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The Business plan of Coaching Services for

P-----s S-----s Ltd

Kinga Magyar

Entre-coach

30/08/2011

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Introduction of P-----s S-----s P-----s S-----s is an ex-Arthur Andersen Business Process Outsourcing (BPO) Group

now operating a dynamic and rapidly expanding independent accounting business in the

European region, delivering services to some of the largest corporations in the world.

Through their own offices and together with their partner network they deliver high-

quality finance and accounting services for multinational companies in more than

twenty European countries.

Working in partnership with their multinational clients, their Group provides them with

professional “hands-on” accounting support:

Bookkeeping and Tax

Compliance

Statutory and International

Reporting

Payroll

Interim CFO, Chief

Accountant and Loan Staff

Business Planning and

Modeling

Fast Clean-up in Accounting

and Tax1

This company was established in April 1999 and started its outsourcing activity in the

same year.

It provides mainly comprehensive financial and accounting services to new

businesses and to other companies which do not have a separate finance or accounting

division. P-----s S-----s also provides a wide range of integrated Business Process

Outsourcing solutions, including comprehensive payroll, tax compliance (preparation

of tax returns as required by law), loan staff services (they loan experienced staff

members for a determined period) and other services requiring special expertise (e.g.

liquidation, pre-auditing, preparation of group accounts, integrated accounting system

1 Homepage: www.ps-bpo.com

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set-up and related consulting services). PS also undertakes to keep the accounting

records in line with foreign accounting standards, such e.g. US GAAP, IFRS etc. and is

able – on top of the statutory financial statements – to provide for the management of

their clients with internal management reports based on foreign accounting standards.

Due to the unfortunate break-up of the organization of Andersen Worldwide, P-----s S--

---s Ltd. recently went through a management buyout process and now provides its

services as an independent service provider. After the break-up P-----s S-----s Ltd.

managed to retain the vast majority of its staff personnel and still uses the working

methods and quality assurance programs, which were implemented when PS was part of

the organization of Andersen Worldwide.

They currently employ almost 300 professionals with university/college background.

Besides, they pay a great deal of attention to all staff members’ continuous professional

developments through the attendance of domestic and international courses. They also

encourage their staff members to acquire tax advisor and audit certificates.

Satisfaction of their clients is guaranteed by employing local experts with many

years of experience. P-----s S-----s Ltd. applies up-to-date technical opportunities so it

can provide accurate, daily and the most advanced services, which is essential in the

constantly changing economic environment.

Services of P-----s S-----s Ltd. cover comprehensive financial and accounting

outsourcing activities – including not only the statutory accounting for receivables,

payables, cash, stock and fixed assets, but also services such as business planning and

treasury functions as well as administrative tasks such as payroll and human resource

services.

In addition, P-----s S-----s offers functional outsourcing which may include

accounting and management reporting, tax compliance (corporate tax, VAT, PIT, local

and other taxes), preparing business plans and processing other administrative services

(ex. representation of off-shore companies).

PS employees are experts equipped with the necessary skills for financial,

accounting and payroll work, and they keep an accurate documentation of all work they

perform.2

2 P-----s S-----s: Onboarding: History

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The business plan presents the company’s new business Idea: Introduction of Coaching

Process for the company’s middle management. Further possibility is to complete the P-

----s S-----s’ existing service portfolio with coaching services for the Clients.

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Table of Contents

Introduction of P-----s S-----s ........................................................................................... 2

Table of Contents ............................................................................................................. 5

Summary of the business plan ...................................................................................... 6

Mission ......................................................................................................................... 8

Market survey ................................................................................................................... 9

PEST-Analysis of PS new coaching service ................................................................ 9

Political Factors ...................................................................................................... 10

Economic Factors ................................................................................................... 10

Socio-cultural Factors ............................................................................................. 10

Technological Factors............................................................................................. 10

SWOT-Analysis of PS new coaching service ............................................................ 11

Innovative and sustainable opportunities ............................................................... 12

Coaching Vision ..................................................................................................... 12

Needs ...................................................................................................................... 13

Marketing Strategy ................................................................................................. 14

Next steps ............................................................................................................... 20

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Summary of the business plan P-----s S-----s is a middle-size Company. Headquarter operates in Budapest, Hungary

and it has 4 subsidiaries in East- and Center Europe. You will be informed about

headcount in June 2011 from the summary below. The table doesn’t contain number of

LOA’s, Projects and Backoffice employees.

HU RO SK PL CZ TOTAL

Manager Level

Partners 3 1 0 0 0 4

Managers 9 2 1 2 2 16

Senior Level

ESR 9 1 0 1 0 11

SR 11 2 2 1 2 18

SSR 15 2 0 2 3 22

Assistant Level

ESA 44 2 3 3 3 55

SA 47 8 3 2 9 69

Interns 22 0 1 0 0 23

Payrol Payroll 13 2 1 0 2 18

GRAND TOTAL 160 18 10 11 19 218

i1. Illustration: PS Headcount 2011 June

The company provides accounting and financial services for more than two hundred

multinational Clients like Coca-Cola, Wizz Air, BMW, etc..

The corporate structure is set up like a pyramid with different levels. This structure

represents and illustrates the chain of command within the organization.

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2. Illustration: PS Organization Structure

Corporate

Level

Main Responsibilities

Manager Liaison between

PS and the Client at management level, management of changes

Handling

professional and management problems

Work and

capacity planning at company level

Planning of

scopes of responsibilities, organization and direction of Projects

Acquirement of

new Clients

Senior To supervise

and control daily accounting activities

Preparation of

reports

Management of

ad hoc tasks

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Assistant Daily

accounting works, data registration

Keeping records

of invoices, recording in the ledger

Preparation of

report

3. Illustration: PS Organization Job Sharing

P-----s S-----s usually hire fresh graduates and provide them many training to develop

their professional knowledge and personal competencies. Based on the yearly appraisal

system the most talented employees are promoted almost every year.

The organization structure could be described with an “up or go model”. That means

that the flow of employment is directed upwards or out from the company. Colleagues

climb fast on the corporate ladder or they leave the firm. It’s observable that young

professionals have to manage a team (2-3 people) with only 2-3 years accounting

experiences and they need not just a well-structured training system to know leadership

competencies, but a continuously coaching as well.

The business plan analyses two different questions:

1. If introduction of coaching

services would be profitable for PS’s middle management and Clients?

2. What is more effective to train

coaches from the current employees or to buy coaching hours from experienced

coaches?

Mission of PS You will realize a fit between the business plan and PS’ mission if you read the next

paragraph:

We strive to become the most recognized regional service provider of

multinational companies on Central Europe’s business process outsourcing market.

Therefore, we are building a long-standing acknowledged and homogeneous network of

companies.

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We support our committed employees to realize their career goals and advance

their professional development.

We combine excellent, reliable and up-to-date services with the provision of

flexible, creative and quick solutions.3

Market survey

It is very important that PS considers its environment before beginning the new

coaching process. Two different kind of strategic planning methods (PEST and SWOT)

help us to see the company’s environmental situation and business opportunities in

aspect of coaching.

PEST-Analysis of PS new coaching service

Environmental analysis should be continuous and feed all aspects of planning.

The organization's marketing environment is made up of the next layers:

1. The internal environment e.g. staff (or internal customers), office technology, wages

and finance, etc.

2. The micro-environment e.g. external customers, agents and distributors, suppliers,

competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces,

Sociocultural forces, and Technological forces. These are known as PEST factors.

3 P-----s S-----s’s Mission

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4.Illustrations: PEST

Political Factors In my opinion the actual Hungarian political situation is not relevant in our topic. If we

examine this aspect more closer, we will see that coaching services can be a solution for

two parts of the PS’s Mission: developing the employees knowledge and competencies

and providing up to date services for clients.

Economic Factors The coach-market is payable on demand in Hungary. But most of the budgets have only

an amount for the upper-management coaching. There is an opportunity to train coaches

inside the company. Job extension can be a motivator for the appropriate employees and

it doesn’t cost extra money for the company.

Socio-cultural Factors

The western business culture influences the Hungarian trends. Nowadays the coaching

is very popular and every manager needs developing leadership competencies, because

the business culture accepts only professionals with strong professional knowledge

experience. Nobody count on a manager position with only theoretical knowledge about

management.

Technological Factors

The technology is a vital part for our business and private life as well. The Internet,

Smart-phones, social website like Facebook or Myspace became a part our every day

4 http://marketingteacher.com/lesson-store/lesson-pest.html

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routine. These are very useful in keeping touch with others and in following-up and

giving feedback continuously.

SWOT-Analysis of PS new coaching service

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

It involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieve that objective.

A SWOT analysis must be a first start with defining a desired objective.5

Strengths

In the following field PS has an advantage over others in the industry.

There is a unique selling point

more than 200 existing Clients in accounting services.

There is a continuous demand

on fresh graduates and new managers.

Weaknesses

In the following field PS has a disadvantage relative to others.

If employees could accept a

coach inside the company or not?

Coaching competencies weren’t

an aspect of PS recruitment process before.

Managers and seniors are

engaged on daily operating tasks and they haven’t enough time for organizing,

motivating or planning their team.

Opportunities

There are some external chances to make greater sales or profits in coaching.

This high quality service will

5 http://en.wikipedia.org/wiki/SWOT_analysis

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induce a payable on demand.

Threats

There are some external elements in the environment that could cause trouble for PS.

Strong competition in the

market.

As a summary of SWOT analysis P-----s S-----s has a great amount of strength in

providing coaching services inside the firm and for Clients as well. In current business

environment PS could find the business niche. Entering the coaching market for PS is a

good opportunity to extend their business and increase profit.

Innovative and sustainable opportunities

The management of P-----s S-----s believes in Innovation and sustainable development.

The company acquired the TQM Qualification in 2008 and that’s why year to year

processes are supervised by own qualified TQM auditors.

6. Illustrations: TQM Qualification of PS

Coaching Vision

As you see in the following model, coaching Mission of the company matches to PS’s

Mission.

Vision Mission Strategy Action

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PS keeps their

market leader

position in the

Hungarian

outsourcing market.

To be the most

recognized regional

service provider on

Central Europe’s

business process

outsourcing market.

Continuous

development by

on/off the job

trainings, mentoring

system and coaching.

Survey about

employees coaching

needs and attitude

Changes in

Compensation and

Benefit system to

reward developing

leadership skills.

To develop

employees

professional

knowledge.

Changes in

recruitment

process. (Focus on

Coaching

competencies).

Changes in

Appraisal System

(Focus on Coaching

competencies).

PS contributes their

Clients organization

developing.

To combine

excellent, reliable and

up-to-date services

with the provision of

flexible, creative and

quick solutions.

Client Orientation Survey about Clients

coaching needs and

attitude.

7. Illustration: Coaching Process Vision of PS

Needs

According to the PS’ headcount table 51 seniors work for PS. Based on the Survey and

yearly Appraisal System I suppose, that approximately 20% of them need, ca 10 people

need a coaching every half year in 40 hours. The following financial plan supports, that

in long term the coaches’ training inside the company is more profitable like buying

these coaching hours from the training market.

HUF Costs Need (seniors)

Hours/ halfyear Costs Comment

Outside Coaching 50 000 10 40 20 000 000 Extra Costs

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Inside Coaching 6 250 10 40 2 500 000 Fix Costs 8. Illustration: Comparison of In- and Outside coaching hours costs

Introduction of coaching process bring positive change to the organization like the

following:

Developing leadership skills

Increasing employee

satisfaction

Decreasing fluctuation

Improving Client’s

satisfaction

Going up Organization

Effectiveness

Growing turnover

Marketing Strategy

Before starting the Introduction of coaching process it’s very important to make a

complete survey on employee’s needs. You will see the project plan below:

Senior meeting By a senior meeting all the stakeholders can be informed about the new strategy

of the company. They can ask their questions, and they could be persuade about

the management engagement on the organization changes.

Questionnaire After first communication every stakeholders get a Questionnaire by e-mail.

It helps by:

describing the potential competencies of Inside coaches

segmenting seniors into three different groups by attitude to coaching

(Supporters, Neutrals, Opponents)

Preparation of an Inside Persuasion Plan to communicate the organization change

Supporters need only Information by meetings.

Neutrals will play an important role in building up the coaching process of

the company.

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Opponents need the most attention to persuade them about the advantages of

coaching. By Personal Interviews could we map all the expectations and threats

to coaching process.

Selection of Coaches

Training of Coaches by Entre-coach training material

Coaching Agreements

Starting of the Coaching process

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Timetable

Senior

meeting

Sending out Questionniares to the Seniors

Summary of Questionniares

Meeting

SEPT

5

6

7

8

9 X

12 X

13 X

14 X

15 X

16 X

19 X

20 X

21 X

22 X

23 X

26

27

28

29

30 X

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Interviews with

Neutrals and

Opponents

Preparation of Inside

Persuation Plan

OCT

3 X

4 X

5 X

6 X

7 X

10 X

11 X

12 X

13 X

14 X

17 X

18 X

19 X

20 X

21 X

24 X

25 X

26 X

27 X

28 X

31

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Meeting Selection

of Coaches

CoachingTraining

NOV

1

2

3

4 X

7 X

8 X

9 X

10 X

11 X

14 X

15 X

16 X

17 X

18 X

21

22

23

24

25

28 X

29 X

30 X

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CoachingTraining

Agreements between Coaches Coachees

Starting the

Coaching Process

DEC

1 X

2 X

5 X

6 X

7 X

8 X

9 X

12 X

13 X

14 X

15 X

16 X

19

20

21

22

23

27

28

29

30

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Starting the

Coaching Process

JAN

2

3

4

5

6

9 X

10 X

11 X

12 X

13 X

16 X

17 X

18 X

19 X

20 X

23 X

24 X

25 X

26 X

27 X

30 X

9. Illustration: Timetable of Coaching process’ Introduction

Next steps

As you see the Return Plan below expected in one year PS plans to provide coaching

services for their existing Clients. The aim is to make in the next year enough profit to

cover all the costs of working hours what the employees spend on coaching and in the

further year to make 10% profit.

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HUF

Average Wage per hour

Number of stakeholders

Working hours Costs

Sold Coaching Hours

Service fee per hour Income

Introduction of coaching process 6 250 60 40 15 000 000

First Halfyear Inside coaching 6 250 20 40 5 000 000

Second Halfyear Inside coaching 6 250 24 40 6 000 000 Marketing of coaching service for Clients 6 250 5 40 1 250 000

Third Halfyear Inside coaching 6 250 20 40 5 000 000 300 50 000 15 000 000 Marketing of coaching service for Clients 6 250 5 40 1 250 000

Fourh Halfyear Inside coaching 6 250 20 40 5 000 000 400 50 000 20 000 000

SUM 26 000 000 35 000 000 10. Illustration: Financial Plan

iIllustrations:

1. PS Headcount 2011 June

2. PS Organization Structure

3. PS Organization Job Sharing

4. PEST

5.SWOT

6. TQM Qualification of PS

7. Coaching Process Vision of PS

8. Comparison of In- and Outside coaching hours costs

9. Timetable of Coaching process’ Introduction

10. Financial Plan