEADERSHIP STRUCTURE. .................................................................................................. 33
FINANCIAL PROJECTIONS AND ANALYSIS ................................................................................................... 33
PROFORMA AND PAYBACK ANALYSIS ..................................................................................................................... 33
REVENUE MIX ......................................................................................................................................................... 35
CRITICAL SUCCESS FACTORS .......................................................................................................................... 38
CONTROLS AND EVALUATION ......................................................................................................................... 39
PREMISE CONTROLS ................................................................................................................................................ 39
STRATEGIC SURVEILLANCE CONTROLS ................................................................................................................... 39
ALERT CONTROLS ................................................................................................................................................... 40
IMPLEMENTATION CONTROLS ................................................................................................................................. 40
CONCURRENT CONTROLS ........................................................................................................................................ 40
REFERENCES .......................................................................................................................................................... 41
Executive Summary
Captus 5 is a leadership and management consulting company focused on
developing young business leaders on behalf of corporate customers. With expertise in
enterprise organizational modeling, Captus 5 has six practice areas that focus on niche
aspects of the management consulting industry and include: Coaching, human resource
processes, training courses, seminar series, management consulting, and technology
consulting.
Companies that promote from within need a mechanism to quickly advance the
managerial and leadership skill of targeted individuals. This process must occur in a
manner that is consistent with existing corporate culture. Elements of successful
leadership are common across most enterprises and organizations; however, the
application of managerial processes may vary from company to company.
The Captus 5 business model blends consulting services with pre-packaged
service offerings directed to the specific leadership development needs of Fortune 1000
companies. Committed to developing human leadership talent, Captus 5 gives back to
the community by donating 5% of all pre-tax earnings to human development non profit
programs.
Environmental scanning was used to assess strengths, weaknesses,
opportunities and threats. An analysis of the results yielded key long term objectives
and strategies. The grand strategy is concentrated growth with an additional minor
focus on vertical integration. Since Captus is a new company, key long term objectives
include: Development of brand recognition, market creation, trademarked and
copyrighted materials, published processes, and sustained internal growth at 25%

annually. Detail regarding implementation and corresponding short-term objectives can
be found in the paper.
Captus 5 is a closely held Limited Liability Company and is presenting this paper
to board members, potential partners, and potential investors. Conservative financial
analysis coupled with a detailed environmental and market scan indicates an
opportunity to fill a needed management consulting niche that offers upwards of 89%
return on internal investment. The most important offerings of Captus 5 (in order of
profitability) are:
Leadership courses that focus on basic leadership and management
development.
Management consulting services that focus on human resource development
processes (HRP) and organizational modeling.
Seminar series that serves as a marketing draw for the previously listed core
services and focuses on brand building activities.
Effective implementation of these offerings depends on critical factors such as an
adequate capital structure, acquisition of foundation customers, creation of effective
partnership teams, and development of appropriate training facilities. Powerful
marketing processes are also essential, and are reflected in the short-term
implementation plan.
The Captus 5 strategy will primarily be monitored by feed-forward controls that
indicate imminent and broad based strategic shifts. These controls will be coupled with
alert and implementation controls that help guide the process of achieving the strategic
objectives.
Company Background
Captus 5 is a leadership training company inspired by the need for all companies
to have well-trained highly effective functional managers. The company name is formed
by combining the Latin word Captus, which implies catching or taking in power and
comprehension (http://catholic.archives.nd.edu/cgi-
bin/lookup.pl?stem=captus&ending=), and the five leadership tenets important to the
founder:
Commitment and self discipline
Mental and physical fitness
Teamwork and leadership
Innovation
Integrity
Business Need
Companies that promote from within often tap a person who has demonstrated
qualities of loyalty, leadership and technical competence. However, rarely is training
provided to bridge from individual contributor to successful functional manager. This is
particularly common in highly technical industries where a person may distinguish
himself based on functional or technical prowess and then be propelled into a
management role, only to later struggle with leadership challenges and managerial
tasks. Transitioning from a role where results are derived through individual effort to a
role where success is achieved through the efforts of others requires organizational
skills and leadership tools that many young managers simply do not have.
Elements of successful leadership are common across most enterprises and
organizations. However, the application of managerial processes may vary from
company to company. Captus 5 is a leadership company committed to providing a
program that specializes in training new managers within the framework of their own
company culture.
An important distinction is often drawn between leadership and management.
For purposes of the Captus 5 pedagogy, the distinction is only important from the
perspective of understanding one’s duty. Nelson (2005) states “learning to discern
when a situation needs leading, besides knowing what to do as a leader, is often a
complex matter.” (p. 246). The point is that leadership is situational and must be
applied at the right time and in the right way. On the other hand, being a good manager
involves process orientated activities such as performance reviews, functional business
process management, work-break down, and project management, etc. Leadership is
applied when interposition with people occurs and at that point, theories are merely
guideposts.
Captus 5 does not focus on theory, but rather emphasizes practical situational
leadership and managerial responsibility. In an article entitled “Management
Development” (1995) the authors cite a connection between training and development
failures when theory is overly emphasized and common sense is avoided (p. 11).
Core Products and Services
Captus 5 has six practice areas which include: coaching, human resource
planning (HRP), courses, seminars, management consulting, and technology
management.
Coaching Practice
Mentoring Package: Consists of leadership and management
mentoring for junior managers. Includes onsite consultative sessions
diving into the problems and challenges of the manager relative to
his/her situation and providing guidance on how to successfully
implement the corporate strategies through and within the manager’s
span of control. This is a 1-1 service that lasts for 12 weeks.
Support Plus: Additional support can be added by subscribing to a
24x7 hotline and a best practices web site designed to assist
managers and junior leaders. The site covers employee development,
employee counseling, reviews, planning, project management,
operations management, financial management. Each topic is
specifically tailored to the views of the junior leader.
Team Development Package: Team training designed for small unit
teams ranging from two to 12. The purpose is to develop team unity,
and assess the team's position according to Tuckman’s model of
forming, storming, norming, and performing phases (George Mason
University, Para. 1). Package includes Myers Briggs analysis and how
to leverage diversity for high performing team development.
Deliverables include documentation and analysis of team and a
customized strategy document on becoming high performing.
Strengths, Weaknesses, Opportunities and Threats are identified,
analyzed and transformed into actionable methods for the team to
rapidly move through team cycle.

Personal Career Development Package: 1-1 coaching for an individual
aspiring to breakout. Coaches help with resume development, career
advancement strategies (internal and external) by providing an honest
self-awareness assessment and a personal environmental scan tied to
action plans for goal achievement.
HRP Practice
Organizational Modeling and Alignment: Designed for a senior
management team needing to step back and review the organization
for alignment with strategy and goals. The organization has to evolve
as the company moves along the transition path from the past through
the present to the future (Moore, 2002, p. 190).
HRP Process: Designed for senior management teams to identify key
up and comers in the organization and assess risk of losing key
players. The process includes developing plans for how to continue to
groom these individuals for future important roles in the organization.
Leadership Development: For the superstar that is identified in the
HRP, management may want to apply some focused development
training. This package is a 1-1 series of two hours per week for 10
weeks of personal workshops designed to specifically address
weaknesses and threats and help the individual develop as a leader in
the organization. Customized to fit the specific business model and
needs of the company.

Courses
Basic Leadership and People Management: Four day course designed
for junior managers, or future junior managers, and moves them
through the important functional and business processes of being a
manager. Tools are used that resonate with the company. For
example, reviews are company review templates and processes. If
company needs these tools developed, Captus 5 can provide a review
system.
Coaching Strategies and Techniques: Two day course designed for
senior managers and junior managers who need to learn the art of
coaching their employees. Covers how to setup a self-healing
organization and how to grow the future and leverage resources
without feeling threatened.
Leadership Academy: Three week intense course designed to
challenge a leader’s physical skill, mental capacity, academic prowess,
leadership ability and managerial acumen. The course is modeled
after the United States Marine Corps’ NCO (Non Commissioned
Officer) academy and includes physical training and objective based
and task oriented outcomes. The course is a graded event and
includes a community service project, a paper (potentially publishable)
and presentations. The course also examines the history of leadership
and the various leadership styles and situations that cause leaders to
adapt for success or fail to adapt and not succeed.

Seminars
Rising to the Top: Two hour breakfast seminar that discusses the tools,
techniques and activities a junior person needs to be able to rise to the
top of the organization, get recognized, and get promoted.
Self Healing Organizations: Two hour breakfast seminar that discusses
the nature of small unit organizations and how smart managers are
able to create self-healing organizations which is contrasted with
micro-managers who drown in their own tasks.
Do it All and Do it Right, “How To” guide for the Overextended Leader:
Two hour breakfast seminar that discusses how to keep all of “the
balls” in the air. Management can be akin to juggling cotton balls in a
hurricane. The nature of this seminar identifies how to select the key
cotton balls and how to keep them in the air even though hurricane
winds are swirling.
Management Consulting Practice
Appreciative Inquiry: Appreciative inquiry is a process used to achieve
dramatic improvement in an organization. The process leverages what
an organization already does well to transition to an end-point that
reflects the organizational vision and strategy.
Environmental Scanning: Environmental scanning reviews the
organization for internal strengths and weaknesses and external
opportunities and threats. The process helps the organization

determine the right portfolio of projects that will drive the organization
to the strategic outcome desired.
Facilitation: Skilled facilitation of off-sites and projects that need a jump
start. Off-sites are common and excellent mechanisms for helping
organizations think out of the box to find a solution to a nagging issue
or to simply provide an assessment. Industry knowledgeable
facilitators have a thorough understanding of the problem set prior to
the session and can be active and able to help guide the discussion to
achieve the best outcome.
Technology Management Practice
Roadmap and Strategy: Infrastructure is one of the most difficult
technology areas to appreciate by senior management. Yet, a plan
and roadmap is critical or costs will overwhelm the organization. This
service helps to develop and maintain organizational and sub-
organizational plans and strategies so they fall within the overarching
business objectives. Consultants approach this process from a
business point of view, fully immersing themselves in the SEC filings,
Sarbanes 404 results and have a full awareness of the issues and
concerns facing the company.
Vendor Negotiations: Often, using an outside resource to negotiate
vendor contracts helps to lower price and provide increased service
levels. Captus 5 has a technology practice that focuses on technology

vendor relationships with Captus 5 customers and works as an
intermediary to help the client get the best financial structure possible.
Software Selection: Selecting the right ERP package, CRM package,
or any Commercial (COT) solution can be challenging. Captus 5 has a
specific process designed to evaluate and select solutions. This
service includes vendor negotiations, contract arrangements and
integration/implementation plans.
Industry focus
Captus 5 focuses on the following industries:
Agriculture
Communications
Education
Financial Services
Government
High-tech
Information
Legal
Manufacturing
Medical and Healthcare
Professional Business Services
Retail
Sports and Sports Marketing

Vision Statement
The vision of Captus 5 is to teach young leaders and managers how to access
inspiration, foster innovation, leverage tradition and culture, develop managerial respect
and command presence while retaining humility and preserving human relationships.
Captus 5 specializes in teaching leaders how to effectively evaluate and solve problems
based on situational models in a business context.
Mission Statement
Captus 5 is a leadership training company committed to developing managerial
and leadership talent. Customers are business entities that need to grow the next
generation of leadership from within, and use team oriented organizational models.
Captus 5 is a limited liability partnership that provides management and leadership
consulting.
Values Statement
The Captus 5 culture advocates values which work in concert to sustain
leadership in a dynamic and complex economy.
Leadership
The backbone of an organization is functional management and small unit team
leadership. Innovative, well integrated leaders throughout all levels of an organization
can provide competitive advantage.
People First
Passionate for developing people, Captus 5 is a closely held limited liability
partnership that gives 5% of all pre-tax earnings to a pre-arranged list of human
development charities which are supported by Captus 5 and their clients.

Teamwork
Developing, implementing and strengthening teamwork results in synergy which
allows a group to accomplish more as a team than would otherwise be possible as
collective individuals.
Innovation
Innovation is the process of seeking new ways to solve both new and old
problems. Captus 5 fosters creativity in the organizational framework and rewards
innovative views.
Poise
Pressure is all around; how a person or an organization deals with that pressure
is critical. Poised leaders are able to see clearly even when the fog of complex
situations stimulates panic and presses for a quick decision.
The Diving Catch
In baseball, the diving catch saves a run, or runners from advancing, or maybe
even ends an inning. Making a diving catch is a favorite sports analogy of Captus 5
because it resembles an individual or team effort of such extraordinary measure that
everyone is inspired and lifted by the depth of commitment and energy being expended.
Environmental Analysis
According to Pearce-Robinson (2004) there are three major components to an
environmental assessment, namely the remote environment, industry environment, and
the operating environment (p. 78).

Remote Environment
Economic Trends
Rupcic (2005) identifies several trends that are potential concerns facing the
global economies:
Rising interest rates.
Rising energy costs coupled with increased demand for traditional
sources.
A rising cost of living associated with inflationary fears.
Overheated U.S. housing markets.
U.S. debt and trade imbalances which impact international exchange
values. However, a falling dollar will have a positive impact for U.S.
companies conducting international business.
Fluctuating unemployment rates will continue to cause anxiety in both blue
and white collar workers
(http://www.rbc.com/economics/html_calendars/us/calendar.html).
Social Trends
Aging of baby boomers create a vacuum in management talent: “As baby
boomers begin retiring in 2008, one in five human-resources executives
expects a looming shortage of experienced IT talent, according to a new
study by Deloitte Consulting” (McGee, 2005, Para. 1).
Continued push for social diversity in management positions of U.S. based
companies (Chozick, 2005).

Globalization of the work force with continued off-shore and outsourcing
trends that displace local workers in favor of low-cost resources (San
Francisco Chronicle, 2004).
Increased use of virtual teams and telecommuting. According to the
Human Capital Institute a fourth of U.S. workers currently telecommute to
some degree
(http://www.humancapitalinstitute.org/hci/tracks_virtual_workforce.guid).
Political Trends
Continued threat of terrorism resulting in a business environment that will
have to spend more on security.
Political alliances that continue to develop a global economy with free
trade objectives.
Technological Trends
According to a report by the Queensland Government
(http://www.premiers.qld.gov.au/About_the_department/publications/reports/Premiers_p
olicy_scan/november_2002/trends/#human) key technology trends will include:
More powerful and accessible computers with shrinking footprints.
Enhanced network and collaboration capability – everyone will be online
all the time as wireless continues to prevail.
Technology convergence in video and voice devices.
Pervasive real-time access to information.

“Human Genome” projects continue with scientific research lead to
extending the quality and length of human life.
Ecological Trends
Pollution continues to be a problem caused by a demand for traditional
energy sources.
Legislation and regulatory efforts increase and cause additional expense
burden on all companies to comply and demonstrate compliance.
Industry Environment
Entry Barriers
There is an extremely low barrier to entry. For example a Google search
of “Management consulting” produced over 59 million hits.
Supplier Power
There is low supplier power where product differentiation is low, as is the
case in this industry.
Buyer Power
Buyer power is extremely strong in the management consulting market,
and the trend will continue because the barrier to entry remains low.
Substitute Availability
There is a broad range of management consulting services to choose from
which promotes high substitutability. Without brand dominance, or

demand for a specific product, buyers will continue to have tremendous
power.
Competitive Rivalry
Without strong brand recognition and differentiation in products,
competitive rivalry remains low. However, once Captus 5 products gain
foothold in the industry, rivalry factors will increase.
Marketing approaches will vary depending on target audiences. Pricing
will be used as a last resort for differentiation.
Services are highly customizable.
Exit barriers are low, though bench time of consultants becomes a
constant drain and encourages consulting companies to sell services at
cost or lower.
Operating Environment
Competitors
Competition will increase because entry and exit barriers are low.
Competitors with fortune 500 clients will guard against new entrants such
as Captus 5 by maintaining key relationships and offering a variety of
products.
Individual startups may increase as MBA and graduate level enrollees
continue to grow. According to Hansen (2005) from 1960 to 2000 MBAs
increased by 2000% (para. 8).

Creditors
Credit requirements remain low – most management consulting
companies will require self-funding or funding that comes from a dedicated
“cash-cow” source.
Customers
Customers will value a service that can fill a void in qualified leadership at
the functional level.
Labor
MBA growth is an indicator of potential labor market development.
Suppliers
Unless consulting is tied to a product (i.e., Covey) a traditional supply
channel is not an issue.
Internal Environment Summary
Strengths
Customized program designed to develop leaders within the organization.
Training programs reflect client culture so that leaders are prepared to lead
according to the client’s organizational model.
Weaknesses
Lack of brand recognition.
Lack of Fortune 1000 customer base.

Lack of market presence.
Lack of cash.
External Environment Summary
Opportunities
Growing population of inexperienced managers, particularly as the baby
boomer vacuum occurs.
Companies that need to leverage remote communications processes and
virtual teaming.
Outsourcing and offshore activities need skilled leadership.
Trade imbalance leading to international opportunities as exchange rates
ultimately may favor the U.S. dollar.
Diversity requirements provide opportunity for training packages with new
managers.
Low barrier to entry.
Threats
Political instability.
Rising interest rates and/or rising inflation.
Increased regulatory compliance pressures eating away profit margins.
Terrorists targeting Fortune 1000 international companies.
Rising unemployment and deteriorating economic conditions could make
training programs a low priority for companies.
Low barrier to entry.

Universities are entering the management consulting arena and are seeking
to provide services to managers and seasoned executives.
Long Term Objectives
Corporate Strategy
Establish a leadership consulting company that develops and expands the
market and need for quality leadership and managerial training of junior level
organizational leaders. Achieve 25% annual growth that is internally funded.
Generic/Business Strategy: Differentiation
The management consulting industry, particularly the sub-industry that services
junior leaders is an emerging need, particularly as the exodus from the workforce by
baby-boomers initiates. Developing a business strategy that delivers unique value
where customers feel the price is well below the perceived benefit should direct Captus
5 to a differentiation business strategy.
Grand Strategy: Concentrated Growth
The recommended grand strategy is to focus on growth. Pearce-Robinson (2004)
identifies two selection matrices that can be used to identify the right grand strategy (pp.
250-252). Figure 1 indicates four options for a grand strategy since Captus 5 should
optimize internal strengths namely: Concentrated growth, market development, product
development, or innovation.
Figure 1
Figure 2 suggests Captus 5 has rapid market growth opportunities and maintains
a strong competitive position resulting from the targeted set of offerings to an
underserved, but large market. These grand options include: Concentrated growth,
vertical integration, or concentric diversification.
Figure 2
The common intersection is concentrated growth which aligns with the
fundamental need of Captus 5 to gain market penetration by leveraging internal
strengths (Pearce-Robinson, 2004, p. 249).
Long-Term Objectives
The matched pair analysis (outlined in the Analysis and Choice section)
generated five key strategy areas (Figure 3) of focus for Captus 5:
Focus on building a brand that is recognizable to Fortune 1000 companies.
Develop market pull for the Captus 5 services.
Trademark and/or copyright Captus 5 processes and publish in academic and
business journals.
Develop a symbiotic channel partner.
Establish annual revenue stream to sustain internally funded concentrated
growth.
Figure 3
The key long term objectives that are derived from the strategy statements
therefore are:
Captus 5 as a recognizable and desirable brand as a leader in developing
junior managers and future leaders. The result of which generates annual
revenues of $1.5m by the fifth year and $4.5m in the tenth year. Growth
should be funded internally – 75% of revenues should be from Fortune 1000
companies and 50% should come from courses and seminars.
Captus 5 provides trademarked and/or copyrighted materials such as review
processes, coaching systems and HRP systems. These systems should be
web and paper based, are customizable for each client and represent
knowledge transfer from Captus 5 to the client. Systems should be on the
market by Year 3 of the plan and generate 10% of overall revenues by year 5.
Captus 5 develops three strategic partners that vertically integrate consulting
services into the entire management consulting market. Revenues from
channel activities should reach 10% by year three and 25% by year five.
Strategic Analysis and Choice
Strength / Opportunity Match
Customized program designed to develop leaders for the vacuum created by
baby boomer retirement.
Training programs that reflect client culture and address the needs of young
managers who need exposure to leading virtual and/or international
organizations.
Strength / Threat Match
Customized programs which compete well against new market entrants.
Weakness / Opportunity Match
Lack of market presence and Fortune 1000 customer base combined with a
growing need for experienced leaders opens a niche for Captus 5.
Weakness / Threat Match
Lack of market presence and Fortune 1000 customer base combined with a
growing number of potential market entrants, including Universities, may
require partnering with Universities or other channels.
Opportunity / Threat Match
Vacuum of management experience resulting from aging population
combined with lack of market presence and Fortune 1000 customer base
indicates a needed focus on developing both the market and a brand.
Strength / Weakness Match
Customized program designed for junior managers and leaders matched with
a lack of market presence and Fortune 1000 customer base indicates a need
to develop brand recognition and market pull.
Plan Goals and Implementation
Short-term Objectives
Short-term objectives are measurable and tie to long-term objectives and support
the grand strategy.

Table 1
Short-Term Objective Linkages
Business Grand Long-Term Short-Term Objective
Strategy Strategy Objective
Priority S-T Objective Metric
Differentiation Growth Build 1 Form company – Form Filings, licenses
recognizable partnership with legal and and fees
brand administrative completed.
requirements in place.
2 Content – Develop content Website active

needed to support brand and collateral
initiatives. This includes published.
website and collateral
materials appropriately
branded.
3 Survey – Access Fortune Statistical

1000 customers through analysis within
survey tools to collect data 10 days of
on needs, offer a report report. Acquire
back to survey respondent. leads that lead to
five new
customers.
4 Seminars – Register and Present at 3

present at CIO, CFO and conferences in
CEO conferences. 2006. Obtain
five new
customers from
Fortune 1000
companies.
Sustainable 1 Courses – Implement $250k 1st year

revenue to courses by offering 10 revenue target
support basic leadership courses,
growth two coaching courses and
one leadership academy
class session.
2 Seminars – Conduct 30 $75k 1st year

Captus seminars evenly revenue target
spread over “Rising to the
top”, “Self-healing
organizations” and “Do it
all well” topics.

3 HRP – Two engagements $39k 1st year

and 100 hours + of revenue target
consulting on HRP and
development with Fortune
1000 companies.
4 Coaching – Two $54k 1st year

mentoring and team revenue target
development
engagements.
5 Management – Two $130k 1st year

environmental scanning revenue target
projects, five facilitation
engagements and two
Appreciative Inquiry
projects. Half of
engagements should be
Fortune 1000.
6 Technology – One $30k 1st year

technology revenue target
roadmap/strategy project
for a fortune 500 company.
Products 1 Content – Publish and Publish in one

that support trademark/copyright business
consultative content. magazine.
services and
create Establish
subscription process
revenue copyrights.
2 Systems Development – Three early

Develop web portal adopters for
services for users of leadership portal.
content.
Vertical Vertical 1 Legal agreements – Prepare

Integration channel Complete legal agreements in
partners for agreements and NDA’s for the next 90 days

deeper partner and channel in preparation for
market relationships. partner &
penetration channel activity.
2 Partner screen and target Negotiate one

– Identify likely partner vertical partner in
candidates and pursue. the 1st year.
Functional Tactics
Relate to activities that the functional groups will need to provide in order to
achieve the strategy, goals and objectives. The key functions performed at Captus 5
are: Marketing, Operations, Business Development, Service Delivery, and Finance.
Functional Tactics: Marketing
Evaluate existing marketing collateral and websites of competitors and
potential channel partners. Screen for techniques and presentation that
resonates with potential customers needs.
Develop Captus 5 marketing plan, collateral and website.
Initiate marketing campaign that leverages email, off-line marketing, radio,
and seminar series.

Functional Tactics: Operations
Arrange for seminar and course delivery facilities. Consider unique locations
such as landmark hotels that can be part of the event attraction. Locations
must be wireless and have multi-screen high quality presentation capabilities.
Establish scheduling mechanism to coordinate service delivery across
multiple clients and prospects.
Establish service delivery quality standards and post service survey activities.
Functional Tactics: Business Development
Develop target prospect list. Break it into Fortune 1000 and non-Fortune
1000 entities.
Meet with executives that cover the core functional areas of the target list.
Create business development processes that are consistent, ethical and
repeatable.
Use existing customers to farm for referrals and repeat business.
Functional Tactics: Service Delivery
Train consultants in service delivery models to assure consistency.
Ensure engagement management is active so that customers are
referencable at all points of the engagement.
Functional Tactics: Finance
Establish requisite lines of credit for financing receivables.
Establish policy and contract templates for engagements.
Implement accounting system that provides P&L reports monthly.

Be able to report on performance by product mix, including costing data.
Empowerment
According to Pearce-Robinson (2004) the objective of empowerment is to deliver
consistency and quality while reducing uncertainty throughout the delivery cycle (p.
298). Captus 5 is and will remain a closely held limited liability partnership. Growth
goals for the first ten years will assure the company is tightly controlled with a limited
number of senior partners and one managing partner. Because success of engagement
is critical to the brand building initiatives, Captus 5 will only take on engagements that
can be highly successful and immediately referencable. The decision to enter into an
engagement is at the Senior Partner level where a committee of Senior Partners
reviews and approves all contracts and engagement proposals. The only authorized
signer of binding contracts for Captus 5 is the Managing Partner.
While there is strict control over the engagement initiation process, Captus 5
partners have latitude to solve customer problems and address leadership challenges.
The nature of the leadership consulting business requires flexibility and situational
responses. According to Tucker, Kao and Verma (2005) the next generation of leaders
must be prepared to be authoritative on the job. Organizations must learn to distribute
leadership responsibilities and leaders should be transitioning from commanding to
influencing (p. 27). Captus 5 Partners are encouraged to foster each customer
relationship and become a unique source of leadership delivery.
Rewards
Reward programs are compensation based. Partners are compensated in the
form of a base salary and receive bonuses on billable hour milestones. While many of
the Captus 5 services are fixed fee base, confidential company documents outline the
expected hours required to deliver each service. This document is used to calculate
billable hours for bonus purposes.
There are four types of bonus activities outlined in Table 2. The basic bonus is
5% and is paid once the Partner reaches 1316 billable hours. The basic bonus is paid
only against the 1316 hours and only if the Partner reaches that level. The Accelerator
bonus is paid on all hours billable after the basic level of 1316. Each hour billed after
that receives an accelerator bonus of 50%. There is a business development bonus that
provides a 5% commission for all revenue generating agreements. Revenues must be
collected within the twelve month period and the Partner must have played a substantial
role in developing, contracting and closing the opportunity. The final bonus is a referral
bonus which is a flat $1500 bonus paid to channel partners for referring new clients to
Captus 5.
Bonus plan and accelerator plan.
Table 2
Types of Bonus Compensation
Strategy Basic Accelerated Business Referral Rationale
Bonus Bonus (Cash) Development Incentive
(Cash) (Cash) (Cash)
Growth X X X X Partners
achieve
additional
profit as new
business is
obtained
and when
basic levels
of
profitability
are already
achieved.
Organizational and Leadership Structure.
Captus 5 is a small group of partners that focuses on the niche market of
leadership development. For the next five years the organizational structure will be
simple and provide two levels of partners. The first level is senior partner. The second
level is partner. Captus 5 is closely held and partners are governed by the Senior
Managing Partner. Business development is a core responsibility of each partner.
Delivery of services is primarily done through partner level members but also
augmented with channel partners. Senior partners have engagement management
responsibility.
Figure 4
Financial Projections and Analysis
Proforma and Payback Analysis
Tables 3 through 5 provide a financial analysis of the Captus 5 opportunity. The
plan calls for $150,000 of initial investment and demonstrates positive cash flow each
year. Net earnings exceed $400k in year 5 and revenues approach $1.5m. The net
present value of the $150k investment is $533k and represents an internal rate of return
of 89%.
Table 3
Financial assumptions:
Revenue growth 25%
Expense increase rate 20%
Depreciation Expense increase 0%
Tax rate change n/a
Tax Rate 35%
Discount rate 15%
Acquisition Cost / Startup Cost 150,000
Variable Costs 40%
Annualized calculated assumptions:

Corporation A Yr1 Yr2 Yr3 Yr4 Yr5
Revenues 597,430 746,788 933,484 1,166,855 1,458,569
Gross (Variable Expenses) 238,972 298,715 373,394 466,742 583,428
Gross Profit 358,458 448,073 560,091 700,113 875,142
Fixed Expenses 242,015 242,015 242,015 242,015 242,015
Depreciation Expense 5,000 5,000 5,000 5,000 5,000
Taxes 39,005 70,370 109,577 158,585 219,844
Table 4
Captus 5
Proforma Income Statement, Yr 1 - Yr 5
(figures in US dollars) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Revenue $ 597,430 $ 746,788 $ 933,484 $ 1,166,855 $ 1,458,569
Variable Expenses 238,972 298,715 373,394 466,742 583,428
Gross Profit 358,458 448,073 560,091 700,113 875,142
Fixed Expenses (not including Depreciation) 242,015 242,015 242,015 242,015 242,015
Depreciation Expense 5,000 5,000 5,000 5,000 5,000
Earnings before Taxes and Interest 111,444 201,058 313,076 453,099 628,127
Taxes 39,005 70,370 109,577 158,585 219,844
Net Income After Taxes $ 72,438 $ 130,688 $ 203,499 $ 294,514 $ 408,283
Table 5
Captus 5
Proforma Statement of Cash Flows, Yr 1 - Yr 5
(figures in US dollars) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Cash flows from operating activities
Net Income $ 72,438 $ 130,688 $ 203,499 $ 294,514 $ 408,283
Depreciation adjustment 5,000 5,000 5,000 5,000 5,000
Net Cash from operating activities 77,438 135,688 208,499 299,514 413,283
Net Cash from investing activities 0 0 0 0 0
Net Cash from Financing activities 0 0 0 0 0
Cash at end of year 77,438 135,688 208,499 299,514 413,283
Payback analysis indicates a complete payback of the investment prior to the
end of year 2 as illustrated in Figure 5.

Figure 5
Payback period for Investment Choice

(Discounted Values)
800000
600000
US $
400000 Captus 5
Investment
200000
0
Yr0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Year End
Figure 6 illustrates the climbing potential of revenues and a corresponding
increase in pre tax profits.
Figure 6
Revenue and EBIT Proforma Projections
1,600,000
1,400,000
1,200,000
US Dollar
1,000,000
800,000
600,000
400,000
200,000
-
Yr1 Yr2 Yr3 Yr4 Yr5
Revenues PreTax Earnings
Revenue Mix
Figure 7 charts the planned source of revenue by product. Captus 5 plans to
achieve over 40% of revenues from classes, of which the basic people and
management course holds the dominate spotlight. Other revenues are generated from
management consulting (23%), seminar series (13%), coaching (9%), HRP (7%), and
technology management (5%).
Proforma analysis of pretax earnings supports the emphasis on leadership
classes which support approximately 60% of net earnings.

Figure 7
Critical Success Factors
This section outlines the critical success factors that must be in place for Captus
5 to initiate and succeed in this strategic plan. According to Rockhart (cited by e-
competitors.com, 2005) there are four types of factors: Industry, Strategy,
Environmental, and Temporal. Table 6 outlines the CSFs for Captus 5.
Table 6
CSF Source Measures / Condition / Comment
Targets
Establish capital Environmental Raise $150k of Cash flow is critical to growth
structure and funding equity funding. since internally funded growth is
the model. Initial structure
should allow for consistent
growth without pressure on cash
flow.
Establish foundation Industry Five new Foundation customers are those

customers foundation that are Fortune 1000, offer
customers per repeatable business scenarios,
year. and reference into other
accounts.
Establish partnership Strategy One new senior Identify correct partners that can
team partner per year. deliver content that satisfies
customer demand.
Establish operating Temporal Open a new

base. office.
Training facility. Temporal Contract a The training facility should

training facility. become a draw and source of
Build a new off-sites for customers.
facility in 5 years.
Controls and Evaluation
Premise, surveillance, and alert controls provide feed-forward responses while
implementation controls provide feedback information (Van Staden, 2001, p. 6).
Concurrent controls will be used to maintain customer quality and referenceability.
Premise Controls
These controls validate the premises of the strategic plan on a continuous basis
(Pearce-Robinson, 2004, p. 366). The primary premise control evaluates the
fundamental environmental issue which is: Junior managers are ill-prepared and need
training. The secondary environmental issue is that rapidly changing market conditions
foster chaos within organizations which cause a need to validate models and grow
future leadership. Continuous environmental scanning is used to assess these premise
assumptions and provides vital feed forward controls.
Strategic Surveillance Controls
Strategic surveillance provides feed forward controls that are by their nature
unfocused and broad-based (Pearce-Robinson, 2004, p. 366). Surveillance controls
that should be in place for Captus 5 include:
Market and industry monitoring vis-à-vis the Wall Street Journal and the
Harvard Business Review.
Supplemental reading material includes HR, technology and industry
specific periodicals that are scanned on a routine basis.
Attendance at key conferences such as CIO and CFO conferences.

Alert Controls
Key alert controls prompt quick assessment of current strategy and include the
following:
Dow Jones news feeds.
Email alerts from CNN, WSJ and other respected journals that provide
geo-political and business news.
Alerts that indicate significant trading range variation in the share price of
customer’s stock. Wide swings up or down could signal an important strategic
shift for Captus 5.
Implementation Controls
As the strategic plan is implemented key financial data points will be compared to
the proforma statements to assess how the implementation plan is matching reality.
Short-term objectives will be monitored for achievement; those that are not met will
receive a red-flag on a quarterly basis for review.
Concurrent Controls
Key concurrent controls will include:
Pre-consulting statement of work reviews.
Post implementation customer quality reviews.
Class and seminar monitoring and feedback surveys (used to adjust
content and quality on the fly).

References
Chozick, A. (2005, November 14). Beyond the numbers, one expert says the real
challenge for employers isn’t in hiring; it’s in making the most of a varied work
force. The Wall Street Journal Online Edition, p. 4.
e-Competitors.com (2005). Critical Success Factors. Retrieved December 18, 2005
from http://www.e-
competitors.com/Strategy/SBUPlanning/SBUPositioning/SBU_Critical.htm.
George Mason University. Leadership Tips, Five Stages of Group Development.
Retrieved December 10, 2005 from
http://www.gmu.edu/student/csl/5stages.html.
Hansen, R., PHD. The Master of Business Administration: Is the MBA worth the time,
effort and cost? Retrieved November 26, 2005 from
http://www.quintcareers.com/MBA_degree.html.
Looking offshore: Impact on jobs. (2004, March 7). San Francisco Chronicle, retrieved
November 26, 2005 from http://sfgate.com/cgi-
bin/article.cgi?file=/chronicle/archive/2004/03/07/BUGMJ5FA9G1.DTL.
Management development. (1995). Education & Training, 37(3), 11-17. Retrieved
November 11, 2005 from ProQuest Database.
McGee, M. K. (2005, February 16). Retiring baby boomers will create IT brain drain.
Information Week, retrieved November 26, 2005 from
http://informationweek.com/story/showArticle.jhtml?articleID=60401364.
Moore, G. (2002). Crossing the chasm: Marketing and selling high-tech products to
mainstream customers. New York: HarperCollins Publishers Inc.

Nelson, A. And you call yourself a leader (!). Group, (2006), 246-261. Retrieved
November 11, 2005 from ProQuest Database.
Pearce, J. & Robinson, R. (2004). Strategic management (9th ed.). New York: McGraw-
Hill. Retrieved November 8, 2005, from University of Phoenix, rEsource, MGT-
578-Strategy Formulation and Implementation Web site:
https://mycampus.phoenix.edu/secure/resource/resource.asp.
Rupcic, I. (2005, November 25). U.S. daily economic update. Retrieved November 25,
2005 from http://www.rbc.com/economics/market/daily_us.html.
Tucker, E., Kao, T., Verma, N. (2005, Jul/Aug). Next-Generation talent management:
Insights on how workforce trends are changing the face of talent management.
Business Credit, 107(7), 20-27.
Van Staden, C (2001). The development of a strategic control framework and its
relationship with management accounting. Retrieved December 18, 2005 from
http://www-accountancy.massey.ac.nz/docs/Discussion%20Paper/209.pdf.

Strategic Plan Captus5 - Doctor Whitehead's Version of Strategy Paper

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Strategic Plan Captus5 - Doctor Whitehead's Version of Strategy Paper

Caricato da

Copyright:

Formati disponibili

Captus 5 – Strategic Plan 1

Captus 5 – Strategic Plan

December 19, 2005

EXECUTIVE SUMMARY .........................................................................................................................................4

GRAND STRATEGY: CONCENTRATED GROWTH ...................................................................................................... 22

Captus 5 is a leadership and management consulting company focused on

developing young business leaders on behalf of corporate customers. With expertise in

processes, training courses, seminar series, management consulting, and technology

manner that is consistent with existing corporate culture. Elements of successful

application of managerial processes may vary from company to company.

The Captus 5 business model blends consulting services with pre-packaged

companies. Committed to developing human leadership talent, Captus 5 gives back to

Environmental scanning was used to assess strengths, weaknesses,

include: Development of brand recognition, market creation, trademarked and

copyrighted materials, published processes, and sustained internal growth at 25%

annually. Detail regarding implementation and corresponding short-term objectives can

be found in the paper.

to board members, potential partners, and potential investors. Conservative financial

analysis coupled with a detailed environmental and market scan indicates an

Leadership courses that focus on basic leadership and management

Management consulting services that focus on human resource development

processes (HRP) and organizational modeling.

services and focuses on brand building activities.

Effective implementation of these offerings depends on critical factors such as an

adequate capital structure, acquisition of foundation customers, creation of effective

partnership teams, and development of appropriate training facilities. Powerful

The Captus 5 strategy will primarily be monitored by feed-forward controls that

bin/lookup.pl?stem=captus&ending=), and the five leadership tenets important to the

Commitment and self discipline

Mental and physical fitness

Teamwork and leadership

qualities of loyalty, leadership and technical competence. However, rarely is training

provided to bridge from individual contributor to successful functional manager. This is

particularly common in highly technical industries where a person may distinguish

himself based on functional or technical prowess and then be propelled into a

Elements of successful leadership are common across most enterprises and

organizations. However, the application of managerial processes may vary from

company to company. Captus 5 is a leadership company committed to providing a

An important distinction is often drawn between leadership and management.

perspective of understanding one’s duty. Nelson (2005) states “learning to discern

when a situation needs leading, besides knowing what to do as a leader, is often a

involves process orientated activities such as performance reviews, functional business

process management, work-break down, and project management, etc. Leadership is

leadership and managerial responsibility. In an article entitled “Management

Core Products and Services

planning (HRP), courses, seminars, management consulting, and technology

Mentoring Package: Consists of leadership and management

mentoring for junior managers. Includes onsite consultative sessions

diving into the problems and challenges of the manager relative to

his/her situation and providing guidance on how to successfully

implement the corporate strategies through and within the manager’s

span of control. This is a 1-1 service that lasts for 12 weeks.

Support Plus: Additional support can be added by subscribing to a

24x7 hotline and a best practices web site designed to assist

managers and junior leaders. The site covers employee development,

employee counseling, reviews, planning, project management,

operations management, financial management. Each topic is

specifically tailored to the views of the junior leader.

Team Development Package: Team training designed for small unit

and assess the team's position according to Tuckman’s model of

forming, storming, norming, and performing phases (George Mason

to leverage diversity for high performing team development.

Deliverables include documentation and analysis of team and a