Strategic planning is an essential process for every business. Effectively, it puts in place the overall game plan for the business. The strategic plan should be treated as a living document. It should be reviewed regularly and updated to ensure it always provides a current view of where the business is heading.
The strategic plan sets the direction for the business over an extended time (three to five years for example). It defines the goals for the business, what the business will do and how it will do it.
Items to be covered in a strategic plan include:
-
mission, vision, values
-
SWOT (strengths, weaknesses, opportunities, threats)
-
issues analysis, including a definition of core competencies
-
overall business direction, goals and objectives
-
key business initiatives
-
allocation of resources
-
situation analysis and assumptions including:
- analysis of the markets the business is in and their future direction
- analysis of the performance and strategy of competitors
- an environmental scan (for example, using PESTLE analysis – which considers political, economic, social, technological, legal and environmental factors).
Wise businesses communicate the key points of the strategic plan to staff. This helps them understand the direction of the business. A business plan is a one-to-two year subset of the strategic plan that describes in greater detail how the business will progress its strategy.
Establish a formal, ongoing planning process to ensure enough time and resources are dedicated to effective planning.
Contact your local Business Advisory Service for advice on preparing and reviewing a business strategic plan or identifying consultants qualified to advise on the process.
The Enterprise Connect program may also be able to assist you with strategic planning issues, including funding to offset some of the costs when using a consultant. Note that eligibility criteria applies.