Subdivide strategic plans into a business plan for each operating unit, and then into objectives for each department, team and ultimately each individual. Always start by asking some basic questions such as: What business are we in? What is our purpose? Where are we now? Where do we want to be in the future? How will we achieve this?
Consult widely to identify opportunities and decide priorities. Innovation and common-sense ideas come from employees at the lowest level as well as the highest and from customers and suppliers.
Assess the organisation’s competitive position. Current trends need to be taken into account, to highlight strengths and weaknesses.
Focus on the purpose of the organisation. What does it do? What makes it unique? Does it need to change? What will help to achieve success in the future? Take a balanced view of the opportunities. Too narrow a perspective may result in missed opportunities; too broad a canvas can make it difficult to focus, bringing risks and learning curves associated with diversification.
Communicate a powerful vision. This should include a clear statement of what the organisation’s business is, where it is going and how it will get there. A vision or mission statement must be inspirational and help win commitment. It must also be realistic, understandable and clearly understood by everyone in the organisation.
Set time frames. Vision statements are concerned with the long term, but the strategic planning process must provide objectives that are attainable within a time frame of 1–5 years. Without short-term goals to aim for, it is difficult to maintain momentum and motivation.
Set clear objectives. The most effective managers translate a vision into practical objectives, taking account of the strengths and weaknesses of the people they manage.
A strategic plan cannot be static. It must be adaptable to change and must reflect the process of continuous improvement and development within an organisation. To keep the plan relevant and realistic, it is essential to evaluate and modify it on a rolling basis, mindful of changing circumstances and new opportunities or problems.