KEY STEPS TOWARDS STRATEGIC PLAN

If you don't know where your business is going. any road will get you there. .

‡ A satisfactory strategic plan must be realistic and attainable so as to allow managers and entrepreneurs to think strategically and act operationally . ‡ It is a Force with which the companies make choices on what you will do and what you will not do.1. ‡ It is a Broad outline on where resources will get allocated. Strategic Plan ‡ It is a Process to establish priorities on what organizations will accomplish in the future. ‡ It Pulls the entire organization together around a single game plan for execution.

‡ A strategic plan should not be confused with a business plan.1. That's why a business review or preparation of a strategic plan is a virtual necessity. A strategic plan can provide the foundation and frame work for a business plan . The former is likely to be a (very) short document whereas a business plan is usually a much more substantial and detailed document. Strategic Plan ‡ Entrepreneurs and business managers are often so preoccupied with immediate issues that they lose sight of their ultimate objectives.

Stimulate change and become building block for next plan. .Provide a basis for more detailed planning.Explain the business to others in order to inform. motivate & involve. Strategic Plan ‡ This may not be a recipe for success.1.Assist benchmarking & performance monitoring. but without it a business is much more likely to fail.Serve as a framework for decisions or for securing support/approval. . A sound strategic plan should: . . . .

. focused.1. who goes. transport and so on are all operational matters). conceptual and directional in contrast to an operational plan which is likely to be shorter term. ‡ As an example. how travel are all strategic issues) with the final preparations (tasks. packing. duration. tactical. The former should be visionary. implementable and measurable. budget. funding. Strategic Plan ‡ A strategic plan is not the same thing as an operational plan. when. deadlines. weather. compare the process of planning a vacation (where.

Strategic Plan ‡ For a good strategic plan following points should to be considered in planning process and they are as follows: .Plan should be realistic. detached and critical. .Focus on matters of strategic importance.Plan should be undertaken by owners/directors.e. .Plan should be able to distinguish between cause and effect.Plan should be written down.Relate to the medium term i.Plan should be separated from day-to-day work. . 2/4 years. . .Plan should be reviewed periodically .1. . .

1. Strategic Plan .

Key Steps towards Strategic Plan ‡ When the strategic plan is properly designed it would led to key steps towards a strategic plan and they are as follows: ‡ Vision ‡ Mission ‡ Values ‡ Objectives ‡ Strategies ‡ Goals ‡ Programs .2.

Major Components of the Strategic Plan / Down to Action Strategic Plan VISION MISSION OBJECTIVES GOALS STRATEGIES G1 AI2 M3 T1 AI3 G2 Action Plans Evaluate Progress AI1 VALUES M1 M2 PROGRAMS T1 T1 .

size. ‡ Provides a long-term focus for the entire organization. activities etc. .A) Vision ‡ The first step is to develop a realistic Vision for the business. ‡ Challenges everyone to reach for something significant ± inspires a compelling future. This should be presented as a pen picture of the business in three or more year¶s time in terms of its likely physical appearance. ‡ How the organization wants to be perceived in the future ± what success looks like? ‡ An expression of the desired end state.

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 areas³. for example. "to design. some people confuse mission statements with value statements the former should be very hard-nosed while the latter can deal with 'softer' issues surrounding the business.B) Mission ‡ The nature of a business is often expressed in terms of its Mission which indicates the purpose and activities of the business. ‡ A statement along these lines indicates what the business is about and is infinitely clearer than saying. . develop.

‡ Every organization should be guided by a set of values and beliefs ‡ Provides an underlying framework for making decisions ± part of the organization¶s culture ‡ Values are often rooted in ethical themes. local community and other stakeholders. customers. such as honesty. trust. etc« . integrity. respect. employees. fairness« ‡ Values should be applicable across the entire organization ‡ Values may be appropriate for certain best management practices ± best in terms of quality. exceptional customer service. suppliers.C) Values ‡ The next element is to address the Values governing the operation of the business and its conduct or relationships with society at large.

including employees.D) Objectives ‡ The third key element is to explicitly state the business's Objectives in terms of the results it needs/wants to achieve in the medium/long term. and should reflect the underlying reasons for running the business. These objectives covers growth. objectives should relate to the expectations and requirements of all the major stakeholders. Aside from presumably indicating a necessity to achieve regular profits. offerings and markets. profitability. technology. .

finances. to achieve sales of $3m in three years time. . Goals should be quantifiable.E) Goals ‡ Next come the Goals. consistent. utilization. products. These are specific interim or ultimate time-based measurements to be achieved by implementing strategies in pursuit of the company's objectives. profitability. ‡ For example. efficiency. They can relate to factors like market (sizes and shares). realistic and achievable.

± All assembly work will be contracted out to lower the company's break-even point. Strategies can cover the business as a whole including matters such as diversification.the rules and guidelines by which the mission. may be achieved. objectives etc. organic growth. for example: ± The company's internal cash flow will fund all future growth. or they can relate to primary matters in key functional areas.F) Strategies ‡ Next are the Strategies . . ± New products will progressively replace existing ones over the next 3 years. or acquisition plans.

. objectives. deadlines. These should cover resources. time-scales. budgets and performance targets.G) Programs ‡ The final elements are the Programs which set out the implementation plans for the key strategies.

objectives. strategies and goals must be inter-linked and be consistent with each other. . realistic goals or concise missions. Conclusion ‡ Thus to conclude.3. This is much easier said than done because many businesses which are set up with the clear objective of making their owners wealthy often lack strategies. values. It goes without saying that the mission.

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