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Free Online Strategic Planner for creating a 3-page strategic plan based on the structure used in this white paper. Use it to organize your thoughts, structure your ideas and compile a short but comprehensive strategic plan for any size and type of organization. Recommendation: Review the paper on this page before using the planner. Click here to see feedback from past users of this planning tool (opens in a new window) and click here to see a sample plan (use back button on browser to return to this page).
block for next plan. For inspiration (and a few smiles), have a look at some of the quotations and examples of bad advice included in other pages! A strategic plan should not be confused with a business plan. The former is likely to be a (very) short document whereas a business plan is usually a much more substantial and detailed document. A strategic plan can provide the foundation and frame work for a business plan. For more information about business plans, refer to How to Write a Business Plan, Insights into Business Planning and Free-Plan: Business Plan Guide & Template. A strategic plan is not the same thing as an operational plan. The former should be visionary, conceptual and directional in contrast to an operational plan which is likely to be shorter term, tactical, focused, implementable and measurable. As an example, compare the process of planning a vacation (where, when, duration, budget, who goes, how travel are all strategic issues) with the final preparations (tasks, deadlines, funding, weather, packing, transport and so on are all operational matters). A satisfactory strategic plan must be realistic and attainable so as to allow managers and entrepreneurs to think strategically and act operationally - see Devising Business Strategies for further insights.
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The Vision
The first step is to develop a realistic Vision for the business. This should be presented as a pen picture of the business in three or more years time in terms of its likely physical appearance, size, activities etc. Answer the question: "if someone from Mars visited the business, what would they see (or sense)?" Consider its future products, markets, customers, processes, location, staffing etc. Here is a great example of a vision: I will come to America, which is the country for me. Once there, I will become the greatest bodybuilder in history.......... I will go into movies as an actor, producer and eventually director. By the time I am 30 I will have starred in first movie and I will be a millionaire...... I will collect houses, art and automobiles. I will marry a glamorous and intelligent wife. By 32, I will have been invited to the White House. Attributed to Arnold Schwarzenegger who was elected Governor of the State of California in 2003.
The Mission
The nature of a business is often expressed in terms of its Mission which indicates the purpose and activities of the business, for example, "to design, develop, manufacture and market specific product lines for sale on the basis of certain features to meet the identified needs of specified customer groups via certain distribution channels in particular geographic areas". A statement along these lines indicates what the business is about and is infinitely clearer than saying, for instance, "we're in electronics" or worse still, "we are in business to make money" (assuming that the business is not a mint !). Also, some people confuse mission statements with value statements (see below) - the former should be very hard-nosed while the latter can deal with 'softer' issues surrounding the business. The following table contrasts hard and soft mission statements.
Hard What business is/does Primary products/services Key processes & technologies Main customer groups Primary markets/segments Principal channels/outlets
Soft Reason for existence Competitive advantages Unique/distinctive features Important philosophical/social issues Image, quality, style, standards Stakeholder concerns
Compare the following statements: Hard Statement X Corp. designs, develops, assembles and markets systems for data base management. These systems integrate its proprietary operating system software with hardware supplied by major manufacturers, and are sold to small, medium and largesized companies for a range of business applications. Its systems are distinguished by a sophisticated operating system, which permits use without trained dataprocessing personnel. Soft Statement Our mission is to enhance our customers' business by providing the very highest quality products and services possible. Our customer support strategy is based upon total, nocompromise customer satisfaction and we continually strive to offer a complete package of up-to-date value added solutions to meet our customers' needs. We value above all our long term customer relations.
Intel's original plan, written on the back of a menu (view copy), is an excellent example of a hard statement: The company will engage in research, development, and manufacture and sales of integrated electronic structures to fulfill the needs of electronic systems manufacturers. This will include thin films, thick films, semiconductor devices, and ......... A variety of processes will be established, both at a laboratory and production level ...... as well as the development and manufacture of special processing and test equipment required to carry out these processes. Products may include dioded transistors ....... Principal customers for these products are expected to be the manufacturers of advanced electronic systems ..... It is anticipated that many of these customers will be located outside California.
If you'd prefer a soft statement, use the Dilbert Mission Statement Generator. When drafting a mission statement, critically examine every noun, adjective and verb to ensure that they are focused, realistic and justified.
The Values
The next element is to address the Values governing the operation of the business and its conduct or relationships with society at large, customers, suppliers, employees, local community and other stakeholders.
The Objectives
The third key element is to explicitly state the business's Objectives in terms of the results it needs/wants to achieve in the medium/long term. Aside from presumably indicating a necessity to achieve regular profits (expressed as return on shareholders' funds), objectives should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business. These objectives could cover growth, profitability, technology, offerings and markets.
The Strategies
Next are the Strategies - the rules and guidelines by which the mission, objectives etc. may be achieved. They can cover the business as a whole including such matters as diversification, organic growth, or acquisition plans, or they can relate to primary matters in key functional areas, for example: o o o The company's internal cash flow will fund all future growth. New products will progressively replace existing ones over the next 3 years. All assembly work will be contracted out to lower the company's break-even point.
Use SWOTs to help identify possible strategies by building on strengths, resolving weaknesses, exploiting opportunities and avoiding threats. For further discussion on strategies, refer to the paper on Devising Business Strategies as well as these items below: Use Hindsight when Strategic Planning, Effect not Equal to Cause when Planning Strategy and SWOTs - Keys to Business Strategies.
The Goals
Next come the Goals. These are specific interim or ultimate timebased measurements to be achieved by implementing strategies in pursuit of the company's objectives, for example, to achieve sales of $3m in three years time. Goals should be quantifiable, consistent, realistic and achievable. They can relate to factors like market (sizes and shares), products, finances, profitability, utilization, efficiency.
The Programs
The final elements are the Programs which set out the implementation plans for the key strategies. These should cover resources, objectives, time-scales, deadlines, budgets and performance targets.
It goes without saying that the mission, objectives, values, strategies and goals must be inter-linked and consistent with each other. This is much easier said than done because many businesses which are set up with the clear objective of making their owners wealthy often lack strategies, realistic goals or concise missions. Top of Page
the past say, three years? Why have the changes occurred or why have no changes occurred? Identify primary reasons and categorize them as either internal or external. Describe the actual strategies followed over the past few years in respect of products/services, operations, finance, marketing, technology, management etc. Critically examine each strategy statement by reference to activities and actions in key functional areas covering such matters as: o How has the company been managed? o How has the company been funded? o How has the company sought to increase sales and market share? o How have productivity/costs moved? Take each element and quantify by reference to actual performance. Ask of each "why not"?, "why only"?, or "why so"? and locate the reasons for differences between the actual and desired performance.
Drill Down
A useful technique for exploring performance shortfalls is to review the business's financial return and to drill down through the components of this return to locate and assess the key determinants of performance. For example, return on shareholders' funds is a key measure of profitability which can be expressed as: Net income ------------ X Sales Sales ----------Shareholders' funds
Take each item in this formula, explore its contents and derive performance measures or ratios. For example: Sales break down into sales values, units, prices, discounts, commissions, bad debts and so on. Net income is derived by deducting costs (materials, labor, power etc.), expenses, interest and depreciation from sales revenue. Shareholders' funds are based on the value of fixed assets, current assets, current liabilities, debt etc.
illustrated in this DuPont-type profitability chart (click thumb opposite) which is automatically generated by more powerful versions of Exl-Plan to show the impact of specific changes in key variables and assumptions on overall profitability. Subject the resultant ratios to critical examination and attempt to compare them with industry norms. The paper entitled Managing Working Capital explains key working capital ratios. Note that the Exl-Plan financial planners generate extensive ratios based on projected P&Ls, cashflow forecasts and balance sheets for 13-5-7 years ahead. Top of Page
segments) The marketplace which may be altering due to economic or social factors (Customers; distribution channels; economic factors, social/demographic issues; political & environmental factors) Competition which may be creating new threats or opportunities (Identities, performances, market shares, likely plans, aggressiveness, strengths & weaknesses) New technologies which may be causing fundamental changes in products, processes, etc. (Substitute products, alternative solutions, shifting channels, cost savings etc.) Against an uncertain and shifting background, the objective must be to identify and prioritize the key SWOTs in a one-handed manner (Don't say "on the one hand ...........but on the other hand.........").
Need More Help with your Strategic Planning ? Have a look at: Plan Write Expert Business Planner: Combined business plan tool and expert system to help evaluate and develop your plan. Quick Insight - Business Idea Assessor: Expert system to help evaluate and improve a new business idea. Business Insight - Strategy Evaluator: Sophisticated expert system for evaluating, developing and comparing business and marketing strategies.
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download links for Cashflow Plan Free. Business plan template & guidelines (Word format) - details & download link for Free-Plan. Online strategic planner for creating a 3-page strategic plan - details and sample plan. More free tools here.
Need More Assistance? Have a look at: Exl-Plan Multi-year Financial Projections (with Excel) Cashflow Plan Short-term Cashflow Forecasts (with Excel) Plan Write Comprehensive Business Planner Plan Write Marketing Planner Plan Write Expert Business Planner Quick Insight Business Idea Assessor Business Insight Business Strategy Evaluator
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SWOTs. If you haven't got this insight, suspend work on your strategic plan until you have done this basic research. 7. Allow enough time as you may find it much more difficult to write a short plan than a long one !!!! Top of Page
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) 5a Shareholders 5b Management (If different from shareholders) 5c Business (Relative to competitors etc.) 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) Internal Strengths Internal Weaknesses External Threats External Opportunities 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) Note: This worksheet is available as a free Online Strategic Planner.
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9. Introducing PlanWare
PlanWare develops and sells a range of financial planning packages Exl-Plan and Cashflow Plan - for businesses of all sizes & types. Trial versions of all products can be downloaded from our PlanWare site and many other sources on the 'Net. We also offer an extensive range of commercial software for writing business plans, market planning, assessing business ideas and evaluating strategies. PlanWare also features: Papers on cashflow, financial, strategic and business planning topics. Advice on getting new business ideas, managing working capital, devising business strategies and much more. Pages devoted to famous business quotations and examples of bad business advice and mistakes. Top of Page
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