Value Driver #2: Strategic Planning

This is the second installment in a series we are sharing about value drivers -- the things that make businesses more valuable. If you missed the first installment, you can find it here. 

Creating a strategic plan is one of the most important responsibilities of an organization’s top management. It is the vehicle that sets the goals and objectives of the organization, provides the roadmap as to how to reach those goals, identifies the resources needed for success, and describes how all of that information will be communicated throughout the organization.     

The plan should consist of the following:

Vision and Mission - The vision details the goals and objectives, where the company wants to be at a given point in time. The mission is preparing the roadmap as to how to get there.

SWOT Analysis - The SWOT analysis is a management tool used to scrutinize internal and external factors to help identify its strengths, weaknesses, opportunities and threats.

Strategy - After completing the SWOT analysis the following should be included
Develop strategies required to achieve the goals and objectives of the organization both internally and externally.

• Identify critical success factors.
• Develop overall organizational performance measures.
• Develop a tactical plan for each strategy.
• Develop performance measures for each tactical plan.
• Determine the resources needed to execute the plan.
• Develop a communication plan to align the entire organization.
• Assign strategic and tactical responsibilities to appropriate personnel.
• Develop a monitoring and measurement system

A well thought out strategic plan minimizes risks, enhances profitability and provides a documented, measurable, realistic plan for organizational growth.