strategic planning

• Strategic direction is set through the following elements of strategic planning

  Vision - Non-specific directional and motivational guidance for the entire business, What will the business be like in five years time

  Mission statement - A business’s reason for being It is concerned with the scope of the business and what distinguishes it from similar businesses

  Objectives - Ideally SMART objectives

  Goals - Specific statements of anticipated results
• Different plans in business

  Strategic plan - Sets out the overall direction for the business in broad scope

  Business plan - The actions that a business will take to to achieve corporate objectives

  Operational plans - Details how each objective is to be achieved Specifies what senior management expects from specific departments or functions
• Benefits of Strategic Planning

  • Clarify direction of the business

  • Ensure efficient use of business resources (allocated to strategic priorities)

  • Provide a way of measuring progress (corporate objectives)

  • Support effective decision-making (a focus for senior management)

  • Co-ordinate activities

  • Allocate responsibility

  • Motivate & guide people
• How Does a Business Evaluate Its Strategic Performance

  • A strategic plan with measurable objectives

  • Data to measure performance against those objectives