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Monday, January 25, 2010

Strategic Plan - Set the Future!

In the competitive business environment companies engage in strategic planning to clearly define objectives and assess both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and create a process to quickly make adjustments to stay on track.  The process consists of the following:

  • Mission and Objectives - describes the company's vision including the unchanging values and purpose of the organization.
“Strategic planning is worthless -- unless there is first a strategic vision.”  ~ John Naisbitt

  • Environment Scan
    • Internal analysis of the firm
    • Analysis of the firm's industry
    • External macro environment (PEST analysis)
      • Political Factors
      • Environmental Factors
      • Social Factors
      • Technological Factors
    • SWOT Analysis (strengths, weaknesses, opportunities, threats) generates a profile.
  • Strategy Formulation - Company matches its strengths to the opportunities while addressing weaknesses and threats.  To obtain superior profitability develop a competitive advantage based on cost or differentiation.
  • Strategy Implementation - involves resources of the organization and motivation of the staff to achieve objectives.
  • Evaluation & Control
    • Define parameters to be measured
    • Define target values of parameters
    • Perform measurements
    • Compare measured results to the predefined standard
    • Make necessary changes

“A goal without a plan is just a wish.” ~ Larry Elder

Reading:
 Getting Started - An Introduction to the Strategic Planning Process
High Impact Tools and Activities for Strategic Planning: Creative Techniques for Facilitating Your Organization's Planning Process