What is a Strategic Plan? Entrepeneurs and business managers are often so preoccupied with immediate issues that they lose sight of their ultimate objectives. That's why a business review or preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but without it a business is much more likely to fail. A sound plan should: Serve as a framework for decisions or for securing support/approval. Provide a basis for more detailed planning. Explain the business to others in order to inform, motivate & involve. Assist benchmarking & performance monitoring. Stimulate change and become building block for next

Basic Approach to Strategic Planning A critical review of past performance by the owners and management of a business and the preparation of a plan beyond normal budgetary horizons require a certain attitude of mind and predisposition. Some essential points which should to be observed during the review and planning process include the following: Relate to the medium term i.e. 2/4 years Be undertaken by owners/directors Focus on matters of strategic importance Be separated from day-to-day work Be realistic, detached and critical Distinguish between cause and effect Be reviewed periodically Be written down. As the precursor to developing a strategic plan, it is desirable to clearly identify the current status, objectives and strategies of an existing business or the latest thinking in respect of a new venture. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived Strengths, Weaknesses, Threats and Opportunities. This then leads to strategy development covering the following issues discussed in more detail below: Vision Mission Objectives Values Strategies Goals Programs

Contents of the Strategic Plan 1. Assess the business's EXISTING strengths, weaknesses, threats and opportunities: (Strengths & Weaknesses are internal to the business and Opportunities & Threats are external. All SWOTs should be 'one-handed' - something is either a Strength or a Weakness but cannot be both. Enter up to six items under each heading and then rank them in order of importance. If you are planning a new business, consider the project's and its promoters' existing SWOTs): 2. Vision of business in 3/4 years time: (What will the business look like? If a visitor from Mars dropped in what would be seen and evident. Write in future tense. Maximum of 150 words) 3. Mission/purpose statement for business to cover next 3/4 years: (What will the business really, really be doing? What activities will it perform, where, how etc.? What makes the business special/competitive? Every noun, adjective and verb in the statement is important and must be justified. Maximum of 150 words) 4. Statement of corporate values and beliefs: (Covers employees, customers, environment etc. etc. Maximum of 150 words) 5. Set out key long-term objectives: (These are the primary underlying reasons for being involved in the business, and are not specific targets - these come later) 6. Identify key strategies for business and major functional areas: (Build on strengths, resolve threats, exploit opportunities and avoid threats. Add any new dimensions revealed by Vision and Mission. List and prioritize up to ten or so major strategies. See Devising Business Strategies for further insights.) 7. Assess possible FUTURE strengths, weaknesses, threats and opportunities: (Do the foregoing strategies improve the initial SWOTs? If they don't, then they should have done so)8. Review your vision, mission, values and objectives: (Refine and revise/restate key strategies to deal with the perceived FUTURE SWOTs) 9. Specify major goals achievable over the next 3/4 years: (Quantify in terms of sales, market shares, finances, operations etc.) 10. Define strategic action programs: (Indicate who, what, where, when, how etc. Set targets and prioritize)