The planning process delivers the best results!
First of all, organizations that take the time to develop a comprehensive Strategic Business Planning process achieve the best results. Because management often discovers there are multiple paths they could take, it is more important to pick a direction and execute. Furthermore, if a company lacks direction, a business engages in endless debates about alternative directions and nothing gets accomplished.?
Finally, before implementing a Strategic Business Plan, be sure you have a clear definition of all the elements that make up a successful strategy.
The elements of an effective Strategic Business Plan
- Vision: The vision of an organization is the exciting and meaningful image of the future. First of all, leaders paint this vision for its employees. Consequently, the goal of this vision is to engage workers to achieve that vision by appealing to their shared aspirations.
- Mission and Values: If the vision is what the organization is trying to ultimately accomplish, the mission is why it wants to achieve that vision. The values of the business refers to the way it conducts itself. As a result, values are the principles that influence the way an organization treats its employees, customers, and community.
- Strategy Roles & Initiatives: The business strategy defines how the organization is going to accomplish its vision. It consists of a set of concrete capabilities that get the company from its current state to the desired future. In addition, clear role definition and prioritized initiatives are critical.
- Balanced Scorecard: The Balanced Scorecard (as pioneered by Kaplan and Norton) is the dashboard or vital signs monitor. As a result, it records whether the organizations is actually achieving its goals.
- Operating Plan: The Operating Plan is the final deliverable of the Strategic Business Planning process. The operating plan is the business roadmap. In conclusion, the roadmap is used on a day-to-day basis to define and manage the company’s initiatives (owners, timing, assumptions, projects, metrics, sensitivities, and related activities).