15 January 2002
NATIONAL CAPITAL FREENET
INCORPORATED
2002
STRATEGY AND OPERATIONAL PLAN
Prepared for:
Board Of Directors
National Capital FreeNet
Incorporated
402 Dunton Tower, Carleton
University
1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Prepared by:
Ian MacEachern
Executive Director
National Capital FreeNet
Incorporated
402 Dunton Tower, Carleton
University
1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY 1
2 INTRODUCTION 2
3 ENVIRONMENTAL SUMMARY 3
4 MISSION STATEMENT 3
5 2002 STRATEGY 4
6 2002 OPERATIONAL PLAN 6
7 2002 KEY INDICATORS OF
SUCCESS 7
8 LONG TERM STRATEGY 10
9 CONCLUSION 11
The National
Capital FreeNet (NCF) 2002 Strategy and Operational Plan is intended to provide
strategic direction and guidance for the operational decisions that will be
made over the next 12 months.
The first step
in developing a strategy is to understand the operating environment, both
internal and external to the organization.
Internally the NCF possesses strengths such as goodwill built up over almost 10 years of providing
services to the community. Contrary to
those strengths are number of noticeable weaknesses such as poor reliability,
caused by older technological infrastructure.
Externally, there are opportunities that the NCF can take advantage of,
such as momentum generated by recent press coverage. And as with the internal environment, there are conflicting
threats such as the affordability of high-speed internet access.
The next step
is to understand the vision and mission of the organization. The NCF Mission is as follows:
The National Capital FreeNet / Libertel de la Capitale nationale is a free, computer-based information sharing network accessible in both official languages of Canada. It links the people and organizations of this region, provides useful information, and enables an open exchange of ideas with the world. Community involvement makes FreeNet an important and accessible meeting place, and prepares people for full participation in a rapidly changing communications environment.
The strategy
that flows from the environmental analysis and the organizational mission has
three components: the goals, products and services, and the basis of
competition of the organization. The
following is a list of goals for the NCF in 2002:
Strategic goals
must always direct the way the organization sets day-to-day priorities and
makes operational decisions. Linked to each goal are a number of operational
objectives, targets, tasks and accountabilities. The 2002 targets set ambitious, but realistic milestones for
progress by the end of 2002.
Progress
against two key indicators will ultimately determine the level of success of
the 2002 Strategy and Operational Plan.
There are two key indicators for
2002:
1. Active membership numbers: Success indicated by an active membership of 8008 by the end of 2002
2. Donation revenue: Success indicated by donation revenue from members and organizations totaling $179,399 for 2002.
Finally, it is
imperative that the NCF develop a long-term plan if it is to become
self-sustaining. A number of goals and
operational objectives for the medium and long-term are presented to initiate
discussion and to act as a starting point for the development of the long-term
plan.
As we near the end of 2001,
the National Capital FreeNet (NCF) faces serious challenges and significant
opportunities. This document will present a strategy and operational plan for
2002 that will allow the organization to overcome the challenges and take
advantage of the opportunities.
In order for the reader to
better understand this document, I would like to present a brief description of
each of the major sections.
The first section will summarize
the internal and external operating environment. This is necessary in order to understand the constraints under
which the NCF is operating.
Next follows the NCF Mission
Statement, the basis for all activities undertaken by the (NCF). It highlights the core “raison d’etre” of
the organization.
Flowing from the mission
statement is the strategic plan.
Currently strategic plans target only the current fiscal year. The strategic plan provides the direction
for the upcoming year and shapes the way the NCF
sets day-to-day priorities and makes operational decisions. It includes
the organizational goals, lists what products and services will be offered, and
indicates how the organization will compete.
The link between the strategy
and the day-to-day operational decisions is the operational plan. It links the goals outlined in the strategic
plan with operational objectives and time frames in which to accomplish the
objectives.
Plans require methods of
evaluation to determine their success.
Key indicators of success are presented that will ultimately provide a
measuring stick of the success of the strategy.
Finally, as a way to initiate
discussion on the long-term sustainability of the NCF, a number of medium and
long-term goals and operational objectives are presented.
As the Executive Director of
the NCF, it is my pleasure to present this document to the Board of
Directors. It is my sincere belief that
the strategy and operational plans presented herein will provide a framework with
which to build a foundation for the long-term success of the NCF.
Ian MacEachern
Executive Director
National Capital FreeNet
January 1, 2002
An analysis of the NCF
strategic environment can be summarized under four headings: strengths,
weaknesses, opportunities and threats.
Strengths and weaknesses are considered to be internal to the
organization; opportunities and threats are external.
Strengths
Weaknesses
Opportunities
Threats
The mission statement of the
NCF is as follows:
The National Capital FreeNet / Libertel de la Capitale nationale is a free, computer-based information sharing network accessible in both official languages of Canada. It links the people and organizations of this region, provides useful information, and enables an open exchange of ideas with the world. Community involvement makes FreeNet an important and accessible meeting place, and prepares people for full participation in a rapidly changing communications environment.
The 2002 Strategy is designed
to build on the organization’s strengths, overcome its weaknesses, take
advantage of the opportunities and prevail over the threats it faces. Its guiding principle is to further the
vision provided in the mission statement.
All of the goals outlined in the 2002 Strategy are derived from four organizational priorities: to see the NCF survive through 2002; to build a foundation for long-term sustainability; to establish the NCF as a final destination for obtaining internet services instead of preparing people for full internet participation with “real ISP’s”; and, to initiate a change in the culture of the NCF, returning to the vibrant, relevant, and technologically current personality of the Neff’s early days.
Accordingly, the following is
a list of goals for the NCF in 2002:
Expanding each item in this
list briefly and in general terms.
Support through member donations is a key part of NCF – it keeps NCF independent, and sponsors see it as a reason to support us. It has proven effective in the past but we must continue to provide good reasons for people to donate. NCF must be seen to be doing worthwhile things in the community, and providing members with value.
The technological infrastructure of the NCF is facing obsolescence. 14.4 and 28.8 kbps modems provide serious limitations to PPP users. 33.6 kbps modems are somewhat more modern but still significantly behind the times. Equipment to connect to analog phone lines is almost non-existent. In the long term, a transition to digital access technology is a must. In the short term significant improvements in the reliability of the current service must be made.
Our servers are not in immediate need of upgrading but will require it if we want to provide newer more resource intensive services. If we are to be able to handle success this part of the infrastructure must also be upgraded. A new technical infrastructure map outlining our server requirements and current resources will start this process.
This process has already begun. We are implementing the Thin Client service. We hope to roll out the WebMail service and the Extended Access service early in the new year. Web-based communication/collaboration tools and domain hosting are just two of many other internet services we can make available to our members, either by providing them ourselves or through collaboration with partners. We should also be investigating, evaluating and offering access to new technological advances such as 802.11 networking
Many people in the city either don’t know us or have erroneous or incomplete views of what the NCF is about. This has got to change. The projects will help. A coordinated and well-planned marketing campaign is essential. Reestablishing the NCF brand is paramount. And the web site needs a complete overhaul.
The time where the NCF could simply provide basic internet services is past. We must give new members a compelling reason to join, and existing members a compelling reason to stay. We must be able to effectively answer the question “Why should I join the NCF, and why should I stay?”
The NCF is perceived as being old and outdated, both internally and externally. Recent news articles have suggested that the NCF is irrelevant. Communications among the membership via means other than e-mail is limited to newsgroups and their usage has declined. The NCF can act as a facilitator of discourse on issues that affect the community but needs to provide the means for citizens to communicate on-line first.
6. Build useful partnerships
This
is a key to survival. We don’t have the
resources to go it alone. We must
convince potential partners that there is value in partnering with us. We have
things to offer: a large user base, an extensive network of contacts at all
levels of government, a strong core group of technically knowledgeable members
and volunteers, etc. What we need is to
do is make use of partnership opportunities that will give us substantial
benefits. Partnership just for the sake
of partnering does no good.
This goal goes hand-in-hand with the goal of building better partnerships. Critical to the success of the NCF is the ability to attract, utilize and retain high quality volunteers. The small staff and board of directors are not sufficient to perform all the activities required to survive and achieve long-term sustainability. It is imperative that a volunteer management process be established to determine what activities need to be performed and to effectively allocate the volunteer resources.
8. Improve our operational efficiency
In addition to establishing the NCF as a final destination for people needing internet services, we must make it easy for people to join, easy to donate, easy to stay a member. The current registration, donation, and membership maintenance system is in need of a significant upgrade if we are to be able to handle an increase in membership. Web enabling the system to allow the user to perform membership related tasks would dramatically increase efficiency.
Although the immediate term priority is to survive, and correspondingly the goals listed here focus on the short term, to achieve long term success and sustainability requires a plan. Accordingly, it is necessary to put in place a process for review of the vision and mission of the organization, with the intention of charting a course that will lead to the NCF becoming a model for other community networks, both in Canada and around the world.
The second component of the 2002 Strategy is the identification of which products and services the NCF will offer. In 2002 the services offered will be:
The final component of the
2002 Strategy is identifying how the NCF intends to compete in the marketplace.
The basis of competition for 2002 will be as follows:
The 2002 Operational Plan
links the goals outlined in the 2002 Strategy with specific operational
objectives, associated tasks, required resources, accountability, and
performance targets. Its primary focus is to provide a framework for achieving
the strategic goals while providing a genuine sense of strategic direction and
establishing priorities for the day-to-day operational management of the
organization. It must be noted that in order to achieve the goals a premium
must be placed on discharging ordinary management functions extraordinarily
well, although these functions are not specifically described here.
1.
Goal: Remain donation
based.
1.1. Operational Objective: Achieve donations necessary to
operate at break-even or at a surplus
Time
Frame: Performance against budget measured Q1, Q2, Q3, Q4
2.
Goal: Improve the
reliability of the services offered to our members
2.1. Operational Objective: Solve dial-up access problems
Time
Frame: Q1
2.2. Operational Objective: Upgrade the technological
infrastructure
Time
Frame: Q4
3.
Goal: Extend the range
of services offered to our members
3.1. Operational Objective: Roll out Thin Client I (HRDC)
Time Frame: Q1
3.2. Operational Objective: Roll out Thin Client II (IC)
Time
Frame: Q2
3.3. Operational Objective: Roll out Web Mail I (IC)
Time
Frame: Q2
3.4. Operational Objective: Roll out Extended Access II
(IC)
Time Frame: Q1
3.5. Operational Objective: Provide domain hosting services
Time
Frame: Q3
4.
Goal: Raise the
visibility of the NCF within the community
4.1. Operational Objective: Develop and implement an
effective marketing program
Time Frame: Q2
4.2. Operational Objective: Revamp web site
Time Frame: Q25.
Goal: Increase the
relevance of the NCF
5.1. Operational Objective: Provide members the opportunity and means to become active participants in public debate of community issues i.e. discussions of the broadband initiative, etc.
Time Frame: Q3
5.2. Operational Objective: Provide sponsorship and
authentication service for 802.11community network
Time
Frame: Q3
6.
Goal: Build useful
partnerships
6.1. Operational Objective: Establish significant
partnerships with community foundations, local corporations, individuals
capable of providing significant donations
Time Frame: Progress measured Q1, Q2, Q3, Q4
7.
Goal: Make better use of
our members, supporters and volunteers
7.1. Operational Objective: Establish volunteer management
process
Time Frame: Progress measured Q1, Q2, Q3, Q4
8.
Goal: Improve our
operational efficiency
8.1. Operational Objective: Port membership database to
RDBMS
Time Frame: Q2
8.2. Operational Objective: Start porting member service
functionality to web-based system
Time Frame: Q4
8.3. Operational Objective: Improve member support services
Time Frame: Progress measured Q1, Q2, Q3, Q4
9.
Goal: Develop a
long-term plan
9.1. Operational Objective: Establish a long-term strategic
plan for the organization
Time Frame: Q4
7 2002 KEY
INDICATORS OF SUCCESS
There are two key indicators
that will determine the success of the strategy:
1. Active membership numbers: Success indicated by an active membership of 8008 by the end of 2002.
2. Donation revenue: Success indicated by donation revenue from members and organizations totaling $179,399 for 2002.
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
|
New Members |
554 |
645 |
788 |
878 |
2865 |
|
Renewing Members |
1501 |
1592 |
852 |
691 |
4643 |
|
New Donations |
7,410 |
8,610 |
10,530 |
11,730 |
$38,280 |
|
Renewing Donations |
42,206 |
44,661 |
24,495 |
20,157 |
$131,519 |
The basis for the forecasted
renewing members is the model developed by Jim Elder (aa456). The model starts with the number of active
members in the membership database. It
then segregates the members according to how long they have been members of the
NCF and by the month of their renewal date.
For brevity we will call these figures “members by age by renewal month
(MARM)”. Next the model uses past
registration and renewal data to determine the probability of renewal for each
age and renewal month, and then averages the monthly figures into a probability
of renewal for a given age (pAge).
Multiplying the two (MARM, pAge) gives the number of renewing members
likely to renew for a given age and month of renewal (RMARM).
Next the model takes the
average donation for the current year and divides it by the average donation
for the previous year (in this case, the previous year being 2000, the current
year being 2001). This gives a scaling
factor, essentially predicting the rate of increase or decrease in average
donations based on past trends. The
model then multiplies the average donation for the previous year for each age
by the scaling factor to give the predicted average donation for each age
(PDA).
An analysis of the current
year’s renewal numbers is then used to develop a probability of a renewing
member donating (pDon)
Multiplying the number of
renewing members likely to renew for a given age and month of renewal (RMARM)
by the probability of a renewing member donating (pDon) by the predicted
average donation for each age (PDA) gives the monthly renewal donation dollar
figure. The model then lags the monthly renewal donation figure by three weeks
to account for the actual date of donation as compared to the renewal date.
Currently, there are 6,734
active members. The model uses the numbers for probability of renewing by age
of member (pAge), as shown in column 2 below. These numbers are based on
historical data. To develop the target
for numbers of renewals I have used the probabilities in the third column.
|
Age of member |
Current probability of
renewal |
Revised probability of
renewal |
|
1 |
30% |
50% |
|
2 |
60% |
67% |
|
3 |
64% |
71% |
|
4 |
68% |
75% |
|
5 |
68% |
75% |
|
6 |
72% |
79% |
|
7 |
75% |
82% |
|
8 |
76% |
83% |
My plan to achieve the higher
numbers of renewals call for an increase in the percentage of members renewing
of 7% for members who have been with NCF for 2 years or more. I believe this can be accomplished by
increasing the reliability of the dial-up access, upgrading the technical
infrastructure, and by successfully rolling out the new projects (Thin Client,
Web Mail).
The most challenging part of
the plan will be to increase the probability of renewal for members who have
been with the NCF for only 1 year from 30% to 50%. In order to accomplish this we will count on the planned
initiatives to retain members who have been with the organization longer than 1
year as mentioned above, plus specifically target newer members in a modified
renewal letter, and also by conducting a campaign that will attempt to have
somebody in the organization contact them either by e-mail or phone to ensure
they know why they have to renew, the benefits of the NCF, and to listen to
concerns or complaints they may have.
The number of renewing
members using the higher probability of renewal is given in the summary table
below.
The forecasted numbers for
new members have been 98 per month for the last two years. For new members, we have consistently
achieved an average of 132 per month in the last 24 months. This has been accomplished without the
benefit of a sustained marketing effort.
I feel that we can achieve an average of 135 new members per month, as a
base new member figure, with monthly variations based on historical patterns
noted over the last two years. These numbers are expected to be achieved before
taking into account the rollout of the new projects and the implementation of a
marketing campaign.
We will be rolling out the
new Thin Client project in February. I
do not see an immediate benefit of this in attracting new members, but with the
initiation of the promotional campaign tied to the project rollout, I forecast
the number of new members joining the NCF primarily because of this initiative
will start at 25 in April and peak at 125 in the months of September and
October.
Likewise, we plan on rolling
out the new Web Mail project in April, with the resulting new members tied to
this initiative averaging 30 per month starting in September. The lower number here results from the fact
there is much more competition in this area from well-established competitors
such as hotmail and Yahoo.
Other initiatives such as
providing members the opportunity and means to become active participants in
public debate of community issues, providing sponsorship and authentication
service for an 802.11community network, and establishing significant
partnerships with community foundations, local corporations, service clubs and
other non-profit organizations, will also increase the number of new
members. I expect these initiatives to
attract an average of 50 members per month starting in March.
Finally, there are a
substantial number of members whose status is in a state of flux. They are not
new, nor have they renewed, but they are still in an active state. Currently
that number totals around 500.
The following table
summarizes the forecast membership numbers for the year 2002.
|
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
July |
Aug |
Sept |
Oct |
Nov |
Dec |
Total |
|
Renewals |
446 |
544 |
511 |
551 |
524 |
517 |
309 |
263 |
280 |
257 |
205 |
239 |
4643 |
|
Base New |
177 |
169 |
158 |
119 |
135 |
116 |
106 |
136 |
141 |
136 |
130 |
97 |
1620 |
|
Thin Client New |
|
|
|
25 |
50 |
50 |
50 |
50 |
125 |
125 |
75 |
75 |
625 |
|
Web Mail New |
|
|
|
|
|
|
|
|
30 |
30 |
30 |
30 |
120 |
|
Other Initiatives New |
|
|
50 |
50 |
50 |
50 |
50 |
50 |
50 |
50 |
50 |
50 |
500 |
|
Total New |
177 |
169 |
208 |
194 |
235 |
216 |
206 |
236 |
346 |
341 |
285 |
252 |
2865 |
|
Flux |
|
|
|
|
|
|
|
|
|
|
|
|
500 |
|
Total Members Dec 31 2002 |
|
|
|
|
|
|
|
|
|
|
|
|
8008 |
Ultimately the long-term sustainability of the NCF
hinges on donations, particularly from members but also from
organizations.
For renewing members, past experience indicates that
we can expect 58% to donate, with an average donation in the past year
being $48.56. I expect these figures to
remain constant in 2002.
For new members, past experience indicates that we can
expect 45% to donate, with an average donation in the past year being $29.71. The target donation rate is expected
to remain constant, while the average donation will increase slightly to
$30.00.
For organizations, donations in the past year averaged
$800 per month and this is expected to continue in 2002.
The following table summarizes the target donations
from new and renewing members and organizations.
|
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
July |
Aug |
Sept |
Oct |
Nov |
Dec |
Total |
|
Renewals |
446 |
544 |
511 |
551 |
524 |
517 |
309 |
263 |
280 |
257 |
205 |
239 |
4643 |
|
Donating |
259 |
315 |
296 |
319 |
304 |
300 |
179 |
152 |
162 |
149 |
119 |
138 |
2693 |
|
Renewing Donations |
$12,531 |
15,304 |
14,371 |
15,441 |
14,651 |
14,569 |
8,816 |
7,566 |
8,113 |
7,443 |
5,909 |
6,805 |
$131,519 |
|
Total New |
177 |
169 |
208 |
194 |
235 |
216 |
206 |
236 |
346 |
341 |
285 |
252 |
2865 |
|
Donating |
79 |
75 |
93 |
86 |
105 |
96 |
92 |
105 |
154 |
152 |
127 |
112 |
1276 |
|
New Donations |
$2,370 |
2,250 |
2,790 |
2,580 |
3,150 |
2,880 |
2,760 |
3,150 |
4,620 |
4,560 |
3,810 |
3,360 |
$38,280 |
Organization Donations
|
$800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
$9,600 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
$179,399 |
An important part of the strategic planning for any organization is to establish a long-term vision and accompanying goals. This section will outline goals that should drive the planning process for 2003 and beyond.
Medium Term (2003-2004)
Goals
·
Continue to build the
NCF brand
·
Convince more and more
potential partners that there is value in partnering with us – start having
them approach us
·
Continue to upgrade
technologically
Operational objectives
· Execute francophone membership drive
Long term (2005 - 2007)
Goals
·
Become a model for
freenets/community networks around the world
·
Become self sustaining
·
Become a proactive,
learning organization
·
Increased
corporate/organizational funding – we want organizations to want to come to us
with funding for community projects, not have to search them out and beg for
money
·
High visibility in the
community
·
Increased Francophone
membership
Operational Objectives
The purpose of this document
is to provide a framework for guiding the day-to-day management of the National
Capital FreeNet. In order to accomplish
this purpose, I have presented: a summary of the current operating environment;
the NCF mission statement; a proposed strategy including specific goals for
2002; key indicators of success; an operational plan for implementing the
strategy; and, finally, an initial list of long-term goals and objectives. It is my sincere belief the strategy and operational
plan will provide the NCF with the direction necessary to effectively manage
the organization and develop a foundation for it long-term sustainability.