Monday, February 22, 2010

The A-B-Cs Of Strategic Planning

As most Management Text Books point out, the basic objective of any organization is to perpetuate its existence. Implicit with this objective is that organizations must take proactive steps to make their continued existence a reality.

That said, case studies abound of once viable and profitable organizations that withered and died, seemingly overnight. Of course, many internal and external factors can contribute to an organization's demise, but with all due respect to hindsight, a lack of vision and long-range planning are often attributed as its root causes.

Obviously, all the planning in the world is no guarantee that any organization can survive in perpetuity, yet, Strategic Plans are written to detail an organization’s goals and strategies for their continued viability, usually over a five to ten year period.

Strategic Planning is practiced by all established organizations, regardless of their size or type. Larger profit and non-profit organizations will generally utilize formal planning functions or planning committees for this purpose. But even the smallest organizations will devote time and effort to facilitate some level of long-range planning.

The first step in putting together a comprehensive Strategic Plan is to ask pointed questions that focus on the present state of the organization with an eye towards the future. Be mindful that it is natural and desirable for a lot of "blue sky thinking" to be at play at this stage, but, in the end, the critical questions to be addressed can usually be boiled down to the following three:

1. As an organization, where are we?
2. Where do we want to go?
3. How do we plan on getting there?

Formulating clear and reasoned answers to each of these questions will normally involve the input and collaboration of key individuals or planners from across the organization. It will then fall upon a central planner or coordinator to edit and integrate this input into an organizational perspective and consensus.

It should be noted that the best Strategic Plans are those that strike a good balance between vision and practicality. In other words, it is vision tempered by anticipated internal and external influences. Likewise, the answers to the above questions need to address what is possible now versus what may be possible in the future.

That said, some of the factors to be considered in formulating answers to these questions should include the following:

* Financial resources of the organization
* Business Climate (geographic and regulatory issues)
* Customer demographics
* Product and Service lines (existing and planned)
* Competing organizations
* Marketing strategies
* Technology and Innovation
* Human Resources

The next step involves organizing, refining, and synthesizing the forecasts, opinions, and raw data from the above exercise, and then using this input as the basis for drafting the following elements:

* Mission Statement – Who are we?
* Objectives – What do we want to be?
* Goals - What are our benchmarks?
* Implementation Plan – How will we do this?

Once these elements are drafted and agreed upon, the task of formatting and finalizing the Strategic Plan can begin. The actual packaging of the plan will vary according to organizational style and preference; however, most plans will include the following:

* Executive Summary
* Organizational Description
* Mission and Values Statements
* Goals
* Strategies
* Action Plan
* Appendices

Obviously, this is only a bare bones outline of a typical Strategic Plan and the Strategic Planning Process. For more detailed information, check out the Business Section of your local library or Internet, where you will find many useful desktop and online resources. To help you get started, check out the links below.

Related Links:

http://managementhelp.org/plan_dec/str_plan/writing.htm

http://www.mystrategicplan.com/strategic-planning-tools/how-to-create-a-strategic-plan.shtml

http://allbusiness.com/business-planning-structure/business-plan/2976247-1.html


Jack

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