The Complete Guide to Writing a Strategic Plan
By Joe Weller | April 12, 2019 (updated November 29, 2023)
Writing a strategic plan can be daunting, as the process includes many steps. In this article, you’ll learn the basics of writing a strategic plan, what to include, common challenges, and more.
Included on this page, you'll find details on what to include in a strategic plan , the importance of an executive summary , how to write a mission statement , how to write a vision statement , and more.
The Basics of Writing a Strategic Plan
The strategic planning process takes time, but the payoff is huge. If done correctly, your strategic plan will engage and align stakeholders around your company’s priorities.
Strategic planning, also called strategy development or analysis and assessment , requires attention to detail and should be performed by someone who can follow through on next steps and regular updates. Strategic plans are not static documents — they change as new circumstances arise, both internally and externally.
Before beginning the strategic planning process, it’s important to make sure you have buy-in from management, a board of directors, or other leaders. Without it, the process cannot succeed.
Next, gather your planning team. The group should include people from various departments at different levels, and the planning process should be an open, free discussion within the group. It’s important for leaders to get input from the group as a whole, but they don’t necessarily need approval from everyone — that will slow down the process.
The plan author is responsible for writing and putting the final plan together and should work with a smaller group of writers to establish and standardize the tone and style of the final document or presentation.
Sometimes, it’s a good idea to hire an external party to help facilitate the strategic planning process.
“It often can be helpful to have a really good facilitator to organize and pursue strategic conversations,” says Professor John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement .
Byson says the facilitator can be in-house or external, but they need experience. “You need to make sure someone is good, so there needs to be a vetting process,” he says.
One way to gauge a facilitator’s experience is by asking how they conduct conversations. “It’s important for facilitators to lead by asking questions,” Bryson says.
Bryson says that strong facilitators often ask the following questions:
What is the situation we find ourselves in?
What do we do?
How do we do it?
How do we link our purposes to our capabilities?
The facilitators also need to be able to handle conflict and diffuse situations by separating idea generation from judgement. “Conflict is part of strategic planning,” Bryson admits. “[Facilitators] need to hold the conversations open long enough to get enough ideas out there to be able to make wise choices.”
These outside helpers are sometimes more effective than internal facilitators since they are not emotionally invested in the outcome of the process. Thus, they can concentrate on the process and ask difficult questions.
A strategic plan is a dynamic document or presentation that details your company’s present situation, outlines your future plans, and shows you how the company can get there. You can take many approaches to the process and consider differing ideas about what needs to go into it, but some general concepts stand.
“Strategic planning is a prompt or a facilitator for fostering strategic thinking, acting, and learning,” says Bryson. He explains that he often begins planning projects with three questions:
What do you want to do?
How are we going to do it?
What would happen if you did what you want to do?
The answers to these questions make up the meat of the planning document.
A strategic plan is only effective when the writing and thinking is clear, since the intent is to help an organization keep to its mission through programs and capacity, while also building stakeholder engagement.
Question 1: Where Are We Now?
The answer (or answers) to the first question — where are we now? — addresses the foundation of your organization, and it can serve as an outline for the following sections of your strategic plan:
Core values and guiding principles
Identification of competing organizations
Industry analysis (this can include a SWOT or PEST analysis)
Question 2: Where Are We Going?
The answers to this question help you identify your goals for the future of the business and assess whether your current trajectory is the future you want. These aspects of the plan outline a strategy for achieving success and can include the following:
Vision statement about what the company will look like in the future
What is happening (both internally and externally) and what needs to change
The factors necessary for success
Question 3: How Do We Get There?
The answers to this question help you outline the many routes you can take to achieve your vision and match your strengths with opportunities in the market. A Gantt chart can help you map out and keep track of these initiatives.
You should include the following sections:
Specific and measurable goals
An execution plan that identifies who manages and monitors the plan
An evaluation plan that shows how you plan to measure the successes and setbacks that come with implementation
What to Include in a Strategic Plan
Strategic planning terminology is not standardized throughout the industry, and this can lead to confusion. Instead, strategic planning experts use many names for the different sections of a strategic plan.
“The terms are all over the map. It’s really the concept of what the intention of the terms are [that is important],” says Denise McNerney, President and CEO of iBossWell, Inc. , and incoming president of the Association for Strategic Planning (ASP). She recommends coming up with a kind of glossary that defines the terms for your team. “One of the most important elements when you’re starting the strategic planning process is to get some clarity on the nomenclature. It’s just what works for your organization. Every organization is slightly different.”
No matter what terms you use, the general idea of a strategic plan is the same. “It’s like drawing a map for your company. One of the first steps is committing to a process, then determining how you’re going to do it,” McNerney explains.
She uses a basic diagram that she calls the strategic plan architecture . The areas above the red dotted line are the strategic parts of the plan. Below the red dotted line are the implementation pieces.
While the specific terminology varies, basic sections of a strategic plan include the following in roughly this order:
Elevator pitch or company description
Some plans will contain all the above sections, but others will not — what you include depends on your organization’s structure and culture.
“I want to keep it simple, so organizations can be successful in achieving [the strategic plan],” McNerney explains. “Your plan has to be aligned with your culture and your culture needs to be aligned with your plan if you’re going to be successful in implementing it.”
The following checklist will help you keep track of what you have done and what you still need to do.
Download Strategic Plan Sections Checklist
How to Write a Strategic Plan
Once you’ve assembled your team and defined your terms, it’s time to formalize your ideas by writing the strategic plan. The plan may be in the form of a document, a presentation, or another format.
You can use many models and formats to create your strategic plan (read more about them in this article ). However, you will likely need to include some basic sections, regardless of the particular method you choose (even if the order and way you present them vary). In many cases, the sections of a strategic plan build on each other, so you may have to write them in order.
One tip: Try to avoid jargon and generic terms; for example, words like maximize and succeed lose their punch. Additionally, remember that there are many terms for the same object in strategic planning.
The following sections walk you through how to write common sections of a strategic plan.
How to Write an Executive Summary
The key to writing a strong executive summary is being clear and concise. Don’t feel pressured to put anything and everything into this section — executive summaries should only be about one to two pages long and include the main points of the strategic plan.
The idea is to pique the reader’s interest and get them to read the rest of the plan. Because it functions as a review of the entire document, write the executive summary after you complete the rest of your strategic plan.
“If you have a plan that’s really lengthy, you should have a summary,” says Jim Stockmal, President of the Association for Strategic Planning (ASP). He always writes summaries last, after he has all the data and information he needs for the plan. He says it is easier to cut than to create something.
For more information about writing an effective executive summary, a checklist, and free templates, read this article .
If you want a one-page executive summary, this template can help you decide what information to include.
Download One-Page Executive Summary Template
Excel | Word | PDF
How to Write a Company Description
Also called an elevator pitch , the company description is a brief outline of your organization and what it does. It should be short enough that it can be read or heard during the average elevator ride.
The company description should include the history of your company, the major products and services you provide, and any highlights and accomplishments, and it should accomplish the following:
Define what you are as a company.
Describe what the company does.
Identify your ideal client and customer.
Highlight what makes your company unique.
While this may seem basic, the company description changes as your company grows and changes. For example, your ideal customer five years ago might not be the same as the current standard or the one you want in five years.
Share the company description with everyone in your organization. If employees cannot accurately articulate what you do to others, you might miss out on opportunities.
How to Write a Mission Statement
The mission statement explains what your business is trying to achieve. In addition to guiding your entire company, it also helps your employees make decisions that move them toward the company’s overall mission and goals.
“Ideally, [the mission statement is] something that describes what you’re about at the highest level,” McNerney says. “It’s the reason you exist or what you do.”
Strong mission statements can help differentiate your company from your competitors and keep you on track toward your goals. It can also function as a type of tagline for your organization.
Mission statements should do the following:
Define your company’s purpose. Say what you do, who you do it for, and why it is valuable.
Use specific and easy-to-understand language.
Be inspirational while remaining realistic.
Be short and succinct.
This is your chance to define the way your company will make decisions based on goals, culture, and ethics. Mission statements should not be vague or generic, and they should set your business apart from others. If your mission statement could define many companies in your line of work, it is not a good mission statement.
Mission statements don’t have to be only outward-facing for customers or partners. In fact, it is also possible to include what your company does for its employees in your mission statement.
Unlike other parts of your strategic plan that are designed to be reviewed and edited periodically, your company’s mission statement should live as is for a while.
That said, make the effort to edit and refine your mission statement. Take out jargon like world class, best possible, state of the art, maximize, succeed , and so on, and cut vague or unspecific phrasing. Then let your strategic planning committee review it.
How to Write a Vision Statement
Every action your company does contributes to its vision. The vision statement explains what your company wants to achieve in the long term and can help inspire and align your team.
“The vision is the highest-ordered statement of the desired future or state of what you want your business to achieve,” McNerney explains.
A clear vision statement can help all stakeholders understand the meaning and purpose of your company. It should encourage and inspire employees while setting your company’s direction. It also helps you rule out elements that might not align with your vision.
Vision statements should be short (a few sentences). They should also be memorable, specific, and ambitious. But there is a fine line between being ambitious and creating a fantasy. The vision should be clearly attainable if you follow the goals and objectives you outline later in your strategic planning plan.
Because you need to know your company’s goals and objectives to create an accurate vision statement, you might need to wait until you have more information about the company’s direction to write your vision statement.
Below are questions to ask your team as you craft your vision statement:
What impact do we want to have on our community and industry?
How will we interact with others as a company?
What is the culture of the business?
Avoid broad statements that could apply to any company or industry. For example, phrases like “delivering a wonderful experience” could apply to many industries. Write in the present tense, avoid jargon, and be clear and concise.
Vision statements should accomplish the following:
Focus on success.
Look at and project about five to 10 years ahead.
Stay in line with the goals and values of your organization.
Once you write your vision statement, communicate it to everyone in your company. Your team should be able to easily understand and repeat the company’s vision statement. Remember, the statements can change as the environment in and around your company changes.
The Difference Between Mission and Vision Statements
Mission and vision statements are both important, but they serve very different purposes.
Mission statements show why a business exists, while vision statements are meant to inspire and provide direction. Mission statements are about the present, and vision statements are about the future. The mission provides items to act upon, and the vision offers goals to aspire to.
For example, if a vision statement is “No child goes to bed hungry,” the accompanying mission would be to provide food banks within the city limits.
While many organizations have both mission and vision statements, it’s not imperative. “Not everyone has a vision statement,” McNerney says. “Some organizations just have one.”
If you choose to have only one statement, McNerney offers some advice: “Any statement you have, if you have just one, needs to include what [you do], how [you do it], why [you do it], and who you do it for.”
During the planning process, these key statements might change. “Early on in the process, you need to talk about what you are doing and why and how you are doing it. Sometimes you think you know where you want to go, but you’re not really sure,” McNerney says. “You need to have flexibility both on the plan content and in the process.”
How to Write Your Company’s Core Values
Company core values , sometimes called organizational values , help you understand what drives the company to do what it does. In this section, you’ll learn a lot about your company and the people who work with you. It should be relatively easy to write.
“The values are the core of how you operate [and] how you treat your people, both internally and externally. Values describe the behaviors you really want to advance,” McNerney says.
There are both internal and external values looking at your employees and coworkers, as well as customers and outside stakeholders. Pinpointing values will help you figure out the traits of the people you want to hire and promote, as well as the qualities you’re looking for in your customers.
Your values should align with your vision statement and highlight your strengths while mitigating weaknesses. McNerney says many organizations do not really consider or are not honest about their company’s values when working on strategic plans, which can lead to failure.
“Your strategies have to align with your values and vice versa,” she explains.
Many companies’ values sound like meaningless jargon, so take the time to figure out what matters to your company and push beyond generic language.
How to Write about Your Industry
When planning ahead for your business, it’s important to look around. How are matters inside your company? What are your competitors doing? Who are your target customers?
“[If you don’t do a thorough industry analysis], you’re doing your planning with your head in the sand. If you’re not looking at the world around you, you’re missing a whole dimension about what should inform your decision making,” McNerney advises.
Writing about your industry helps you identify new opportunities for growth and shows you how you need to change in order to take advantage of those opportunities. Identify your key competitors, and define what you see as their strengths and weaknesses. Performing this analysis will help you figure out what you do best and how you compare to your competition. Once you know what you do well, you can exploit your strengths to your advantage.
In this section, also include your SWOT (strengths, weaknesses, opportunities, and threats) analysis. You can choose from many templates to help you write this section.
Next, identify your target customers. Think about what they want and need, as well as how you can provide it. Do your competitors attract your target customers, or do you have a niche that sets you apart?
The industry analysis carries a price, but also provides many benefits. “It takes some time and money to do [a thorough industry analysis], but the lack of that understanding says a lot about the future of your organization. If you don’t know what is going on around you, how can you stay competitive?” explains McNerney.
How to Write Strategic Plan Goals and Objectives
This section is the bulk of your strategic plan. Many people confuse goals and objectives, thinking the terms are interchangeable, but many argue that the two are distinct. You can think of them this way:
Goals : Goals are broad statements about what you want to achieve as a company, and they’re usually qualitative. They function as a description of where you want to go, and they can address both the short and long term.
Objectives : Objectives support goals, and they’re usually quantitative and measurable. They describe how you will measure the progress needed to arrive at the destination you outlined in the goal. More than one objective can support one goal.
For example, if your goal is to achieve success as a strategic planner, your objective would be to write all sections of the strategic plan in one month.
iBossWell, Inc.’s McNerney reiterates that there are not hard and fast definitions for the terms goals and objectives , as well as many other strategic planning concepts. “I wouldn’t attempt to put a definition to the terms. You hear the terms goals and objectives a lot, but they mean different things to different people. What some people call a goal , others call an objective . What some people call an objective , others would call a KPI. ” They key, she explains, is to decide what the terms mean in your organization, explain the definitions to key stakeholders, and stick to those definitions.
How to Write Goals
Goals form the basis of your strategic plan. They set out your priorities and initiatives, and therefore are critical elements and define what your plan will accomplish. Some planning specialists use the term strategic objectives or strategic priorities when referring to goals, but for clarity, this article will use the term goals.
“[Goals] are the higher level that contain several statements about what your priorities are,” McNerney explains. They are often near the top of your plan’s hierarchy.
Each goal should reflect something you uncovered during the analysis phase of your strategic planning process. Goals should be precise and concise statements, not long narratives. For example, your goals might be the following:
Eliminate case backlog.
Lower production costs.
Increase total revenue.
Each goal should have a stated outcome and a deadline. Think of goal writing as a formula: Action + detail of the action + a measurable metric + a deadline = goal. For example, your goal might be: Increase total revenue by 5 percent in three product areas by the third quarter of 2020.
Another way to look at it: Verb (action) + adjective (description) = noun (result). An example goal: Increase website fundraising.
Your goals should strike a balance between being aspirational and tangible. You want to stretch your limits, but not make them too difficult to reach. Your entire organization and stakeholders should be able to remember and understand your goals.
Think about goals with varying lengths. Some should go out five to 10 years, others will be shorter — some significantly so. Some goals might even be quarterly, monthly, or weekly. But be careful to not create too many goals. Focus on the ones that allow you to zero in on what is critical for your company’s success. Remember, several objectives and action steps will likely come from each goal.
How to Write Objectives
Objectives are the turn-by-turn directions of how to achieve your goals. They are set in statement and purpose with no ambiguity about whether you achieve them or not.
Your goals are where you want to go. Next, you have to determine how to get there, via a few different objectives that support each goal. Note that objectives can cover several areas.
“You need implementation elements of the plan to be successful,” McNerney says, adding that some people refer to objectives as tactics , actions , and many other terms.
Objectives often begin with the words increase or decrease because they are quantifiable and measurable. You will know when you achieve an objective. They are action items, often with start and end dates.
Use the goal example from earlier: Increase total revenue by 5 percent in three product areas by the third quarter of 2020. In this example, your objectives could be:
Approach three new possible clients each month.
Promote the three key product areas on the website and in email newsletters.
Think of the acronym SMART when writing objectives: Make them specific, measurable, achievable, realistic/relevant, and time-bound.
Breaking down the process further, some strategic planners use the terms strategies and tactics to label ways to achieve objectives. Using these terms, strategies describe an approach or method you will use to achieve an objective. A tactic is a specific activity or project that achieves the strategy, which, in turn, helps achieve the objective.
How to Write about Capacity, Operations Plans, Marketing Plans, and Financial Plans
After you come up with your goals and objectives, you need to figure out who will do what, how you will market what they do, and how you will pay for what you need to do.
“If you choose to shortchange the process [and not talk about capacity and finances], you need to know what the consequences will be,” explains McNerney. “If you do not consider the additional costs or revenues your plan is going to drive, you may be creating a plan you cannot implement.”
To achieve all the goals outlined in your strategic plan, you need the right people in place. Include a section in your strategic plan where you talk about the capacity of your organization. Do you have the team members to accomplish the objectives you have outlined in order to reach your goals? If not, you may need to hire personnel.
The operations plan maps out your initiatives and shows you who is going to do what, when, and how. This helps transform your goals and objectives into a reality. A summary of it should go into your strategic plan. If you need assistance writing a comprehensive implementation plan for your organization, this article can guide you through the process.
A marketing plan describes how you attract prospects and convert them into customers. You don’t need to include the entire marketing plan in your strategic plan, but you might want to include a summary. For more information about writing marketing plans, this article can help.
Then there are finances. We would all like to accomplish every goal, but sometimes we do not have enough money to do so. A financial plan can help you set your priorities. Check out these templates to help you get started with a financial plan.
How to Write Performance Indicators
In order to know if you are reaching the goals you outline in your strategic plan, you need performance indicators. These indicators will show you what success looks like and ensure accountability. Sadly, strategic plans have a tendency to fail when nobody periodically assesses progress.
Key performance indicators (KPIs) can show you how your business is progressing. KPIs can be both financial and nonfinancial measures that help you chart your progress and take corrective measures if actions are not unfolding as they should. Other terms similar to KPIs include performance measures and performance indicators .
Performance indicators are not always financial, but they must be quantifiable. For example, tracking visitors to a website, customers completing a contact form, or the number of proposals that close with deals are all performance indicators that keep you on track toward achieving your goals.
When writing your performance indicators, pay attention to the following:
Define how often you need to report results.
Every KPI must have some sort of measure.
List a measure and a time period.
Note the data source where you will get your information to measure and track.
ASP’s Stockmal has some questions for you to ask yourself about picking performance indicators.
Are you in control of the performance measure?
Does the performance measure support the strategic outcomes?
Is it feasible?
Is data available?
Who is collecting that data, and how will they do it?
Is the data timely?
Is it cost-effective to collect that data?
ls the goal quantifiable, and can you measure it over time?
Are your targets realistic and time-bound?
Stockmal also says performance indicators cannot focus on only one thing at the detriment of another. “Don’t lose what makes you good,” he says. He adds that focusing on one KPI can hurt other areas of a company’s performance, so reaching a goal can be short-sided.
Some performance indicators can go into your strategic plan, but you might want to set other goals for your organization. A KPI dashboard can help you set up and track your performance and for more information about setting up a KPI dashboard, this article can help.
Communicating Your Strategic Plan
While writing your strategic plan, you should think about how to share it. A plan is no good if it sits on a shelf and nobody reads it.
“After the meetings are over, you have to turn your strategy into action,” says Stefan Hofmeyer, an experienced strategist and co-founder of Global PMI Partners . “Get in front of employees and present the plan [to get everyone involved].” Hofmeyer explains his research has shown that people stay with companies not always because of money, but often because they buy into the organization’s vision and want to play a part in helping it get where it wants to go. “These are the people you want to keep because they are invested,” he says.
Decide who should get a physical copy of the entire plan. This could include management, the board of directors, owners, and more. Do your best to keep it from your competitors. If you distribute it outside of your company, you might want to attach a confidentiality waiver.
You can communicate your plan to stakeholders in the following ways:
Hold a meeting to present the plan in person.
Highlight the plan in a company newsletter.
Include the plan in new employee onboarding.
Post the plan on the employee intranet, along with key highlights and a way to track progress.
If you hold a meeting, make sure you and other key planners are prepared to handle the feedback and discussion that will arise. You should be able to defend your plan and reinforce its key areas. The goal of the plan’s distribution is to make sure everyone understands their role in making the plan successful.
Remind people of your company’s mission, vision, and values to reinforce their importance. You can use posters or other visual methods to post around the office. The more that people feel they play an important part in the organization’s success, they more successful you will be in reaching your goals of your strategic plan.
Challenges in Writing a Strategic Plan
As mentioned, strategic planning is a process and involves a team. As with any team activity, there will be challenges.
Sometimes the consensus can take priority over what is clear. Peer pressure can be a strong force, especially if a boss or other manager is the one making suggestions and people feel pressured to conform. Some people might feel reluctant to give any input because they do not think it matters to the person who ultimately decides what goes into the plan.
Team troubles can also occur when one or more members does not think the plan is important or does not buy into the process. Team leaders need to take care of these troubles before they get out of hand.
Pay attention to your company culture and the readiness you have as a group, and adapt the planning process to fit accordingly. You need to find the balance between the process and the final product.
The planning process takes time. Many organizations do not give themselves enough time to plan properly, and once you finish planning, writing the document or presentation also takes time, as does implementation. Don’t plan so much that you ignore how you are going to put the plan into action. One symptom of this is not aligning the plan to fit the capacity or finances of the company.
Stockmal explains that many organizations often focus too much on the future and reaching their goals that they forget what made them a strong company in the first place. Business architecture is important, which Stockmal says is “building the capabilities the organization needs to fulfill its strategy.” He adds that nothing happens if there is no budget workers to do the work necessary to drive change.
Be careful with the information you gather. Do not take shortcuts in the research phase — that will lead to bad information coming out further in the process. Also, do not ignore negative information you may learn. Overcoming adversity is one way for companies to grow.
Be wary of cutting and pasting either from plans from past years or from other similar organizations. Every company is unique.
And while this may sound obvious, do not ignore what your planning process tells you. Your research might show you should not go in a direction you might want to.
Writing Different Types of Strategic Plans
The strategic planning process will differ based on your organization, but the basic concepts will stay the same. Whether you are a nonprofit, a school, or a for-profit entity, strategic plans will look at where you are and how you will get to where you want to go.
How to Write a Strategic Plan for a Nonprofit
For a nonprofit, the strategic plan’s purpose is mainly how to best advance the mission. It’s imperative to make sure the mission statement accurately fits the organization.
In addition to a SWOT analysis and other sections that go into any strategic plan, a nonprofit needs to keep an eye on changing factors, such as funding. Some funding sources have finite beginnings and endings. Strategic planning is often continuous for nonprofits.
A nonprofit has to make the community care about its cause. In a for-profit organization, the marketing department works to promote the company’s product or services to bring in new revenue. For a nonprofit, however, conveying that message needs to be part of the strategic plan.
Coming up with an evaluation method and KPIs can sometimes be difficult for a nonprofit, since they are often focused on goals other than financial gain. For example, a substance abuse prevention coalition is trying to keep teens from starting to drink or use drugs, and proving the coalition’s methods work is often difficult to quantify.
This template can help you visually outline your strategic plan for your nonprofit.
Download Nonprofit Strategic Plan Template
Excel | Smartsheet
How to Write a Strategic Plan for a School
Writing a strategic plan for a school can be difficult because of the variety of stakeholders involved, including students, teachers, other staff, and parents.
Strategic planning in a school is different from others because there are no markets to explore, products to produce, clients to woo, or adjustable timelines. Schools often have set boundaries, missions, and budgets.
Even with the differences, the same planning process and structure should be in place for schools as it is for other types of organizations.
This template can help your university or school outline your strategic plan.
Download University Strategic Plan Outline – Word
How to Write a 5-Year Strategic Plan
There is no set time period for a strategic plan, but five years can be a sweet spot. In some cases, yearly planning might keep you continually stuck in the planning process, while 10 years might be too far out.
In addition to the basic sections that go into any strategic plan, when forecasting five years into the future, put one- and three-year checkpoints into the plan so you can track progress intermittently.
How to Write a 3-Year Strategic Plan
While five years is often the strategic planning sweet spot, some organizations choose to create three-year plans. Looking too far ahead can be daunting, especially for a new or changing company.
In a three-year plan, the goals and objectives have a shorter timeframe and you need to monitor them more frequently. Build those checkpoints into the plan.
“Most organizations do a three- to five-year plan now because they recognize the technology and the changes in business that are pretty dynamic now,” Stockmal says.
How to Write a Departmental Strategic Plan
The first step in writing a strategic plan for your department is to pay attention to your company’s overall strategic plan. You want to make sure the plans align.
The steps in creating a plan for a department are the same as for an overall strategic plan, but the mission statement, vision, SWOT analysis, goals, objectives, and so on are specific to only the people in your department. Look at each person separately and consider their core competencies, strengths, capabilities, and weaknesses. Assign people who will be responsible for certain tasks and tactics necessary to achieve your goals.
If you have access to a plan from a previous year, see how your department did in meeting its goals. Adjust the new plan accordingly.
When you finish your departmental plan, make sure to submit it to whomever is responsible for your company’s overall plan. Expect to make changes.
How to Write a Strategic Plan for a Project
A strategic plan is for the big picture, not for a particular project for an organization. Instead of a strategic plan, this area would fall under project management.
If you have a failing project and need to turn it around, this article might help.
How to Write a Personal Strategic Plan
Creating a strategic plan isn’t only for businesses. You can also create a strategic plan to help guide both your professional and personal life. The key is to include what is important to you. This process takes time and reflection.
Be prepared for what you discover about yourself. Because you will be looking at your strengths and weaknesses, you might see things you do not like. It is important to be honest with yourself. A SWOT analysis on yourself will give you some honest feedback if you let it.
Begin with looking at your life as it is now. Are you satisfied? What do you want to do more or less? What do you value most in your life? Go deeper than saying family, happiness, and health. This exercise will help you clarify your values.
Once you know what is important to you, come up with a personal mission statement that reflects the values you cherish. As it does within a business, this statement will help guide you in making future decisions. If something does not fit within your personal mission, you shouldn’t do it.
Using the information you discovered during your SWOT and mission statement process, come up with goals that align with your values. The goals can be broad, but don’t forget to include action items and timeframes to help you reach your goals.
As for the evaluation portion, identify how you will keep yourself accountable and on track. You might involve a person to remind you about your plan, calendar reminders, small rewards when you achieve a goal, or another method that works for you.
Below is additional advice for personal strategic plans:
There are things you can control and things you cannot. Keep your focus on what you can act on.
Look at the positive instead of what you will give up. For example, instead of focusing on losing weight, concentrate on being healthier.
Do not overcommit, and do not ignore the little details that help you reach your goals.
No matter what, do not dwell on setbacks and remember to celebrate successes.
Improve Strategic Planning with Real-Time Work Management in Smartsheet
Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change.
The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed.
When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time. Try Smartsheet for free, today.
Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.
- Business strategy |
- What is strategic planning? 5 steps and ...
What is strategic planning? 5 steps and processes
A strategic plan helps you define and share the direction your company will take in the next three to five years. It includes your company’s vision and mission statements, goals, and the actions you’ll take to achieve those goals. In this article we describe how a strategic plan compares to other project and business tools, plus four steps to create a successful strategic plan for your company.
Strategic planning is when business leaders map out their vision for the organization’s growth and how they’re going to get there. Strategic plans inform your organization’s decisions, growth, and goals. So if you work for a small company or startup, you could likely benefit from creating a strategic plan. When you have a clear sense of where your organization is going, you’re able to ensure your teams are working on projects that make the most impact.
The strategic planning process doesn’t just help you identify where you need to go—during the process, you’ll also create a document you can share with employees and stakeholders so they stay informed. In this article, we’ll walk you through how to get started developing a strategic plan.
What is a strategic plan?
A strategic plan is a tool to define your organization’s goals and what actions you will take to achieve them. Typically, a strategic plan will include your company’s vision and mission statements, your long-term goals (as well as short-term, yearly objectives), and an action plan of the steps you’re going to take to move in the right direction.
Your strategic plan document should include:
Your company’s mission statement
Your company’s goals
A plan of action to achieve those goals
Your approach to achieving your goals
The tactics you’ll use to meet your goals
An effective strategic plan can give your organization clarity and focus. This level of clarity isn’t always a given—according to our research, only 16% of knowledge workers say their company is effective at setting and communicating company goals. By investing time into strategy formulation, you can build out a three- to five-year vision for the future of your company. This strategy will then inform your yearly and quarterly company goals.
Do I need a strategic plan?
A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics. Here’s how a strategic plan compares to other project management and business tools.
Strategic plan vs. business plan
A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.
You should create a business plan when you’re:
Just starting your business
Significantly restructuring your business
If your business is already established, consider creating a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.
Key takeaway: A business plan works for new businesses or large organizational overhauls. Strategic plans are better for established businesses.
Strategic plan vs. mission and vision statements
Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.
As a result, you should already have your mission and vision statements drafted before you create a strategic plan. Ideally, this is something you created during the business planning phase or shortly after your company started. If you don’t have a mission or vision statement, take some time to create those now. A mission statement states your company’s purpose and it addresses what problem your organization is trying to solve. A vision statement states, in very broad strokes, how you’re going to get there.
A mission statement summarizes your company’s purpose
A vision statement broadly explains how you’ll reach your company’s purpose
A strategic plan should include your mission and vision statements, but it should also be more specific than that. Your mission and vision statements could, theoretically, remain the same throughout your company’s entire lifespan. A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction.
For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:
Mission statement: “To ensure the safety of the world’s animals.”
Vision statement: “To create pet safety and tracking products that are effortless to use.”
Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners.
Key takeaway: A strategic plan draws inspiration from your mission and vision statements.
Strategic plan vs. company objectives
Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time.
Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.
Key takeaway: Company objectives are broad, evergreen goals, while a strategic plan is a specific plan of action.
Strategic plan vs. business case
A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business.
You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.
Key takeaway: A business case tackles one initiative or investment, while a strategic plan maps out years of overall growth for your company.
Strategic plan vs. project plan
A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan.
A project plan has seven parts:
Stakeholders and roles
Scope and budget
Milestones and deliverables
Timeline and schedule
Key takeaway: You may build project plans to map out parts of your strategic plan.
When should I create a strategic plan?
You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed. That being said, if your organization moves quickly, consider creating one every two to three years instead. Small businesses may need to create strategic plans more often, as their needs change.
Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets.
What are the 5 steps in strategic planning?
The strategic planning process should be run by a small team of key stakeholders who will be in charge of building your strategic plan.
Your group of strategic planners, sometimes called the management committee, should be a small team of five to 10 key stakeholders and decision-makers for the company. They won’t be the only people involved—but they will be the people driving the work.
Once you’ve established your management committee, you can get to work on the strategic planning process.
Step 1: Determine where you are
Before you can get started with strategy development and define where you’re going, you first need to define where you are. To do this, your management committee should collect a variety of information from additional stakeholders—like employees and customers. In particular, plan to gather:
Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future
Customer insights to understand what your customers want from your company—like product improvements or additional services
Employee feedback that needs to be addressed—whether in the product, business practices, or company culture
A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process).
To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:
What does your organization currently do well?
What separates you from your competitors?
What are your most valuable internal resources?
What tangible assets do you have?
What is your biggest strength?
What does your organization do poorly?
What do you currently lack (whether that’s a product, resource, or process)?
What do your competitors do better than you?
What, if any, limitations are holding your organization back?
What processes or products need improvement?
What opportunities does your organization have?
How can you leverage your unique company strengths?
Are there any trends that you can take advantage of?
How can you capitalize on marketing or press opportunities?
Is there an emerging need for your product or service?
What emerging competitors should you keep an eye on?
Are there any weaknesses that expose your organization to risk?
Have you or could you experience negative press that could reduce market share?
Is there a chance of changing customer attitudes towards your company?
Step 2: Identify your goals and objectives
This is where the magic happens. To develop your strategy, take into account your current position, which is where you are now. Then, draw inspiration from your original business documents—these are your final destination.
To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” This can help you figure out exactly which path you need to take.
During this phase of the planning process, take inspiration from important company documents to ensure your strategic plan is moving your company in the right direction like:
Your mission statement, to understand how you can continue moving towards your organization’s core purpose
Your vision statement, to clarify how your strategic plan fits into your long-term vision
Your company values, to guide you towards what matters most towards your company
Your competitive advantages, to understand what unique benefit you offer to the market
Your long-term goals, to track where you want to be in five or 10 years
Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in
Step 3: Develop your plan
Now that you understand where you are and where you want to go, it’s time to put pen to paper. Your plan will take your position and strategy into account to define your organization-wide plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your strategic plan should be created as the quarters and years go on.
As you build your strategic plan, you should define:
Your company priorities for the next three to five years, based on your SWOT analysis and strategy.
Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals .
Related key results and KPIs for that first year. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable.
Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.
A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.
Step 4: Execute your plan
After all that buildup, it’s time to put your plan into action. New strategy execution involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success.
Map your processes with key performance indicators, which will gauge the success of your plan. KPIs will establish which parts of your plan you want achieved in what time frame.
A few tips to make sure your plan will be executed without a hitch:
Align tasks with job descriptions to make sure people are equipped to get their jobs done
Communicate clearly to your entire organization throughout the implementation process
Fully commit to your plan
Step 5: Revise and restructure as needed
At this point, you should have created and implemented your new strategic framework. The final step of the planning process is to monitor and manage your plan.
Share your strategic plan —this isn’t a document to hide away. Make sure your team (especially senior leadership) has access to it so they can understand how their work contributes to company priorities and your overall strategic plan. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management tool .
Update your plan regularly (quarterly and annually). Make sure you’re using your strategic plan to inform your shorter-term goals. Your strategic plan also isn’t set in stone. You’ll likely need to update the plan if your company decides to change directions or make new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan to ensure you’re building your organization in the best direction possible for the next few years.
Keep in mind that your plan won’t last forever—even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.
The benefits of strategic planning
Strategic planning can help with goal-setting by allowing you to explain how your company will move towards your mission and vision statements in the next three to five years. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).
When you create and share a clear strategic plan with your team, you can:
Align everyone around a shared purpose
Proactively set objectives to help you get where you want to go
Define long-term goals, and then set shorter-term goals to support them
Assess your current situation and any opportunities—or threats
Help your business be more durable because you’re thinking long-term
Increase motivation and engagement
Sticking to the strategic plan
To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done.
With clear priorities, team members can focus on the initiatives that are making the biggest impact for the company—and they’ll likely be more engaged while doing so.
How it works
Transform your enterprise with the scalable mindsets, skills, & behavior change that drive performance.
Explore how BetterUp connects to your core business systems.
Build leaders that accelerate team performance and engagement.
Unlock performance potential at scale with AI-powered curated growth journeys.
Build resilience, well-being and agility to drive performance across your entire enterprise.
Transform your business, starting with your sales leaders.
Unlock business impact from the top with executive coaching.
Foster a culture of inclusion and belonging.
Accelerate the performance and potential of your agencies and employees.
See how innovative organizations use BetterUp to build a thriving workforce.
Discover how BetterUp measurably impacts key business outcomes for organizations like yours.
A demo is the first step to transforming your business. Meet with us to develop a plan for attaining your goals.
- For Individuals
Best practices, research, and tools to fuel individual and business growth.
View on-demand BetterUp events and learn about upcoming live discussions.
The latest insights and ideas for building a high-performing workplace.
- BetterUp Briefing
The online magazine that helps you understand tomorrow's workforce trends, today.
Innovative research featured in peer-reviewed journals, press, and more.
Founded in 2022 to deepen the understanding of the intersection of well-being, purpose, and performance
We're on a mission to help everyone live with clarity, purpose, and passion.
Join us and create impactful change.
Read the buzz about BetterUp.
Meet the leadership that's passionate about empowering your workforce.
Strategic planning: Read this before it's that time again
Understand Yourself Better:
Big 5 Personality Test
Jump to section
What is strategic planning?
What is strategic plan management?
Benefits of robust strategic planning and management
10 steps in the strategic planning process.
Plans are worthless, but planning is everything. - Dwight D. Eisenhower
It’s that time again.
Every three to five years, most larger organizations periodically plan for the future. Many times strategic planning documents are shelved and forgotten until the next cycle begins. On the other hand, many smaller and newer organizations, propelled by urgency, may not devote the necessary time and energy to the strategic planning process.
Only 63% of businesses plan more than a year out. They fail to see that — contrary to Alice in Wonderland’s Cheshire cat — “any way” does not take you there.
For all organizations, a more rigorous annual planning process is critical for driving future success, profitability, value, and impact.
John Kotter, a former professor at Harvard Business School and noted expert on innovation says, “ Strategy should be viewed as a dynamic force that constantly seeks opportunities, identifies initiatives that will capitalize on them, and completes those initiatives swiftly and efficiently.”
There’s hardly a better case that can be made for dynamic planning than in the tech industry, where mergers and acquisitions are accelerating exponentially. Companies need to be nimble enough to navigate rapid change . In this case, planning should occur quarterly.
Strategic planning is an ongoing process by which an organization sets its forward course by bringing all of its stakeholders together to examine current realities and define its vision for the future.
It examines its strengths and weaknesses, resources available, and opportunities. Strategic planning seeks to anticipate future industry trends . During the process, the organization creates a vision, articulates its purpose, and sets strategic goals that are long-term and forward-focused.
Those strategic goals inform operational goals and incremental milestones that need to be reached. The operational plan has clear objectives and supporting initiatives tied to metrics to which everyone is accountable . The plan should be agile enough to allow for recalibrating when necessary and redistributing resources based on internal and external forces.
The output of the planning process is a document that is shared across the enterprise.
Strategic planning for individuals
Strategic planning isn’t just for companies. At BetterUp, strategic planning is one of the skills that we identify, track, and develop within the Whole Person Model . For individuals, strategic planning is the ability to think through ways to achieve desired outcomes. Just as strategic planning helps organizations realize their goals for the future, it helps individuals grow and achieve goals in a unified direction.
Working backward from the desired outcome, effective strategic planning consists of coming up with the steps we need to take today in order to get where we want to be tomorrow.
While no plan is infallible, people who develop this skill are good at checking to make sure that their actions are in alignment with the outcomes that they want to see in the future. Even when things don’t go according to plan, their long-term goals act as a “North star” to get them back on course. In addition, envisioning desired future states and figuring out how to turn them into reality enhances an individual’s sense of personal meaning and motivation.
Whether we’re talking about strategic planning for the company or the individual, strategic plans can go awry in a variety of ways including:
- Unrealistic goals and too many priorities
- Poor communication
- Using the wrong measures
- Lack of leadership
The extent to which that document is shelved until the next planning cycle or becomes a dynamic map of the future depends on the people responsible for overseeing the execution of the plan.
What is strategic plan management?
"Most people think of strategy as an event, but that’s not the way the world works," according to Harvard Business School Professor Clayton Christensen. "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 works 24/7 in almost every industry."
Strategic business management is the ongoing process by which an organization creates and sustains a successful roadmap that moves the company in the direction it needs to move, year after year, for long-term success. It spans from research and formulation to execution, evaluation, and adjustment. Given the pace of change, strategic management is more relevant and important than ever for assigning measurable goals and action steps
Many organizations fail because they don’t have the strategic management team at the table right from the beginning of the planning process. A strategic plan is only as good as its ability to be executed and sustained.
A strategic management initiative might be driven by an internal group — many companies have an internal strategy team — or an outside consulting firm. Ultimately company leaders need to own executing and sustaining the strategy.
Strategic management teams
In this Harvard Business Review article, Ron Carucci from consulting firm Navalent reports that 61% of executives in a 10-year longitudinal study felt they were not prepared for the strategic challenges they faced upon being appointed to senior leadership roles. Lack of commitment to the plan is also a contributing factor. In addition, leaders attending to quarterly targets, crisis management , and reconciling budgets often consider the execution of a long-term strategy a low priority.
A dedicated strategic management team works with those senior leaders and managers throughout the organization to communicate, coordinate and evaluate progress against goals. They tie strategic objectives to day-to-day operational metrics throughout the enterprise.
A good strategic management group can assist in creating a culture of empowerment and learning . It holds regular meetings with employees. It sets a clear agenda and expectations to make the strategic plan real and compelling to the organization through concrete objectives, results, and timelines.
Strategy development is a lot of work, but the benefits are lasting. After all, as the saying goes, "If you fail to plan, you plan to fail." Taking the time for review and planning activities has the following benefits:
- Organizations and people are set up to succeed
- Increased likelihood of staying on track
- Decreased likelihood of being distracted or derailed
- Progress through the plan is communicated throughout the organization
- Metrics facilitate course correction
- Budgets enterprise-wide are based on strategy
- Cross-organization alignment
- Robust employee performance and compensation plans
- Commitment to learning and training
- A robust strategic planning process gets everyone involved and invested in the organizations
- Employees inform management about what’s working or not working at the operational level
- Innovation is encouraged and rewarded
- Increased productivity
1. Define mission and vision
Begin by articulating the organization's vision for the future. Ask, "What would success look like in five years?" Create a mission statement describing organizational values and how you intend to reach the vision. What values inform and determine mission, vision, and purpose?
Purpose-driven strategic goals articulate the “why” of what the corporation is doing. It connects the vision statement to specific objectives, drawing a line between the larger goals and the work that teams and individuals do.
2. Conduct a comprehensive assessment
This stage includes identifying an organization’s strategic position.
Gathering data from internal and external environments and respective stakeholders takes place at this time. Involving employees and customers in the research.
The task is to gather market data through research. One of the most critical components of this stage is a comprehensive SWOT analysis that involves gathering people and bringing perspectives from all stakeholders to determine:
- W eaknesses
- O pportunities
Strengths and weaknesses — In this stage, planners identify the company’s assets that contribute to its current competitive advantage and/or the likelihood of a significant increase in the organization’s market share in the future. It should be an objective assessment rather than an inflated perspective of its strengths.
An accurate assessment of weaknesses requires looking outward at external forces that can reveal new opportunities as well as threats. Consider the massive shift in multiple industries whose strategy has been disrupted by the COVID-19 pandemic. While it was disastrous to the airline and restaurant industries’ business models , tech companies were able to seize the opportunity and address the demands of remote work.
Michael Porter’s book Competetive Strategy: Techniques for Analyzing Industries and Competitors claims that there are five forces at work in an industry that influence that industry’s ability to develop a competitive strategy. Since the book was published in 1979, organizations have turned to Porter’s theory to create their strategic framework.
Here are the 5 forces (and key questions) that determine the competitive strategy for most industries.
- Competitive rivalry : When considering the strengths of an organization’s competitors it’s important to ask: How do our products/services hold up to our competition? If the rivalry is intense, companies need to consider what capacity they have to gain leverage through price cuts or bold marketing strategies. If there is little competition, the organization has a substantial gain in the market.
- Supplier power: How might suppliers influence strategy? For example, what if suppliers raised their prices? To what extent would a company need a particular supplier for our product(s)? Is it possible to switch suppliers in a way that is more cost effective and efficient? The number of suppliers that exist will determine your ability to keep costs low.
- Buyer power: To what extent do buyers have the ability to shop around right into the hands of your competitors? How much power does your customer base have in determining price? A small number of well-informed buyers shifts the power in their direction while a large pool may give you the strategic advantage
- Threat of substitution: What is the threat of a company’s buyer substituting your services/products from the competition? What if the buyer figures out another way to access the services/products that it offers?
- Threat of new entry: How easy is it for newcomers to enter the organization’s market?
Considering the factors above, determine the company’s value through financial forecasting . While almost certainly to become a moving target influenced by the five forces, a forecast can assign initial anticipated measurable results expected in the plan or ROI: profits/cost of investment.
4. Set the organizational direction of the business
The above research and assessment will help an organization to set goals and priorities. Too often an organization’s strategic plan is too broad and over-ambitious. Planners need to ask, ”What kind of impact are we seeking to have, and in what time frame?” They need to drill down to objectives that will have the most impact.
5. Create strategic objectives
This next phase of operational planning consists of creating strategic objectives and initiatives. Kaplan and Norton posit in their balanced scorecard methodology that there are four perspectives for consideration in identifying the conditions for success. They are interrelated and must be evaluated simultaneously.
- Financial : Such considerations as growing shareholder value, increasing revenue, managing cost, profitability, or financial stability inform strategic initiatives.
- Customer-satisfaction: Objectives can be determined by identifying targets related to one or some of the following: value for the cost, best service, increased market share, or providing customers with solutions.
- Internal processes such as operational processes and efficiencies, investment in innovation, investment in total quality and performance management , cost reduction, improvement of workplace safety, or streamlining processes.
- Learning and growth: Organizations must ask: Are initiatives in place in terms of human capital and learning and growth to sustain change? Objectives may include employee retention, productivity, building high-performing teams, or creating a pipeline for future leaders .
6. Align with key stakeholders
It’s a team effort. The success of the plan is in direct proportion to the organization’s commitment to inform and engage the entire workforce in strategy execution. People will only be committed to strategy implementation when they're connected to the organization's goals. With everyone pulling in the same direction, cross-functional decision-making becomes easier and more aligned.
7. Begin strategy mapping
A strategy map is a powerful tool for illustrating the cause-effect of those perspectives and connecting them to between 12 and 18 strategic objectives. Since most people are visual learners, the map provides an easy-to-understand diagram for everyone in the organization creating shared knowledge at all levels.
8. Determine strategic initiatives
Following the development of strategic objectives, strategic initiatives are determined. These are the actions the organization will take to reach those objectives. They may relate initiatives related to factors such as scope, budget, raising brand awareness, product development, and employee training.
9. Benchmark performance measures and analysis
Strategic initiatives inform SMART goals to which metrics are assigned to evaluate performance. These measures cascade from senior management to management to front-line workers. At this stage, the task is to create goals that are specific, measurable, attainable, relevant, and time-based informing the operational plan.
Benchmarks are established against so that performance can be measures, and a time frame is created. Key performance indicators (KPI’s) are assigned based on organizational goals. These indicators align workers’ performance and productivity with long-term strategic objectives.
10. Performance evaluation
Assessment of whether the plan has been successful . It measures activities and progress toward objectives and allows for the creation of improved plans and objectives in order to improve overall performance .
Think of strategic planning as a circular process beginning and ending with evaluation. Adjust a plan as necessary. The pace at which review of the plan is necessary may be once a year for many organizations or quarterly for organizations in rapidly evolving industries.
Prioritizing the strategic planning process
The strategic planning meeting may have a reputation for being just another to-do, but it might be time to take a second look. With the right action plan and a little strategic thinking, you can reinvigorate your business environment and start planning for success.
It's that time to get excited about the future again.
Betterup Fellow Coach, M.S.Ed, M.S.O.D.
4 reasons why you can't afford to skip out on succession planning
Contingency planning: 4 steps to prepare for the unexpected, the only guide you’ll ever need for career planning, strategic plan vs. work plan: what's the difference, declining capabilities in productivity and wellness signal a need for worker support, how to excel at life planning (a life planning template), what is strategic plan management and how does it benefit teams, strategy versus tactics: planning and executing on your goals, what is an action plan how to become a real-life action hero, similar articles, everything you need to know about strategic leadership, when you need to set the direction, swot analysis is a classic tool, how organizational effectiveness enhances how you work and grow, strategy vs. tactics: the difference is execution, stay connected with betterup, get our newsletter, event invites, plus product insights and research..
3100 E 5th Street, Suite 350 Austin, TX 78702
- Platform Overview
- BetterUp Lead
- BetterUp Manage™
- BetterUp Care™
- Sales Performance
- Diversity & Inclusion
- Case Studies
- Why BetterUp?
- News and Press
- Leadership Team
- Become a BetterUp Coach
- BetterUp Labs
- Center for Purpose & Performance
- Leadership Training
- Business Coaching
- Contact Support
- Contact Sales
- Acceptable Use Policy
- Trust & Security
- Cookie Preferences
How To Write A Strategic Plan That Gets Results + Examples
Are you feeling overwhelmed with the thought of writing a strategic plan for your business? Do you want to create a plan that will help you move your team forward with inspired alignment and disciplined execution? You're not alone.
Gone are the days of rigid, 5- or 10-year planning cycles that do not 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.
At Cascade, we understand that writing a strategic plan can be dreadful, especially in today's unpredictable environment. That's why we've developed a simple model that can help you create a clear, actionable plan to achieve your organization's goals. With our tested and proven strategic planning template , you can write a strategic plan that is both adaptable and effective .
Whether you're a seasoned strategy professional or a fresh strategy planner, this guide will walk you through the process step-by-step on how to write a strategic plan. By the end, you'll have a comprehensive, easy-to-follow strategic plan that will help you align your organization on the path to success.
Follow this guide step-by-step or skip to the part you’re most interested in:
- Pre-Planning Phase: Build The Foundation
Cascade Model For Strategic Planning: What You Need To Know
- Key Elements of a Strategic Plan
How To Write A Strategic Plan In 6 Simple Steps
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 🚀
*Editor’s note: This article is part of our ‘How to create a Strategy’ collection. At the end of this article, you’ll find a link to each piece within this collection so you can dig deeper into each element of an effective strategic plan and more related resources to master strategy execution.
Pre-Planning Phase: Build The Foundation
Before we dive into writing a strategic plan, it's essential to know the basics you should cover before the planning phase. The pre-planning phase is where you'll begin to gather the data and strategic insights necessary to create an effective strategic plan.
1. Run a strategic planning workshop
The first step is to run a strategic planning workshop with your team. Get your team in the room, get their data, and gather their insights. By running this workshop, you'll foster collaboration and bring fresh perspectives to the table. And that’s not all.
The process of co-creating and collaborating to put that plan together with stakeholders is one of the most critical factors in strategy execution . According to McKinsey’s research , initiatives in which employees contribute to development are 3.4 times more likely to be successful. They feel like the plan is a result of their efforts, and they feel ownership of it, so they're more likely to execute it.
💡 Tip: Use strategy frameworks to structure your strategy development sessions, such as GAP analysis , SWOT analysis , Porter’s Five Forces , Ansoff matrix , McKinsey 7S model , or GE matrix . You can even apply the risk matrix that will help you align and decide on key strategic priorities.
2. Choose your strategic planning model
Before creating your strategic plan, you need to decide which 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 ranging from the extremely simple to the absurdly complex.
Many strategic models work reasonably well on paper, but in reality, they don't show you how to write a strategic plan that fits your organization's needs.
Here are some common weaknesses most popular strategic models have:
- They're too complicated. People get lost in terminology rather than focus on execution.
- They don’t scale. They work well for small organizations but fail when you try to extend them across multiple teams.
- They're too rigid. They force people to add layers for the sake of adding layers.
- They're neither tangible nor measurable. They’re great at stating outcomes but lousy at helping you measure success.
- They're not adaptable. As we saw in the last years, the business environment can change quickly. Your model needs to be able to work in your current situation and adapt to changing economic landscapes.
Our goal in this article is to give you a simpler, more effective way to write a strategic plan. This is a tested and proven strategic planning model that has been refined over years of working with +20,000 teams around the world. We call it the Cascade Strategy Model.
This approach has proven to be more effective than any other model we have tried when it comes to executing and implementing the strategy .
It’s easy to use and it works for small businesses, fast-growing startups, as well as multinationals trying to figure out how to write a fail-proof strategic plan.
We’ve created a simple diagram below to illustrate what a strategic plan following the Cascade Model will look like when it's completed:
Rather than a traditional roadmap , imagine your strategy as a flowchart. Each row is a mandatory step before moving on to the next.
We call our platform Cascade for a reason: strategy must cascade throughout an organization along with values, focus areas, and objectives.
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. It adds to a successful strategic management process.Key elements of a Strategic Plan
Key Elements Of A Strategic Plan
The key elements of a strategic plan include:
- 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?
In this part of the article, we will give you an overview of each element within the Cascade Model. You can follow this step-by-step process in a spreadsheet , or sign up to get instant access to a free Cascade strategic planning template and follow along as we cover the key elements of an effective strategic plan.
Your vision statement is your organization's anchor - it defines where you want to get to and is the executive summary of your organization's purpose. Without it, your strategic plan is like a boat without a rudder, at the mercy of strong winds and currents like Covid and global supply chain disruptions.
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. A great vision statement might even help attract talent and investment into your organization.
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)
Values are the enablers of your vision statement —they represent how your organization will behave as you work towards your strategic goals. Unfortunately, many companies throw around meaningless words just for the purpose of PR, leading to a loss of credibility.
To avoid this, 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:
These values reflect the organization's desire to become the leading bike manufacturer, while still being accountable to employees, customers, and shareholders.
👉 Here’s how to add vision and values to your strategic plan in Cascade:
After you sign up and invite your team members to collaborate on the plan, navigate to Plans and Teams > Teams page, and add the vision, mission and values. This will help you to ensure that the company’s vision, mission statement, and values are always at 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 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 initiatives are more likely to succeed than those that try to do too much.
That’s also something that we usually recommend to our customers when they set up their strategic plan in Cascade. 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.
By defining your focus areas, you'll give your teams a guardrail to work within, which can help inspire innovation and creative problem-solving.
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.
👉Here’s how you can set focus areas in Cascade:
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
The importance of setting clear and specific objectives for your strategic plan cannot be overstated.
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 goals are over three times more likely to work at a company that is experiencing a decline in revenue 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.
👉Here’s how you can set objectives in Cascade:
Adding objectives in Cascade is intuitive, straightforward, and accessible from almost anywhere in the workspace. 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 extremely 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.
Another common problem area for strategic plans is that they never quite get down to the detail of what you're going to do.
It's easier to state "we need to grow our business," but without concrete projects and initiatives, those plans will sit forever within their PowerPoint templates, never to see the light of day after their initial creation.
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.
👉Here’s how you create actions and projects 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: How to create effective projects
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 keep you on track and help you stay focused on the goals you set for your organization.
To get the most out of your KPIs, make sure you link them to a specific goal or objective. In 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. Both types of KPIs are critical for operational planning and keeping your business on track.
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.
👉Here’s how you can set and track KPIs in Cascade:
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. In 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 (2023 Guide)
- How To Track KPIs To Hit Your Business Goals
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 to start writing your organization’s strategic plan? Check out this strategic plan example, inspired by Coca-Cola’s business plan:
This 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 scales 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, 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 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 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 plan.
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 is your corporate strategic plan aligned with sub-plans from different business units or departments and the status of shared objectives. This helps you quickly identify misaligned 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 creating an effective strategic plan:
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 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 or opportunities and keep everyone on the same page.
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 Write a Strategic Plan". 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 Write a Strategic Plan series
- How To Write A Strategic Plan: The Cascade Model (This article)
- How to Write a Good Vision Statement
- How To Create Company Values
- Creating Strategic Focus Areas
- How To Write Strategic Objective
- 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) 2023
- The Right Way To Set Team Goals
- 23 Best Strategy Tools For Your Organization in 2023
Horizontal Vs Vertical Strategic Alignment
6 Steps To Successful Strategy Execution
5 PMO Templates And Tools To Deliver Your Portfolio Value
Strategic Planning Vs Operational Planning: What’s The Difference?
Your toolkit for strategy success.
🎯 Finish your 2024 OKRs in 60 days
The strategic planning process in 4 steps, to assist you throughout your planning process, we have created a how-to guide on the basics of strategic planning which will take you through the planning process step-by-step..
Free Strategic Planning Guide
What is Strategic Planning?
Strategic Planning is a process where organizations define a bold vision and create a plan with objectives and goals to reach that future. A great strategic plan defines where your organization is going, how you’ll win, who must do what, and how you’ll review and adapt your strategy.
Overview of the complete strategic planning process:
Getting started: strategic planning introduction.
The strategic management process is about getting from Point A to Point B more effectively, efficiently, and enjoying the journey and learning from it. Part of that journey is the strategy and part of it is execution. Having a good strategy dictates “how” you travel the road you have selected and effective execution makes sure you are checking in along the way. On average, this process can take between three and four months. However no one organization is alike and you may decide to fast track your process or slow it down. Move at a pace that works best for you and your team and leverage this as a resource. For more of a deep dive look into each part of the planning phase, you will see a link to the detailed How-To Guide at the top of each phase.
1-2 weeks (1 hr meeting with Owner/CEO, Strategy Director and Facilitator (if necessary) to discuss information collected and direction for continued planning.)
Questions to Ask:
- Who is on your Planning Team?
- Who will be the business process owner (Strategy Director) of planning in your organization?
- Fast forward 12 months from now, what do you want to see differently in your organization as a result of embarking on this initiative?
- Planning team members are informed of their roles and responsibilities.
- Planning schedule is established.
- Existing planning information and secondary data collected.
Step 1: Determine Organizational Readiness
Set up your planning process for success – questions to ask:.
- Are the conditions and criteria for successful planning in place at the current time? Can certain pitfalls be avoided?
- Is this the appropriate time for your organization to initiate a planning process? Yes or no? If no, where do you go from here?
Step 2: Develop Your Team & Schedule
Who is going to be on your planning team? You need to choose someone to oversee the implementation (Chief Strategy Officer or Strategy Director) and then you need some of the key individuals and decision makers for this team. It should be a small group of approximately 12-15 persons.
OnStrategy is the leader in strategic planning and performance management. Our cloud-based software and hands-on services closes the gap between strategy and execution. Learn more about OnStrategy here .
Step 3: Collect Current Data
Collect the following information on your organization:
- The last strategic plan, even if it is not current
- Mission statement, vision statement, values statement
- Business plan
- Financial records for the last few years
- Marketing plan
- Other information, such as last year’s SWOT, sales figures and projections
Step 4:Review collected data:
Review the data collected in the last action with your strategy director and facilitator.
- What trends do you see?
- Are there areas of obvious weakness or strengths?
- Have you been following a plan or have you just been going along with the market?
Strategic Planning Phase 1: Determine Your Strategic Position
Want More? Deep Dive Into the “ Evaluate Your Strategic Position ” How-To Guide.
Step 1: identify strategic issues.
Strategic issues are critical unknowns that are driving you to embark on a strategic planning process now. These issues can be problems, opportunities, market shifts or anything else that is keeping you awake at night and begging for a solution or decision.
- How will we grow, stabilize, or retrench in order to sustain our organization into the future?
- How will we diversify our revenue to reduce our dependence on a major customer?
- What must we do to improve our cost structure and stay competitive?
- How and where must we innovate our products and services?
Step 2: Conduct an Environmental Scan
Conducting an environmental scan will help you understand your operating environment. An environmental scan is also referred to as a PEST analysis, which is an acronym for Political, Economic, Social and Technological trends. Sometimes it is helpful to also include Ecological and Legal trends as well. All of these trends play a part in determining the overall business environment.
Step 3: Conduct a Competitive Analysis
The reason to do a competitive analysis is to assess the opportunities and threats that may occur from those organizations competing for the same business you are. You need to have an understanding of what your competitors are or aren’t offering your potential customers. Here are a few other key ways a competitive analysis fits into strategic planning:
- To help you assess whether your competitive advantage is really an advantage.
- To understand what your competitors’ current and future strategies are so you can plan accordingly.
- To provide information that will help you evaluate your strategic decisions against what your competitors may or may not be doing.
Step 4: Identify Opportunities and Threats
Opportunities are situations that exist but must be acted on if the business is to benefit from them.
What do you want to capitalize on?
- What new needs of customers could you meet?
- What are the economic trends that benefit you?
- What are the emerging political and social opportunities?
- What niches have your competitors missed?
Threats refer to external conditions or barriers that may prevent a company from reaching its objectives.
What do you need to mitigate?
Questions to answer:.
- What are the negative economic trends?
- What are the negative political and social trends?
- Where are competitors about to bite you?
- Where are you vulnerable?
Step 5: Identify Strengths and Weaknesses
Strengths refer to what your company does well.
What do you want to build on?
- What do you do well (in sales, marketing, operations, management)?
- What are your core competencies?
- What differentiates you from your competitors?
- Why do your customers buy from you?
Weaknesses refer to any limitations a company faces in developing or implementing a strategy.
What do you need to shore up?
- Where do you lack resources?
- What can you do better?
- Where are you losing money?
- In what areas do your competitors have an edge?
Step 6: Customer Segments
Customer segmentation defines the different groups of people or organizations a company aims to reach or serve.
Who are we providing value to?
- What needs or wants define your ideal customer?
- What characteristics describe your typical customer?
- Can you sort your customers into different profiles using their needs, wants and characteristics?
- Can you reach this segment through clear communication channels?
Step 7: Develop Your SWOT
A SWOT analysis is a quick way of examining your organization by looking at the internal strengths and weaknesses in relation to the external opportunities and threats. By creating a SWOT analysis, you can see all the important factors affecting your organization together in one place. It’s easy to read, easy to communicate, and easy to create. Take the Strengths, Weaknesses, Opportunities and Threats you developed earlier, review, prioritize and combine like terms. The SWOT analysis helps you ask, and answer, the following questions: “How do you….”
- Build on your strengths
- Shore up your weaknesses
- Capitalize on your opportunities
- Manage your threats
Strategic Planning Process Phase 2: Developing Strategy
Want More? Deep Dive Into the “Developing Your Strategy” How-To Guide.
Step 1: Develop Your Mission Statement
The mission statement describes an organization’s purpose or reason for existing.
What is our purpose? Why do we exist? What do we do?
- What does your organization intend to accomplish?
- Why do you work here? Why is it special to work here?
- What would happen if we were not here?
Outcome: A short, concise, concrete statement that clearly defines the scope of the organization.
Step 2: discover your values.
Your values statement clarifies what your organization stands for, believes in and the behaviors you expect to see as a result.
How will we behave?
- What are the key non-negotiables that are critical to the success of the company?
- What are the guiding principles that are core to how we operate in this organization?
- What behaviors do you expect to see?
- If the circumstances changed and penalized us for holding this core value, would we still keep it?
Outcome: Short list of 5-7 core values.
Step 3: casting your vision statement.
A Vision Statement defines your desired future state and provides direction for where we are going as an organization.
Where are we going?
- What will our organization look like 5–10 years from now?
- What does success look like?
- What are we aspiring to achieve?
- What mountain are you climbing and why?
Outcome: A picture of the future.
Step 4: identify your competitive advantages.
A Competitive Advantage is a characteristic(s) of an organization that allows it to meet their customer’s need(s) better than their competition can.
What are we best at?
- What are your unique strengths?
- What are you best at in your market?
- Do your customers still value what is being delivered? Ask them.
- How do your value propositions stack up in the marketplace?
Outcome: A list of 2 or 3 items that honestly express the organization’s foundation for winning.
Step 5: crafting your organization-wide strategies.
Your strategies are the general methods you intend to use to reach your vision. No matter what the level, a strategy answers the question “how.”
How will we succeed?
- Broad: market scope; a relatively wide market emphasis.
- Narrow: limited to only one or few segments in the market
- Does your competitive position focus on lowest total cost or product/service differentiation or both?
Outcome: Establish the general, umbrella methods you intend to use to reach your vision.
Phase 3: Strategic Plan Development
Want More? Deep Dive Into the “Build Your Plan” How-To Guide.
Strategic Planning Process Step 1: Use Your SWOT to Set Priorities
If your team wants to take the next step in the SWOT analysis, apply the TOWS Strategic Alternatives Matrix to help you think about the options that you could pursue. To do this, match external opportunities and threats with your internal strengths and weaknesses, as illustrated in the matrix below:
TOWS Strategic Alternatives Matrix
Evaluate the options you’ve generated, and identify the ones that give the greatest benefit, and that best achieve the mission and vision of your organization. Add these to the other strategic options that you’re considering.
Step 2: Define Long-Term Strategic Objectives
Long-Term Strategic Objectives are long-term, broad, continuous statements that holistically address all areas of your organization. What must we focus on to achieve our vision? What are the “big rocks”?
Questions to ask:
- What are our shareholders or stakeholders expectations for our financial performance or social outcomes?
- To reach our outcomes, what value must we provide to our customers? What is our value proposition?
- To provide value, what process must we excel at to deliver our products and services?
- To drive our processes, what skills, capabilities and organizational structure must we have?
Outcome: Framework for your plan – no more than 6
Step 3: Setting Organization-Wide Goals and Measures
Once you have formulated your strategic objectives, you should translate them into goals and measures that can be clearly communicated to your planning team (team leaders and/or team members). You want to set goals that convert the strategic objectives into specific performance targets. Effective goals clearly state what, when, how, and who, and they are specifically measurable. They should address what you need to do in the short-term (think 1-3 years) to achieve your strategic objectives. Organization-wide goals are annual statements that are specific, measurable, attainable, responsible and time bound. These are outcome statements expressing a result expected in the organization.
What is most important right now to reach our long-term objectives?
Outcome: clear outcomes for the current year..
Step 4: Select KPIs
Key Performance Indicators (KPI) are the key measures that will have the most impact in moving your organization forward. We recommend you guide your organization with measures that matter.
How will we measure our success?
Outcome: 5-7 measures that help you keep the pulse on your performance. When selecting your Key Performance Indicators, begin by asking “What are the key performance measures we need to track in order to monitor if we are achieving our goals?” These KPIs include the key goals that you want to measure that will have the most impact in moving your organization forward.
Step 5: Cascade Your Strategies to Operations
Cascading action items and to-dos for each short-term goal is where the rubber meets the road – literally. Moving from big ideas to action happens when strategy is translated from the organizational level to the individual. Here we widen the circle of the people who are involved in the planning as functional area managers and individual contributors develop their short-term goals and actions to support the organizational direction. But before you take that action, determine if you are going to develop a set of plans that cascade directly from the strategic plan, or instead if you have existing operational, business or account plans that should be synced up with organizational goals. A pitfall is to develop multiple sets of goals and actions for directors and staff to manage. Fundamentally, at this point you have moved from planning the strategy to planning the operations; from strategic planning to annual planning. That said, the only way strategy gets executed is to align resources and actions from the bottom to the top to drive your vision.
Questions to Ask
- How are we going to get there at a functional level?
- Who must do what by when to accomplish and drive the organizational goals?
- What strategic questions still remain and need to be solved?
Department/functional goals, actions, measures and targets for the next 12-24 months
Step 6: Cascading Goals to Departments and Team Members
Now in your Departments / Teams, you need to create goals to support the organization-wide goals. These goals should still be SMART and are generally (short-term) something to be done in the next 12-18 months. Finally, you should develop an action plan for each goal. Keep the acronym SMART in mind again when setting action items, and make sure they include start and end dates and have someone assigned their responsibility. Since these action items support your previously established goals, it may be helpful to consider action items your immediate plans on the way to achieving your (short-term) goals. In other words, identify all the actions that need to occur in the next 90 days and continue this same process every 90 days until the goal is achieved.
Examples of Cascading Goals:
Phase 4: Executing Strategy and Managing Performance
Want More? Deep Dive Into the “Managing Performance” How-To Guide.
Step 1: Strategic Plan Implementation Schedule
Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals.
How will we use the plan as a management tool?
- Communication Schedule: How and when will you roll-out your plan to your staff? How frequently will you send out updates?
- Process Leader: Who is your strategy director?
- Structure: What are the dates for your strategy reviews (we recommend at least quarterly)?
- System & Reports: What are you expecting each staff member to come prepared with to those strategy review sessions?
Outcome: Syncing your plan into the “rhythm of your business.”
Once your resources are in place, you can set your implementation schedule. Use the following steps as your base implementation plan:
- Establish your performance management and reward system.
- Set up monthly and quarterly strategy meetings with established reporting procedures.
- Set up annual strategic review dates including new assessments and a large group meeting for an annual plan review.
Now you’re ready to start plan roll-out. Below are sample implementation schedules, which double for a full strategic management process timeline.
Step 2: Tracking Goals & Actions
Monthly strategy meetings don’t need to take a lot of time – 30 to 60 minutes should suffice. But it is important that key team members report on their progress toward the goals they are responsible for – including reporting on metrics in the scorecard they have been assigned. By using the measurements already established, it’s easy to make course corrections if necessary. You should also commit to reviewing your Key Performance Indicators (KPIs) during these regular meetings.
Your Bi-Annual Checklist
Never lose sight of the fact that strategic plans are guidelines, not rules. Every six months or so, you should evaluate your strategy execution and plan implementation by asking these key questions:
- Will your goals be achieved within the time frame of the plan? If not, why?
- Should the deadlines be modified? (Before you modify deadlines, figure out why you’re behind schedule.)
- Are your goals and action items still realistic?
- Should the organization’s focus be changed to put more emphasis on achieving your goals?
- Should your goals be changed? (Be careful about making these changes – know why efforts aren’t achieving the goals before changing the goals.)
- What can be gathered from an adaptation to improve future planning activities?
Why Track Your Goals?
- Ownership: Having a stake and responsibility in the plan makes you feel part of it and leads you to drive your goals forward.
- Culture: Successful plans tie tracking and updating goals into organizational culture.
- Implementation: If you don’t review and update your goaFls, they are just good intentions
- Accountability: Accountability and high visibility help drive change. This means that each measure, objective, data source and initiative must have an owner.
- Empowerment: Changing goals from In Progress to Complete just feels good!
Step 3: Review & Adapt
Guidelines for your strategy review.
Restricting the meeting to reporting on measurements can help you stay on task and keep the meeting within 30 minutes, but if you can commit to a full hour, the meeting agenda should also include some time devoted to working on one specific topic or on one of the quarter’s priorities where decisions need to be made. Once agreed upon, this topic should be developed to conclusion. Holding meetings helps focus your goals on accomplishing top priorities and accelerating growth of the organization. Although the meeting structure is relatively simple, it does require a high degree of discipline.
Strategy Review Session Questions:
- What were our three most important strategic accomplishments of the last 90 days – how have we changed our field of play in the past 90 days?
- What are the three most important ways we fell short of our strategic potential?
- In the last 90 days, what are the three most important things that we have learned about our strategy? (NOTE: We are looking for insight to decision to action observations.)
Step 4: Annual Updates The three words strategic planning off-site provoke reactions anywhere from sheer exuberance to ducking for cover. In many organizations, retreats have a bad reputation because stepping into one of the many planning pitfalls is so easy. Holding effective meetings can be tough, and if you add a lot of brainpower mixed with personal agendas, you can have a recipe for disaster. That’s why so many strategic planning meetings are unsuccessful. Executing your strategic plan is as important, or even more important, than your strategy. Critical actions move a strategic plan from a document that sits on the shelf to actions that drive organizational growth. The sad reality is that the majority of organizations who have strategic plans fail to implement. Don’t be part of the majority! In fact, research has shown that 70% of organizations that have a formal execution process out-perform their peers. (Kaplan & Norton) Guiding your work in this stage of the planning process is a schedule for the next 12 months that spells out when the quarterly strategy reviews are, who is involved, what participants need to bring to the meetings and how you will adapt the plan based on the outcomes of the reviews. You remain in this phase of the strategic management process until you embark on the next formal planning sessions where you start back at the beginning. Remember that successful execution of your plan relies on appointing a strategy director, training your team to use OnStrategy (or any other planning tool), effectively driving accountability, and gaining organizational commitment to the process.
Strategic planning frequently asked questions
Read our frequently asked questions about strategic planning to learn how to build a great strategic plan..
Business Strategic Planning is a process where your business defines a bold vision of the future and creates a plan to reach that future. It helps your business define where you’re going, how you’ll get there, how you’ll grow, and what you must do to reach your desired future.
A great strategic plan determines where your organization is going, how you’ll win, what roles each team member has in the execution, and your game plan for reviewing and adapting your strategy. Elements include a current state analysis, SWOT, mission, vision, values, competitive advantages, growth strategy, growth enablers, a 3-year roadmap, and annual plan with goals, KPIs, and OKRs.
Typically, the average strategic planning process takes about 3-4 months, but depending on your organization, it could take more or less time. Every organization is different, so you should work at a pace that works for you.
There are four overarching phases to the strategic planning process that include: determining position, developing your strategy, building your plan, and managing performance. Each phase plays a unique but distinctly crucial role in the strategic planning process.
Prior to starting your strategic plan, you must go through this pre-planning process to determine your organization’s readiness by following these steps:
Ask yourself these questions: Are the conditions and criteria for successful planning in place now? Can we foresee any pitfalls that we can avoid? Is there an appropriate time for our organization to initiate this process?
Develop your team and schedule. Who will oversee the implementation as Chief Strategy Officer or Director? Do we have at least 12-15 other key individuals on our team?
Research and Collect Current Data. Find the following resources that your organization may have used in the past to assist you with your new plan: last strategic plan, mission, vision, and values statement, business plan, financial records, marketing plan, SWOT, sales figures, or projections.
Finally, review the data with your strategy director and facilitator and ask these questions: What trends do we see? Any obvious strengths or weaknesses? Have we been following a plan or just going along with the market?
Determining your positioning entails conducting a scan of macro and micro trends in your environment and industry, identifying marketing and competitive opportunities and threats, clarifying target customers and value propositions, gathering and reviewing staff and partner feedback for strengths and weaknesses, synthesizing the data into a SWOT, and solidifying your competitive advantages.
Developing your strategy includes determining your primary business model and organizational purpose, identifying your corporate values, creating an image of what success would look like in 3-5 years, solidifying your competitive advantages, formulating organization wide-strategies that explain your base, and agreeing on strategic issues you need to address in the planning process. .
Once you get to the strategic plan development process in the planning process, you must begin developing your strategic framework and defining long-term strategic objectives, set short-term SMART organizational goals, and select the measure that will be your KPIs (key performance indicators.)
The last phase of strategic planning is implementation, execution, and ongoing refreshes. This step entails establishing an implementation schedule, rolling out your plan, executing against your key results, and reviewing process and refreshing your plan quarterly. p>
The ideal execution schedule for your strategic plan will differ from team to team or organization to organization, but generally, you should try to set 4 quarterly reviews, a mid-year executive survey, 12 monthly check-ins, and a year-end plan review and annual refresh.
Join 60,000 other leaders engaged in transforming their organizations.
Subscribe to get the latest agile strategy best practices, free guides, case studies, and videos in your inbox every week..
Leading strategy? Join our FREE community.
Become a member of the chief strategy officer collaborative..
Free monthly sessions and exclusive content.
Do you want to 2x your impact.