Tarantulas Business Plan

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Tarantulas Business Plan
Assessment 2

• Martin Horn
• Mayi Cruz Blanco
• Laura Hoyle
• Pyung Sik Park
• Tiziano Gaier

21 / 02 / 2005
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Table of Contents

• Strategy
• Organizational Design
• HR System

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Objective of this presentation
Identify the planned strategy for the Tarantulas
focussing specifically on the organisation and HR
system we plan to implement to guarantee success
of the overall strategy.
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Tarantulas Club Information

• Club founded in 1905
• Club Name Tarantulas (Originated from the name
• of a spider found in Taranto in Italy)
• President Silipo in place since 1984
• Employs 23 full time employees(squad not
  included)
• Squad of 15 players
• - 10 over 30 years
• - 3 foreigners
• Organisation not being adaptedto new standards
  and trends
• Revenue 800000 Euro/year
• No profit achieved in the last 3 years

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Environmental Analysis
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SWOT analysis

• Weaknesses
• Results are poor
• Stability is absent
• Professional players turnover rate is
• too high
• Work environment not in line with
• industry standards

• Strengths
• Strong youth team
• Good supporter fan base not linked
• to results only
• Long History / Tradition

• Opportunities
• Number of Team in the area is minim
• al therefore direct competition is low
• People getting tired of football and
• looking for other opportunities

• Threats
• Relegation
• Club attracting disloyal players
• mercenaries

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Sources of competitive advantage

• Youth Team system
• Support from the local organisations

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Tarantulas Strategy

Costleadership

• Work on potential
• talents
• Innovative
• A PLACE TO BE

Focus
Differentiation
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Tarantulas Vision

• To be recognized as the most innovative and
• trendy professional basketball club achieving
  best basketball club in Italy status.

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Tarantulas Mission

• Tarantulas wants to
• Develop the best youth team system
• Be the club where every top player in Europe
• wants to play
• Reach success through great team spirit in a
  stable and friendly environment (finance, staff,
  organisation, etc.)
• Have enthusiasm as THE key factor of success
• both in the sport and commercial aspect

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Tarantulas Strategy

• Develop a friendly and stable environment - set
  5 year business plan (expectations) - increase
  communication to explain strategy - define
  new structure (outlined in the following slides)
• - develop a new HR system (outlined in the
  following slides)
• Exploit youth talent of the club - invest in
  youth teams development (coach, scouting, etc)
• - make development more important than
  short term success - 1st team coach goals
  corresponding to this strategy

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Sport Area Regarding the sport side of the
club, the OD will be based on the hierarchical
system but also we will take in consideration
coaches at different levels and players work as
part of the overall Team - Club Commercial
area The organizational design of Tarantulas
Basketball Club will be based on minimising the
hierarchy and establishing a direct
communication between managers and employees. We
are going to empower the creativity in the
environment of the club, and try to establish
the same language even though people are doing
differentthings, so also will be our policy the
cross-utilization system and the participative
corporate governance.
Organisational Design
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Organisational Design Proposed Org Chart
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Organisational Design
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Organisational Design
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Organisational Design
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Managerial Principles Commercial area

• Mix of written and verbal communication
• Decision Making based on the team opinion and
  work
• Low degree of formalization
• Cross-utilization and low degree of
  specialization
• Control based on self management
• Manager style Empowerment
• The conflicts will be solved based on discussion
• Status, based on performance evaluation

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Managerial Principles Sport area

• Mix of written and verbal communication
• Decision Making based the club strategy and
  coach tactics
• High degree of formalization (written rules,
  etc.)
• High degree of specialization (role on the pitch)
• Control based hierarchy
• Manager style Directive
• The conflicts will be solved based on discussion
  and/or directives
• Status, based on performance evaluation

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PERFORMANCE EVALUATION

• Management by objectives
• Yearly objectives will be agreed at the start of
  the season
• between manager and employee. Objectives
  must be aligned
• to the overall strategy of the Tarantulas.
• Quarterly meeting will be performed to assess
  progress against objectives
• End of year review
• Standard form for all employees (commercial and
  sports staff)
• click here to view
• ALL employees will be reviewed on whether they
  met their
• objectives and how (context) they met their
  objectives.
• Behaviour will be reviewed using 360 degree
  feedback.
• Employees will be assessed relative to that of
  peers on the same
• grade

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TARANTULAS COMPENSATION PACKAGE

• A pay-for-performance approach
• Designed to attract and reward the best
• players, coaching and commercial staff
• Achieved through an industry-leading
• package of base pay, bonus, benefits
• and equity compensation

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TARANTULAS COMPENSATION PACKAGE Annual Salary
(base pay)

• Annual salary is the foundation of Tarantulas
• compensation package.
• Adjusted annually to remain market competitive.
• Employees base pay will be determined by
• the job responsibility
• market value (players only)
• employees skills
• experience
• performance
• Merit increases - Tarantulas compensation
  philosophy
• emphasizes pay-for-performance. In order for
  employees to receive a merit
• increase, solid growth in job skills and
  contribution to the company is required. This
  will be determined at the end of season review.

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TARANTULAS COMPENSATION PACKAGE Performance
Related Pay

• Sports Staff will be incentivised at both
  individual and
• team level. Details of individual and team
  based bonus
• can be viewed here ltlink to bonus schemegt
• Commercial Staff will have the opportunity to
  achieve
• an annual bonus of up to 15 of their annual
  salary.
• This reward recognises achievement of
  predetermined goals and objectives of the
  performance period.

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TARANTULAS COMPENSATION PACKAGE Stock Awards

• Stock awards will be granted annually based on
  employee future potential.
• Within this programme employees can earn
  actual shares of the Tarantulas over a 5 year
  vesting period.
• This direct-ownership approach allows
  employees and shareholders to participate
  equally in the benefits of sustained, long term
  company performance.

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TARANTULAS COMPENSATION PACKAGE Additional
Benefits

• The Tarantulas will offer ALL employees a
  strong package of additional rewards including
• retirement plan
• health insurance
• medical insurance
• disability insurance
• child care and other benefits.
• Benefits will be directly linked to base salary
  (i.e. a fixed percentage of base.) This aims
  to further motivate employees.

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TARANTULAS COMPENSATION PACKAGE Career
Opportunities

• A work environment that will enable
  employees to reach their full potential.
• As employees grow in their capabilities and
  achievements so do their
  opportunities for career advancements

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HR Management Staffing

• The management believes that a Basketball
  club is an professional service organisation,
  that provides a service to its players, the
  administrative staff and the league,the
  success of which is largely dependent on the
  attitudes of its personnel
• The clubs success drives fundamentally from the
  players and administrative staffs leading to the
  philosophy to put its people first

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HR Management Staffing

• HR PLANNING

RECRUITMENT
SELECTION AND PLACEMENT
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HR PLANNING

• The job description will be clearly defined for
  every staff member and player.
• Every staff member and players will know exactly
  what is expected from them in line with the club
  philosophy.
• The club realizes that it cannot reach its goals
  without a competent team, which consists of staff
  members together with players.

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RECRUITMENT

• The owner will be looking for people which are
  bright, educated, mature, energetic and
  hardworking. They have to be good team players
  willing to do different things and ambitious in
  achieving personal development.
• Recruitment will be done on the headhunting
  system, that means looking for people that fits
  in with the clubs strategy, mission and vision.
• How?
• The club will gather a large applicant pool from
  which they can select employees
• The organization will put forward clearly what
  are the most critical skills and attributes
  needed to be able to qualify.
• The skills and abilities sought will fit in with
  the clubs strategy and mission.

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SELECTION

• After thorough interviewing, the applicants most
  suitable for the job will be selected and before
  placed, every new staff member will follow an
  orientation program, where they will be explained
  how they fit in with the clubs philosophy.

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DEVELOPMENT

• Team development programs will be implemented.
• A sport psychologist will be employed to work
  closely with the team to maximize performance.
• The fact that there will be players from
  different nationalities, means that attention
  will be given to understand cross cultural
  differences.
• The administrative staff will be able to grow in
  their career through additional job specific
  training programs.
• The coach will have the most important and direct
  contact with the team meaning that the coach
  through the hierarchical structure must fulfill
  the job as mentor and coach.

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DEVELOPMENT
Training programmes
Career growth
The Coach as mentor
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EXIT POLICIES

• By the putting our peolpe first
  philosophy,the top management of the club will
  focus on the following issues concerning
  exit.
• Redundincy policy
• Lay-offs
• Outplacemet
• Player transfers

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Player transfers

• The clubs philosophy on youth development leads
  to the fact that the club values its
  upcoming young players and will strive to put
  their interests first concerning,development,
  education and future transfers