Formulating or refreshing the strategic plan is something every company should have in their annual calendar.  Whether starting from scratch or reviewing a 3-year strategy, it should be a priority for management. 

The strategic planning process is a fluid one and should not be defined by hard and fast rules.  While there are different methodologies and guidelines, it is best to tailor the process in accordance with company needs.  This can engender a more open process leading to better idea generation and innovation.

The business strategy has several parts, and it is generally recommended that the vision, mission, values, and goals be established first to provide a framework.  It is also recommended that the SWOT analysis and scan of the business environment be conducted in the early stages so this information can be used to inform and formulate strategies and key initiatives.

The process itself can take anywhere from a few hours to several days.  It is usually best carried out away from the office to ensure that distractions do not occur.  It is often a good idea to have a facilitator involved in the process.

In general, the process should be:

• as open as possible
• designed to encourage the generation of new ideas
• designed to challenge assumptions and the status quo
• informed and realistic
• communicated to staff members and key stakeholders.

There may be homework to be done in preparation for the strategic planning process.  In many instances, this will be collection of information on the external environment including customers and key competitors.

Those involved in the process should include key staff, but depending on how the process is being run, can involve many others.  At the very least once the process has been completed, all staff should be informed of the outcomes.  This helps to engender an open and transparent work environment, as well as gain commitment from all involved.