PLAN SECTION 6: MANAGEMENT AND ORGANIZATIONAL STRUCTURE
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If the business plan is simply being prepared for internal use in connection with the launch of global operations, it should still include an inventory of the skills and experiences of senior managers. You may find that one or more members of the existing management team have prior experience in a particular foreign market or that they have worked with companies with an active global marketing or manufacturing strategy. These connections can be a valuable resource for recruiting new talent or understanding the problems that may confront the company as it goes global. In many cases, some of the required managerial positions will be unfilled at the time the plan is being prepared. Therefore, your business plan should identify all the anticipated managerial staffing requirements, the anticipated timing for recruiting candidates to fill additional positions and the specific qualifications for such positions. For example, in the case of a start-up business, the company may delay bringing on an experienced chief financial officer until funding has been obtained. However, investors will want assurances that their money will be well protected once the investment is closed. For your global plan, key management positions in each of the target countries must be identified in advance. P L A N N O T E : Individual managers can be quite sensitive about how their work
experience is presented in the business plan. Plan writers/editors should get each manager to write their own “mini-CV” based on guidelines (e.g., word count, applicable experience, etc.). Often “embellishments” have to be deleted, but this saves time and avoids bruised egos. It is also a good indicator of what each manager “brings to the table” for the new business. Often it is a matter of interpretation. RECRUITMENT AND COMPENSATION
The business plan should describe how the company intends to recruit and compensate its key managers. Compensation practices may vary substantially from country to country and no single answer will always apply across the board in any global organization. The business plan should describe base salaries, cash bonuses, equity incentive plans, profit sharing plans and other benefits that might be included in the overall compensation package. Remember that retirement and health benefits commonly offered to employees in one country may be a completely new concept in another country. Where such services are provided and highly regulated by the government, they may even be taxable. P L A N N O T E : Accordingly, you will have to determine what benefits can be provided
on a company-wide basis. Whenever possible, compensation should be tied to specific business milestones. This is a particularly important strategy for entering a new foreign market. The formula should be fair to the manager and recognize the risks associated with the venture. Such compensation should also foster goal congruence. DIRECTORS’ NAMES AND EXPERIENCE
Assuming the business is organized as a corporate or limited liability entity, which is the predominant form of business organization throughout the world, responsibility for management oversight will be vested with a board of directors or similar body. Accordingly, the members of the company’s board of directors should be identified in the business plan, along with a description of their background, experience and how they became involved with the company.
