Strategic planning is often a dreaded task for small businesses, but it doesn't have to be. By following some very specific and easy-to-implement steps, organizations of any size can develop strategic plans that are focused and provide direction to employees. Effective plans will carefully evaluate the business environment, be aligned with the organization's mission, enumerate a company's strengths and weaknesses, and include measurable objectives to gauge success.
The situation analysis is the first step in strategic planning. It involves the gathering of information, both internally and externally, to provide insights into issues related to a business's employees, customers, competitors and industry. A thorough situation analysis will ensure that decisions made during the strategic planning process are based on facts and data, and not just the opinions and whims of those involved in the planning process.
The information gathered during the situation analysis is used as an important input to the SWOT analysis, which is a consideration of the strengths, weaknesses, opportunities and threats that impact the organization. The SWOT analysis is basically a brainstorming session in which the planning team will create a list for each of these items and then prioritize that list to identify the top items in each category. These will then become the focus for the development of goals, objectives, strategies and tactics.
Developing Goals and Objectives
Goals indicate the broad direction in which the company wishes to head while objectives provide further clarification of the goals so that everybody involved in implementing the plan knows exactly what success looks like. For instance, a goal might be "to expand into the youth market," and a related objective might be "to increase market share in the 18 to 25 year age group by 25 percent by the end of the year."
Developing Strategies and Tactics
Goals and objectives indicate where a company wants to go; strategies and tactics are designed to show how it will get there. Strategies are broad statements that relate back to the SWOT analysis and indicate how the company will either leverage its strengths and opportunities or overcome its weaknesses and threats. For instance: "Focus on a 100 percent product guarantee in all communication materials to address growing competition." Tactics are specific action steps that the company will take. For instance: "Tweet about product guarantee," or "Include product guarantee prominently on all packing slips."
While the development of the plan is important, it is the actual implementation of the plan that generates results. Executing the plan requires that specific assignments be made and that people are held accountable for achieving desired results. Communication is critical throughout this process to ensure both that employees know what is expected of them and that they receive feedback on the results of their efforts.
- chess 4 image by Mograph from Fotolia.com