WHAT IS THE PROCESS OF STRATEGIC PLANNING?


There are many strategic planning models, frameworks and systems. While such models provide a basis for process, each strategic planning framework should be adaptable to the needs of the organization. Best practices for strategic planning support a model based on inputs and outputs that deliver results:

1. Research- In the Research phase, we discover the current state in terms of the market and the client’s positioning.

2. Plan- In the Plan phase, we work with the management team (usually 7 to 12 people) to agree on what markets to pursue, with what products and services, supported by what infrastructure (people, processes and technology). We consider what external forces may impact future demand, the competitive environment in which the client operates, and internal data that may inform decisions.

3. Act- In the Act phase, the client focuses on executing their strategic plan, meeting regularly to update market conditions and hold each other accountable to performance outcomes.

4. Measure- Aligning KPIs (key performance indicators) to the business strategy is central to the execution of a strategic plan. As consultants, we help managers choose relevant KPIs and implement a process for holding their teams accountable to them.

5. Iterate- Our plan is always changing based on market conditions. We meet regularly to review what mid-course corrections are required.

Certain components are typically included in a strategic plan:

  • Mission
  • Values
  • Vision
  • Executive Summary
  • Market Analysis
  • Competitive Analysis
  • Value Proposition Statement
  • Financial Projections
  • Key Objectives
  • Action Plan
  • KPIs

After a cycle of strategic planning is completed, best-in-class companies continue working on strategy all the time. They embed strategic thinking into their management DNA and create a cycle to constantly re-evaluate and improve their business.

For more on how Optimize can help you create a best-in-class strategic plan, contact us.

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