SummaryA strategic plan helps you define and share the direction your company will take in the next three to five years. It includes your company’s vision and mission statements, goals, and the actions you’ll take to achieve those goals. In this article we describe how a strategic plan compares to other project and business tools, plus four steps to create a successful strategic plan for your company. Show
Strategic planning is when business leaders map out their vision for the organization’s growth and how they’re going to get there. Strategic plans inform your organization’s decisions, growth, and goals. So if you work for a small company or startup, you could likely benefit from creating a strategic plan. When you have a clear sense of where your organization is going, you’re able to ensure your teams are working on projects that make the most impact. The strategic planning process doesn’t just help you identify where you need to go—during the process, you’ll also create a document you can share with employees and stakeholders so they stay informed. In this article, we’ll walk you through how to get started developing a strategic plan. What is a strategic plan?A strategic plan is a tool to define your organization’s goals and what actions you will take to achieve them. Typically, a strategic plan will include your company’s vision and mission statements, your long-term goals (as well as short-term, yearly objectives), and an action plan of the steps you’re going to take to move in the right direction. Your strategic plan document should include:
An effective strategic plan can give your organization clarity and focus. This level of clarity isn’t always a given—according to our research, only 16% of knowledge workers say their company is effective at setting and communicating company goals. By investing time into strategy formulation, you can build out a three- to five-year vision for the future of your company. This strategy will then inform your yearly and quarterly company goals. Set and achieve goals with Asana Do I need a strategic plan?A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics. Here’s how a strategic plan compares to other project management and business tools. Strategic plan vs. business planA business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running. You should create a business plan when you’re:
If your business is already established, consider creating a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years. Key takeaway: A business plan works for new businesses or large organizational overhauls. Strategic plans are better for established businesses. Free business plan template Strategic plan vs. mission and vision statementsYour strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan. As a result, you should already have your mission and vision statements drafted before you create a strategic plan. Ideally, this is something you created during the business planning phase or shortly after your company started. If you don’t have a mission or vision statement, take some time to create those now. A mission statement states your company’s purpose and it addresses what problem your organization is trying to solve. A vision statement states, in very broad strokes, how you’re going to get there. Simply put:
A strategic plan should include your mission and vision statements, but it should also be more specific than that. Your mission and vision statements could, theoretically, remain the same throughout your company’s entire lifespan. A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:
Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. Key takeaway: A strategic plan draws inspiration from your mission and vision statements. Strategic plan vs. company objectivesCompany objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years. Key takeaway: Company objectives are broad, evergreen goals, while a strategic plan is a specific plan of action. Strategic plan vs. business caseA business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative. Key takeaway: A business case tackles one initiative or investment, while a strategic plan maps out years of overall growth for your company. Strategic plan vs. project planA strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. A project plan has seven parts:
Key takeaway: You may build project plans to map out parts of your strategic plan. When should I create a strategic plan?You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed. That being said, if your organization moves quickly, consider creating one every two to three years instead. Small businesses may need to create strategic plans more often, as their needs change. Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. What are the 5 steps in strategic planning?The strategic planning process should be run by a small team of key stakeholders who will be in charge of building your strategic plan. Your group of strategic planners, sometimes called the management committee, should be a small team of five to 10 key stakeholders and decision-makers for the company. They won’t be the only people involved—but they will be the people driving the work. Once you’ve established your management committee, you can get to work on the strategic planning process. Step 1: Determine where you areBefore you can get started with strategy development and define where you’re going, you first need to define where you are. To do this, your management committee should collect a variety of information from additional stakeholders—like employees and customers. In particular, plan to gather:
To fill out each letter in the SWOT acronym, your management committee will answer a series of questions: Strengths:
Weaknesses:
Opportunities:
Threats:
Step 2: Identify your goals and objectivesThis is where the magic happens. To develop your strategy, take into account your current position, which is where you are now. Then, draw inspiration from your original business documents—these are your final destination. To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” This can help you figure out exactly which path you need to take. During this phase of the planning process, take inspiration from important company documents to ensure your strategic plan is moving your company in the right direction like:
Step 3: Develop your planNow that you understand where you are and where you want to go, it’s time to put pen to paper. Your plan will take your position and strategy into account to define your organization-wide plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your strategic plan should be created as the quarters and years go on. As you build your strategic plan, you should define:
Step 4: Execute your planAfter all that buildup, it’s time to put your plan into action. New strategy execution involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. Map your processes with key performance indicators, which will gauge the success of your plan. KPIs will establish which parts of your plan you want achieved in what time frame. A few tips to make sure your plan will be executed without a hitch:
Step 5: Revise and restructure as neededAt this point, you should have created and implemented your new strategic framework. The final step of the planning process is to monitor and manage your plan.
Keep in mind that your plan won’t last forever—even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one. The benefits of strategic planningStrategic planning can help with goal-setting by allowing you to explain how your company will move towards your mission and vision statements in the next three to five years. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years). When you create and share a clear strategic plan with your team, you can:
Sticking to the strategic planTo turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. With clear priorities, team members can focus on the initiatives that are making the biggest impact for the company—and they’ll likely be more engaged while doing so. What planning helps organizations ensure that they have the resources and procedures in place to accomplish long term objectives?Operational planning is a process that helps organizations to set goals and objectives. It also helps them by making sure that they have a strategy in place for the future.
What are the 4 types of planning?The 4 Types of Plans. Operational Planning. “Operational plans are about how things need to happen,” motivational leadership speaker Mack Story said at LinkedIn. ... . Strategic Planning. “Strategic plans are all about why things need to happen,” Story said. ... . Tactical Planning. ... . Contingency Planning.. What are the three types of planning in an organization?Three major types of plans can help managers achieve their organization's goals: strategic, tactical, and operational.
What are the 3 main planning strategies?The development and execution of strategic planning are typically viewed as consisting of being performed in three critical steps:. Strategy Formulation. ... . Strategy Implementation. ... . Strategy Evaluation.. |