In order for any organization to be successful, several processes must be implemented. The first of these is Strategic Planning which provides the overall direction of an organization. The best Strategic Planning effort reviews the environment within which the organization will be operating; such questions as, “What economic, political, social, technological, organizational, competitive, and Board factors should be considered? “ The answers to this question provide basic assumptions which the organization can track and develop contingency plans accordingly.
The next step in Strategic Planning is for the organization to develop a mission statement. Such a statement answers the question, “What is the primary reason for the existence of the enterprise?” This is a difficult statement to articulate but normally can be arrived at by reaching agreement on what the driving force of the organization is – it’s true value proposition.
The third step in Strategic Planning is to establish the goals of the organization. The goals are defined as the aims, the targets toward which the enterprise directs its efforts. Such goals may be level of revenue, level of income, return on assets, or sales. Determining these leads to the next step in the Strategic Plan – answering the question “What are the strategies necessary to achieve the goals previously established?”
A strategy is defined as, “A structured means of achieving a goal.” Another definition states, “The framework which guides the choices which determine the nature and direction of the organization.” Whatever definition is accepted, it should be evident that this is a critical part of the Strategic Plan. If a strategy can be articulated, it can be implemented in the next steps in Strategic Planning. Some strategies that could be considered would be in regard to growth, diversification, quality, technology, management succession, innovation, etc.
Objectives are the tactical vehicles for implementation of Strategic Planning. Objectives are, “A commitment to results.” Several questions must be answered for a strategy to be successful – “What actions must be taken? Who will be accountable for those actions? When will the actions be taken?” Objectives are used by each functional area of the organization. Such functional areas may be marketing, technology, operations, quality, human resources, and finance. Each of the functional areas will be asked to write a plan for the respective area and indicate how that contributed to the overall Strategic Planning process.
Each objective should have metrics or an ability to measure results. Developing of standards is critical to the control phase of Strategic Planning. As standards are developed, it is necessary to have a means of determining actual against expectations which may leave a gap in overall performance. Should a gap occur, it will be necessary to take corrective action to overcome the gap. The activities in the control section of Strategic Planning are: establish standards, measure against those standards, evaluate performance, and take corrective action.
It should be recognized that Strategic Planning is not a onetime occurrence. Strategic Planning is perpetual in nature. Once a plan is developed, it must be reviewed at intervals and modified as necessary.
Strategic Planning is hard work and takes time. However, the benefits far outweigh the time and effort. The resulting plan will also lead to other processes including Manager Resource Planning, also known as Succession Planning.
The next question could well be “How much?” When value added is achieved, cost becomes a non-factor. However, even value added may require an investment. Irons Group can be very flexible when it comes to pricing. Value added services can be based upon an hourly, daily, or retainer rate depending on the magnitude of the assignment and what you, as a client, would prefer. After the initial discussion, the investment necessary can usually be determined and we look forward to your call or email.
Consider a no-obligation face-to-face visit with Keith and make a decision with which you will be comfortable. Contact us here.
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