STRATEGIC PLAN

Strategic Plan

Strategic Plan

What is a Strategic Plan?

Entrepreneurs and business managers are often so preoccupied with immediate issues that they lose sight of their ultimate objectives. That's why a business review or preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but without it a business is much more likely to fail.

The former is likely to be a (very) short document whereas a business plan is usually a much more substantial and detailed document. A strategic plan can provide the foundation and frame work for a business plan. For more information about business plans, refer to How to Write a Business Plan, Insights into Business Planning and Free-Plan: Business Plan Guide & Template.

The Vision

The first step is to develop a realistic Vision for the business. This should be presented as a pen picture of the business in three or more years time in terms of its likely physical appearance, size, activities etc. Answer the question: "if someone from Mars visited the business, what would they see (or sense)?" Consider its future products, markets, customers, processes, location, staffing etc. Here is a great example of a vision:

The Mission

The nature of a business is often expressed in terms of its Mission which indicates the purpose and activities of the business, for example, "to design, develop, manufacture and market specific product lines for sale on the basis of certain features to meet the identified needs of specified customer groups via certain distribution channels in particular geographic areas")

Thus, strategic planning is both a reaction to, and a tool for adapting to, those changes and creating an organization's future within the context of change. McCune describes strategic planning as a process for organizational renewal and transformation. She identifies another difference between long-range planning and strategic planning: in long-range planning, goals and projections are based on the assumption of organizational stability, while in strategic planning; the role of the organization is examined within the context of its environment. Strategic planning provides the means for an organization to adapt its services and activities to meet changing needs in its environment. It provides a framework not only for the improvement of programs but also for the restructuring of programs, management, and collaborations, and for evaluation of the organization's progress in these efforts. What Does It Involve? As a process, strategic planning involves an orderly sequence of activities, each vital to the success of the whole. Strategic planning activities include: 1. assessing the external environment.

2. Assessing internal capacity.

3. Developing goals and objectives.

4. Implementing the plan.

5. Measuring progress and revising the plan.

(1) The planning process depends on a formal information system. The external and internal assessments provide a reality base on which to build future plans. The vision or mission identifies the organization's purpose and its desired future state. The process of internal assessment and future visioning may uncover, with in an organization, differing views of its purpose, its current level of effective ness, and ...