meaning strategic business plan

Strategic Planning

The art of formulating business strategies, implementing them, and evaluating their impact based on organizational objectives

What is Strategic Planning?

Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company’s overall long-term goals or desires. It is a concept that focuses on integrating various departments (such as accounting and finance, marketing, and human resources) within a company to accomplish its strategic goals. The term strategic planning is essentially synonymous with strategic management.

The concept of strategic planning originally became popular in the 1950s and 1960s, and enjoyed favor in the corporate world up until the 1980s, when it somewhat fell out of favor. However, enthusiasm for strategic business planning was revived in the 1990s and strategic planning remains relevant in modern business.

CFI’s Course on Corporate & Business Strategy is an elective course for the FMVA Program.

Strategic Planning Process

The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options. In the end, a company’s management will, hopefully, settle on a strategy that is most likely to produce positive results (usually defined as improving the company’s bottom line) and that can be executed in a cost-efficient manner with a high likelihood of success, while avoiding undue financial risk.

The development and execution of strategic planning are typically viewed as consisting of being performed in three critical steps:

1. Strategy Formulation

In the process of formulating a strategy, a company will first assess its current situation by performing an internal and external audit. The purpose of this is to help identify the organization’s strengths and weaknesses, as well as opportunities and threats ( SWOT Analysis ). As a result of the analysis, managers decide on which plans or markets they should focus on or abandon, how to best allocate the company’s resources, and whether to take actions such as expanding operations through a joint venture or merger.

Business strategies have long-term effects on organizational success. Only upper management executives are usually authorized to assign the resources necessary for their implementation.

2. Strategy Implementation

After a strategy is formulated, the company needs to establish specific targets or goals related to putting the strategy into action, and allocate resources for the strategy’s execution. The success of the implementation stage is often determined by how good a job upper management does in regard to clearly communicating the chosen strategy throughout the company and getting all of its employees to “buy into” the desire to put the strategy into action.

Effective strategy implementation involves developing a solid structure, or framework, for implementing the strategy, maximizing the utilization of relevant resources, and redirecting marketing efforts in line with the strategy’s goals and objectives.

3. Strategy Evaluation

Any savvy business person knows that success today does not guarantee success tomorrow. As such, it is important for managers to evaluate the performance of a chosen strategy after the implementation phase.

Strategy evaluation involves three crucial activities: reviewing the internal and external factors affecting the implementation of the strategy, measuring performance, and taking corrective steps to make the strategy more effective. For example, after implementing a strategy to improve customer service, a company may discover that it needs to adopt a new customer relationship management (CRM) software program in order to attain the desired improvements in customer relations.

All three steps in strategic planning occur within three hierarchical levels: upper management, middle management, and operational levels. Thus, it is imperative to foster communication and interaction among employees and managers at all levels, so as to help the firm to operate as a more functional and effective team.

Benefits of Strategic Planning

The volatility of the business environment causes many firms to adopt reactive strategies rather than proactive ones. However, reactive strategies are typically only viable for the short-term, even though they may require spending a significant amount of resources and time to execute. Strategic planning helps firms prepare proactively and address issues with a more long-term view. They enable a company to initiate influence instead of just responding to situations.

Among the primary benefits derived from strategic planning are the following:

1. Helps formulate better strategies using a logical, systematic approach

This is often the most important benefit. Some studies show that the strategic planning process itself makes a significant contribution to improving a company’s overall performance, regardless of the success of a specific strategy.

2. Enhanced communication between employers and employees

Communication is crucial to the success of the strategic planning process. It is initiated through participation and dialogue among the managers and employees, which shows their commitment to achieving organizational goals.

Strategic planning also helps managers and employees show commitment to the organization’s goals. This is because they know what the company is doing and the reasons behind it. Strategic planning makes organizational goals and objectives real, and employees can more readily understand the relationship between their performance, the company’s success, and compensation. As a result, both employees and managers tend to become more innovative and creative, which fosters further growth of the company.

3. Empowers individuals working in the organization

The increased dialogue and communication across all stages of the process strengthens employees’ sense of effectiveness and importance in the company’s overall success. For this reason, it is important for companies to decentralize the strategic planning process by involving lower-level managers and employees throughout the organization. A good example is that of the Walt Disney Co., which dissolved its separate strategic planning department, in favor of assigning the planning roles to individual Disney business divisions.

An increasing number of companies use strategic planning to formulate and implement effective decisions. While planning requires a significant amount of time, effort, and money, a well-thought-out strategic plan efficiently fosters company growth, goal achievement, and employee satisfaction.

Additional Resources

Thank you for reading CFI’s guide to Strategic Planning. To keep learning and advancing your career, the additional CFI resources below will be useful:

• Broad Factors Analysis
• Scalability
• Systems Thinking
• See all management & strategy resources
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Strategic Planning: How to Write a Strategic Plan That Works

Ted Jackson

Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams.

Learn the essential steps to writing a strategic plan that delivers real results and aligns with your business objectives. Contact us for more information!

Table of Contents

Strategic planning is essential for any organization aiming to achieve its long-term goals and sustain growth. ClearPoint Strategy offers a powerful platform that streamlines the strategic planning process, making it easier for your organization to develop, implement, and monitor your strategic initiatives.

See ClearPoint Strategy in action! Click here to watch a quick DEMO on the software

“Why isn’t my strategy working?”

Statistics around the failure rates of corporate strategies vary—some put it as high as 9 out of 10 while others say nearly 7 out of 10.

It doesn’t matter which number is right; both estimates are higher than they should be. That means the majority of organizations are floundering when it comes to crafting and executing their strategy. Many executives, when faced with these stats, are wondering, “How do I avoid coming up short in my strategy?”

But don’t worry—these abysmal statistics don’t mean you’re doomed to failure. You can be in the small percentage of businesses that actually achieve the goals in their strategic plans, and we’re here to tell you how. (You’re already a step ahead of your competitors simply by taking the time to research the problem!)

Over the years, we’ve helped hundreds of clients beat the odds using the steps outlined in the guide below. It covers everything you need to know about strategy planning and execution, from beginning to end, in each of the three critical phases:

• Preparing for strategic planning
• Creating your strategic plan
• Putting your strategic plan into practice

Based on our experience, we know that following this three-phase approach will significantly increase your odds of getting high-quality results.

So let’s get started.

What is Strategic Planning and Why is It Important?

Strategic planning is an organization's process of defining its direction and long-term goals, creating specific plans to achieve them, implementing those plans , and evaluating the results. On one hand, that definition makes strategy planning sound like a Business 101 concept—define your goals and a plan to achieve them. Unfortunately, the strategic planning process isn’t as straightforward as it seems, especially for large companies.

Some experts say there’s a simple explanation behind the dismal statistics mentioned above: companies are failing to strategize at all. They may talk a good game and be able to explain an innovative new mission, but they cannot articulate the processes and business models that will make it happen.

As a result, nothing about their way of doing business—including their priorities, projects, or culture—changes. Months or years later, strategic leaders are left wondering why the company never achieved what was intended.

This absence of a strategic plan demonstrates why having one is so important.

The strategic planning process is about looking forward, outside the immediate future for your organization, to reach a particular set of goals. But as noted in the definition above, it also involves laying out—step-by-step—how you’re going to get there. Without this foundation in place, you’ll either continue on a path to nowhere, or get caught up in a tornado of urgent activities that may not actually benefit your organization in the long term. Neither of these scenarios will give you the competitive edge you hoped for.

Why Strategic Planning Fails

There are also plenty of organizations that do take steps to fulfill the requirements of strategic planning, yet still fail to see results. These strategies fail for many reasons, including:

• Lack of communication : This is a big one. Research shows that 95% of most companies’ employees don’t understand their organization’s strategy, and 85% of executive leadership teams spend less than one hour per month discussing strategy.
• Poor research around customer trends, organizational threats, and market opportunities : Companies tend to spend more time on internal issues (resolving conflicts and reconciling budgets) than they do analyzing important external information.
• Lack of management support : Organizations neglect to rally support for middle managers, who are key to making sure strategy is executed on a daily basis.
• Ineffective or inefficient performance evaluations : Organizations dedicate all their time to coming up with a plan, but either forget to follow through by tracking progress or have no organized, reliable way to track performance data.
• Lack of clear priorities : Organizations try to do too much at once and/or fail to identify the right activities that will help them achieve their strategy.
• Insufficient resources : Companies don’t acquire new resources, or shift existing resources, to support identified priorities.
• Disjointed departmental goals and activities : There’s no alignment of departmental goals with organizational strategy. Without everyone working together, goals become more difficult to reach.

Whatever is preventing you from meeting your strategic goals—whether it’s the absence of a strategic plan altogether or an imperfect plan execution—it’s worth your time to address the issue.

Analysis has shown that strategic planning has a positive and significant impact on organizational performance. Most importantly, it enhances an organization’s ability to achieve its goals, but there’s more to it than that. Because strategic planning forces companies to adopt a long-term view, it helps them better prepare for the future, setting them up to initiate influence instead of just responding to situations.

It also strengthens communication between employers and employees. The participation and dialogue that takes place among managers and employees throughout the strategic planning process improves transparency and engagement on everyone’s part.

However, the same team that conducted the above analysis also noted that, for strategic planning to work, it requires some specific ingredients, including formal analysis of the internal and external environment, consideration of several strategic options, and careful consideration around whom to involve during the different steps of the strategic planning process. We’ll go through all these ingredients—and more—in the strategic planning guide that follows.

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1. preparing for strategic planning, - gather your team, set up meetings, and create a timeline, get the right people involved.

Let’s get one thing straight right now: If your organization has turned to you (or your department, a colleague, etc.) and requested that you “make a strategic plan and then report back to the leadership team when you’re done”—stop right where you are. That’s not an effective plan. Why? You need to have buy-in across your organization, and so you need leadership involvement from the beginning.

Now let’s talk about the major player needed for this process: The strategic planner. The strategic planner’s job is to align thoughts from the leadership team with a process the organization can use to execute on their strategy. If this is your role (or even if you’re just highly involved in the process), this guide will be immensely helpful as you navigate the coordination of the strategy.

The strategic planner will also need the help of a cross-functional team that involves members of the board or leadership, along with representatives from finance, human resources, operations, sales, and any other critical functions. We’ll discuss this further when we talk through the Office of Strategy Management.

Set up your strategy review meetings

This is also a good time to think about your strategy review meetings, which are a necessity for staying on track over the long haul. However, try to avoid adding yet another meeting onto everyone’s plates; instead, there may be a current meeting you can replace or redesign to make time for strategy discussion.

For now, decide how often you’ll meet and who should be involved. As for timing, there are three types of strategy review meetings:

• Monthly , where you review progress on projects and initiatives
• Quarterly , where you review progress on strategy and discuss key action items
• Annually , where you review year-to-date performance and adjust the strategy as needed

For each of these, you’ll want to send out calendar invites in advance and make sure people know these meetings are a top priority.

Monthly meetings typically include department heads and subject matter experts. Quarterly review meetings may include department heads and upper management. Annual refresh meetings may include upper levels of management and occasionally board members.

Download your FREE 40-page eBook to lead effective Strategy Review Meetings

Create a reasonable timeline.

Next, you need to work out a timeline in which you can complete your strategic plan and move through the process. Reasonable is the key word here, as that depends on your organization’s maturity level with regard to strategic planning.

• If you refresh your strategic plan every year, you might be able to work through this process in 4-5 weeks .
• If you’ve never done strategic planning before, 6 months could be more realistic.

Whatever the case, don’t expect this to be done by the end of the week. You’ll be disappointed.

It’s important to understand strategy vs. tactics . Strategy is focused on the destination and how you are going to get there, and tactics are focused on the specific actions you plan to take along the way.

So while this whole process is focused on your overall strategy (i.e. your long-term goals and how you’ll achieve them), we’ll be placing a lot of emphasis on the smaller steps (i.e. practices, resources, initiatives) you’ll take to get there. Make sure your leadership team knows the difference between strategy and tactics going forward!

Sometimes it is smart to keep leadership out of the tactics, but other times, you might need a strong hand to guide the organization through some details.

- Gather the inputs to your Strategic Plan

Get appropriate background information for your strategic plan.

Now it’s time to dig into your internal and external information.

• Internal inputs : Do you know if one branch of your business is growing faster than another? If so, does this mean you’ll focus more energy on the faster growing area, or shift to help the underperforming areas? These are key questions you’ll have to assess.
• External inputs : You may find that parts of your business have shifted, or outside factors are playing a role in where your business is headed. For example, in the late 1990s, the music industry evolved from albums to streaming, impacting many businesses who were associated with the industry. Or if you’re in the manufacturing industry and do a great deal of business overseas, political unrest or a trade dispute between your country and the foreign one you operate in could impact your strategy.

Once you’ve gathered up the quantitative data from the sources above, you’ll also want to get feedback from a number of different sources:

• Discuss the above findings with your leadership team and managers to see what their thoughts are about the future of the business.
• Talk with board members, customers, and industry experts to see what they think your organization is doing well and what needs improvement. These suggestions could deal with anything from operations to company culture.

Combined, all of this data will help you get a better grasp on the future of the business.

Don’t reinvent the wheel—use our assortment of strategic planning templates to get your strategy up and running more easily. See our most popular templates here.

A SWOT Analysis stands for Strengths, Weaknesses, Opportunities, and Threats. This exercise offers a helpful way to think about and organize your internal and external data.

• What are your organization’s strong points?
• What are your organization’s weak points?
• Where are your biggest opportunities in the future?
• What are the largest threats to your business?

Sometimes it is helpful to use the SWOT analysis framework to organize your interview questions for your qualitative data gathering.

Porter’s Five Forces is another tool used to find these inputs. It’s a time-honored strategy execution framework built around the competition in your industry. Who are your rivals? What are they doing? You then need to look at the threat of substitutes. Is there another product consumers could purchase instead of your industry’s product, for example, substituting natural gas or solar for coal when it comes to electricity generation?

Now that you’ve prepared for your strategy...

• You have a team of people who can help you with the strategic planning process.
• You have the raw material for strategy evaluation, including internal and external data.
• You can organize your raw data into a SWOT analysis, Porter’s Five Forces, or another strategy planning framework as you begin to create your strategic plan.

Pro tip You may have researched risk assessments, core competencies, scenario planning, or industry scans as part of your strategic planning. If you’re wondering where these tools fit, they’re all relevant to this first stage of strategic planning. They help you prepare to create the strategic plan. If you have worked through one of these tools before, the results can act as inputs to help you in the next stage.

2. Creating your strategic plan

You now have all the background information necessary to create your strategic plan! But this plan doesn’t live in a vacuum—so we’ll start by revisiting your mission and vision statements and then get into the nuts and bolts of the planning process.

- Confirm your mission and vision statements.

Mission & vision.

If you haven’t created formal mission and vision statements, this is the time to do so.

• Your mission statement describes what your company does and how it is different from other organizations in your competitive space
• Your vision statement describes a future state of what your organization wants to achieve over time.

Where the mission is timeless, your vision is time-bound and more tangible.

Two tools that will help build your mission and vision statements:

• OAS statement : OAS stands for Objective, Advantage, Scope. Talking through these concepts as they apply to your organization will help formulate a vision that is tangible and interactive. Note that while this exercise may be helpful to you, it is optional. You can read more about creating your OAS statement here .
• Strategic shifts: A second tool some people find helpful is called Strategic Shifts. These are exercises for the leadership team to help them define today’s strategic priorities vs. tomorrow’s . For example, your leadership team may say, “We want to shift from central control to autonomy when it comes to our decision-making capability.” If the whole team can get on the same page with these shifts, it can help tremendously once you define your objectives, measures, and projects.

If you’ve already created mission and vision statements, confirm that both are aligned with your current strategy before proceeding to the next step.

During your search for strategic planning tools, you’ve almost certainly come across a Strategy Pyramid (shown below). This pyramid can be visualized in countless different ways, the order of the pyramid isn’t what’s important. The importance lies in ensuring you’ve chosen the elements in the pyramid that work best for your organization, and making sure those components are going to help you achieve strategic success.

- Build out your five-year plan

Develop the framework that will hold your high-level priorities.

You can use your OAS or Strategic Shift exercises to help you define your priorities and objectives—but more importantly, you need a way to manage these elements. The way to do that is by selecting and developing a strategy management framework that will bring all your priorities together in one cohesive format.

Using a framework such as Balanced Scorecard (BSC), Theory of Change (TOC), or Objectives and Key Results (OKR) is critical to your strategic success. Many management teams fail at this point simply because of their disorganization!

Note: Choose only one of these three frameworks, as they have numerous similarities!

The Balanced Scorecard

The Balanced Scorecard , developed by Robert S. Kaplan and David P. Norton, has been one of the world’s top strategy management frameworks since its introduction in the early 1990s. Those who use the BSC do so to bring their strategy to life, communicate it across their organization , and track their strategy progress and performance.

The BSC divides up your objectives by perspectives—financial, customer, process, and people—and themes, like innovation, customer management, operational excellence, etc. (The idea of perspectives is fully developed in Norton and Kaplan’s book The Balanced Scorecard: Translating Strategy into Action .) Here’s an example:

• Financial goals —“What financial goals do we have that will impact our organization?”
• Customer goals —“What things are important to our customers, which will in turn impact our financial standing?”
• Process goals —“What do we need to do well internally, to meet our customer goals, that will impact our financial standing?”
• People (or learning and growth) goals —“What skills, culture, and capabilities do we need to have in our organization to execute on the process that would make our customers happy and ultimately impact our financial standing?”

For an in-depth look at how your organization could use the BSC, check out this Full & Exhaustive Balanced Scorecard Example .

Claim your FREE Balanced Scorecard Excel template for better strategic management

Theory Of Change (TOC)

The Theory of Change is a logic model that describes a step-by-step approach to achieving your vision. The TOC is focused on how to achieve the change you’re looking for , and is popular amongst mission-driven organizations who are describing a change they’re making in the world instead of putting change in their pockets.

The idea behind TOC is that if you have the right people doing the right activities, they’ll affect change on your customers, which will impact your financials, and bring you closer to your vision. A great example of a this theory of change is the nonprofit RARE .

According to the Harvard Family Research Project , the steps to create a TOC are:

• Identify a long-term goal.
• Conduct “backwards mapping” to identify the preconditions necessary to achieve that goal.
• Identify the interventions that your initiative will perform to create these preconditions.
• Develop indicators for each precondition that will be used to assess the performance of the interventions.
• Write a narrative that can be used to summarize the various moving parts in your theory.

Objectives & Key Results (OKR)

OKR was originally created by Intel and is used today in primarily two ways: At the enterprise/department level and at the personal performance level.

• Objectives are goals.
• Key results are quantitative measures that define whether goals have been reached.

Claim your FREE Excel OKR template to set and achieve key objectives here

The idea is that your defined objectives and measurements help employees, managers, and executives link to and align with overall strategic priorities. Not only does OKR strive to measure whether objectives are successful, but also how successful they are.

Define your objectives, measures, and projects.

The strategic planning frameworks above are all meant, in different ways, to help you organize your objectives, measures, and projects. So it’s critical that these elements are well thought-out and defined.

Here’s how objectives, measures, and projects interact:

You have a high-level goal in mind—your objective. Your measures answer the question, “How will I know that we’re meeting our goal?” From there, initiatives, or projects, are put in place to answer the question, “What actions are we taking to accomplish our goals?”

We’ve defined each of these concepts more thoroughly below with a few business strategy examples:

• Objectives are high-level organizational goals. The typical BSC has 10-15 strategic objectives .

Examples include:

• Increase Market Share Through Current Customers (Financial)
• Be Service Oriented (Customer)
• Achieve Order Fulfillment Excellence Through On-Line Process Improvement (Internal)
• Align Incentives And Rewards With Employee Roles For Increased Employee Satisfaction (Learning & Growth)
• Measures help you understand if you’re accomplishing your objectives strategically. They force you to question things like, “How do I know that I’m becoming an internationally recognized brand?” Note that while your measures might change, your objectives will remain the same. You may select 1-2 measures per objective, so you are aiming to come up with 15-25 measures at the enterprise level.
• Cost Of Goods Sold
• Customer Satisfaction & Retention
• Percentage Of Product Defects
• Percentage Of Response To Open Positions
• Initiatives are key action programs developed to achieve your objectives. You’ll see initiatives referred to as “projects,” “actions,” or “activities outside of the Balanced Scorecard.” Most organizations will have 0-2 initiatives underway for every objective (with a total of 5-15 strategic initiatives).
• Develop Quality Management Program
• Install ERP System
• Revamp Supply Chain Process
• Develop Competencies Mode

- Create your strategy map or graphic strategic model

Whether or not you’re using a Balanced Scorecard as your strategy framework, you’ll benefit from using a graphic model to represent your strategic plan. While many people use a strategy map (shown in the example below), you could also use icons or a color-coding system to visually understand how the elements of your strategy work together.

If you’re just becoming familiar with how strategy mapping works, this article will teach you exactly how to read one—and what you need to do to create one.

Get your FREE eBook with Balance Scorecard strategy maps for better strategic visualization

Now that you’ve created your strategic vision...

• You have a fully-defined mission and vision to use as you move forward with your strategy implementation process.
• You have chosen a strategic framework that will hold your five-year strategic plan.
• You have defined objectives, measures, and projects, and you know how they work together.
• You have a graphic representation of your strategic model.

Feeling the strategic fatigue? It’s okay! This is a tiring process—so be careful to tailor everything in this section to what those in your organization will tolerate. Putting your strategic plan into practice (our final step) is the key to making it all work during the strategy implementation plan, and getting these details 80% right in a timely fashion is much more important than getting them 100% right in a year.

3. Putting your strategic plan into practice

You’ve made it this far—now you have to be sure you launch correctly! To do so, you need someone from the Office of Strategy Management to push that process, ensure resources are aligned to your strategy, put a solid strategy communication program in place, and get technology to keep you organized.

- Launch your strategy

Ensure the office of strategy management (osm) is pushing things forward.

The Office of Strategy Management is comprised of a group of people responsible for coordinating strategy implementation. This team isn’t responsible for doing everything in your strategy, but it should oversee strategy execution across the organization. Typically, the OSM lives in the finance department—or it could be its own separate division that reports directly to the CEO.

Create your internal and external strategy communication plan

Internal— Be sure all elements of your strategy—like strategy maps or logic models—are contained within a larger strategic plan document. (If you use strategy software , the strategic plan document will likely be contained there.) A great way to be sure your leadership team has a firm grasp on your strategy is to ensure they each have a copy of this document, and they can describe the strategy easily to someone who wasn’t involved in the creation process .

More broadly, the strategy must be communicated throughout your organization. You should be shouting it from the rooftops to keep it top-of-mind across your organization. People won’t give it a passing thought unless you engage them—so every department head should be charged with explaining how their team fits into the strategy and why it matters. For actionable tips, check out this article that highlights how you can effectively communicate your strategic plan across your organization.

External— You also need to be sure you have a plan for communicating your strategy outside the organization—with board members, partners, or customers (particularly if your organization is municipal or nonprofit). Think through how it will be shared, and which parts of it are relevant to outside parties.

Align your resources to your strategy

In the short term—which would be your next budgeting cycle or something similar—work to structure the budget around the key components of your strategy. You don’t need to completely rewire your budget, but you do need to create direct linkages between how your resources are allocated and how those efforts support your strategy. Over time, the areas that contribute less directly to strategic goals will become clear, and you can work on gradually aligning everything you fund.

But even if your budget only extends through the fiscal year, consider how you’ll align your strategy to projects in the future. For future resource allocation, link your operations (what some refer to as the “work planning process”) to your strategy. Your expectation should be that the process of aligning your resources to your strategy can happen within year two of your strategic planning execution.

- Evaluate your strategy

At this point, your strategy has been launched: Now you need to know whether or not you’re making progress! Here’s how to do that.

Claim your FREE Measure & Goal Evaluation Toolkit for streamlined analysis

Create reports to highlight your results

Ten years ago, you may have evaluated your strategy annually. But in today’s business environment, that’s not a feasible option. At a minimum, you should be reporting on your entire strategy on a quarterly basis, or breaking down your strategy into pieces and reporting on one of those pieces each month.

The report you use should highlight progress on your measures and projects, and how those link to your objectives. The point is to show how all these elements fit together and relate to the strategic plan as a whole.

Hold regular strategy meetings

Report on strategy progress via the quarterly or monthly review meetings you scheduled early in the process.

It’s important to note that throwing together an impromptu meeting to go over results isn’t going to get you anywhere. Instead, your strategy review meetings should be meticulously organized and accompanied by an agenda. (See this article for a sample agenda.)

Your meetings should revolve around three key issues:

• What is your organization trying to accomplish? This may include reiterating your mission and vision to add context around the conversation.
• Are you making progress toward these goals? You might review key metrics and the status of initiatives and milestones.
• What actions need to be taken to continue making progress? If metrics are off-track, for example, what can be done to get back on course.

Encourage candid dialogue and make sure the discussion stays focused.

You may want a facilitator for the first few meetings, and you may want to script a few open discussions where a goal owner explains why they are behind schedule (red) on their goal, and the business leader offers support, not criticism. This will generate the atmosphere you need for everyone to start reporting honestly and working together to achieve the organization’s goals.

Deploy strategy reporting software (if you haven’t already)

To make strategy execution work, reporting is unavoidable. While you might be able to track your first strategy meeting in Excel or give your first presentation via PowerPoint, you’ll quickly realize you need some kind of software to track the continuous gathering of data, update your projects, and keep your leadership team on the same page.

If you want to learn more about the major areas of responsibility you should be covering in your strategy management process—and how strategy software can help with that— take a look at our ClearPoint tour .

Here are two additional helpful pieces of content as you move forward:

You’ve probably seen reference to the “Plan, Do, Check, Act” framework before. If you want to integrate this checklist, this is the time to do so. Here’s a breakdown on what it means:

• Plan refers to creating your strategic plan.
• Do refers to making progress on or executing on the plan.
• Check refers to the reporting and monitoring process.
• Act refers to taking action through projects, work plans, or the budgeting process to continue to manage and execute on the strategy.

The Benefits Of Strategic Planning (& Challenges You Should Be Aware Of)

Done right, strategy planning can benefit your business tremendously, but a certain degree of stick-to-itiveness is required to get the job done. (As we noted at the beginning of this guide, organizations that actually meet their strategic objectives are in the minority. Don’t worry, though, yours can be one of the success stories.) But those that develop a disciplined approach to both planning and execution have been shown to improve performance significantly.

Why is strategic planning so effective? Because it fosters healthy organizational practices that drive better outcomes. Engaging in strategic planning will benefit you in multiple ways:

1. You have quality data available to support better decisions

Setting goals and choosing the relevant metrics to track progress toward achieving them means you always have meaningful data to reference. That naturally leads to faster, more efficient decision-making, especially when that data is readily accessible to employees at every level.

Timely, valid, and actionable information is especially valuable in situations where organizations need to react quickly, so they can make the best decisions possible for all their stakeholders.

2. You allocate resources more effectively

In Chapter 3, we discussed structuring the budget around the key components of your strategy. Doing so helps ensure resources are allocated correctly, and in a way that aligns with your goals.

Tying the budget directly to goals also makes it easy to adjust when necessary, if circumstances change and new goals are prioritized over old. For example, a local government may have had a goal to develop a green infrastructure plan at the beginning of 2020, but then had to pivot with the onset of COVID-19.

To support a new goal of developing a COVID-19 response plan, they could simply review the resources used by current projects, evaluate those projects’ priorities and budget needs in comparison to the new goal, and reallocate funds as necessary.

3. You maintain focus

Having a strategic plan brings your main focus points to the forefront, so you don’t have to dig into the details of everything your organization is doing. That means there’s no time wasted analyzing irrelevant and extensive data points in strategic meetings; instead, everyone stays focused on what is most important or where improvements need to be made.

4. You improve communication and build employee engagement.

Strategic planning is intended to create a single, focused vision of where an organization is headed. When that shared vision is communicated clearly and consistently, it inspires employees to take ownership over their role in the plan, and they are typically more motivated to do their best work. High engagement will directly impact your organization’s financial health and profitability.

3 Things To Consider Before You Embark On A Strategic Plan

Having helped hundreds of organizations—for-profit, nonprofit, and local governments included—navigate through the strategic planning and implementation process, we’ve seen firsthand the many challenges that arise along the way. There’s no “typical” scenario, but there are some common pitfalls that have the power to make or break your chances of success. Below are three things you should be aware of going into the process.

1. Everything about strategic planning takes time

Don’t expect your plan to materialize after a few meetings. The initial planning activities usually unfold over the space of several months, but strategy execution itself is an ongoing process. Anticipate devoting extensive time and effort in particular to:

• Choosing the appropriate planning model . Before you can even begin to articulate your strategy, you need to choose a strategy framework that fits your organization’s needs. All models can be customized to suit the way your business works, but this is a key decision that will shape all your efforts going forward.
• Creating a plan that everyone agrees on. It’s crucial for your leadership team to support the plan’s objectives if you want it to be adopted. Making sure everyone on the team has been heard and gaining a consensus is a time-consuming process.
• Getting “buy-in” for the plan. Research shows that, on average, 95% of an organization’s employees don’t understand its strategy—there’s no surer way to guarantee failure than to neglect communicating your goals to your employees. You must continuously keep your strategy top-of-mind in a creative and meaningful way over the long term to gain the buy-in you need to succeed.

2. There is a danger of “analysis paralysis”

Data and analytics are an integral part of strategic planning. And while it may be tempting to use all your available metrics, charts, and graphs for every business decision, doing so unnecessarily can be a detriment to the decision-making process. It’s easy to find yourself drilling deeper into data when perhaps only a high-level view of the information is needed. Avoid squandering time and energy on excessive analysis by making sure the right people are focusing on the right data and actions:

Leadership should focus on organization-wide goals and progress. Teams should focus on the individual projects and daily tasks that are helping to accomplish those goals (and the data that goes with them).

3. Having a plan doesn’t mean your organization will execute on it

Good planning is only half the battle; the lion’s share of forward progress is in executing that plan. But the execution stage is where many organizations stumble. They aren’t prepared for the work involved with follow-through, both in terms of the time commitment and the tools necessary to support performance improvement. Strategy consultants are excellent guides for plan creation, but most offer no guidance on how to carry it out; as a result, organizations are left floundering.

It’s imperative to have a system in place that will measure and monitor your progress toward goals during the execution phase. Performance management tools like ClearPoint allow organizations to track a variety of metrics related to strategic projects, helping to maintain focus over the long term. And our team of strategy implementation experts is always available to provide guidance on every aspect of execution, from setting up an efficient management process to using our reporting tools optimally.

With the right plan in place, tools to support it, and committed leadership, every organization has a good chance of seeing their strategy come to life.

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You’ve made it through these steps…..

...but be sure to place a great deal of emphasis on rightsizing this process for your own organization.

Did you recently do a SWOT analysis and create new vision and mission statements? Don’t do it again.

Do you already manage with a robust set of KPIs ? Use them.

Do you currently create reports for your board and management team? Modify them or use a strategy evaluation framework to make sure they’re focused and move on.

Rather than doing everything, it’s more important to realize there is overlap between these steps. Understand how they all fit into your own strategic planning process, and then move forward with the sections you’re missing.

And if you have any questions along the way, get in touch with us. We live and breathe strategic planning and are here to help!

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Our software is designed to address the common pitfalls in strategy execution, such as poor communication, misaligned goals, and ineffective tracking. By booking a demo with us, you’ll see firsthand how ClearPoint can enhance transparency, improve alignment, and boost execution efficiency across your organization.

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What are strategic planning tools.

Strategic planning tools are methodologies and frameworks that help organizations formulate, implement, and monitor their strategic plans. Common strategic planning tools include:

- SWOT Analysis: Identifies strengths, weaknesses, opportunities, and threats. - PESTEL Analysis: Examines political, economic, social, technological, environmental, and legal factors. - Balanced Scorecard: Links strategic objectives to performance metrics across financial, customer, internal processes, and learning and growth perspectives. - Porter’s Five Forces: Analyzes competitive forces within an industry to understand its attractiveness. - Scenario Planning: Envisions different future scenarios to plan for uncertainties. - Gap Analysis : Identifies the gap between current performance and desired goals.

What are strategic planning techniques?

Strategic planning techniques are methods used to develop and implement strategies effectively. These include:

- Visioning: Creating a clear, compelling vision of the future state. - Benchmarking: Comparing performance against industry leaders or best practices. - Stakeholder Analysis: Identifying and understanding the needs and influences of stakeholders. - Environmental Scanning: Systematically analyzing external and internal environments. - Strategy Mapping: Visualizing the relationships between different strategic objectives and actions. - Resource Allocation: Determining the best use of resources to achieve strategic goals.

How can strategic planning improve the performance of an organization?

Strategic planning can improve the performance of an organization by:

- Providing Direction: Clarifies the long-term vision and mission, guiding all organizational activities. - Aligning Resources: Ensures that resources are allocated efficiently and effectively to priority areas. - Enhancing Coordination: Fosters better communication and collaboration across departments. - Facilitating Decision-Making: Supports informed, data-driven decisions aligned with strategic goals. - Tracking Progress: Establishes benchmarks and performance metrics to monitor progress and make necessary adjustments. - Encouraging Innovation: Promotes creative thinking and innovation to achieve competitive advantage.

What is strategic planning in healthcare?

Strategic planning in healthcare involves developing long-term goals and strategies to improve healthcare delivery, patient outcomes, and operational efficiency. It includes:

- Assessing Needs: Evaluating patient demographics, healthcare trends, and community needs. - Setting Objectives: Defining specific goals related to patient care, quality, and efficiency. - Resource Management: Allocating resources such as staff, technology, and funding to meet healthcare goals. - Implementing Policies: Developing and implementing policies and procedures to enhance healthcare services. - Monitoring Outcomes: Continuously tracking performance metrics to ensure goals are being met and to identify areas for improvement.

Why is strategic planning important in business?

Strategic planning is important in business because it:

- Provides Clarity and Focus: Establishes clear goals and priorities, aligning efforts toward achieving them. - Enhances Competitiveness: Helps businesses identify opportunities and threats, enabling them to stay competitive. - Improves Resource Allocation: Ensures that resources are used efficiently to achieve the most significant impact. - Fosters Long-Term Thinking: Encourages a forward-looking approach, preparing the organization for future challenges and opportunities. - Increases Accountability: Sets clear expectations and performance metrics, holding individuals and teams accountable for results. - Drives Growth and Innovation: Supports the development of new products, services, and processes to drive growth and innovation.

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Starting a project without a strategy is like trying to bake a cake without a recipe — you might have all the ingredients you need, but without a plan for how to combine them, or a vision for what the finished product will look like, you’re likely to end up with a mess. This is especially true when working with a team — it’s crucial to have a shared plan that can serve as a map on the pathway to success.

Creating a strategic plan not only provides a useful document for the future, but also helps you define what you have right now, and think through and outline all of the steps and considerations you’ll need to succeed.

What is strategic planning?

While there is no single approach to creating a strategic plan, most approaches can be boiled down to five overarching steps:

• Define your vision
• Assess where you are
• Determine your priorities and objectives
• Define responsibilities
• Measure and evaluate results

Each step requires close collaboration as you build a shared vision, strategy for implementation, and system for understanding performance.

Related: Learn how to hold an effective strategic planning meeting

Why do I need a strategic plan?

Building a strategic plan is the best way to ensure that your whole team is on the same page, from the initial vision and the metrics for success to evaluating outcomes and adjusting (if necessary) for the future. Even if you’re an expert baker, working with a team to bake a cake means having a collaborative approach and clearly defined steps so that the result reflects the strategic goals you laid out at the beginning.

The benefits of strategic planning also permeate into the general efficiency and productivity of your organization as a whole. They include: 

• Greater attention to potential biases or flaws, improving decision-making 
• Clear direction and focus, motivating and engaging employees
• Better resource management, improving project outcomes 
• Improved employee performance, increasing profitability
• Enhanced communication and collaboration, fostering team efficiency 

Next, let’s dive into how to build and structure your strategic plan, complete with templates and assets to help you along the way.

Before you begin: Pick a brainstorming method

There are many brainstorming methods you can use to come up with, outline, and rank your priorities. When it comes to strategy planning, it’s important to get everyone’s thoughts and ideas out before committing to any one strategy. With the right facilitation , brainstorming helps make this process fair and transparent for everyone involved.  

First, decide if you want to run a real-time rapid ideation session or a structured brainstorming . In a rapid ideation session, you encourage sharing half-baked or silly ideas, typically within a set time frame. The key is to just get out all your ideas quickly and then edit the best ones. Examples of rapid ideation methods include round robin , brainwriting , mind mapping , and crazy eights . 

In a structured brainstorming session, you allow for more time to prepare and edit your thoughts before getting together to share and discuss those more polished ideas. This might involve brainstorming methods that entail unconventional ways of thinking, such as reverse brainstorming or rolestorming . 

Using a platform like Mural, you can easily capture and organize your team’s ideas through sticky notes, diagrams, text, or even images and videos. These features allow you to build actionable next steps immediately (and in the same place) through color coding and tagging. 

Whichever method you choose, the ideal outcome is that you avoid groupthink by giving everyone a voice and a say. Once you’ve reached a consensus on your top priorities, add specific objectives tied to each of those priorities.

Related: Brainstorming and ideation template

1. Define your vision

Whether it’s for your business as a whole, or a specific initiative, successful strategic planning involves alignment with a vision for success. You can think of it as a project-specific mission statement or a north star to guide employees toward fulfilling organizational goals. 

To create a vision statement that explicitly states the ideal results of your project or company transformation, follow these four key steps: 

• Engage and involve the entire team . Inclusivity like this helps bring diverse perspectives to the table. 
• Align the vision with your core values and purpose . This will make it familiar and easy to follow through. 
• Stay grounded . The vision should be ambitious enough to motivate and inspire yet grounded enough to be achievable and relevant.
• Think long-term flexibility . Consider future trends and how your vision can be flexible in the face of challenges or opportunities. 

For example, say your vision is to revolutionize customer success by streamlining and optimizing your process for handling support tickets. It’s important to have a strategy map that allows stakeholders (like the support team, marketing team, and engineering team) to know the overall objective and understand the roles they will play in realizing the goals. 

This can be done in real time or asynchronously , whether in person, hybrid, or remote. By leveraging a shared digital space , everyone has a voice in the process and room to add their thoughts, comments, and feedback. 

Related: Vision board template

2. Assess where you are

The next step in creating a strategic plan is to conduct an assessment of where you stand in terms of your own initiatives, as well as the greater marketplace. Start by conducting a resource assessment. Figure out which financial, human, and/or technological resources you have available and if there are any limitations. You can do this using a SWOT analysis.

What is SWOT analysis?

SWOT analysis is an exercise where you define:

• Strengths: What are your unique strengths for this initiative or this product? In what ways are you a leader?
• Weaknesses: What weaknesses can you identify in your offering? How does your product compare to others in the marketplace?
• Opportunities: Are there areas for improvement that'd help differentiate your business?
• Threats: Beyond weaknesses, are there existing potential threats to your idea that could limit or prevent its success? How can those be anticipated?

For example, say you have an eco-friendly tech company and your vision is to launch a new service in the next year. Here’s what the SWOT analysis might look like: 

• Strengths : Strong brand reputation, loyal customer base, and a talented team focused on innovation
• Weaknesses : Limited bandwidth to work on new projects, which might impact the scope of its strategy formulation 
• Opportunities : How to leverage and experiment with existing customers when goal-setting
• Threats : Factors in the external environment out of its control, like the state of the economy and supply chain shortages

This SWOT analysis will guide the company in setting strategic objectives and formulating a robust plan to navigate the challenges it might face. 

Related: SWOT analysis template

3. Determine your priorities and objectives

Once you've identified your organization’s mission and current standing, start a preliminary plan document that outlines your priorities and their corresponding objectives. Priorities and objectives should be set based on what is achievable with your available resources. The SMART framework is a great way to ensure you set effective goals . It looks like this:  

• Specific: Set clear objectives, leaving no room for ambiguity about the desired outcomes.
• Measurable : Choose quantifiable criteria to make it easier to track progress.
• Achievable : Ensure it is realistic and attainable within the constraints of your resources and environment.
• Relevant : Develop objectives that are relevant to the direction your organization seeks to move.
• Time-bound : Set a clear timeline for achieving each objective to maintain a sense of urgency and focus.

For instance, going back to the eco-friendly tech company, the SMART goals might be: 

• Specific : Target residential customers and small businesses to increase the sales of its solar-powered device line by 25%. 
• Measurable : Track monthly sales and monitor customer feedback and reviews. 
• Achievable : Allocate more resources to the marketing, sales, and customer service departments. 
• Relevant : Supports the company's growth goals in a growing market of eco-conscious consumers. 
• Time-bound : Conduct quarterly reviews and achieve this 25% increase in sales over the next 12 months.

With strategic objectives like this, you’ll be ready to put the work into action. 

Related: Project kickoff template

4. Define tactics and responsibilities

In this stage, individuals or units within your team can get granular about how to achieve your goals and who'll be accountable for each step. For example, the senior leadership team might be in charge of assigning specific tasks to their team members, while human resources works on recruiting new talent. 

It’s important to note that everyone’s responsibilities may shift over time as you launch and gather initial data about your project. For this reason, it’s key to define responsibilities with clear short-term metrics for success. This way, you can make sure that your plan is adaptable to changing circumstances. 

One of the more common ways to define tactics and metrics is to use the OKR (Objectives and Key Results) method. By outlining your OKRs, you’ll know exactly what key performance indicators (KPIs) to track and have a framework for analyzing the results once you begin to accumulate relevant data. 

For instance, if our eco-friendly tech company has a goal of increasing sales, one objective might be to expand market reach for its solar-powered products. The sales team lead would be in charge of developing an outreach strategy. The key result would be to successfully launch its products in two new regions by Q2. The KPI would be a 60% conversation rate in those targeted markets.  

Related: OKR planning template  

5. Manage, measure, and evaluate

Once your plan is set into motion, it’s important to actively manage (and measure) progress. Before launching your plan, settle on a management process that allows you to measure success or failure. In this way, everyone is aligned on progress and can come together to evaluate your strategy execution at regular intervals.

Determine the milestones at which you’ll come together and go over results — this can take place weekly, monthly, or quarterly, depending on the nature of the project.

One of the best ways to evaluate progress is through agile retrospectives (or retros) , which can be done in real time or asynchronously. During this process, gather and organize feedback about the key elements that played a role in your strategy. 

Related: Retrospective radar template

Retrospectives are typically divided into three parts:

• What went well.
• What didn’t go well.
• New opportunities for improvement.

This structure is also sometimes called the “ rose, thorn, bud ” framework. By using this approach, team members can collectively brainstorm and categorize their feedback, making the next steps clear and actionable. Creating an action plan during a post-mortem meeting is a crucial step in ensuring that lessons learned from past projects or events are effectively translated into tangible improvements. 

Another method for reviewing progress is the quarterly business review (QBR). Like the agile retrospective, it allows you to collect feedback and adjust accordingly. In the case of QBRs, however, we recommend dividing your feedback into four categories:

• Start (what new items should be launched?).
• Stop (what items need to be paused?).
• Continue (what is going well?).
• Change (what could be modified to perform better?).

Strategic planners know that planning activities continue even after a project is complete. There’s always room for improvement and an action plan waiting to be implemented. Using the above approaches, your team can make room for new ideas within the existing strategic framework in order to track better to your long-term goals.

Related: Quarterly business review template

Conclusions

The beauty of the strategic plan is that it can be applied from the campaign level all the way up to organizational vision. Using the strategic planning framework, you build buy-in , trust, and transparency by collaboratively creating a vision for success, and mapping out the steps together on the road to your goals.

Also, in so doing, you build in an ability to adapt effectively on the fly in response to data through measurement and evaluation, making your plan both flexible and resilient.

Related: 5 Tips for Holding Effective Post-mortems

Why Mural for strategic planning

Mural unlocks collaborative strategic planning through a shared digital space with an intuitive interface, a library of pre-fab templates, and methodologies based on design thinking principles.

Outline goals, identify key metrics, and track progress with a platform built for any enterprise.

Learn more about strategic planning with Mural.

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What is the difference between a business plan and a strategic plan.

It is not uncommon that the terms ‘strategic plan’ and ‘business plan’ get confused in the business world. While a strategic plan is a type of business plan, there are several important distinctions between the two types that are worth noting. Before beginning your strategic planning process or strategy implementation, look at the article below to learn the key difference between a business vs strategic plan and how each are important to your organization.

Definition of a business plan vs. a strategic plan

A strategic plan is essential for already established organizations looking for a way to manage and implement their strategic direction and future growth. Strategic planning is future-focused and serves as a roadmap to outline where the organization is going over the next 3-5 years (or more) and the steps it will take to get there.

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A strategic plan serves 6 functions for an organization that is striving to reach the next level of their growth:.

• Defines the purpose of the organization.
• Builds on an organization’s competitive advantages.
• Communicates the strategy to the staff.
• Prioritizes the financial needs of the organization.
• Directs the team to move from plan to action.
• Creates long-term sustainability and growth impact

Alternatively, a business plan is used by new businesses or organizations trying to get off the ground. The fundamentals of a business plan focus on setting the foundation for the business or organization. While it looks towards the future, the focus is set more on the immediate future (>1 year). Some of the functions of a business plan may overlap with a strategic plan. However, the focus and intentions diverge in a few key areas.

A business plan for new businesses, projects, or organizations serves these 5 functions:

• Simplifies or explains the objectives and goals of your organization.
• Coordinates human resource management and determines operational requirements.
• Secures funding for your organization.
• Evaluates potential business prospects.
• Creates a framework for conceptualizing ideas.

In other words, a strategic plan is utilized to direct the momentum and growth of an established company or organization. In contrast, a business plan is meant to set the foundation of a newly (or not quite) developed company by setting up its operational teams, strategizing ways to enter a new market, and obtaining funding.

A strategic plan focuses on long-term growth and the organization’s impact on the market and its customers. Meanwhile, a business plan must focus more on the short-term, day-to-day operational functions. Often, new businesses don’t have the capacity or resources to create a strategic plan, though developing a business plan with strategy elements is never a bad idea.

Business and strategic plans ultimately differ in several key areas–timeframe, target audience, focus, resource allocation, nature, and scalability.

While both a strategic and business plan is forward-facing and focused on future success, a business plan is focused on the more immediate future. A business plan normally looks ahead no further than one year. A business plan is set up to measure success within a 3- to 12-month timeframe and determines what steps a business owner needs to take now to succeed.

A strategic plan generally covers the organizational plan over 3 to 5+ years. It is set with future expansion and development in mind and sets up roadmaps for how the organization will reach its desired future state.

Pro Tip: While a vision statement could benefit a business plan, it is essential to a strategic plan.

Target Audience

A strategic plan is for established companies, businesses, organizations, and owners serious about growing their organizations. A strategic plan communicates the organization’s direction to the staff and stakeholders. The strategic plan is communicated to the essential change makers in the organization who will have a hand in making the progress happen.

A business plan could be for new businesses and entrepreneurs who are start-ups. The target audience for the business plan could also be stakeholders, partners, or investors. However, a business plan generally presents the entrepreneur’s ideas to a bank. It is meant to get the necessary people onboard to obtain the funding needed for the project.

A strategic plan provides focus, direction, and action to move the organization from where they are now to where they want to go. A strategic plan may consist of several months of studies, analyses, and other processes to gauge an organization’s current state. The strategy officers may conduct an internal and external analysis, determine competitive advantages, and create a strategy roadmap. They may take the time to redefine their mission, vision, and values statements.

Alternatively, a business plan provides a structure for ideas to define the business initially. It maps out the more tactical beginning stages of the plan.

Pro Tip: A mission statement is useful for business and strategic plans as it helps further define the enterprise’s value and purpose. If an organization never set its mission statement at the beginning stages of its business plan, it can create one for its strategic plan.

A strategic plan is critical to prioritizing resources (time, money, and people) to grow the revenue and increase the return on investment. The strategic plan may start with reallocating current financial resources already being utilized more strategically.

A business plan will focus on the resources the business still needs to obtain, such as vendors, investors, staff, and funding. A business plan is critical if new companies seek funding from banks or investors. It will add accountability and transparency for the organization and tell the funding channels how they plan to grow their business operations and ROI in the first year of the business.

The scalability of a business plan vs. strategic plan

Another way to grasp the difference is by understanding the difference in ‘scale’ between strategic and business plans. Larger organizations with multiple business units and a wide variety of products frequently start their annual planning process with a corporate-driven strategic plan. It is often followed by departmental and marketing plans that work from the Strategic Plan.

Smaller and start-up companies typically use only a business plan to develop all aspects of operations of the business on paper, obtain funding and then start the business.

Why understanding the differences between a business plan vs a strategic plan matters

It is important to know the key differences between the two terms, despite often being used interchangeably. But here’s a simple final explanation:

A business plan explains how a new business will get off the ground. A strategic plan answers where an established organization is going in the future and how they intend to reach that future state.

A strategic plan also focuses on building a sustainable competitive advantage and is futuristic. A business plan is used to assess the viability of a business opportunity and is more tactical.

10 Comments

I agree with your analysis about small companies, but they should do a strategic plan. Just check out how many of the INC 500 companies have an active strategic planning process and they started small. Its about 78%,

Strategic management is a key role of any organization even if belong to small business. it help in growth and also to steam line your values. im agree with kristin.

I agree with what you said, without strategic planning no organization can survive whether it is big or small. Without a clear strategic plan, it is like walking in the darkness.. Best Regards..

Vision, Mission in Business Plan VS Strategic Plan ?

you made a good analysis on strategic plan and Business plan the difference is quite clear now. But on the other hand, it seems that strategic plan and strategic management are similar which I think not correct. Please can you tell us the difference between these two?. Thanks

Thank you. I get points to work on it

super answer Thanking you

Hi. I went through all the discussions, comments and replies. Thanks! I got a very preliminary idea about functions and necessity of Strategic Planning in Business. But currently I am looking for a brief nice, flowery, juicy definition of “Business Strategic Planning” as a whole, which will give anyone a fun and interesting way to understand. Can anyone help me out please? Awaiting replies…… 🙂

that was easy to understand,

Developing a strategic plan either big or small company or organization mostly can’t achieve its goal. A strategic plan or formulation is the first stage of the strategic management plan, therefore, we should be encouraged to develop a strategic management plan. We can develop the best strategic plan but without a clear plan of implementation and evaluation, it will be difficult to achieve goals.

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How To Write A Strategic Plan In 6 Steps + Examples

Gone are the days of rigid, 5 or 10-year planning cycles that don't leave room for flexibility and innovation. To stay ahead of the curve, you need a dynamic and execution-ready strategic plan that can guide your business through the ever-evolving landscape.

In this article, we'll show you how to write a strategic plan in 6 simple steps . By the end, you'll have a comprehensive, actionable strategic plan that will help you align your organization on the path to success.

💡Pro tip : Use our customizable, free Strategic Planning Template that includes all the key elements of a strategic plan to streamline your strategic planning process.

Follow this guide step-by-step, or skip to the part you're most interested in:

• Pre-Planning Phase: Build The Foundation
• Key Elements of a Strategic Plan

How To Write A Strategic Plan In 6 Simple Steps

Develop an iterative strategic planning process, 3 strategic plan examples to get you started, how to achieve organizational alignment with your strategic plan.

• Quick Overview of Key Steps In Writing A Strategic Plan

Create An Execution-Ready Strategic Plan With Cascade 🚀

Before jumping into the planning phase, it's essential to lay the groundwork.

Pre-Planning Phase: Build The Foundation 

Your strategic planning process should start well before you write your strategic plan. The pre-planning phase is crucial for gathering the data and strategic insights necessary to create an effective plan.

1. Conduct Strategic Analysis

Strategic analysis is a crucial step before writing your strategic plan. It's like building a house – you wouldn't start constructing the walls without a strong foundation, and the same goes for strategic planning. It equips you with the knowledge and insights to create a strategic plan that is well-targeted, addresses your actual situation, and positions your organization for success.

Use a strategic framework like GAP analysis , SWOT analysis , Porter's Five Forces , Ansoff matrix , McKinsey 7S model , or GE matrix to structure your analysis sessions. Incorporating a risk matrix can also help align and decide on key strategic priorities.

Additionally, consider running a strategic planning workshop with your team. Co-creating the plan with stakeholders is a significant advantage, as it fosters a sense of ownership and increases the likelihood of successful strategy execution . According to McKinsey , initiatives where employees contribute to development are 3.4 times more likely to succeed .

2. Choose your strategic planning model

Before creating your strategic plan, decide on the structure you will use. There are hundreds of ways to structure a strategic plan. You've likely heard of famous strategic models such as OKRs and the Balanced Scorecard .

But beyond the well-known ones, there's also a myriad of other strategic planning models . However, many models that work well on paper often fail to meet organizational needs in practice.

Common issues with many models include:

• Complexity: People get lost in terminology rather than focusing on execution
• Scalability: They work well for small organizations but fail when extended across multiple teams
• Rigidity: They force unnecessary layers, hindering flexibility
• Lack of measurability: They state outcomes well but fail to help measure success
• Adaptability: They don’t adjust well to changing economic landscapes

Our goal is to provide a simpler, more effective way to write a strategic plan. The Cascade Strategy Model , refined over years of working with +20,000 teams, offers a proven approach to strategic planning that is adaptable, scalable, and effective for organizations of all sizes.

In the following sections, we'll explore the key elements and steps to write a strategic plan based on the Cascade Model.

Key Elements Of A Strategic Plan

The key elements of a strategic plan using the Cascade Model work together to create a clear and actionable roadmap for your organization.

Think of it as a step-by-step guide, where each element builds upon the previous one: 

• Vision: Where do you want to get to? 
• Values: How will you behave on the journey? 
• Focus Areas: What are going to be your strategic priorities? 
• Strategic objectives: What do you want to achieve? 
• Actions and projects: How are you going to achieve the objectives? 
• KPIs: How will you measure success?

These interconnected elements ensure everyone in your organization is aligned on your overall strategy . Above all, the Cascade Model is intended to be execution-ready—in other words, it has been proven to deliver success far beyond strategic planning.

To create a powerful strategic plan, follow this clear, step-by-step process using the Cascade Model.

💡 Pro Tip : If you want to follow along as we cover each step, you can use our Strategic Planning Template spreadsheet (Excel format), or, for the best experience, sign up for instant access to our free Strategic Planning Template in Cascade .

Your vision statement is your organization's anchor - it defines where you want to get to .

A good vision statement can help funnel your strategy towards long-term goals that matter the most to your organization, and everything you write in your plan from this point on will help you get closer to achieving your vision.

Trying to do too much at once is a surefire way to sink your strategic plan. By creating a clear and inspiring vision statement, you can avoid this trap and provide guidance and inspiration for your team.

For example, a bike manufacturing company might have a vision statement like, “To be the premier bike manufacturer in the Pacific Northwest.” This statement clearly articulates the organization's goals and is a powerful motivator for the team.

In short, don't start your strategic plan without a clear vision statement. It will keep your organization focused and help you navigate toward success.

📚 Recommended read: How to Write a Vision Statement (With Examples, Tips, and Formulas)

Alongside your organization’s vision, a well-crafted mission statement is essential. It succinctly defines your purpose, culture, goals, and values, serving as a foundation for your strategic plan. Ensure your mission statement is clear and aligns with your organization’s vision to drive cohesive and effective strategies.

Values are the enablers of your vision statement —they represent how your organization will behave as you work towards your strategic goals.

Make sure to integrate your organization's core values into everyday operations and interactions. In today's highly-competitive world, it's crucial to remain steadfast in your values and cultivate an organizational culture that's transparent and trustworthy.

Companies with the best company cultures consistently outperform competitors and their average market by up to 115.6%, as reported by Glassdoor . 

For example, a bike manufacturing company might have core values like:

• Accountability

These values reflect the organization's desire to become the leading bike manufacturer, while still being accountable to employees, customers, and shareholders.

👉 You can create and add your values, mission and vision statements directly in Cascade . This ensures your company's core principles remain top of mind for everyone.

📚When you're ready to start creating some company values, check out our guide, How To Create Company Values .

3. Focus Areas

Your focus areas are the strategic priorities that will keep your team on track and working toward the company's mission statement and vision. They represent the high-level areas that you need to focus on to achieve desired business outcomes.

In fact, companies with clearly defined priorities are more likely to achieve their objectives. According to a case study by the Harvard Business Review , teams that focus on a small number of key strategic initiatives are more likely to succeed than those that try to do too much. 

Rather than spreading your resources too thin over multiple focus areas, prioritize three to five. 

Following our manufacturing example above, some good focus areas include:

• Aggressive growth
• Producing the nation's best bikes
• Becoming a modern manufacturer
• Becoming a top place to work

Your focus areas should be tighter in scope than your vision statement, but broader than specific goals, time frames, or metrics. 

With a clear set of focus areas, your team will be better able to prioritize their work and stay focused on the most important things, which will ultimately lead to better business results.

👉 In Cascade, you can add focus areas while creating or importing an existing strategic plan from a spreadsheet.

With Cascade's Focus Area deep-dive functionality, you will be able to: 

• Review the health of your focus areas in one place
• Get a breakdown by plans, budgets, resources, and people behind each strategic priority
• See something at-risk? Drill down into each piece of work regardless of how many plans it's a part of

📚 Recommended read: Strategic Focus Areas: How to create them + Examples

4. Strategic Objectives

Strategic objectives are the specific and measurable outcomes you want to achieve . While they should align with your focus areas, they should be more detailed and have a clear deadline. 

According to the 2022 State of High Performing Teams report , there is a strong correlation between goals and success not only at the individual and team level but also at the organizational level. Here's what they found: 

• Employees who are unaware of their company's strategic goals are over three times more likely to work at a company experiencing a revenue decline than employees who are aware of the goals 
• Companies with shrinking revenues are almost twice as likely to have employees with unclear work expectations.

Jumping straight into actions without defining clear objectives is a common mistake that can lead to missed opportunities or misalignment between strategy and execution.

To avoid this pitfall, we recommend you add between three and six objectives to each focus area .

It's here that we need to start being a bit more specific for the first time in your strategic planning process. Let's take a look at an example of a well-written strategic objective:

• Continue top-line growth that outpaces the industry by 31st Dec 2023.

This is too specific to be a focus area. While it's still very high level, it indicates what the company wants to accomplish and includes a clear deadline. Both these aspects are critical to a good strategic objective.

Your strategic objectives are the heart and soul of your plan, and you need to ensure they are well-crafted. So, take the time to create well-planned objectives that will help you achieve your vision and lead your organization to success.

👉 Adding objectives in Cascade is intuitive, straightforward, and accessible. With one click, you'll open the objective sidebar and fill out the details. These can include a timeline, the objective's owner, collaborators, and how your objective will be measured (success criteria).

📚 Recommended read: What are Strategic Objectives? How to write them + Examples

5. Actions and projects

Once you've defined your strategic objectives, the next step is to identify the specific strategic initiatives or projects that will help you achieve those objectives . They are short-term goals or actionable steps you or your team members will take to accomplish objectives. They should leverage the company's resources and core competencies. 

Effective projects and actions in your strategic plan should: 

• Be specific 
• Contain a deadline
• Have an owner
• Align with at least one of your strategic objectives
• Provide clarity on how you or your team will achieve the strategic objective

Let's take a look at an example of a well-written project continuing with our bike manufacturing company using the strategic objective from above:

Strategic objective: Continue top-line growth that outpaces the industry by 31st Dec 2023.

Project: Expand into the fixed gear market by 31st December 2023.

This is more specific than the objective it links to, and it details what you will do to achieve the objective.

Actions and projects are where the rubber meets the road. They connect the organizational strategic goals with the actual capabilities of your people and the resources at their disposal. Defining projects is a vital reality check every strategic plan needs.

👉You can create actions and projects easily in Cascade! From the Objective sidebar, you can choose to add a project or action under your chosen objective. In the following steps, you can assign an owner and timeline to each action or project.

Plus, in Cascade, you can track the progress of each project or action in four different ways. You can do it manually, via milestones, checklists, or automatically by integrating with Jira and 1000+ other available integrations .

📚 Recommended read: What are Strategic Initiatives? How to Develop & Execute + Examples

6. Key Performance Indicators (KPIs)

Measuring progress towards strategic objectives is essential to effective strategic control and business success. That's where Key Performance Indicators (KPIs) come in.

KPIs are measurable values that track progress toward achieving key business objectives . They help you stay on track and focused on your organization's strategic goals.

To get the most out of your KPIs, make sure you link them to a specific goal or objective. This way, you'll avoid creating KPIs that don't contribute to your objectives and distract you from focusing on what matters. 

Ideally, you will add both leading and lagging KPIs to each objective so you can get a more balanced view of how well you're progressing. Leading KPIs can indicate future performance, while lagging KPIs show how well you've done in the past.

Think of KPIs as a form of signpost in your organization. They provide critical insights that inform business leaders of their organization's progress toward key business objectives. Plus, they can help you identify opportunities faster and capitalize on flexibility.

👉 In Cascade , you can add measures while creating your objectives or add them afterward. Open the Objective sidebar and add your chosen measure.

When you create your Measure, you can choose how to track it. Using Cascade, you can track it manually or automatically. You can automate tracking via 1000+ integrations , including Excel spreadsheets and Google Sheets . This way, you can save time and ensure that your team has up-to-date information for faster and more confident decision-making.

📚 Recommended reads:

• 10 Popular KPI Software Tools To Connect & Visualize Your Data (2024 Guide)
• ‍ How To Track KPIs To Hit Your Business Goals

Developing an iterative strategic planning process is essential for staying adaptable and responsive to change. This approach involves continuously reviewing and refining your strategies to ensure they remain relevant in a dynamic business environment. Regularly assess your plan's effectiveness, gather stakeholder feedback, analyze performance data, and make necessary adjustments.

This cycle of strategic planning, execution, and evaluation helps identify areas for improvement, fosters innovation, and keeps your organization aligned with its long-term goals. By adopting an iterative strategic planning process, you can navigate challenges more effectively and maintain a competitive edge.

📚 Check out our article Develop An Iterative Strategic Planning Process to dive into this topic

Corporate Strategic Plan 

Following the steps outlined above, you should end up with a strategic plan that looks something like this:

This is a preview of a corporate strategic plan template that is pre-filled with examples. Here, you can use the template for free and begin filling it out to align with your organization's needs. Plus, it's suitable for organizations of all sizes and any industry. 

Once you fill in the template, you can also switch to the timeline view. You'll get a complete overview of how the different parts of your plan are distributed across the roadmap in a Gantt chart view.

This template will help you create a structured approach to the strategic planning process, focus on key strategic priorities, and drive accountability to achieve necessary business outcomes. 

👉 Get your free corporate strategic plan template here.

Coca-Cola Strategic Plan

Need a bit of extra inspiration with your plan? Check out this strategic plan example, inspired by Coca-Cola's business plan:

This strategic planning template is pre-filled with Coca-Cola's examples so you can inspire your strategic success on one of the most iconic brands on the planet. 

👉 Grab your free example of a Coca-Cola strategic plan here.

The Ramsay Health Care expansion strategy

Ramsay Health Care is a multinational healthcare provider with a strong presence in Australia, Europe, and Asia.

Almost all of its growth was organic and strategic. The company founded its headquarters in Sydney, Australia, but in the 21st century, it decided to expand globally through a primary strategy of making brownfield investments and acquisitions in key locations.

Ramsay's strategy was simple yet clever. By becoming a majority shareholder of the biggest local players, the company expanded organically in each region by leveraging and expanding their expertise.

Over the last two decades, Ramsay's global network has grown to 460 locations across 10 countries with over $13 billion in annual revenue.

📚 Recommended read: Strategy study: The Ramsay Health Care Growth Study

✨ Bonus resource: We've created a list of the most popular and free strategic plan templates in our library that will help you build a strategic plan based on the Cascade model explained in this article. You can use these templates to create a plan on a corporate, business unit, or team level.

We highlighted before that other strategic models often fail to scale strategic plans and goals across multiple teams and organizational levels. 

In an ideal world, you want to have a maximum of two layers of detail underneath each of your focus areas. This means you'll have a focus area, followed by a layer of objectives. Underneath the objectives, you'll have a layer of actions, projects (or strategic initiatives), and KPIs.

If you have a single team that's responsible for the strategy execution, this works well. However, how do you implement a strategy across multiple and cross-functional teams? And why is it important? 

According to LSA research of 410 companies across 8 industries, highly aligned companies grow revenue 58% faster and are 72% more profitable. And this is what Cascade can help you achieve. 

To achieve achieve organization-wide alignment with your strategic plan and impact the bottom line, there are two ways to approach it in Casade: through contributing objectives or shared objectives .

1. Contributing objectives

This approach involves adding contributing objectives that link to your main strategic objectives, like this:

For each contributing objective, you simply repeat the Objective → Action/Project → KPI structure as follows:

Here's how you can create contributing objectives in Cascade: 

Option A: Create contributing objectives within the same plan 

This means creating multiple contributing objectives within the same strategic plan that contribute to the main objective. 

However, be aware that if you have a lot of layers, your strategic plan can become cluttered, and people might have difficulty understanding how their daily efforts contribute to the strategic plan at the top level. 

For example, the people responsible for managing contributing objectives at the bottom of the plan ( functional / operational level ) will lose visibility on how are their objectives linked to the main focus areas and objectives (at a corporate / business level ). 

This approach is best suited to smaller organizations that only need to add a few layers of objectives to their plan.

Option B: Create contributing objectives from multiple strategic plans linking to the main objective

This approach creates a network of aligned strategic plans within your organization. Each plan contains a set of focus areas and one single layer of objectives, each with its own set of projects, actions, and KPIs. This concept looks like this:

This example illustrates an objective that is a main objective in the IT strategic plan , but also contributes to the main strategic plan's objective.

For example, let's say that your main business objective is to improve customer satisfaction by reducing product delivery time by 25% in the next quarter. This objective requires multiple operational teams within your organization to work together to achieve a shared objective. 

Each team will create its own objective in its plan to contribute to the main objective: 

• Logistics team: Reduce the shipment preparation time by 30%
• IT team: Implement new technology to reduce manual handling in the warehouse
• Production team: Increase production output by hour for 5%   

Here's how this example would look like within the Cascade platform:

Although each contributing objective was originally created in its own plan, you can see how each contributing objective relates to the main strategic objective and its status in real-time.

2. Shared objectives

In Cascade, shared objectives are the same objectives shared across different strategic plans.

For example, you can have an objective that is “Achieve sustainable operations” . This objective can be part of the Corporate Strategy Plan, but also part of the Operations Plan , Supply Chain Plan , Production Plan, etc. In short, this objective becomes a shared objective between multiple teams and strategic plans. 

This approach helps you to:

• Cascade your business strategy as deep as you want across a near-infinite number of people while maintaining strategic alignment throughout your organization .
• Create transparency and a much higher level of engagement in the strategy throughout your organization since objective owners are able to identify how their shared efforts contribute to the success of the main business objectives.

The more shared objectives you have across your organization, the more your teams will be aligned with the overarching business strategy. This is what we call " alignment health ”. 

Here's how you can see the shared objectives in the alignment map and analyze alignment health within Cascade:

You get a snapshot of how your corporate strategic plan is aligned with sub-plans from different business units or departments and the status of shared objectives. This helps you quickly identify misaligned strategic initiatives and act before it's too late.  Plus, cross-functional teams have better visibility of how their efforts contribute to shared objectives. 

So whether you choose contributing objectives or shared objectives, Cascade has the tools and features to help you achieve organization-wide alignment and boost your bottom line.

Quick Overview Of Key Steps In Writing A Strategic Plan

Here's a quick infographic to help you remember how everything connects and why each element is critical to effective strategic planning:

This simple answer to how to write a strategic plan avoids confusing jargon and has elements that the whole organization can both get behind and understand. 

💡Tip: Save this image or bookmark this article for your next strategic planning session.

If you're struggling to write an execution-ready strategic plan, the Cascade Strategy Model is the solution you've been looking for. With its clear, easy-to-understand terminology, and simple linkages between objectives, projects, and KPIs, you can create a plan that's both scalable and flexible.

But why is a flexible and execution-ready strategic plan so important? It's simple: without a clear and actionable plan, you'll never be able to achieve your business objectives. By using the Cascade Strategic Planning Model, you'll be able to create a plan that's both tangible and measurable, with KPIs that help you track progress towards your goals.

However, the real value of the Cascade framework lies in its flexibility . By creating links between main business objectives and your teams' objectives, you can easily scale your plan without losing focus. Plus, the model's structure of linked layers means that you can always adjust your strategy in response to new challenges to easily develop an iterative strategic planning process. 

So if you want to achieve results with your strategic plan, start using Cascade today. With its unique combination of flexibility and focus, it's the perfect tool for any organization looking to master strategy execution and succeed in today's fast-paced business world. 

Want to see Cascade in action? Get started for free or book a 1:1 demo with Cascade's in-house strategy expert.

This article is part one of our mini-series "How to Create a Strategy". This first article will give you a solid strategy model for your plan and get the strategic thinking going.

Think of it as the foundation for your new strategy. Subsequent parts of the series will show you how to create the content for your strategic plan.

Articles in our "How To Create a Strategy" series

• How To Write A Strategic Plan In 6 Steps + Examples (This article)
• How to Write a Good Vision Statement
• How To Create Company Values
• Creating Strategic Focus Areas
• How To Write Strategic Objectives
• How To Create Effective Projects
• How To Write KPIs + Ultimate Guide To Strategic Planning

More resources on strategic planning and strategy execution: 

• 6 Steps to Successful Strategy Execution
• 4-Step Strategy Reporting Process (With Template)
• Annual Planning: Plan Like a Pro In 5 Steps (+ Template) 
• 18 Free Strategic Plan Templates (Excel & Cascade) 2024
• The Right Way To Set Team Goals
• 23 Best Strategy Tools For Your Organization in 2024

Popular articles

6 Steps To Successful Strategy Execution & Best Practices

McKinsey GE Matrix: Importance & How To Use It (2024)

How To Be More Strategic: 7 Tips & Best Practices For Leaders

Red Ocean Vs Blue Ocean Strategy Overview + Examples

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• 7 strategic planning models, plus 8 fra ...

7 strategic planning models, plus 8 frameworks to help you get started

Strategic planning is vital in defining where your business is going in the next three to five years. With the right strategic planning models and frameworks, you can uncover opportunities, identify risks, and create a strategic plan to fuel your organization’s success. We list the most popular models and frameworks and explain how you can combine them to create a strategic plan that fits your business.

A strategic plan is a great tool to help you hit your business goals . But sometimes, this tool needs to be updated to reflect new business priorities or changing market conditions. If you decide to use a model that already exists, you can benefit from a roadmap that’s already created. The model you choose can improve your knowledge of what works best in your organization, uncover unknown strengths and weaknesses, or help you find out how you can outpace your competitors.

In this article, we cover the most common strategic planning models and frameworks and explain when to use which one. Plus, get tips on how to apply them and which models and frameworks work well together. 

Strategic planning models vs. frameworks

First off: This is not a one-or-nothing scenario. You can use as many or as few strategic planning models and frameworks as you like. 

When your organization undergoes a strategic planning phase, you should first pick a model or two that you want to apply. This will provide you with a basic outline of the steps to take during the strategic planning process.

During that process, think of strategic planning frameworks as the tools in your toolbox. Many models suggest starting with a SWOT analysis or defining your vision and mission statements first. Depending on your goals, though, you may want to apply several different frameworks throughout the strategic planning process.

For example, if you’re applying a scenario-based strategic plan, you could start with a SWOT and PEST(LE) analysis to get a better overview of your current standing. If one of the weaknesses you identify has to do with your manufacturing process, you could apply the theory of constraints to improve bottlenecks and mitigate risks. 

Now that you know the difference between the two, learn more about the seven strategic planning models, as well as the eight most commonly used frameworks that go along with them.

1. Basic model

The basic strategic planning model is ideal for establishing your company’s vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise.

If it’s your first strategic planning session, the basic model is the way to go. Later on, you can embellish it with other models to adjust or rewrite your business strategy as needed. Let’s take a look at what kinds of businesses can benefit from this strategic planning model and how to apply it.

Small businesses or organizations

Companies with little to no strategic planning experience

Organizations with few resources 

Write your mission statement. Gather your planning team and have a brainstorming session. The more ideas you can collect early in this step, the more fun and rewarding the analysis phase will feel.

Identify your organization’s goals . Setting clear business goals will increase your team’s performance and positively impact their motivation.

Outline strategies that will help you reach your goals. Ask yourself what steps you have to take in order to reach these goals and break them down into long-term, mid-term, and short-term goals .

Create action plans to implement each of the strategies above. Action plans will keep teams motivated and your organization on target.

Monitor and revise the plan as you go . As with any strategic plan, it’s important to closely monitor if your company is implementing it successfully and how you can adjust it for a better outcome.

2. Issue-based model

Also called goal-based planning model, this is essentially an extension of the basic strategic planning model. It’s a bit more dynamic and very popular for companies that want to create a more comprehensive plan.

Organizations with basic strategic planning experience

Businesses that are looking for a more comprehensive plan

Conduct a SWOT analysis . Assess your organization’s strengths, weaknesses, opportunities, and threats with a SWOT analysis to get a better overview of what your strategic plan should focus on. We’ll give into how to conduct a SWOT analysis when we get into the strategic planning frameworks below.

Identify and prioritize major issues and/or goals. Based on your SWOT analysis, identify and prioritize what your strategic plan should focus on this time around.

Develop your main strategies that address these issues and/or goals. Aim to develop one overarching strategy that addresses your highest-priority goal and/or issue to keep this process as simple as possible.

Update or create a mission and vision statement . Make sure that your business’s statements align with your new or updated strategy. If you haven’t already, this is also a chance for you to define your organization’s values.

Create action plans. These will help you address your organization’s goals, resource needs, roles, and responsibilities. 

Develop a yearly operational plan document. This model works best if your business repeats the strategic plan implementation process on an annual basis, so use a yearly operational plan to capture your goals, progress, and opportunities for next time.

Allocate resources for your year-one operational plan. Whether you need funding or dedicated team members to implement your first strategic plan, now is the time to allocate all the resources you’ll need.

Monitor and revise the strategic plan. Record your lessons learned in the operational plan so you can revisit and improve it for the next strategic planning phase.

The issue-based plan can repeat on an annual basis (or less often once you resolve the issues). It’s important to update the plan every time it’s in action to ensure it’s still doing the best it can for your organization.

You don’t have to repeat the full process every year—rather, focus on what’s a priority during this run.

3. Alignment model

This model is also called strategic alignment model (SAM) and is one of the most popular strategic planning models. It helps you align your business and IT strategies with your organization’s strategic goals. 

You’ll have to consider four equally important, yet different perspectives when applying the alignment strategic planning model:

Strategy execution: The business strategy driving the model

Technology potential: The IT strategy supporting the business strategy

Competitive potential: Emerging IT capabilities that can create new products and services

Service level: Team members dedicated to creating the best IT system in the organization

Ideally, your strategy will check off all the criteria above—however, it’s more likely you’ll have to find a compromise. 

Here’s how to create a strategic plan using the alignment model and what kinds of companies can benefit from it.

Organizations that need to fine-tune their strategies

Businesses that want to uncover issues that prevent them from aligning with their mission

Companies that want to reassess objectives or correct problem areas that prevent them from growing

Outline your organization’s mission, programs, resources, and where support is needed. Before you can improve your statements and approaches, you need to define what exactly they are.

Identify what internal processes are working and which ones aren’t. Pinpoint which processes are causing problems, creating bottlenecks , or could otherwise use improving. Then prioritize which internal processes will have the biggest positive impact on your business.

Identify solutions. Work with the respective teams when you’re creating a new strategy to benefit from their experience and perspective on the current situation.

Update your strategic plan with the solutions. Update your strategic plan and monitor if implementing it is setting your business up for improvement or growth. If not, you may have to return to the drawing board and update your strategic plan with new solutions.

4. Scenario model

The scenario model works great if you combine it with other models like the basic or issue-based model. This model is particularly helpful if you need to consider external factors as well. These can be government regulations, technical, or demographic changes that may impact your business.

Organizations trying to identify strategic issues and goals caused by external factors

Identify external factors that influence your organization. For example, you should consider demographic, regulation, or environmental factors.

Review the worst case scenario the above factors could have on your organization. If you know what the worst case scenario for your business looks like, it’ll be much easier to prepare for it. Besides, it’ll take some of the pressure and surprise out of the mix, should a scenario similar to the one you create actually occur.

Identify and discuss two additional hypothetical organizational scenarios. On top of your worst case scenario, you’ll also want to define the best case and average case scenarios. Keep in mind that the worst case scenario from the previous step can often provoke strong motivation to change your organization for the better. However, discussing the other two will allow you to focus on the positive—the opportunities your business may have ahead.

Identify and suggest potential strategies or solutions. Everyone on the team should now brainstorm different ways your business could potentially respond to each of the three scenarios. Discuss the proposed strategies as a team afterward.

Uncover common considerations or strategies for your organization. There’s a good chance that your teammates come up with similar solutions. Decide which ones you like best as a team or create a new one together.

Identify the most likely scenario and the most reasonable strategy. Finally, examine which of the three scenarios is most likely to occur in the next three to five years and how your business should respond to potential changes.

5. Self-organizing model

Also called the organic planning model, the self-organizing model is a bit different from the linear approaches of the other models. You’ll have to be very patient with this method. 

This strategic planning model is all about focusing on the learning and growing process rather than achieving a specific goal. Since the organic model concentrates on continuous improvement , the process is never really over.

Large organizations that can afford to take their time

Businesses that prefer a more naturalistic, organic planning approach that revolves around common values, communication, and shared reflection

Companies that have a clear understanding of their vision

Define and communicate your organization’s cultural values . Your team can only think clearly and with solutions in mind when they have a clear understanding of your organization's values.

Communicate the planning group’s vision for the organization. Define and communicate the vision with everyone involved in the strategic planning process. This will align everyone’s ideas with your company’s vision.

Discuss what processes will help realize the organization’s vision on a regular basis. Meet every quarter to discuss strategies or tactics that will move your organization closer to realizing your vision.

6. Real-time model

This fluid model can help organizations that deal with rapid changes to their work environment. There are three levels of success in the real-time model: 

Organizational: At the organizational level, you’re forming strategies in response to opportunities or trends.

Programmatic: At the programmatic level, you have to decide how to respond to specific outcomes or environmental changes.

Operational: On the operational level, you will study internal systems, policies, and people to develop a strategy for your company.

Figuring out your competitive advantage can be difficult, but this is absolutely crucial to ensure success. Whether it’s a unique asset or strength your organization has or an outstanding execution of services or programs—it’s important that you can set yourself apart from others in the industry to succeed.

Companies that need to react quickly to changing environments

Businesses that are seeking new tools to help them align with their organizational strategy

Define your mission and vision statement. If you ever feel stuck formulating your company’s mission or vision statement, take a look at those of others. Maybe Asana’s vision statement sparks some inspiration.

Research, understand, and learn from competitor strategy and market trends. Pick a handful of competitors in your industry and find out how they’ve created success for themselves. How did they handle setbacks or challenges? What kinds of challenges did they even encounter? Are these common scenarios in the market? Learn from your competitors by finding out as much as you can about them.

Study external environments. At this point, you can combine the real-time model with the scenario model to find solutions to threats and opportunities outside of your control.

Conduct a SWOT analysis of your internal processes, systems, and resources. Besides the external factors your team has to consider, it’s also important to look at your company’s internal environment and how well you’re prepared for different scenarios.

Develop a strategy. Discuss the results of your SWOT analysis to develop a business strategy that builds toward organizational, programmatic, and operational success.

Rinse and repeat. Monitor how well the new strategy is working for your organization and repeat the planning process as needed to ensure you’re on top or, perhaps, ahead of the game. 

7. Inspirational model

This last strategic planning model is perfect to inspire and energize your team as they work toward your organization’s goals. It’s also a great way to introduce or reconnect your employees to your business strategy after a merger or acquisition.

Businesses with a dynamic and inspired start-up culture

Organizations looking for inspiration to reinvigorate the creative process

Companies looking for quick solutions and strategy shifts

Gather your team to discuss an inspirational vision for your organization. The more people you can gather for this process, the more input you will receive.

Brainstorm big, hairy audacious goals and ideas. Encouraging your team not to hold back with ideas that may seem ridiculous will do two things: for one, it will mitigate the fear of contributing bad ideas. But more importantly, it may lead to a genius idea or suggestion that your team wouldn’t have thought of if they felt like they had to think inside of the box.

Assess your organization’s resources. Find out if your company has the resources to implement your new ideas. If they don’t, you’ll have to either adjust your strategy or allocate more resources.

Develop a strategy balancing your resources and brainstorming ideas. Far-fetched ideas can grow into amazing opportunities but they can also bear great risk. Make sure to balance ideas with your strategic direction. 

Now, let’s dive into the most commonly used strategic frameworks.

8. SWOT analysis framework

One of the most popular strategic planning frameworks is the SWOT analysis . A SWOT analysis is a great first step in identifying areas of opportunity and risk—which can help you create a strategic plan that accounts for growth and prepares for threats.

SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s an example:

9. OKRs framework

A big part of strategic planning is setting goals for your company. That’s where OKRs come into play. 

OKRs stand for objective and key results—this goal-setting framework helps your organization set and achieve goals. It provides a somewhat holistic approach that you can use to connect your team’s work to your organization’s big-picture goals.  When team members understand how their individual work contributes to the organization’s success, they tend to be more motivated and produce better results

10. Balanced scorecard (BSC) framework

The balanced scorecard is a popular strategic framework for businesses that want to take a more holistic approach rather than just focus on their financial performance. It was designed by David Norton and Robert Kaplan in the 1990s, it’s used by companies around the globe to: 

Communicate goals

Align their team’s daily work with their company’s strategy

Prioritize products, services, and projects

Monitor their progress toward their strategic goals

Your balanced scorecard will outline four main business perspectives:

Customers or clients , meaning their value, satisfaction, and/or retention

Financial , meaning your effectiveness in using resources and your financial performance

Internal process , meaning your business’s quality and efficiency

Organizational capacity , meaning your organizational culture, infrastructure and technology, and human resources

With the help of a strategy map, you can visualize and communicate how your company is creating value. A strategy map is a simple graphic that shows cause-and-effect connections between strategic objectives. 

The balanced scorecard framework is an amazing tool to use from outlining your mission, vision, and values all the way to implementing your strategic plan .

You can use an integration like Lucidchart to create strategy maps for your business in Asana.

11. Porter’s Five Forces framework

If you’re using the real-time strategic planning model, Porter’s Five Forces are a great framework to apply. You can use it to find out what your product’s or service’s competitive advantage is before entering the market.

Developed by Michael E. Porter , the framework outlines five forces you have to be aware of and monitor:

Threat of new industry entrants: Any new entry into the market results in increased pressure on prices and costs. 

Competition in the industry: The more competitors that exist, the more difficult it will be for you to create value in the market with your product or service.

Bargaining power of suppliers: Suppliers can wield more power if there are less alternatives for buyers or it’s expensive, time consuming, or difficult to switch to a different supplier.

Bargaining power of buyers: Buyers can wield more power if the same product or service is available elsewhere with little to no difference in quality.

Threat of substitutes: If another company already covers the market’s needs, you’ll have to create a better product or service or make it available for a lower price at the same quality in order to compete.

Remember, industry structures aren’t static. The more dynamic your strategic plan is, the better you’ll be able to compete in a market.

12. VRIO framework

The VRIO framework is another strategic planning tool designed to help you evaluate your competitive advantage. VRIO stands for value, rarity, imitability, and organization.

It’s a resource-based theory developed by Jay Barney. With this framework, you can study your firmed resources and find out whether or not your company can transform them into sustained competitive advantages. 

Firmed resources can be tangible (e.g., cash, tools, inventory, etc.) or intangible (e.g., copyrights, trademarks, organizational culture, etc.). Whether these resources will actually help your business once you enter the market depends on four qualities:

Valuable : Will this resource either increase your revenue or decrease your costs and thereby create value for your business?

Rare : Are the resources you’re using rare or can others use your resources as well and therefore easily provide the same product or service?

Inimitable : Are your resources either inimitable or non-substitutable? In other words, how unique and complex are your resources?

Organizational: Are you organized enough to use your resources in a way that captures their value, rarity, and inimitability?

It’s important that your resources check all the boxes above so you can ensure that you have sustained competitive advantage over others in the industry.

13. Theory of Constraints (TOC) framework

If the reason you’re currently in a strategic planning process is because you’re trying to mitigate risks or uncover issues that could hurt your business—this framework should be in your toolkit.

The theory of constraints (TOC) is a problem-solving framework that can help you identify limiting factors or bottlenecks preventing your organization from hitting OKRs or KPIs . 

Whether it’s a policy, market, or recourse constraint—you can apply the theory of constraints to solve potential problems, respond to issues, and empower your team to improve their work with the resources they have.

14. PEST/PESTLE analysis framework

The idea of the PEST analysis is similar to that of the SWOT analysis except that you’re focusing on external factors and solutions. It’s a great framework to combine with the scenario-based strategic planning model as it helps you define external factors connected to your business’s success.

PEST stands for political, economic, sociological, and technological factors. Depending on your business model, you may want to expand this framework to include legal and environmental factors as well (PESTLE). These are the most common factors you can include in a PESTLE analysis:

Political: Taxes, trade tariffs, conflicts

Economic: Interest and inflation rate, economic growth patterns, unemployment rate

Social: Demographics, education, media, health

Technological: Communication, information technology, research and development, patents

Legal: Regulatory bodies, environmental regulations, consumer protection

Environmental: Climate, geographical location, environmental offsets

15. Hoshin Kanri framework

Hoshin Kanri is a great tool to communicate and implement strategic goals. It’s a planning system that involves the entire organization in the strategic planning process. The term is Japanese and stands for “compass management” and is also known as policy management. 

This strategic planning framework is a top-down approach that starts with your leadership team defining long-term goals which are then aligned and communicated with every team member in the company. 

You should hold regular meetings to monitor progress and update the timeline to ensure that every teammate’s contributions are aligned with the overarching company goals.

Stick to your strategic goals

Whether you’re a small business just starting out or a nonprofit organization with decades of experience, strategic planning is a crucial step in your journey to success. 

If you’re looking for a tool that can help you and your team define, organize, and implement your strategic goals, Asana is here to help. Our goal-setting software allows you to connect all of your team members in one place, visualize progress, and stay on target.

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What is management by objectives (MBO)?

• CIO strategy

strategic planning

• Katie Terrell Hanna
• Stephen J. Bigelow, Senior Technology Editor
• Mary K. Pratt

What is strategic planning?

Strategic planning is a process in which an organization's leaders define their vision for the future and identify their organization's goals and objectives. The process includes establishing the sequence in which those goals should be realized so the organization can reach its stated vision.

Strategic planning is forward looking. It differs from traditional business planning, which typically focuses on short-term, tactical goals, such as how a budget is divided up. The time covered by a business plan can range from several months to several years.

The product of strategic planning is a strategic plan. It is often reflected in a plan document or other media. These plans can be easily shared, understood and followed by various people including employees, customers, business partners and investors.

Organizations conduct strategic planning periodically to consider the effect of changing business, industry, and legal and regulatory conditions . A strategic plan may be updated and revised at that time to reflect any strategic changes.

Why is strategic planning important?

Businesses need direction and organizational goals to work toward. Strategic planning offers that type of guidance. Essentially, a strategic plan is a roadmap to get to business goals . Without such guidance, there is no way to tell whether a business is on track to reach its goals.

The following four aspects of strategy development are worth attention:

• The mission. Strategic planning starts with a mission that offers a company a sense of purpose and direction. The organization's mission statement describes who it is, what it does and where it wants to go. Missions are typically broad but actionable. For example, a business in the education industry might seek to be a leader in online virtual educational tools and services.
• The goals. Strategic planning involves selecting goals. Most planning uses SMART goals -- specific, measurable, achievable, relevant and time-bound -- or other objectively measurable goals. Measurable goals are important because they enable business leaders to determine how well the business is performing against goals and the overall mission. Goal setting for the fictitious educational business might include releasing the first version of a virtual classroom platform within two years or increasing sales of an existing tool by 30% in the next year.
• Alignment with short-term goals. Strategic planning relates directly to short-term, tactical business planning and can help business leaders with everyday decision-making that better aligns with business strategy. For the fictitious educational business, leaders might choose to make strategic investments in communication and collaboration technologies , such as virtual classroom software and services but decline opportunities to establish physical classroom facilities.
• Evaluation and revision. Strategic planning helps business leaders periodically evaluate progress against the plan and make changes or adjustments in response to changing conditions. For example, a business may seek a global presence, but legal and regulatory restrictions could emerge that affect its ability to operate in certain geographic regions. As a result, business leaders might have to revise the strategic plan to redefine objectives or change progress metrics.

Modern considerations for strategic planning

While strategic planning has been a cornerstone of organizational management for decades, the landscape of strategic planning has undergone significant shifts in recent years.

Innovations in technology and socioeconomic upheavals, most notably the COVID-19 pandemic, have fundamentally altered the calculus of strategic planning. These modern considerations underscore the evolving nature of strategic planning in today's world.

The importance of strategic planning in an evolving society

The advent of the COVID-19 pandemic has starkly highlighted the importance of flexibility and resilience in strategic planning. Organizations worldwide have faced the stark reality that the ability to pivot quickly in response to rapidly changing external conditions is not just advantageous but essential for survival.

This period has reinforced the concept that strategic plans must be living documents -- adaptable, dynamic and responsive to unforeseen challenges and opportunities. The traditional view of strategic planning as a set of fixed guidelines has given way to an understanding of strategic plans as fluid frameworks that guide organizational response to a volatile environment.

Embracing digital transformation

The swift pace of technological evolution has made the incorporation of digital transformation strategies a critical component of strategic planning.

Digital capabilities are now at the heart of operational success and competitive differentiation. Organizations can integrate data analytics and AI into strategic planning processes to help them innovate, boost efficiency, enhance customer experiences and maintain a competitive edge .

Agility and adaptability

Modern strategic planning is characterized by an emphasis on agility and the capacity for rapid adaptation. In an era marked by constant change, organizations must be prepared to navigate through a sea of change, adjusting their course in response to market dynamics and environmental shifts.

This necessitates a continuous reassessment of the strategic plan and a willingness to recalibrate goals and tactics in alignment with the evolving external landscape. The agility to adapt strategic priorities swiftly is now a critical competency for organizational resilience and long-term success.

Sustainability and social responsibility

Sustainability and social responsibility have emerged as central considerations in strategic planning. As societal expectations evolve, there is an increasing demand for organizations to align their strategies with environmental, social and governance ( ESG ) criteria.

This alignment reflects a broader commitment to sustainable development and responsible corporate citizenship . Incorporating sustainability and social responsibility into strategic planning not only meets regulatory and societal expectations but also opens new avenues for innovation and connects organizations with eco-conscious consumers and stakeholders .

Cultivating organizational culture and employee engagement

A strategic plan that resonates with an organization's culture and actively engages employees is more likely to succeed. Cultivating a supportive culture that aligns with the strategic vision is crucial for fostering organizational alignment and buy-in.

Engaging employees in the strategic planning process instills a sense of ownership and commitment to the organization's goals , thereby driving collective effort toward their realization. Modern strategic planning recognizes the value of employee engagement and organizational culture as foundational elements that underpin the successful implementation of strategic objectives.

What are the steps in the strategic planning process?

There are myriad different ways to approach strategic planning depending on the type of business and the granularity required. Most strategic planning cycles can be summarized in these five steps:

Identify. A strategic planning cycle starts with the determination of a business's current strategic position. This is where stakeholders use the existing strategic plan -- including the mission statement and long-term strategic goals -- to perform assessments of the business and its environment. These assessments can include a needs assessment or a SWOT analysis (strengths, weaknesses, opportunities and threats analysis) to understand the state of the business and the path ahead.

Prioritize. Next, strategic planners set objectives and initiatives that line up with the company mission and goals and will move the business toward achieving its goals. There may be many potential goals, so planning prioritizes the most important, relevant and urgent ones. Goals may include a consideration of resource requirements -- such as budgets and equipment -- and they often involve a timeline and business metrics or KPIs for measuring progress.

Develop. This is the main thrust of strategic planning in which stakeholders collaborate to formulate the steps or tactics necessary to attain a stated strategic objective. This may involve creating numerous short-term tactical business plans that fit into the overarching strategy. Stakeholders involved in plan development use various tools such as a strategy map to help visualize and tweak the plan. Developing the plan may involve cost and opportunity tradeoffs that reflect business priorities. Developers may reject some initiatives if they don't support the long-term strategy.

Implement. Once the strategic plan is developed, it's time to put it in motion. This requires clear communication across the organization to set responsibilities, make investments, adjust policies and processes , and establish measurement and reporting. Implementation typically includes strategic management with regular strategic reviews to ensure that plans stay on track.

Update. A strategic plan is periodically reviewed and revised to adjust priorities and reevaluate goals as business conditions change and new opportunities emerge. Quick reviews of metrics can happen quarterly, and adjustments to the strategic plan can occur annually. Stakeholders may use balanced scorecards and other tools to assess performance against goals.

Who does the strategic planning in a business?

A committee typically leads the strategic planning process. Planning experts recommend the committee include representatives from all areas within the enterprise and work in an open and transparent way where information is documented from start to finish.

The committee researches and gathers the information needed to understand the organization's status and factors that will affect it in the future. The committee should solicit input and feedback to validate or challenge its assessment of the information.

The committee can opt to use one of many methodologies or strategic frameworks that have been developed to guide leaders through this process. These methodologies take the committee through a series of steps that include an analysis or assessment, strategy formulation, and the articulation and communication of the actions needed to move the organization toward its strategic vision.

The committee creates benchmarks that will enable the organization to determine how well it is performing against its goals as it implements the strategic plan. The planning process should also identify which executives are accountable for ensuring that benchmarking activities take place at planned times and that specific objectives are met.

How often should strategic planning be done?

There are no uniform requirements to dictate the frequency of a strategic planning cycle. However, there are common approaches.

• Quarterly reviews. Once per quarter is usually a convenient time frame to revisit assumptions made in the planning process and gauge progress by checking metrics against the plan.
• Annual reviews. A yearly review lets business leaders assess metrics for the previous four quarters and make informed adjustments to the plan.

Timetables are always subject to change. Timing should be flexible and tailored to the needs of a company. For example, a startup in a dynamic industry might revisit its strategic plan monthly. A mature business in a well-established industry might opt to revisit the plan less frequently.

Types of strategic plans

Strategic planning activities typically focus on three areas: business, corporate or functional. They break out as follows:

• Business. A business-centric strategic plan focuses on the competitive aspects of the organization -- creating competitive advantages and opportunities for growth. These plans adopt a mission evaluating the external business environment, setting goals, and allocating financial, human and technological resources to meet those goals. This is the typical strategic plan and the main focus of this article.
• Corporate . A corporate-centric plan defines how the company works. It focuses on organizing and aligning the structure of the business, its policies and processes and its senior leadership to meet desired goals. For example, the management of a research and development skunkworks might be structured to function dynamically and on an ad hoc basis. It would look different from the management team in finance or HR.
• Functional. Function-centric strategic plans fit within corporate-level strategies and provide a granular examination of specific departments or segments such as marketing, HR, finance and development. Functional plans focus on policy and process -- such as security and compliance -- while setting budgets and resource allocations .

In most cases, a strategic plan will involve elements of all three focus areas. But the plan may lean toward one focus area depending on the needs and type of business.

What is strategic management?

Organizations that are best at aligning their actions with their strategic plans engage in strategic management. A strategic management process establishes ongoing practices to ensure that an organization's processes and resources support the strategic plan's mission and vision statement .

In simple terms, strategic management is the implementation of the strategy . As such, strategic management is sometimes referred to as strategy execution. Strategy execution involves identifying benchmarks, allocating financial and human resources and providing leadership to realize established goals.

Strategic management may involve a prescriptive or descriptive approach . A prescriptive approach focuses on how strategies should be created. It often uses an analytical approach -- such as SWOT or balanced scorecards -- to account for risks and opportunities. A descriptive approach focuses on how strategies should be implemented and typically relies on general guidelines or principles.

Given the similarities between strategic planning and strategic management, the two terms are sometimes used interchangeably.

What is a strategy map?

A strategy map is a planning tool or template used to help stakeholders visualize the complete strategy of a business as one interrelated graphic. These visualizations offer a powerful way for understanding and reviewing the cause-and-effect relationships among the elements of a business strategy.

While a map can be drawn in a number of ways, all strategy maps focus on four major business areas or categories: financial, customer, internal business processes, and learning and growth. Goals sort into those four areas, and relationships or dependencies among those goals can be established.

For example, a strategy map might include a financial goal of reducing costs and a business process goal to improve operational efficiency . These two goals are related and can help stakeholders understand that tasks such as improving operational workflows can reduce company costs and meet two elements of the strategic plan.

A strategy map can help translate overarching goals into an action plan and goals that can be aligned and implemented.

Strategy mapping can also help to identify strategic challenges that might not be obvious. For example, one learning and growth goal may be to increase employee expertise but that may expose unexpected challenges in employee retention and compensation, which affects cost reduction goals.

Benefits of strategic planning

Effective strategic planning has many benefits. It forces organizations to be aware of the future state of opportunities and challenges. It also forces them to anticipate risks and understand what resources will be needed to seize opportunities and overcome strategic issues.

Strategic planning also gives individuals a sense of direction and marshals them around a common mission. It creates standards and accountability. Strategic planning can enhance operational plans and efficiency. It also helps organizations limit time spent on crisis management , where they're reacting to unexpected changes that they failed to anticipate and prepare for.

Information technology is a key part of developing an effective strategic plan. Look at these eight free IT strategic planning templates that can help make IT a driving force in a business. Learn how to assess an organization's needs and implement a technology strategy and see how to set business goals in these step-by-step guides.

Continue Reading About strategic planning

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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How to Set Strategic Planning Goals

• 29 Oct 2020

In an ever-changing business world, it’s imperative to have strategic goals and a plan to guide organizational efforts. Yet, crafting strategic goals can be a daunting task. How do you decide which goals are vital to your company? Which ones are actionable and measurable? Which goals to prioritize?

To help you answer these questions, here’s a breakdown of what strategic planning is, what characterizes strategic goals, and how to select organizational goals to pursue.

Access your free e-book today.

What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees, and ensure organizational goals are backed by data and sound reasoning.

Research in the Harvard Business Review cautions against getting locked into your strategic plan and forgetting that strategy involves inherent risk and discomfort. A good strategic plan evolves and shifts as opportunities and threats arise.

“Most people think of strategy as an event, but that’s not the way the world works,” says Harvard Business School Professor Clayton Christensen in the online course Disruptive Strategy . “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry."

Related: 5 Tips for Formulating a Successful Strategy

4 Characteristics of Strategic Goals

To craft a strategic plan for your organization, you first need to determine the goals you’re trying to reach. Strategic goals are an organization’s measurable objectives that are indicative of its long-term vision.

Here are four characteristics of strategic goals to keep in mind when setting them for your organization.

1. Purpose-Driven

The starting point for crafting strategic goals is asking yourself what your company’s purpose and values are . What are you striving for, and why is it important to set these objectives? Let the answers to these questions guide the development of your organization’s strategic goals.

“You don’t have to leave your values at the door when you come to work,” says HBS Professor Rebecca Henderson in the online course Sustainable Business Strategy .

Henderson, whose work focuses on reimagining capitalism for a just and sustainable world, also explains that leading with purpose can drive business performance.

“Adopting a purpose will not hurt your performance if you do it authentically and well,” Henderson says in a lecture streamed via Facebook Live . “If you’re able to link your purpose to the strategic vision of the company in a way that really gets people aligned and facing in the right direction, then you have the possibility of outperforming your competitors.”

Related: 5 Examples of Successful Sustainability Initiatives

2. Long-Term and Forward-Focused

While strategic goals are the long-term objectives of your organization, operational goals are the daily milestones that need to be reached to achieve them. When setting strategic goals, think of your company’s values and long-term vision, and ensure you’re not confusing strategic and operational goals.

For instance, your organization’s goal could be to create a new marketing strategy; however, this is an operational goal in service of a long-term vision. The strategic goal, in this case, could be breaking into a new market segment, to which the creation of a new marketing strategy would contribute.

Keep a forward-focused vision to ensure you’re setting challenging objectives that can have a lasting impact on your organization.

3. Actionable

Strong strategic goals are not only long-term and forward-focused—they’re actionable. If there aren’t operational goals that your team can complete to reach the strategic goal, your organization is better off spending time and resources elsewhere.

When formulating strategic goals, think about the operational goals that fall under them. Do they make up an action plan your team can take to achieve your organization’s objective? If so, the goal could be a worthwhile endeavor for your business.

4. Measurable

When crafting strategic goals, it’s important to define how progress and success will be measured.

According to the online course Strategy Execution , an effective tool you can use to create measurable goals is a balanced scorecard —a tool to help you track and measure non-financial variables.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” says HBS Professor Robert Simons in the online course Strategy Execution . “These additional perspectives help businesses measure all the activities essential to creating value.”

The four perspectives are:

• Internal business processes
• Learning and growth

The most important element of a balanced scorecard is its alignment with your business strategy.

“Ask yourself,” Simons says, “‘If I picked up a scorecard and examined the measures on it, could I infer what the business's strategy was? If you've designed measures well, the answer should be yes.”

Related: A Manager’s Guide to Successful Strategy Implementation

Strategic Goal Examples

Whatever your business goals and objectives , they must have all four of the characteristics listed above.

For instance, the goal “become a household name” is valid but vague. Consider the intended timeframe to reach this goal and how you’ll operationally define “a household name.” The method of obtaining data must also be taken into account.

An appropriate revision to the original goal could be: “Increase brand recognition by 80 percent among surveyed Americans by 2030.” By setting a more specific goal, you can better equip your organization to reach it and ensure that employees and shareholders have a clear definition of success and how it will be measured.

If your organization is focused on becoming more sustainable and eco-conscious, you may need to assess your strategic goals. For example, you may have a goal of becoming a carbon neutral company, but without defining a realistic timeline and baseline for this initiative, the probability of failure is much higher.

A stronger goal might be: “Implement a comprehensive carbon neutrality strategy by 2030.” From there, you can determine the operational goals that will make this strategic goal possible.

No matter what goal you choose to pursue, it’s important to avoid those that lack clarity, detail, specific targets or timeframes, or clear parameters for success. Without these specific elements in place, you’ll have a difficult time making your goals actionable and measurable.

Prioritizing Strategic Goals

Once you’ve identified several strategic goals, determine which are worth pursuing. This can be a lengthy process, especially if other decision-makers have differing priorities and opinions.

To set the stage, ensure everyone is aware of the purpose behind each strategic goal. This calls back to Henderson’s point that employees’ alignment on purpose can set your organization up to outperform its competitors.

Calculate Anticipated ROI

Next, calculate the estimated return on investment (ROI) of the operational goals tied to each strategic objective. For example, if the strategic goal is “reach carbon-neutral status by 2030,” you need to break that down into actionable sub-tasks—such as “determine how much CO2 our company produces each year” and “craft a marketing and public relations strategy”—and calculate the expected cost and return for each.

The ROI formula is typically written as:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula uses slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

An estimate can be a valuable piece of information when deciding which goals to pursue. Although not all strategic goals need to yield a high return on investment, it’s in your best interest to calculate each objective's anticipated ROI so you can compare them.

Consider Current Events

Finally, when deciding which strategic goal to prioritize, the importance of the present moment can’t be overlooked. What’s happening in the world that could impact the timeliness of each goal?

For example, the coronavirus (COVID-19) pandemic and the ever-intensifying climate change crisis have impacted many organizations’ strategic goals in 2020. Often, the goals that are timely and pressing are those that earn priority.

Learn to Plan Strategic Goals

As you set and prioritize strategic goals, remember that your strategy should always be evolving. As circumstances and challenges shift, so must your organizational strategy.

If you lead with purpose, a measurable and actionable vision, and an awareness of current events, you can set strategic goals worth striving for.

Do you want to learn more about strategic planning? Explore our online strategy courses and download our free flowchart to determine which is right for you and your goals.

This post was updated on November 16, 2023. It was originally published on October 29, 2020.

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Strategic planning

Growing a business means taking many decisions about the way you want to expand your operations. Creating a strategic plan is a key component of planning for growth. It will help you prepare a realistic vision for the future of your business and in doing so can maximise your business' potential for growth.

A strategic plan should not be confused with a business plan. A business plan is about setting short- or mid-term goals and defining the steps necessary to achieve them. A strategic plan is typically focused on a business' mid- to long-term goals and explains the basic strategies for achieving them.

This guide sets out the basics of the strategic planning process. It explains how to go about drawing up a strategic plan, it highlights some important issues to bear in mind and it shows how to turn from planning to implementation.

The purpose of strategic planning

The three key elements of strategic planning, getting started with strategic planning, build your plan on solid strategic analysis, what a written strategic plan should include, some important strategic planning issues to consider, implementing a strategic plan.

The purpose of strategic planning is to set your overall goals for your business and to develop a plan to achieve them. It involves stepping back from your day-to-day operations and asking where your business is headed and what its priorities should be.

Why strategic planning matters more to growing businesses

Taking the decision actively to grow a business means embracing the risks that come with growth. Spending time on identifying exactly where you want to take your business - and how you will get there - should help you reduce and manage those risks.

As your business becomes larger and more complex, so strategy formulation will need to become more sophisticated, both to sustain growth and to help you muster the leadership and resources you need to keep your business developing.

To do this, you will also need to start collecting and analysing a wider range of information about your business - both about how it operates internally and about how conditions are developing in your current and potential markets.

The difference between strategic planning and writing a business plan

The process of strategic planning is about determining the direction in which you want to take your business. It involves setting out your overall goals for your business. By contrast, the purpose of the business plan is to provide the detailed roadmap that will take you in your desired direction.

Your strategic planning and your business planning should be complementary, but effective strategy development requires you to shift your focus from the day-to-day concerns of your business and to consider your broader and longer-term options.

Developing a strategy for business growth requires you to deepen your understanding of the way your business works and its position relative to other businesses in your markets. As a starting point, you need to ask yourself the following three questions:

• Where is your business now? This involves understanding as much about your business as possible, including how it operates internally, what drives its profitability, and how it compares with competitors. Keep your review separate from day-to-day work and be realistic, detached and critical in distinguishing between the cause and effect of how your business operates. You should also write it down and review it periodically.
• Where do you want to take it? Here you need to set out your top-level objectives. Work out your vision, mission, objectives, values, techniques and goals. Where do you see your business in five or ten years? What do you want to be the focus of your business and your source of competitive advantage over your rivals in the marketplace? This step should be the foundation for the final plan and motivate change.
• What do you need to do to get there? What changes will you need to make in order to deliver on your strategic objectives? What is the best way of implementing those changes - what changes to the structure and financing of your business will be required and what goals and deadlines will you need to set for yourself and others in the business? Think about the business as a whole, for example consider diversification, existing growth, acquisition plans, as well as functional matters in key areas.

While the second question - Where do you want to take it? - is at the heart of the strategic planning process, it can only be considered usefully in the context of the other two.

You should balance your vision for the business against the practical realities of your current position and changes, such as increased investment in capital and other resources that would be required to implement your vision. A strategic plan needs to be realistically achievable.

As with any business activity, the strategic planning process itself needs to be carefully managed. Responsibilities and resources need to be assigned to the right people and you need to keep on top of the process.

Who to involve

Try to find people who show the kind of analytical skills that successful strategic planning depends upon. Try to find a mix of creative thinkers and those with a solid grasp of operational detail.

A good rule of thumb is that you shouldn't try to do it all yourself. Take on board the opinions of other staff - key employees, accountants, department heads, board members - and those of external stakeholders, including customers, clients, advisors and consultants.

How to structure the process

There is no right or wrong way to plan the process of strategic planning, but be clear in advance about how you intend to proceed. Everyone involved should know what is expected of them and when.

For example, you may decide to hold a series of weekly meetings with a strategy team before delegating the drafting of a strategy document to one of its members. Or you might decide to block off a day or two for strategy brainstorming sessions - part of which might involve seeking contributions from a broader range of employees and even key customers.

Getting the planning document right

The priority with strategic planning is to get the process right. But don't neglect the outcome - it's also important to make sure you capture the results in a strategic planning document that communicates clearly to everyone in your business what your top-level objectives are. Such a document should:

• reflect the consensus of those involved in drafting it
• be supported by key decision-makers, notably owners and investors
• be acceptable to other stakeholders, such as your employees

Strategic planning is about positioning your business as effectively as possible in the marketplace. So you need to make sure that you conduct as thorough as possible an analysis of both your business and your market.

There is a range of strategic models that you can use to help you structure your analysis here. These models provide a simplified and abstract picture of the business environment. SWOT (strengths, weaknesses, opportunities and threats) analysis is probably the best-known model and is used by both smaller and bigger businesses in the for-profit and not-for-profit sectors alike. STEEPLE (social, technological, economic, environmental, political, legal, ethical) and Five Forces analysis are two other widely used models.

A SWOT analysis involves identifying an objective of a business or project and then identifying the internal and external factors that are favourable and unfavourable to achieving that goal.

These factors are considered using four elements:

• s trengths - attributes of the business that can help in achieving the objective
• w eaknesses - attributes of the business that could be obstacles to achieving the objective
• o pportunities - external factors that could be helpful to achieving the objective
• t hreats - external factors that could be obstacles to achieving the objective

There are other models you can use to assess your strategic position. STEEPLE analysis, for example breaks the business environment down into the following components:

s ocial –e.g. demographic trends or changing lifestyle patterns

t echnological – e.g. the emergence of competing technologies, or productivity-improving equipment for your business

e conomic – e.g. interest rates, inflation and changes in consumer demand

e nvironmental – e.g. changing expectations of customers, regulators and employees on sustainable development

p olitical – e.g. changes to taxation, trading relationships or grant support for businesses

l egal – e.g. changes to employment law, or to the way your sector is regulated

e thical – e.g. ethical and moral standards governing policies and practices

STEEPLE analysis is often used alongside SWOT analysis to help identify opportunities and threats.

Five Forces

The Five Forces model aims to help businesses understand the drivers of competition in their markets. It identifies five key determinants of how operating in a given market is likely to be for a business:

• customers' bargaining power - the higher it is (perhaps because there is a small number of major buyers for your product or service) the more downward pressure on prices and thus revenue they will be able to exert
• suppliers' bargaining power - the ability of suppliers to push prices up (for instance if you rely on a single firm) can impact significantly on costs and profitability
• the threat of new competitors entering your market or industry - more businesses competing makes it more difficult to retain market share and maintain price levels
• the threat of customers switching to substitute products and services - an example would be the threat to fax machine manufacturers posed by the wide availability of email
• the level of competition between businesses in the market - this depends on a wide range of factors, including the number and relative strength of the businesses and the cost to customers of switching between them.

There is no set blueprint for how to structure a strategic plan, but it is good practice to include the following elements:

• Analysis of internal drivers - corresponding, for example, to the strengths and weaknesses of a SWOT (strengths, weaknesses, opportunities and threats) analysis.
• Analysis of external drivers - this should cover factors such as market structure, demand levels and cost pressures, all of which correspond to the opportunities and threats elements of a SWOT analysis.
• Vision statement - a concise summary of where you see your business in five to ten years' time.
• Top-level objectives - these are the major goals that need to be achieved in order for your vision for the business to be realised. These might include attracting a new type of customer, developing new products and services, or securing new sources of finance.
• Implementation - this involves setting out the key actions (with desired outcomes and deadlines) that will need to be completed to attain your top level objectives.
• Resourcing - a summary of the implications your proposed strategy will have for the resources your business needs. This will reflect financing requirements, as well as factors such as staffing levels, premises and equipment.

You may also want to consider adding an executive summary . This can be useful for prospective investors and other key external stakeholders.

Growing a business can pose some considerable personal challenges to the owner or manager, whose role can change dramatically as the business grows.

Effective strategic planning involves considering options that challenge the way that business has been done up to this point. It may be that decision-making in some areas will be handed to others, or that processes which have worked well in the past will no longer fit with future plans.

It can be tempting for owners or managers to overlook alternatives that are uncomfortable for them personally, but to disregard your options on these grounds can seriously compromise your strategic plan and ultimately the growth of your business.

Examples of the kind of issues that tend to get overlooked by growing businesses include:

• The future role of the owner - for example, it may be in the best interests of the business for the owner to focus on a smaller number of responsibilities, or to hand over all day-to-day control to someone with greater experience.
• The location of the business - most small businesses are located close to where the owner lives. But as a business grows it may make sense to relocate the business -for example, to be closer to greater numbers of customers or employees with certain skills.
• Ownership structure - growing businesses in particular should ensure that they get this right. The more a business grows, the more sophisticated it needs to be about meeting its financing needs. In many cases, the best option is for the owner to give up a share of the business in return for equity finance - but this can be emotionally difficult to do.

In the final analysis, it is the owner of the business who decides the strategic plan. Growing a business is not something done "at all costs". However, an honest assessment of the options allows for any decisions made to be as informed as possible.

The plan needs to be implemented and this implementation process requires planning.

The key to implementation of the objectives identified in the strategic plan is to assign goals and responsibilities with budgets and deadlines to responsible owners - key employees or department heads, for example.

Monitoring the progress of the implementation plan and reviewing the strategic plan against implementation will be an ongoing process. The fit between implementation and strategy may not be perfect from the outset and the implications of implementing the strategy may make it necessary to tweak the strategic plan.

Monitoring implementation is the key. Using key performance indicators (KPIs) and setting targets and deadlines is a good way of controlling the process of introducing strategic change.

Your business plan is another important tool in the implementation process. The business plan is typically a short-term and more concrete document than the strategic plan and it tends to focus more closely on operational considerations such as sales and cash flow trends. If you can ensure that your strategic plan informs your business plan, you'll go a long way to ensuring its implementation.

Remember that strategic planning can involve making both organisational and cultural changes to the way your business operates.

Original document, Strategic planning , © Crown copyright 2009 Source: Business Link UK (now GOV.UK/Business ) Adapted for Québec by Info entrepreneurs

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Business plan vs Strategic Plan - What You Must Know

Like everything else in life, the nature of business needs a plan in place to follow and measure. Crafting a strategic roadmap isn't just a suggestion—it's a necessity.

This is one of the key elements of a startup or even a business division within an organization that is expanding or diversifying. It has every resource element and needs to be mapped out for the business, including projected milestones for the future.

However, every business strategist needs to know that there are some subtle differences between what constitutes a business plan, and the several differences it has with a strategic plan. Let’s walk through the different elements that comprise each and understand the outcome each aims to achieve.

Introducing The Business Plan

A business plan is exactly what the name suggests— a plan to start and run a business or a new entity of an existing business; usually either an expansion in a newer region or a diversification into a new market. Business plans are mainly created for internal reference purposes or external funding purposes, with the latter being the common usage. They form the basis of all business strategies and decisions made at the ownership level in an organization. The most essential components of a business plan include:

Organizational Plan - This is the core of a business plan, and it includes the mission and vision statement, along with the market in which the company plans to operate. This plan also encompasses thorough market research to gauge the potential of the business, crucial for securing funding or sponsorship. It articulates the rationale behind the business's growth trajectory, outlining clear timelines for achieving milestones along the way.

Financial Plan - A robust financial plan is the bedrock of any successful business venture, where cash flow reigns supreme, and a meticulously crafted balance sheet serves as the ultimate scorecard. A financial plan includes some of the most important elements of the entire business plan and includes elements like projected cash flow statements, capital requirements, a summary of projected overheads, a projected balance sheet including assets and liabilities, and income and expense statements.

Remember to regard this as the central nervous system, for it permeates and influences almost every aspiration the enterprise hopes to attain.

Sales and Marketing Plan - We mentioned “almost” everything above for this very reason. Sales and marketing form the other significant component of the business plan. These include sales forecasts and overheads, marketing and brand management summaries, and market share projections that the business hopes to achieve within a time frame.

Business plans are indeed comprehensive and all-encompassing. They form the basis of the business's existence or the rationale for investments in it. But what about translating these plans into action? How do we ensure that the sky-high goals set forth are actually achievable?

The Actionables- A Strategic Plan

Strategic plans constitute the basis of operations and responsibilities within the business. These plans lay the paths out for each member of the organization to follow and define the functional outline and the key outcomes for every project and process within the business. A strategic plan goes on to define the operations and their outcomes within the organization, its departments, and its employees. The single thread connecting strategic planning with the business plan is the vision of the organization, and for obvious reasons— vision serves as the guiding light for strategy formation, which, in turn, directs the day-to-day operations of the business.

Why A Strategic Plan is Crucial to The Organization

In a word— synchronization. A robust and well-laid-out strategic plan establishes the much-needed sync between teams and their objectives. Not only that, it also provides a guide for daily operations alongside the focus and direction that teams often need to get the job done, on time and within budget. When all these components are integrated into a cohesive network, the true value of a strategic plan emerges—a seamless and grand orchestration of departments, teams, and individuals using the resources allocated to them to achieve the key performance indicator that they are responsible for.

Elements to Consider in a Strategic Plan

When tasked with creating a strategic plan for your business, you will need to incorporate certain components that will ensure that the stakeholders are aligned completely with the organization’s goals and objectives. These include:

Vision and Values - The vision statement is the most important component of the strategic plan and the most overarching. It propels the organization towards established goals and the values that every employee and stakeholder must incorporate.

Goals - These are short, medium, or long-term, depending on the scope of the strategic plan. They provide the much-needed context for the organization to undertake initiatives that meet the vision while maintaining the values.

Guiding Principles - Often, organizations face crossroads where they must decide which steps to take next, to reach their vision. Principles are included in strategic plans to align teams towards the vision when faced with a dilemma and form a critical part of strategic planning.

Action Plans - A sum of key initiatives, processes, and projects that are required to be performed on a pre-determined periodic basis for the goal to be accomplished. These also include the time frames for each stakeholder responsible for each option. They usually follow the DACI format for each action (Driver, Approver, Contributor, Informed)

SWOT Analysis - The quintessential component, the Strength, Weaknesses, Opportunities, and Threats analysis of the strategic plan lends context to all business actions vis-a-vis the external environment. This includes competitors, market forces and conditions, identification of internal and external threats, and several other factors.

Read This - SWOT Analysis: How to Strengthen Your Business Plan

Here’s a table highlighting the main differences between a Business Plan and a Strategic Plan with a focus on the key components of each—

Learning All About Strategic Planning

In all businesses, a strategic plan serves as the foundational blueprint, akin to a meticulously drawn map for a general. It provides the essential guidance and direction needed for the entire organization to navigate toward success. It is crucial, therefore, to acquire the necessary skills and certifications for employment as a business strategist who would be entrusted with creating it. Know more about how to become a successful and sought-after business strategist today!

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Better Knowledge. Your Insight Is Sharper

From Idea to Implementation: Essential Business Planning Strategies

Updated: August 25, 2024 · Reviewed by: Ahmad Nasrudin

This post may contain affiliate links, meaning we may earn a small commission if you purchase through our links. This helps support our work.

Business planning is a crucial step in starting and growing a successful enterprise. It provides a roadmap for your venture, outlining your goals, strategies, and financial projections.

Whether you’re a budding entrepreneur or an established business owner, a well-crafted business plan can help you:

• Define your business goals and objectives
• Conduct thorough market research
• Develop a sound financial strategy
• Attract investors and secure funding
• Measure progress and make informed decisions

In this comprehensive guide, we’ll walk you through the process of creating a business plan, from understanding the key components to developing effective strategies. By the end, you’ll be equipped to build a solid foundation for your business and increase your chances of success.

Understanding Business Planning

What is a business plan.

A business plan is a comprehensive document that outlines your business strategy, goals, and financial projections. It serves as a roadmap for your venture, guiding your decisions and attracting potential investors.

There are several types of business plans, each with its own specific focus:

• Operational plans: These plans focus on a business’s day-to-day operations, including production, marketing, sales, and customer service.
• Strategic plans: Strategic plans outline a company’s long-term goals and objectives, and the strategies for achieving them.
• Marketing plans: Marketing plans focus on the specific marketing strategies and tactics that a business will use to reach its target market.

Why is a business plan important?

A well-crafted business plan offers numerous benefits, including:

• Improved decision-making: A business plan helps you make informed decisions by providing a clear framework for your business strategy.
• Attracting investors and securing funding: Investors are likelier to invest in businesses with well-thought-out plans.
• Enhanced credibility: A business plan demonstrates your understanding of the market, your industry, and your business’s potential.
• Increased focus and accountability: A business plan helps you stay focused on your goals and measure your progress.
• Risk mitigation: By identifying potential risks and challenges, a business plan can help you develop strategies to mitigate them.

A business plan is essential for any entrepreneur or business owner, providing a foundation for success and growth.

Creating a Business Plan

What are the key components of a business plan.

A well-structured business plan typically includes the following key components:

• Executive summary: A concise business overview, including your mission, vision, and key value proposition.
• Company description: A detailed description of your business, including its legal structure , ownership, and management team.
• Market analysis: An in-depth analysis of your target market, competition, and industry trends.
• Organizational structure: A breakdown of your company’s organizational chart and responsibilities.
• Products or services: A detailed description of your offerings, including their features, benefits, and pricing.
• Marketing and sales plan: Your strategy for promoting your products or services and generating sales.
• Financial projections: Your projected income statement, balance sheet, and cash flow statement.

Each of these components is essential for a comprehensive business plan. Together, they provide a clear picture of your business, its market potential, and its financial viability.

How long should a business plan be?

While a business plan has no strict length requirement, it is typically 15-25 pages long . However, the length may vary depending on the complexity of your business and the level of detail required.

A shorter plan may be sufficient for a small, simple business, while a larger, more complex business may require a more detailed plan. The key is to ensure that your plan is clear and concise and provides the necessary information to attract investors or secure funding.

Who should read my business plan?

Your business plan can be valuable to a variety of stakeholders, including:

• Investors: Investors may use your business plan to assess the potential return on their investment.
• Lenders: Lenders may use your business plan to evaluate your creditworthiness and determine whether to provide funding.
• Employees: Employees can use the business plan to understand the company’s goals, strategy, and their role within the organization.
• Suppliers: Suppliers may use your business plan to assess your financial stability and future growth potential.
• Partners: Partners can use your business plan to understand your business goals and how you plan to collaborate.

By sharing your business plan with relevant stakeholders, you can build relationships, secure funding, and gain valuable insights and support.

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Market Analysis

What is market research.

Market research is the process of gathering and analyzing information about a market. It helps you understand your target market, competition, industry trends, and consumer behavior.

There are two main types of market research:

• Primary research: Collecting original data through surveys, focus groups, interviews, or observations.
• Secondary research: Analyzing existing data from government agencies, industry reports, academic studies, and other sources.

How can I conduct market research?

There are numerous methods for conducting market research, both online and offline. Here are some common approaches and resources:

• Surveys: Gather quantitative and qualitative data by creating surveys using online tools like SurveyMonkey or Google Forms.
• Focus groups: Conduct group discussions to obtain insights and feedback from potential customers.
• Interviews: Interview individuals in your target market to gain deeper understanding and perspectives.
• Online research: Use search engines, industry databases, and social media platforms to find information on market trends, competitors, and consumer behavior.
• Government data: Utilize government agencies like the U.S. Census Bureau and the Bureau of Labor Statistics for demographic data and economic indicators.
• Industry reports: Consult reports from organizations like Forrester, Gartner, and IBISWorld for in-depth market analysis.
• Social media listening: Monitor social media platforms to track conversations and sentiment about your industry and competitors.

When conducting market research, consider the following tips:

• Define your research objectives: Clearly outline what you want to learn from your research.
• Choose appropriate methods: The research methods best suit your objectives and resources.
• Develop a sampling plan: Determine who you will survey or interview and how you will select your sample.
• Analyze your data: Use statistical tools and techniques to analyze your research data and draw meaningful conclusions.
• Interpret your findings: Consider the implications of your research findings and how they can inform your business strategy.

By following these guidelines and combining various research methods, you can gather valuable insights to inform your business decisions and develop effective marketing strategies.

What is a target market?

Your target market is the specific people most likely to purchase your product or service. Identifying your target market is essential for effectively marketing your business and tailoring your offerings to meet their needs.

Here are some strategies to help you identify your target market:

• Create customer personas: Develop detailed profiles of your ideal customers, including their demographics (age, gender, income, education, location), psychographics (lifestyle, interests, values, beliefs), and behaviors (purchasing habits, brand preferences, online behavior).
• Analyze your existing customers: If you have an existing business, analyze the characteristics of your current customers to identify patterns and trends.
• Conduct market research: Use surveys, focus groups, and interviews to gather data about potential customers and their preferences.

By understanding your target market, you can tailor your marketing efforts and product offerings to meet their specific needs and preferences, increasing your chances of success.

Financial Projections

What financial statements should i include.

When creating your business plan, you should include the following financial statements :

• Income statement: Also known as a profit and loss statement, this shows your business’s revenue, expenses, and net income over a specific period.
• Balance sheet: This statement shows your business’s assets, liabilities, and equity at a specific point in time.
• Cash flow statement: This statement shows the cash flow in and out of your business over a specific period.

These three interrelated statements provide a comprehensive picture of your business’s financial health.

How do I create financial projections?

Financial projections are estimates of your business’s future financial performance. To create accurate projections, you’ll need to use a combination of historical data, industry benchmarks, and assumptions about future growth.

Here are some steps to follow:

• Gather historical data: Collect data on your past sales, expenses, and cash flow.
• Analyze industry trends: Research industry trends and forecasts to identify potential opportunities and challenges.
• Make assumptions about future growth: Make reasonable assumptions about your business’s future sales, expenses, and other factors.
• Create financial projections: Use this information to create projections for your income statement, balance sheet, and cash flow statement.

Remember that financial projections are just estimates, and actual results may vary. It’s important to regularly review and update your projections as your business grows and changes.

What is a break-even analysis?

A break-even analysis is a financial tool that helps you determine the sales volume you need to cover your costs and start making a profit. It calculates your break-even point, the point at which your total revenue equals your total costs.

To calculate your break-even point, you’ll need to know your fixed costs (costs that remain constant regardless of sales volume) and your variable costs (costs that vary with sales volume). You can then use the following formula:

• Break-even point = Fixed costs / (Selling price per unit – Variable cost per unit)

By understanding your break-even point, you can assess the feasibility of your business model and make informed decisions about pricing, sales targets, and cost-cutting measures.

Attracting Investors and Securing Funding

How can i attract investors.

Attracting investors requires effective communication , networking, and showcasing your business’s potential. Here are some key strategies:

• Create a compelling pitch deck: Develop a visually appealing and informative presentation highlighting your business idea , market opportunity, financial projections, and team.
• Network with potential investors: Attend industry events, connect with investors through online platforms, and leverage your professional network to identify potential investors.
• Highlight your business’s potential: Emphasize the growth potential of your business, the return on investment for investors, and the unique value proposition of your product or service.

What types of funding are available?

There are various funding sources available for businesses, each with its own advantages and disadvantages:

• Angel investors: Individuals who invest their own money in early-stage businesses. Angel investors often provide capital in exchange for equity.
• Venture capital firms: Companies that invest in high-growth businesses. Venture capital firms typically invest larger sums of money and expect higher returns.
• Banks: Banks offer loans to businesses, which can be used to finance operations, purchase equipment, or invest in growth.
• Crowdfunding platforms: Online platforms that allow individuals to raise funds from many people. Crowdfunding can be a valuable source of funding for startups and small businesses.

The most suitable funding source for your business will depend on your specific needs, its stage, and your ability to meet the requirements of different investors.

What should I include in my funding pitch?

A strong funding pitch should clearly articulate the following:

• Your business idea: Explain what your business does and the problem it solves.
• Market opportunity: Demonstrate the size and growth potential of your target market.
• Competitive advantage: Explain what sets your business apart from competitors.
• Financial projections: Present your financial projections, including revenue, expenses, and profitability.
• Team: Highlight your team members’ skills, experience, and passion.
• Investment requirements: Clearly state the funding you seek and how the funds will be used.

By following these guidelines and tailoring your pitch to your specific audience, you can increase your chances of attracting investors and securing the funding you need to grow your business.

Measuring Progress and Making Informed Decisions

How can i track my business’s progress.

Tracking your business’s progress is essential for identifying areas of strength and weakness, making informed decisions, and ensuring you’re on track to achieve your goals. Key performance indicators (KPIs) are metrics you can use to measure your business’s performance against specific goals.

Some examples of KPIs include:

• Sales revenue: Total revenue generated by your business.
• Profit margin: The percentage of revenue that remains after deducting expenses.
• Customer acquisition cost : The cost of acquiring a new customer.
• Customer retention rate: The percentage of customers who continue to do business with you.
• Market share: The percentage of a market that your business controls.
• Employee satisfaction: The level of satisfaction among your employees.

By tracking these KPIs and comparing them to your goals, you can identify areas where you are succeeding and areas where you need to improve.

How can I make informed decisions?

Making informed decisions is crucial for the success of your business. Here are some tips for making effective decisions:

• Regularly review your business plan: As your business evolves, it’s important to review and update it to ensure it aligns with your current goals and strategies.
• Analyze data: Use data from your KPIs and other sources to identify trends, opportunities, and challenges.
• Be prepared to adapt: The business landscape constantly changes, so adapt your strategy as needed.
• Seek advice and guidance: Don’t be afraid to seek advice from mentors, advisors, or other experts.
• Trust your instincts: While data and analysis are important, sometimes you must trust your gut and make decisions based on intuition.

By following these tips, you can make informed decisions to help your business grow and succeed.

Additional Tips

How often should i update my business plan.

Your business plan should be a living document that evolves as your business grows and changes. Reviewing and updating your plan regularly is important to ensure it remains relevant and effective.

The frequency of updates will depend on several factors, including:

• Business growth: As your business expands, you must update your financial projections and market analysis.
• Market changes: If your industry or target market undergoes significant changes, you may need to revise your business strategy.
• Performance: If your business is not meeting its goals, you may need to adjust your plan.

A general guideline is to review and update your business plan annually or more frequently if necessary.

Can I use a business plan template?

Using a business plan template can be a helpful starting point, but it’s important to customize it to fit your specific business. Templates can provide a structure and outline but may not include all the necessary sections or address your unique needs.

Advantages of using a template:

• Saves time: Templates can help you start quickly and avoid common mistakes.
• Provides structure: Templates can help you organize your thoughts and ensure that you include all the essential elements of a business plan.

Disadvantages of using a template:

• Lack of customization: Templates may not be tailored to your specific industry or business model.
• Limited flexibility: Templates can be restrictive, limiting your ability to add or remove sections as needed.

When choosing a template, look for one that is well-structured, easy to use, and adaptable to your specific business needs.

Should I seek professional help?

While you can create a basic business plan on your own, consulting with a business advisor or accountant can provide valuable guidance and expertise. Professionals can help you:

• Develop a comprehensive plan: Ensure that your plan includes all the necessary components and is well-structured.
• Conduct market research: Gather and analyze data to inform your business strategy.
• Create financial projections: Develop accurate financial projections based on industry benchmarks and your business’s specific circumstances.
• Identify potential challenges and opportunities: Assess the risks and rewards associated with your business venture.
• Provide guidance and support: Receive ongoing support and advice as you implement your business plan.

If you’re unsure about your ability to create a high-quality business plan, consider consulting with a professional. They can help you develop a plan to increase your chances of success.

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Introverted writer with a passion for storytelling. Leveraged analytical skills from financial background (equity research, credit risk) at a leading rating agency to enhance writing with a unique statistical and macroeconomic perspective. Learn more about me

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How to Create a Strategic Intellectual Property Plan

Creating a strategic intellectual property (IP) plan involves identifying and categorizing IP assets, conducting a thorough IP audit and analysis, and developing targeted protection strategies. This includes implementing robust IP management systems, conducting regular IP audits, and establishing clear IP policies and procedures. A strategic IP plan should also optimize the IP portfolio, leverage IP for business growth, and monitor and enforce IP rights. By following these steps, companies can harness the full value of their intangible assets, mitigate potential risks, and drive business growth. Further, a thorough approach will reveal the full scope of IP's potential to drive business success.

Table of Contents

Identify Your Intellectual Property

Determine the scope of your intellectual property by categorizing and cataloging your company's intangible assets, including patents, trademarks, copyrights, trade secrets, and proprietary information . This vital step enables you to understand the breadth and depth of your IP portfolio, facilitating strategic decision-making. To accomplish this, implement an IP Classification system, which involves assigning relevant categories to each IP asset based on its type, function, and application. This systematic approach verifies that all IP assets are accounted for and facilitates the identification of potential gaps or areas for development.

Innovation Mapping is another key tool in identifying your intellectual property. This visual representation of your company's innovation ecosystem helps to illustrate the relationships between different IP assets, technologies, and business units. By mapping the innovation landscape, you can identify areas of strength, weakness, and opportunity, providing a foundation for informed IP strategy development. A thorough understanding of your IP portfolio, facilitated by IP Classification and Innovation Mapping, is vital for creating a strategic intellectual property plan that aligns with your business objectives.

Conduct IP Audit and Analysis

Conducting a thorough IP audit and analysis is a critical step in understanding the current state of your intellectual property portfolio, as it provides a detailed assessment of the strengths, weaknesses, and vulnerabilities of your IP assets. This in-depth review enables you to gain a deeper understanding of your IP landscape, identifying areas of opportunity, potential risks, and untapped value. To conduct a thorough audit, establish an audit framework that considers factors such as IP type, geographic scope, and industry relevance. This framework will guide your analysis, ensuring a systematic and structured approach. During the audit, gather and analyze data on your IP assets, including patents, trademarks, copyrights, and trade secrets . This information will help you identify gaps in your IP protection, areas for improvement, and opportunities for strategic growth. By conducting a rigorous IP audit and analysis, you will be well-equipped to make informed decisions about your IP portfolio, ultimately driving business growth and competitiveness.

Determine IP Protection Strategies

To establish a thorough intellectual property plan, it is essential to determine effective protection strategies. This involves a meticulous examination of potential risks and threats to IP assets, as well as the development of responsive measures to mitigate them. By identifying IP risks, evaluating IP threats, and developing IP response strategies, organizations can safeguard their valuable intellectual property.

Identify IP Risks

A thorough intellectual property (IP) risk assessment is vital to determining the most effective protection strategies, as it reveals vulnerabilities in IP assets and potential threats from competitors, infringers, and unauthorized users. This assessment involves identifying risk factors that can compromise IP assets, such as unsecured digital storage, inadequate confidentiality agreements, and insufficient patent protection. Companies must also be aware of IP landmines, which are hidden risks that can lead to costly legal battles, reputational damage, and financial losses. These landmines can include unregistered trademarks, unpatented inventions, and unmonitored copyright infringement. By identifying these risks, companies can develop targeted strategies to mitigate them, such as implementing robust IP management systems, conducting regular IP audits, and establishing clear IP policies. A meticulous IP risk assessment is critical to creating a strategic IP plan that protects IP assets, safeguards business interests, and drives innovation.

Assess IP Threats

Having identified potential IP risks, companies must now assess the specific threats these risks pose to their IP assets and determine the most effective protection strategies to mitigate them. This involves evaluating the likelihood and potential impact of each risk, as well as the level of vulnerability of their IP assets to IP espionage, cyber attacks, and other forms of intellectual property theft.

A thorough threat assessment should consider both internal and external threats, including employee misconduct, unauthorized access, and cyber intrusions. Companies should also evaluate the potential consequences of IP theft, including financial losses, reputational damage, and loss of competitive advantage. By understanding the specific threats facing their IP assets, companies can develop targeted protection strategies, such as encryption, access controls, and monitoring systems, to prevent or mitigate IP theft. Additionally, companies should consider implementing policies and procedures for responding to IP threats, such as incident response plans and crisis communication strategies.

Develop IP Response

Companies must devise a thorough IP response strategy that integrates multiple layers of protection to safeguard their intellectual property assets from theft, misappropriation, and unauthorized use. This response strategy should be tailored to address potential IP crises and contingencies, ensuring swift and effective action in the event of an IP-related emergency. An all-encompassing IP response plan should include clear protocols for detecting and responding to IP infringement, as well as procedures for containing and mitigating the damage. This may involve collaborating with law enforcement, working with legal counsel, and engaging in public relations efforts to mitigate reputational harm. In addition, companies should establish an IP crisis management team, responsible for coordinating the response effort and making strategic decisions in real-time. By developing a robust IP response strategy, companies can minimize the risk of IP theft and misappropriation, and protect their valuable intellectual property assets from unauthorized use.

Develop IP Portfolio Management

Effective IP portfolio management is vital for maximizing the value of intellectual property assets. To achieve this, it is imperative to establish a thorough IP asset inventory, which catalogs and describes each IP asset, including patents, trademarks, copyrights, and trade secrets. This inventory serves as the foundation for a meticulous portfolio risk assessment, enabling the identification of potential vulnerabilities and opportunities for strategic growth.

IP Asset Inventory

A thorough IP asset inventory is a vital foundation of IP portfolio management, as it provides a detailed catalog of all intellectual property assets, including patents, trademarks, copyrights, and trade secrets. This comprehensive catalog enables IP owners to identify, organize, and classify their IP assets, facilitating strategic decision-making and effective management.

Effective IP organization is critical in creating a robust IP asset inventory. This involves categorizing IP assets by type, jurisdiction, and status, as well as assigning unique identifiers and descriptions. Asset classification is also essential, as it allows IP owners to group similar assets together, facilitating analysis and decision-making. For instance, IP assets can be classified by their stage of development, market relevance, or revenue potential. A well-structured IP asset inventory provides a solid foundation for IP portfolio management, enabling IP owners to identify opportunities, mitigate risks, and optimize their IP portfolio. By maintaining an accurate and up-to-date IP asset inventory, IP owners can ensure that their IP assets are aligned with their business objectives and are being leveraged to maximize value.

Portfolio Risk Assessment

With a thorough IP asset inventory in place, the next step in developing a robust IP portfolio management strategy is to conduct a thorough portfolio risk assessment, which involves identifying and evaluating potential risks and vulnerabilities that could impact the value and effectiveness of IP assets. This assessment is essential in identifying areas that require mitigation strategies to prevent potential losses or diminution in value.

The portfolio risk assessment involves risk profiling, which entails evaluating the likelihood and potential impact of various risks on IP assets. This includes evaluating asset vulnerability to factors such as:

• Patent invalidation or expiration
• Trademark infringement or dilution
• Copyright infringement or piracy
• Trade secret misappropriation or disclosure
• Regulatory or legal changes affecting IP rights

Implement IP Risk Management

Implementing IP Risk Management is a crucial step in creating a strategic intellectual property plan.

Identifying and mitigating potential intellectual property risks is essential to preventing unauthorized use, theft, or exploitation of valuable IP assets. This involves establishing a robust risk culture within the organization, where IP risks are acknowledged, assessed, and managed proactively. A key aspect of IP risk management is IP insurance, which provides financial protection against IP-related losses. Organizations should consider investing in IP insurance policies that cover infringement, litigation, and reputational damage. Furthermore, a comprehensive risk management strategy should also include regular IP audits, threat assessments, and incident response plans. By implementing these measures, organizations can minimize the likelihood of IP risks materializing and reduce the potential impact of such risks. Effective IP risk management enables organizations to protect their valuable IP assets, maintain their competitive edge, and ensure business continuity.

Leverage IP for Business Growth

By strategically leveraging their intellectual property assets, organizations can tap into significant revenue streams, drive business growth, and enhance their market value. A well-crafted IP strategy can provide a competitive advantage, setting the organization apart from its competitors and establishing a unique market position.

Here are some ways to leverage IP for business growth:

• License IP : License patents, trademarks, or copyrights to other companies, generating revenue streams and expanding market reach.
• Create IP-based products and services : Develop and sell products or services that embody the organization's IP, such as software, apps, or consulting services.
• Monetize IP through partnerships : Collaborate with other companies to co-develop IP-based products or services, sharing revenue and risk.
• Use IP to attract investment : Highlight the organization's IP portfolio to attract investors, venture capitalists, or private equity firms.
• Enhance brand value : Leverage IP to build brand reputation, increasing market value and customer loyalty.

Monitor and Enforce IP Rights

Effective IP management requires vigilant monitoring and enforcement of IP rights to prevent unauthorized use, maintain competitive advantage, and protect revenue streams. This involves regularly monitoring markets, industries, and competitors to detect potential IP infringement. Companies should establish a system to track and analyze data on IP usage, allowing for swift identification and response to potential infringement.

In cases of IP infringement, it is vital to have a well-planned litigation strategy in place. This may involve sending cease-and-desist letters, negotiating settlements, or pursuing legal action. A thorough understanding of IP laws and regulations is key in developing an effective litigation strategy. Companies should also maintain accurate records of IP ownership, licensing agreements, and infringement history to support legal claims.

Proactive monitoring and enforcement of IP rights can help prevent revenue loss, maintain brand reputation, and safeguard competitive advantage. By integrating IP monitoring and enforcement into their overall business strategy, companies can guarantee the long-term protection and value of their intellectual property assets.

Frequently Asked Questions

Can intellectual property be used as collateral for a business loan?.

Intellectual property can be used as collateral for a business loan, but lenders require rigorous asset valuation to determine its monetizable value, thereby expanding loan options for businesses with significant IP portfolios.

How Do I Handle IP Infringement by a Former Employee?

When handling IP infringement by a former employee, scrutinize employment contracts for confidentiality agreements and non-compete clauses, as these can provide grounds for legal action, and consider implementing digital forensic analysis to trace IP misuse.

Are Open-Source Software Licenses a Threat to IP Protection?

Open-source software licenses can pose license risks, as they often permit unrestricted use and modification, potentially compromising IP protection. Additionally, community impacts, such as forking and fragmentation, can further dilute IP control and create unintended consequences.

Can I Change My IP Strategy After My Business Is Established?

As a business evolves, IP strategy pivots are inevitable; embracing IP evolution allows companies to adapt and refine their intellectual property approach, ensuring alignment with shifting market dynamics and strategic objectives.

Do I Need an IP Strategy for a Small Business or Startup?

Even small businesses and startups require an IP strategy to optimize resource allocation and protect competitive advantages. Establishing an IP budget and identifying IP priorities enables entrepreneurs to make informed decisions and mitigate potential risks.