There are as many strategic planning models and frameworks as there are prominent business consultants and strategy books on the best seller list. Nearly all of them have value and each takes a slightly different approach based on an area of emphasis. An organization should understand their unique situation and adopt elements of the planning process that make the most sense, and it’s important to note that the approach and tools may change from year to year, depending on circumstances, business cycles, and stages in the planning process. It’s also important to note that strategic planning is not as much an event as it is an ongoing activity that includes a review of a plan’s effectiveness and continual re-evaluation of the strategy’s relevance. A few essential elements in planning are listed below.

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1. The first step, or more accurately a pre-step in the planning process is a diagnostic review or evaluation. Strategy planning is a continuous process. It’s a loop of planning, implementation, and review. An organization that is in the loop will use the review process to adjust and determine the elements that should be incorporated in the upcoming planning phase. If strategy planning is a new activity or if it has not occurred for a while, diagnostic tools will help guide the planning process. If a company is new, they may emphasize mission development and incorporate a Blue Ocean type framework. If a company is well established, they may do a simple mission review and focus more on SWOT analysis and the constraints and barriers that have developed over time.

2. Mission development or review. Mission consists of three elements; Purpose – why an organization exists, Values – how an organization behaves, and Distinctives – the niche or element of uniqueness that an organization has. New organizations should develop their mission and use it as the foundation of all decision making. It’s important to avoid a jargony mission statement. It’s better to create a list of ideas or a few sentences that describe each element. Create something simple and easily remembered. Well established organizations should review their mission for continued relevance. It’s also important to become reacquainted with the mission prior to the planning steps so that objectives are in line with the mission itself.

3. Vision casting. Vision is the process of imagining the future state of an organization if it were to accomplish all that was needed to fulfill its mission. Vision casting is the process of describing that potential future through the formulation of high-level goals and aspirations. The step in the strategy formulation process that follows vision casting will test these goals and aspirations against the backdrop of reality so it’s important to keep things generalized and at a high level during the vision stage. Though generalized, these visionary goals should consider a particular direction. For instance, “we want to grow” is not an appropriate goal from vision casting. Growing in a particular market, with a new product, or a new way to go to market denotes a direction and encompasses an appropriately defined vision statement. Vision should be focused, not be overly broad, and consider a small number of goals. This helps an organization to focus on the most important aspects of their vision and prevents them from chasing too many things at the expense of the most important.

4. Assess the current reality and opportunities to accomplish vision. This step is in many ways the most dynamic because there are many ways to approach this. The diagnostic activity that occurred during step one and the vision casting prior to this step will help to set the stage and create a focus for the assessment. It’s often best to start with a simple SWOT Analysis and then use that as a springboard into other methods if needed. For instance, if it is determined that a weakness of an established business are roadblocks due to old and outdated methods, one might turn to the Theory of Constraints problem solving framework, or a business operating in another country with a high number of external threats may utilize PESTLE. The key is to understand the tools available and match the process with the situation. The assessment activities that take place at this stage may temper the high-level goals created during vision casting. It’s important to note that it may be appropriate to return to vision casting and re-evaluate those goals considering what has been learned in the assessment stage.

5. Strategy formulation. This step involves the creation of organization-wide objectives and is the heart of strategic planning. High level visionary goals that are relevant to the mission have been established and judged against the backdrop of reality. It’s now time to create the objectives that make up the primary elements of the strategy. These objectives should be SMART but also generic and global, meaning that they are for the entire organization. One might think of them as the objectives for the CEO. 

6. Implementation. Most strategic plans fail at the implementation stage. There are several reasons this occurs. It’s often a combination of poor planning, lack of accountability, distraction, or a failure in the board room to understand the realities in the field or factory. The remedy is twofold. The strategic objectives that have been formulated for the organization need to cascade down to every level so there is a buy-in and a feedback loop. This should go all the way to the salesperson in the field and the machine operator in the factory. Something that seems like a great idea in the boardroom may not be practical or relevant to achieving the organization’s vision when it’s applied. Ideally, the CEO’s objectives need to cascade down into everyone’s performance plan. They will address each employee’s particular role in achieving the overall company objective and create accountability for strategy implementation at all stages in the organization. 

7. Review. As the plan is being implemented, the board or executive team should do periodic reviews. The focus should be on answering two questions; are the strategic objectives still relevant and how is the organization performing at achieving those objectives. In an ideal world, strategic planning eventually becomes a continuous process with the review steps organically leading to additional planning and continuous goal setting and review. If continuous planning is not in an organization’s DNA the process can be scheduled annually.
    

Three P’s of strategy planning

•  The Purpose: Meaningful strategic planning begins with a keen understanding of why the organization exists.  The why; it's purpose, the foundational principles that drive behaviors and decision making, and their particular niche in the world. 

• The Process: Meaningful strategic planning incorporates purpose, values, and organizational distinctives as it creates goals and objectives to capitalize on opportunities for an organization to realize it's vision. 

• The People: Strategy is implemented successfully when objectives are clear, they cascade through every level of an organization, and integrated into performance planning and total rewards. 

 

Solutions 

S. Miller Consulting can help guide and facilitate organizations through all stages in the strategic planning process, from pre-planning diagnostics, through strategy formulation, to continuous evaluation. Strategy implementation can be tied to other motivational factors such as compensation planning, succession planning, performance management and other areas that create an exponentially higher organizational performance.