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Planning Value - Future Goals

Planning Value - Future Goals. Frank Whiteley Buck Arnold. Some Assertions. There is value in planning Timing has an opportunity value It can be a loss or a gain Consider the Euro In an financial sense, interest is an expense of doing business

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Planning Value - Future Goals

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  1. Planning Value - Future Goals Frank Whiteley Buck Arnold

  2. Some Assertions • There is value in planning • Timing has an opportunity value • It can be a loss or a gain • Consider the Euro • In an financial sense, interest is an expense of doing business • Although clubs must have some kind of business model they do not benefit from normal expenses. Interest is a sunk cost, not an expense item. • In an economic sense, interest is a loss of future earnings. • Clubs do best to think in economic terms, however, when interest rates are near historic lows, the economic gains out-weigh the financial costs. • Interest as an opportunity cost • If you have not planned, you react

  3. Planning has benefits Planning saves re-work • Re-work is expensive • In the computer industry, adequate planning is estimated to save 90 percent of the effort • On the other hand, 65 percent of computer projects are never fully implemented, because the ultimate requirements are not fully identified or developed, IOW, not enough was spent in initial planning Planning takes time • There is no doubt about it, planning takes significant time and effort, but, done correctly, also pays large dividends. These may not be immediately apparent. • Planning is a process, not a project. It’s best thought of as a continuous process, and hopefully, as a process of continuous improvement. • Projects result from the planning process, given a vision. The vision statement is crucial. Projects have definite start and end points.

  4. Re-visiting the vision • The vision is in the articles of incorporation • Is the current vision consistent with this corporate vision? • In the world of aviation, five 9’s or nine 9’s? • “Striving for Perfection”

  5. The buy-in • You may ignore or eliminate the naysayers, however, it’s generally better to have them buy in to the vision • They must be heard • Losing them may be too expensive • The vision must be a shared vision • The buy-in doesn’t stop with the membership, it also involves the leadership • Without a shared vision, plans may become an expression of someone’s agenda

  6. Consensus building • Arriving at a consensus means we’ve arrived at a tactful solution where no one disagrees with the decision. • Were it to come to a vote, there could be opposition and, perhaps, long-term resentment • When no one disagrees, there is no opposition to a decision though they were not called upon to specifically support the decision • This works well at leadership, committee, and general membership levels within an organization

  7. No plan • Chicagoland glider club • Airfield was owned by member • Land values and growth encroached • Club lost airfield. Since four other soaring groups existed within 100 miles, path of least resistance was followed • Asset value went to SSA; Cadet Youth Scholarship fund and CD to SSA Foundation for site preservation

  8. No plan • North Carolina glider club • Tow services provided by member • Tow plane damaged, older pilot quite towing • Club had no options. • Assets sold, some members quit, some migrated

  9. No plan in sight • Colorado glider club • Articles were developed for 501c(3) over 40 years ago. IRS determination was 501c(7). • Articles unchanged since 1963. Like Chicagoland club, assets go to SSA. • Real property now worth over $800,000 • Deep water rights possibly worth $300,000 • Last plan shot down due to inappropriateness • Site within zone of 210-mile toll road project (12-mile wide easement, 660-ft wide right of way with condemnation clause at state house with expected approval) • No active planning processes, all projects are being done by impulse

  10. Planning and Data • Help this committee understand your club • The SSA Club Survey commenced in late 2003. Information is already becoming dated. This is an effort to make this a ‘living’ data repository • Let a new person ‘bird dog’ this effort • Learn something in the process • Information collection worksheet • Online data submission (date TBD)

  11. Future Goals and Trial Balloons • What might help your club? • Group purchasing? • Insurance (co-pay) pools? • Business models? • Club scheduling & accounting software? • ?

  12. Conclusions • All planning has some value • Planning takes a lot of time and effort • Planning pays dividends • No plan goes nowhere • There are future goals

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