Bright Ideas: Business Plan

No matter the analogy — roadmap, blueprint — a good business plan formalizes an organization's direction, sets forth its structure, and describes its culture and philosophy. Successful public sector fleet managers often say they approach their organizations as they would a business, using best-practice methods and processes proven in the commercial sector. One of those best practices is a carefully written, well-developed business plan characterized by flexibility, clarity, and comprehensive scope.

Plan a 'Living Document' Detailing Fleet Direction

Sharon Subadan, CAFM, CPFP, director of fleet management for Hillsborough County, Fla., recognizes the purpose of her fleet's business plan is to "provide strategic direction and a blueprint for the covered period and to inform stakeholders."

Hillsborough County's fleet business plan is a "living document" versus a "never-used, on-the-shelf" plan and adaptable changing or unexpected circumstances.

"We operate very much like a private entity, which helps us to rise to the top," said Subadan. Hillsborough's fleet organization continues "to enact the business plan and adjust as needs change."

The fleet business plan includes mission, vision, and values statements; SWOT analysis; goals and objectives; and a financial plan and results. Actions plans proceed from the plan and attainment of goals at specific milestones is measured.

The current business plan will be formally updated to cover a three-year period using the balanced scorecard approach and including stretch goals, said Subadan. Business plan attainment results are included in senior staff performance evaluations.

Addressing Current & Future Business Challenges

Long-range, but flexible planning is a hallmark of the Polk County, Fla., fleet business plan. According to Bob Stanton, director of fleet management, Polk County's "2-5-10 Plan projects expenditures and operating forecasts to address present and future business challenges" and is "updated annually using input from management and a cadre of 'blue collar' fleet staff members."

For example, Stanton explained, beginning in 2005, the business plan included a specific section to address upcoming 2007 and 2010 vehicle emissions changes, including an advance strategy for implementing ULSD and E-10 fuel, driver training, and a late 2006 pre-buy strategy.

As each initiative is completed or as conditions change, the plan is amended. For instance, the relevant section in the business plan was updated in 2008 with OBD planning for medium and heavy trucks.

Defining Fleet's Operating Philosophies

The Salt Lake County, Utah, business plan "illustrates and defines the operating philosophies of County fleet management," said Fleet Director John Webster, CPFP. 

The County's fleet plan also provides strategies to guide staff in environmental stewardship, "outstanding" customer services, cost containment opportunities, and quantifiable performance improvements, Webster outlined.

Five years in scope, the plan is a working document, modified and updated to reflect changing needs of internal and external customers and fleet services. The comprehensive plan elements include:

• Division Overview: mission statement, current status, market and products, objectives, strategic alignments, performance measures, and critical success factors.
• Service Descriptions: market comparison and strategy.
• Operations: scope, strategy, ongoing, and expenses.
• Management: division organization, management team, and administration expense.
• Financial Summary: assumptions, forecast, risk, and exit strategies.
• Environmental Stewardship: impacts and opportunities.
• SWOT Analysis.
• Future Projects.