How do you create a strategic plan?
A strategic plan usually consists of:
The company’s mission and objectives
This section lays out why the company exists and its intended direction of growth through:
- A mission statement
- A vision statement
- Company values
A comprehensive market assessment:
This section lays out the competitive playing field to help identify the company’s potential differentiators, competitive threats, and unique value.
- A SWOT Analysis (Strength, Weakness, Opportunities, Threats)
- Porter’s 5 forces (Competitive rivalry, supplier power, buyer power, Threat of substitution, threat of new entry)
- A PEST Analysis (Political, Economic, Social, Technological, Environment)
Financial forecasts
Financial forecasts that lay out the anticipated results and critical metrics like breakeven, ROI, profits, and cost of investment.
Strategic objectives
What defines success? Companies need to determine the metrics that matter most to them. Typically, key performance indicators are determined in four areas:
- Financial KPIs (profitability, cost management, shareholder value)
- Customer satisfaction (Customer service, value or quality for cost)
- Operational efficiency (performance management, workplace safety)
- People (Employee retention, job satisfaction, company culture)
Strategic initiatives
How will the company meet its strategic objectives? This section maps out how the company intends on meeting its KPIs.
Performance measures, analysis and evaluation
Did the strategic plan meet its goals and was it successful? This section outlines how success will be measured and all the requisites for evaluation, including specific metrics and frequency of KPIs assessment.
How do you create an operational plan?
Because operational planning is broader in scope, there’s no singular recipe for an operational plan. But typically, operational plans will cover:
Goals: Lay out required tasks, goals, staffing needs, and management processes to ensure that the operational plan furthers a component of the strategic plan.
Timeline: Calendarize what needs to happen and when.
Requirements: Itemize people, processes, supplies, and technology needed to execute the operational plan.
Parameters: Outline KPIs and markers of success.
Budget: Create a budget that includes all project, task, and activity costs.
Reporting: Determine milestones for evaluation during the execution of the plan.