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Best Practices – Strategic Planning

The Planning Process

The strategic planning process consists of an orderly sequence of activities, each

contributing to the success of the whole. The process should take place off-site, away

from telephones, faxes, etc., so that team members can "disengage" from day-to-day

operations.

Best Practices:

Practice creative thinking. Generate as many ideas a possible during the early,

"out-of-the-box" mode.

Take a critical, unbiased look at what has worked before and what hasn't.

Identify the best of your past business practices and drop others that have led to

costly mistakes.

Create four to six long-term goals linked to the organization's vision.

Devise strategies to achieve these goals and objectives.

For each objective, create specific action steps.

The Mission Statement

A mission statement describes what an organization does, what markets it serves and

what it seeks to accomplish in the future.

The mission statement describes how the business serves customers so they will

underwrite its strategy.

It serves as a guide for day-to-day operations and as the foundation for future

decision-making.

For employees, a strong mission statement builds commitment, loyalty and

motivation.

Best Practices:

Describe the essence of the business in words your employees and customers can

understand and remember.

Focus on specific traits and on target or niche markets.

When the mission statement is created, post it on conference walls, on

promotional materials, even on the packaging of products.

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SWOT Analysis

A SWOT (Strengths/Weaknesses/Opportunities/Threats) analysis is a tool for looking

critically at the organization.

Best Practices:

Draw upon a variety of perspectives -- from the CEO to employees, customers

and others who rely upon the business.

Identify only those tangible and intangible assets and obstacles that are tied to

your company's long-term goals.

Gather "competitive intelligence" by purchasing a competitor's product, hiring

one of its ex-employees or visiting its booth at trade shows and conferences.

Collect information on the Internet by viewing a competitor's Web site and/or

searching online publications.

Goals and Objectives

Strategic planning identifies an organization's goals and objectives. Goals set the agenda

and are global in nature. Objectives are more specific and short-term.

Best Practices:

Goals identify areas where a major transition must occur (a transition is described

as "from … to").

Objectives should be measurable, quantifiable and consistent.

Implementing the Plan

The results of the strategic planning process must be integrated with an organization's

daily, weekly and monthly routines.

Best Practices:

The CEO should develop a "stump speech" around the plan -- promoting its

values, mission statement, actions, etc. -- and spread the word wherever possible.

Enlist a support person (or "champion") for each strategy and action.

Organize top and middle managers into a "strategy team" that become agents for

change. The CEO should receive direct reports from these teams on a regular

basis.

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Avoid common implementation mistakes such as: (1) lack of communication

throughout the company; (2) treating the plan as something separate and removed

from the management process; and (3) choosing to make intuitive decisions that

clash with the plan's accepted objectives.

Set up a feedback mechanism so that employees can respond to the strategic plan.

Share the plan with other stakeholders -- investors, customers, alliance partners,

etc.

Keep the plan alive by monitoring its ongoing progress. Conduct 60- or 90-day

senior management reviews. Implement objectives by expanding employee skills

through training and recruitment.

Target sales to make the link between business strategy and sales strategy.

Reward success to increase employee motivation.