Strategic Plan 1 Strategic Plan: TM HR Solutions, LLC

Strategic Plan- Tailor-Made HR Solutions, LLC Aneisha Thurman University of Phoenix MBA/580 Strategies for Competitive Advantage November 23, 2009

Strategic Plan 2 Executive Summary The company to be used in this strategic plan is Tailor-Made HR Solutions, LLC. A strategic plan will help Tailor-Made (TM) provide services that will consistently exceed the expectations of their customers and increase the number of clients we serve by 10% per year, thereby creating brand awareness. Human Resources is a vital part of any organization, however outsourcing the HR function over the last few years seem to be a trend in todays business world. With Tailor-Made, companies have a variety of options available to them which is something they pride themselves on. Tailor-Made HR Solutions, is a human resource consulting company located in Detroit, MI. Tailor-Made has expertise in a wide range of HR areas and is aimed at partnering with startup, emerging, and established companies to provide HR services and solutions. Tailor-Made will enable companies to outsource parts of or their entire HR function. This will be especially appealing to many start-up companies that may find the HR function, time consuming as well as costly. TMs desired end-state goal is to increase the number of clients served by 10 percent per year through superior performance, marketing/advertising, website enhancements and word of mouth referrals. Their mission, vision, and values aid them in reaching their desired end state by their commitment to providing personalized services to each of their customers. Their vision is to consistently exceed the expectations of their customers. Through their commitment to their customers reaching their desired end state will be the inevitable. TMs commitment to current customers will allow them to attract new customers, not to mention their superior performance will also attract clients and the customized/personalized services they offer will help them to retain customers, establish real business relationships, thereby growing the business long-term and increasing brand awareness on their services.

Strategic Plan 3 Company Background Tailor-Made HR Solutions is a human resource consulting company located in Downtown Detroit, MI. Tailor-Made is a Michigan LLC, owned by Aneisha Thurman and will focus on providing HR services to start-up, emerging, and established companies. While we plan to serve start-up, emerging, and established companies our primary target markets will be start-up and emerging companies for several reasons: Start-up Are usually too small for in-house HR solutions Usually lack experience in-house Usually lack the HR expertise Capital is a scarce resource and outsourcing is cost effective Emerging They are in need of HR services as they are growing rapidly, due to them being in the growth stage of their business They often do not have a large enough in-house solution as they are increasing in size Aneisha Thurman, the founder and owner will be leveraging her past and current personal/professional relationships to generate business for Tailor-Made HR Solutions. Aneisha is a highly experienced HR professional that is committed to delivering superior customer service. Established in April 2009, TM has seen much success. TM currently works with twenty different organizations on different levels, sales for their first quarter 13,750, the forecast for year one is 65,000. Tailor-Made has expertise in a wide range of the HR areas and is aimed at partnering with start-up, emerging as well as established companies to provide HR services and solutions. TM will enable companies to outsource parts of or their entire HR function. This will

Strategic Plan 4 be especially appealing to many start-up companies that may find the HR function time consuming as well as costly. Tailor-Made HR Solutions, where we customize our services and solutions to fit your business needs is the motto of the organization. The company prides itself on developing real relationships with their clients as well as developing unique solutions and offering customized services for each client, they tailor to their customers needs at all times. Their primary objective is to provide customized HR services and solutions tailored to meet each individual companys needs. They offer legal-based and compliance solutions. In addition, they provide start-up and emerging companies with ways to enhance their HR department to achieve economies of scale as well aw provide established companies with the ability to focus on their core business by outsourcing various parts of the entire HR function in itself. Tailor-Mades service is the only HR firm in the metro Detroit area that services every industry. There are various HR firms in and around the metro area however all of which specializes in serving one or two particular industries. Tailor-Made offers a wide range of services. Their services are unique when compared to local competitors; they are also unique because they offer several pay and compensation options to their clients. Tailor-Made delivers a comprehensive solution for their customers HR needs. The following are services offered at Tailor-Made as well as their pay options: Professional Development/Training courses Employee Relations Labor Relations Benefits & Compensation HR policies, procedures, and compliance laws Executive Searches Sexual Harassment Position/pay Classification Development Performance Evaluation/Apparsial Development Diversity Training

Strategic Plan 5 Curriculum Development Affirmative Action Plan Development Termination Assistance Morale Building Work/Life Seminars Recruitment Job Description Development Employee verification/pre-screening Employee Handbook Development On-Site HR Mgmt. Program Solutions Center (24hr HR advice) Pay options- hourly rate, per project rate, bundle rates(if getting more than one service), TM also will accept stock options in lieu of cash

The services they offer are valuable to any organization because the HR function is a vital part of organizational structure. Organizations benefit from their services allows them the ability to outsource HR functions while they focus on their core business. And by allowing organizations to focus on their core business, Tailor-Made focuses on their most valuable assets, their people. TM also provides a very flexible means for compensation, the organization has options each client can select their payment options that best suites their business need. TMs competitive edge lies in the services they offer as well as their compensation options. Most of TMs customers are start-up and emerging companies. Companies that are new or in the beginning growth stages of business, are what TM works with the most. They have done some work for established companies or companies in the mature stage of business. Their customers have not outsourced their entire HR function to TM, however some of them are members or TMs On-Site HR management program. That program provides the company with an HR manager or generalist whom visits on-site weekly to ensure compliance and handle any employee issues. The HR manager supports the clients HR needs. In addition, over half of their clients are members of the Solutions Center, which allows clients to get after hour or 24 hour HR advice by a human resource specialist. TMs clients do not have HR departments, some of them

Strategic Plan 6 do not even have human resource managers, and the HR function is usually handled by the managers, who sometimes have little to know HR training. Mission/Vision Statement Tailor-Made HR Solution mission is to provide a wide range of HR services for start-up, emerging, and established companies. We exist to attract and maintain customers wishing to outsource or improve their HR functions. TM is committed to providing customized HR services and solutions to each and every one of our clients and our services will consistently exceed the expectations of our customers. Value Statements The Tailor-Made family is guided by the following values; they describe our company as we want it to be. We want our decisions and actions to demonstrate these values; we believe that putting our values into practice creates long-term benefits for shareholders, customers, and employees. TM operates on four key behaviors; Live the company values, Focus on operating excellence, Act with integrity and Communicate openly and it is with these four behaviors and values that TMs mission and vision come alive. TMs HR TEAM/LEADERSHIP. We are committed to attracting, retaining, and developing all team members, we believe our success lies in our commitment to maintaining an environment that fosters education, diversity, and teamwork at all times. Our employees are critical to our success. We value their proficiency, expertise, knowledge, and vision. We know that driven by the imagination and enthusiasm of our employees, our companys potential is unlimited. We treat all employees with respect and trust. We take pride in their significant contributions that come from the diversity of

Strategic Plan 7 our people. Our continued success requires us to provide the education and development needed to help our people grow. We act with INTEGRITY in all we do.. We value our company reputation, and we hold our people accountable for the highest standards of behavior, including honesty and fairness in all aspects of our work. We take responsibility for QUALITY. Our products and services will are the best in terms of value received for dollars paid, we add more value at a lower cost. We will always deliver excellence, strive for continuous

improvement and respond vigorously to change. We are committed to customizing our services and solutions to fit our clients business needs. We deliver CUSTOMER SERVICE We are dedicated to satisfying our customers. We believe in respecting our customers by listening to their request and understanding their expectations, we strive to exceed their expectations in affordability and quality. We regard our HR CONSULTANTS We provide our HR Consultants with the same type of respect that we show our employees. Our consultants deserve fair and equitable treatment, clear agreements and honest feedback on performance. Environmental Analysis Internal Environment The internal environment involves the tangible assets, intangible assets, and capabilities in which an organization possess. Tangible assets are physical and financial means a company uses to provide value to its customers (Pearce, 2005). TMs tangible assets include their

Strategic Plan 8 computer systems, their in-house software developed especially for servicing their clients and excellent customer service provided to all clients. The computers (laptops, desktops, and notebooks) at TM are all new with great capabilities, their in-house human resource information system (HRIS) is very sufficient, it gets the job done and is unique to the services they offer, which is an asset. However, they can take the opportunity to upgrade to a human resource management system (HRMS) which is more hi-tech and sophisticated. TM definitely possesses the physical aspects of tangible assets but they are a little weak in the financial area due to available working capital. Intangible assets are that which one cannot see or touch. TMs intangible assets include the companys reputation with their clients, their morale within the organization, the technical HR expertise and knowledge of their team, the leadership/management, and finally their culture are all intangible assets. TM has an outstanding reputation with their clients for providing excellent service. Their reputation precedes them, with the right resources they will eventually be a force to be reckoned with. The morale at TM is very high, there is a work/life balance and they provide an entrepreneurial spirit, everyone feels empowered to make decisions and that their existence matters. The culture at TM is one that is about respect, diversity, and consistent learning, their culture is what helps keep morale high. TM has some of the most knowledgeable HR professionals (mgrs., generalist, interns, consultants), they all possess HR expertise specializing in different industries such as retail, manufacturing, healthcare, hospitality, technology, and business. They are certified on different levels, some are certified in professional human resource (PHR), senior professional human resource (SPHR), and global professional human resource (GPHR). In addition, their professionals are also members of

Strategic Plan 9 human resource association of greater Detroit (HRAGD) which is the Southeastern Michigan chapter of The Society of Human Resource Management (SHRM). Organizational capabilities include a combination of assets, people, and processes. TMs organizational capabilities include their innovation of the different services, the shared mind-set of the employees/customers, strategic unity, customer connectivity, the efficiency in which they operate, and solutions that they customize especially for customers. The company is consistently trying new things in terms of concept and processes. Staff is always finding efficient ways to do things whether it be strategies or internal processes and procedures, this innovative attitude helps aid in providing excellent service to clients. The employees and customers share the same positive feelings and opinions about Tailor-Made. There is a high degree of alignment between the internal and external mind-sets. Everyone at TM from the receptionist to the CEO, is unified when it come to the companys strategies. They all know the strategy and understands thoroughly the tactics it takes to ensure implementation of strategy. The strategy is conveyed daily through morning huddles. The huddles are a gathering of the entire team where the manager or CEO goes over sales, goals, and projects that are close to deadline all suggestions or opinions are solicited at that time and everyone walks away with a clear understanding of what going on with in the company. Through repeat business TM understand that their customer connectivity is strong. They build excellent enduring relationships with the clients which is sustaining them. TM managers are good stewards, they believe in operating effectively and efficiently by managing cost and keeping a lean operation.

Strategic Plan 10 External Environment Many forces and trends exist within TMs external environment that affects an organizations ability to be profitable. The forces and trends that TM is primarily concerned about are the political forces, technological trends, customer trends, and economic forces. HR is a heavily regulated industry, it has so many laws and regulations it must abide by. Political factors define the legal and regulatory parameters when which firms must operate (Pearce & Robinson, 2005). Legislators, judges, and administrators have subsequently added an array of laws, rulings, and regulations to provide equality to the workplace. These laws and regulations were established to create fairness for all at the workplace. Organizations have found themselves in costly lawsuits after violating workforce laws that is why the HR position is so critical to any business, because HR professionals believe in complying with the rules and regulations and often are required to develop plans for compliance. The political force is one that is always changing and adding new laws are always being added, that is why it is so important for HR industry to stay abreast to the changes with this force. Due to the political factors, the days of simply maintaining personnel files and advising on hiring, firing, and compensation are long gone for HR professionals (Weitzman, 2007). It is imperative that HR professionals have significant knowledge on the different laws, acts, and regulations. Because the workplace have become so heavily regulated, many HR professionals require a base of legal knowledge that is nearly as comprehensive as labor and employment attorneys(Weitzman, 2007). The world of HR is ever-changing due to the laws and organizations must comply with these laws or face costly penalties and lawsuits. As corporations witnesses the high cost of employment disputes and litigation, TM and other HR

Strategic Plan 11 professionals are charged with the critical responsibilities of staying abreast on legal compliance and best personnel practices. Technologies impact on HR cannot be overestimated, from online recruiting to paperless payroll, technology now plays a key role in HR functions. There are two main systems the HR industry utilizes; human resource information systems (HRIS) and human resource management systems (HRMS). HRMS are more sophisticated systems that handle basic and complex HR functions; it also can be integrated with the internet. The technology trend in HR is going from HRIS (basic in-house system) to HRMS (more sophisticated applications). The internet has transformed the world of business over the past few years and no has been impacted more than a companys human resource department(Hoover, 2002). The Internet has enabled HR professionals to gain real advantages from the sophistication of HRMS. HRMS allows the service provider to put user-friendly systems on the desktops of people entering and utilizing HR data, without having to invest in powerful hardware and software systems, the client company can utilize a web-based system to deliver confidential HR and payroll information directly to the employee(Hoover, 2002). HRMS are a growing trend in the HR industry, the current technology and the hope of things to come holds tremendous promise for the further development of the human resource function itself. TMs customer base are start up and emerging companies. TMs primary objective is to serve the start-up business customer (50 or less employees) and the emerging business customer (50-100 employees) because their relatively small and have a greater need for HR services. Most start up companies or smaller companies do not have a dedicated HR department due to cost. Creating an internal human resource department requires cost and infrastructure(Sutherland, 2008). Emerging companies may have an HR department but they may not have the real

Strategic Plan 12 expertise to support their growth, either way both customer groups can benefit from having expert information. The customer trend in the HR industry is outsourcing parts or all of their HR function to control the cost of having an HR department. Trends show companies both large and small are willing to spend capital to ensure that they have HR expertise and capabilities. Outsourcing will allow companies to gain immediate access to years of expertise in HR. The trend of outsourcing HR is a growing trend that perhaps TM can capitalize on. This growing trend of customers seeking to outsource their HR function will allow TM to grow, establish a track record, and grow their brand awareness thus creating market share. Economic indicators show that due to the current state of the economy most businesses are looking for more cost effective ways to conduct business. Economic forces have a profound affect on decision making within an organization. Most of TMs clients are outsourcing parts of or all of their HR function which seem to be the growing trend. With the current economic state, saving money is imperative to most organizations and outsourcing allows them to be more cost effective, thereby freeing up capital to spend elsewhere in the organization. Credit also plays a major role in the business world. Banks are making it a little harder to get loans needed to grow and expand businesses. Obtaining credit is an issue with the current economy system; fortune 500 companies are having issues getting funds so firms like Tailor-Made are not exempt from the credit crisis. Although credit lending is tightening up, banks are however still lending to businesses. Small businesses such as Tailor-Made just have to work harder than usual to get the credit it needs. TM like other small businesses may need to work with a small business adviser before presenting to a bank. The future economy also plays a major role in a companys spending, so organizations are aiming to stay cost effective in order to survive and thrive.

Strategic Plan 13 Strengths, Weaknesses, Opportunities, and Threats (SWOT) TM is very operationally sound, being a relatively small company operating in excellence is very critical to their existence. The company has set themselves aside from the competition. They are unique in that they operate very lean in every area. Their size and their leanness create both strengths and weaknesses. TM has great opportunity to capitalize on the strengths and some of the emerging trends within the HR industry. As for their weaknesses, TM has to create a strategic plan to get better in those areas perhaps create short-term and long-term objectives. TMs strengths, weaknesses, opportunities, and threats are as follows: Strengths Great repor/relationship with suppliers and customers They manage to keep credit lines low (no overspending) Payroll is lean, but full of qualified HR professionals Intangible assets are great Services offered (wide range & unique) Price structure Excellent customer service Weaknesses Software upgrade needed to compete in industry Capabilities are limited due to the size of the company Available working capital and sales Website Development Opportunities Competitive Edge

Strategic Plan 14 Market Share Attract/retain new customers Threats Technological changes/capabilities Cash flow Lack of Competitor Intelligence Short-Term Objective Website development is TMs short term objective. Short term in that it is an objective that will be implemented within the next two months. The website will serve as a resource that prospective companies can view to gain more information about the company as well as the services and solutions offered, in essence the website will be Tailor-Mades paperless brochure. The site will have various tabs that will explain in depth each service offered as well as allow companies to become members of Tailor-Mades advantage programs, On the site there will be information about the management of the company/corresponding bios, indicating all of their experience. Also on the website will be current/past clients perhaps testimonials and information regarding Tailor-Mades fee structure. In addition, the site will also allow companies to receive free quotes and place orders. Long-Term Objectives TMs long-term objectives involve profitability, competitive position, customers, technology, and employee development. It is through those five objectives that TM will succeed and before a force within the industry. Below is a brief description of TMs objectives. Increase profitability by capitalizing on emerging customer trends, continuous lean operations, acquiring new customers, improving sales and market share

Strategic Plan 15 Increase competitiveness, improve competitive position through a better understanding of competitors and their customer base Attract new customers through marketing and pricing, leading to long-term relationships and new business Upgrade current technologies, invest in HRMS and continue to follow the industry as it relates to technological leadership Consistently develop employees by providing education and training on compliance, laws, rules, and regulations so that they can continue to be a value to the organization It will be through these long-term objectives that TM will see growth and profitability. The strategies and tactics will be developed around these objectives. TM has the recipe to be a successful HR firm. With their values, long-term objectives, strategic adaptability, competitive edge, and knowledgeable team they can realize their end-state goals and gain a competitive advantage. It is going to be imperative that TM capitalizes on opportunities that will allow them to gain market share and profits thereby growing their brand and brand awareness. HR is a very vital part of any organization and TM has to strategically develop creative ways to get business they need to grow and sustain their business. Strategic Analysis and Choice Strategic Analysis consists of generic and grand strategies that will assist an organization in achieving their long-term objectives. This section of the strategic plan will define the strategy TM will utilize to ensure objectives are met. We will examine both generic and grand strategies which will discuss major actions TM intends to execute in order to achieve their long term objectives. The strategies will focus on what the organization wants to do and how they are going to do it.

Strategic Plan 16 Profitability Because available working capital is weal at TM finding ways to increase sales and profitability without increasing expenses is imperative. To increase profitability TMs strategy will be: To have a marketing/advertising campaign utilizing flyers, business cards, and internet pop-ups which is very cost effective ($3,000 for all three To add value/profitability without adding the cost. TM will utilize cost containment, by discontinuing services that do not ad to the bottom line and keeping cost/expenses low as possible without jeopardizing services. TM will begin justifying every expenditure. They will also create a referral program, which will allow existing customers to receive free services for business referrals that create sales. To keep debt as low as possible, by borrowing money only when they need to. The burden of loan repayment eats into cash flow so TM will be good stewards of their cash. This is why TM will have a flexible plan and budget to cover any additional expense. To monitor financials/operations monthly, determine what created loss and cut losses early. By monitoring financials monthly, TM can adjust accordingly even if it means rethinking strategies and double up where they see potential. Profitability is a key component in a business existence. In order to build a strong and stable company TM has to improve in this area. Improved profitability will allow TM to re-invest in the company thereby creating brand recognition, brand awareness, and perhaps increase market share. Competitiveness

Strategic Plan 17 TM prides themselves on knowing their customers needs and having great relationships with their clients. But what TM lacks is their knowledge of the competition, so to increase their competitiveness TMs strategy will be: To gather competitive intelligence on their two biggest competitors. The best competitive intelligence is the current intelligence, so it is important for TM to make regular visits to their competitors. Visiting competitors is a great way for TM to see what services are being promoted and check their pricing structure. Since their competitors both have websites, TM will also visit the sites for more competitive intelligence. TM will pay close attention to their competitors ads, their ads will tell a lot about their target market and it will also expose the services they offer and are trying to promote. This information will be useful to TM when they begin planning their promotion and advertising campaigns. When it comes to the competition, the more TM knows about what they are doing the better decisions they can make. Gathering competitive intelligence will become a regular habit for TM. Attract new customer During these tough economic times, attracting new customers can be a process. The burden lies upon TM to develop a plan/strategy that will not only help retain existing clients but also attract new ones. To attract new customers TMS strategy will be: To develop profiles for potential customers (companies) as well as for present customers. The profiles will contain company information, demographics, geographic, and their buying behavior information. TM will start with fifty companies to begin their customer profile process.

Strategic Plan 18 To utilize email marketing as a way to directly market to the fifty profiled companies. TM will create some attractive templates with special web promotions to attract business, perhaps attract on-line businesses as well. In addition, TM will obtain video testimonials from their top clients discussing TMS services. The testimonials will also be displayed on TMs website for potential customers to view. To utilize bundle pricing to reduce customer costs, such as buy two services get the third for half off or allow customers to join our On-Site Management Program for a trial period for free. Basically, customers will be getting more for the money, thereby establishing a relationship. To eventually increase TMs advertising budget once profitability improves. Advertising in print and direct mail will be avenues TM will consider in the future as well. Technology Living in the age of technology, it is important for organizations to have the proper technological capabilities to service their customers and to operate efficiently and effectively. TM current HRIS is sufficient for the services they offer however they need an upgrade in order to compete with competitors and to offer other sophisticated services. To update current technologies TMs strategy will be: To develop profiles for potential customers (companies) as well as for present in three different phases due to TMs financial state. It will be more cost effective if TM implements this strategy in phases. Each phase will cost $3600 at total of $10,800. Each phase will involve adding different

Strategic Plan 19 capabilities. After each phase the team at TM will have training classes to help get each member acclimated to the new system. And as sales and profits increase TM can continue to follow the industry as it relates to technology. Developing Employees Employees are the most valuable asset to any organization. It is imperative that organizations retain top talent. Developing employees is the most effective way to retaining talent. Developing employees is just investing into your company. TMs strategy for developing employees will be: To develop mandatory training classes quarterly. The classes will be either eClass/eLearning or with an actual instructor. These classes will range from learning employees rights to learning the laws, rules, acts and regulations of the HR world. The classes will also provide TMs employees with valuable HR knowledge. To create a plan that will allow their employees to establish goals that are aligned with their strengths, interest, and experiences. This will serve as a roadmap to achieving their goals. Follow ups on their plan will take place yearly to see progress and/or to correct issues. To pair TMs interns and entry level HR professionals with mentors within the company to help each employee reach their career goals. To ensure each employee is challenged outside of their comfort area helping them grow, TM will rotate interns and entry level HR professionals, putting them with different professionals specializing in different industries to give them a more well-rounded understanding of the field.

Strategic Plan 20 The strategies that TM will implement will have a profound affect on their business and future. If executed and implemented correctly TM will definitely see their long-term objectives realized. These strategies will be implemented over an 18 month period. The CEO will develop and display an implementation board which will display each strategy and the time frame for implementation. The board will also list the progress of each strategy. This board will be displayed so that the strategies are made known to everyone. The following is an example of what the board will resemble. Implementation Board (Example) Objective Strategy #1 Strategy #2 Strategy #3 Strategy #4 Progress Time

The implementation of the strategy will first involve completion of the short-term objective, which is website development and secondly the marketing/advertising campaign while also gathering competitive intelligence, we will not put out any ads until we have gathered intelligence on what the competitors are promoting. The marketing and advertising campaign and the gathering of competitor intelligence will be done simultaneously. Those three strategies will help increase sales, acquire new customers, and help with our competitiveness. After those strategies are kicked off we will began to implement the three different phases of the system upgrade, that is if sales and profit increases. The developing of employees strategy will be something that is on-going.

Strategic Plan 21 Financial Projections The following sections will outline important financial information. Please note that stock options granted in lieu of compensation are not entered into the financial plans as they are not yet of value. Upon exercising the options there will be tax consequences (because one of the realizing events has occurred) as well as assets to be counted for. SALES Emerging Co. Startup Co. TOTAL SALES Direct cost of Sales Emerging- tech Startup- tech TOTAL DIRECT COST OF SALES Three year Sales Forecast
70000 60000 50000 40000 30000 20000 10000 0 F 2009 F 2010 F 2011 Y Y Y Em ing tech erg Em ingCo. erg S tart up Co.

FY 2009 30,000 35,000 65,000 FY 2009 2,200 2,600 4,800

FY 2011 49,000 56,000 105,000 FY 2011 2,900 3,400 6,300

FY 2012 68,000 68,000 136,000 FY 2012 3,500 3,800 7,300

Strategic Plan 22 The following table will indicate projected profit & loss per year as well as gross margin yearly. PROFIT YEARLY
40000 35000 30000 25000 20000

F 2009 Y

F 2011 Y

F 2 Y 012

GROSS MARGIN YEARLY

150000 140000 130000 120000 110000 100000 90000 80000 70000 60000 50000

F 2009 Y

F 2010 Y

F 2011 Y

Strategic Plan 23

PROFORMA PROFIT & LOSS STATEMENT FY 2009 Sales Direct cost of sales Other production cost Total cost of sales Gross margin $ Gross margin % Expenses Sales/marketing & other expenses
(flyers, business cards, advertising, commercials)

FY 2010 105000 5000 0 5000 100000 94% FY 2010 500 62000 10350 0 0 1000 1500 4500 0 79850 20150 25150 30150 0 6045 14105

FY 2011 136000 7300 0 7300 128700 94.6% FY 2011 500 77000 11550 0 0 1000 1500 4500 0 96050 32650 39950 47250 0 9795 22855

65000 4800 0 4800 60200 92.6% FY 2009 1500 27000 4350 0 0 1000 1500 4500 0 39850 20350 25150 29950 0 6105 14245

Payroll Payroll taxes Depreciation Leased equipment Utilities Insurance Rent Other Total operating expenses Profit before interest & taxes EBIT EBIDA Interest Expense Taxes incurred Net profit

Strategic Plan 24 Pro-forma Cash Flow Statement Cash received Cash sales Subtotal cash from operations Additional cash Sales tax,VAT/HST/GST received New current borrowing New other liabilities (interest free) New long-term assets New investment received Subtotal cash received Expenditures Cash spending Bill payments Subtotal spent on operations Additional Cash Spent Sales tax, VAT, HST/GST paid out Principal repayment of current borrowing Other liabilities principal repayment Long-term liabilities principal repayments Purchase other current assets Purchase long-term assets Dividends Subtotal cash spent Net cash flow FY 2010 65000 65000 FY 2010 0 0 0 0 0 65000 FY 2010 27000 9000 36000 FY 2010 0 0 0 0 0 0 0 36000 29000 FY 2011 105000 105000 FY 2011 0 0 0 0 0 105000 FY 2011 62000 19000 81000 FY 2011 0 0 0 0 0 0 0 81000 24000 FY 2012 136000 136000 FY 2012 0 0 0 0 0 136000 FY 2012 77000 24000 101000 FY 2012 0 0 0 0 0 0 0 101000 35000

Benefit/Cost Analysis

Strategic Plan 25 Benefits

High=3 Med=2

Costs
High=3 Med=2

Ratio Benefits/ Costs 3 Rank 1

Action Start a Marketing advertising campaign utilizing flyers, business cards, & email marketing Upgrade HR software to HRMS

Benefits Increase brand awareness Increase sales and profitability

Low=1 3

Costs $3000 2-3 months of labor

Low=1

Can offer more sophisticated services Would be utilizing the best technology in the HR industry Gain more knowledge of our customer base as well as potential new customers Employee development Attract new customers

$10,800 $3600 X 3 phases

.66

Develop profiles for potential customers (companies) as well as for present customers Purchase eLearning Software Website development

$100 (office supplies) 2-3 months of labor

2 3

$400 (software) $2000 Software & labor

1 2

2 1.5

3 4

Increase brand awareness The above chart was a very simple benefit/cost analysis that displays benefits and cost of the strategies that require funds. Most of TMs strategy requires labor which will not be

Strategic Plan 26 displayed, for the labor does not have a cost associated with it. For instance, worked performed by our interns is free labor for they just receive college credits for their labor, our receptionist is also free labor the city of Detroit Area Aging Association pays her we just provide a site for her to work, and for other activities that require labor our HR generalists/managers are paid salary not hourly so we can not accurately determine how much it would cost us to do certain activities, we can however calculate man hours used. Our contract HR consultants are on call they are paid by project and are only called for major projects. Critical Success Factors Critical Success Factors (CSF) is defined as a factor(s) or activity required to ensuring the success of an organization or project. CSF is the issues that hold the greatest potential for organizational improvement. CSF is vital for a strategy to be successful. They are directly tied to a companys objectives. TMs critical success factors are as follow. Objective Critical Success Factors (CSF)
It will be critical for the following activities to take place in order for the objective to be realized.

Increase Profitability

Attract new customers Cut costs/expenses Decrease services offered (discontinue services that
provide no revenue)

Service development (new services for existing

customers)

Increase competitiveness Attract new customers Upgrade technology Consistently develop employees Web development

Gain competitor intelligence Benchmark industry best practices Marketing/advertising campaign (internet pop-ups,
flyers, business cards, email)

Secure cash/working capital to complete upgrade Create training programs Consult/hire a website developer Controls and Evaluation

Strategic Plan 27 TM will be utilizing the following four strategic controls to monitor their strategies; Premise control, Special Alert control, Strategic Surveillance control, and Implementation control. Because environments internal and external consistently changes it is imperative that controls are in place to ensure the strategies are valid and adjusted if necessary. The premise control is the control used to determine if the premise for which the strategy was based is still valid. TM will use this control to ensure the validity of the strategies. The strategic surveillance control is the control used to monitor event(s) inside and outside the firm that may affect the course of the strategy. TM will use this control to monitor their external forces such as technological trend/forces, political forces, and customer trends. This control could also be used in relation to a contingency plan. The special alert control is a control used to reconsider a strategy due to a sudden or unexpected event. TM will use this control in relation to a contingency plan as well. TM will strategically adapt to unexpected, sudden events by developing a set of contingency strategies. The implementation control is the final control TM will utilize. It assess the overall strategy, it helps to determine if a strategy needs to be changed during the implementation stage of the strategy. TM will be using this to see if changes need to be made even while the strategy is being implemented. This will work especially well for the marketing/advertising strategy, the competitive strategy and the attracting new customer strategy. For evaluation TM will utilize the balanced scorecard as a tool to integrate the objectives, strategies, and outcomes.

References

Strategic Plan 28 Hoover, W. The future of Human Resources: Technology assists in streamlining your HR department. ColoradoBiz Magazine, April 2002 Pearce & Robinson. (2005). Strategic Management (9th ed.). New York: McGraw-Hill Strategic Assets That Provide Tactical Advantage (2006). Retrieved November 17, 2009, from www.magusconsulting.com. Sutherland, M. Companies continue to selectively outsource HR programs. HRMagazine, Dec. 2008. Weitzman, A. How the law changed HR: five decades of social upheaval and law makers responses to it have stimulated radical change in the HR profession. HRMagazine, Dec. 2007.