Developing a Strategic Plan: Steps and Techniques

This presentation covers the steps involved in developing a strategic plan for a company, including developing a vision and mission, setting objectives, transferring objectives into actions, setting performance measures, and creating an action plan. It also discusses the SMART technique for objective development and the resources needed to carry out changes.

How to develop a strategic Plan
Develop Vision and Mission – 5 years
• Vision and mission of a company plays an important role. This is
because the two is used to guide employees and the company in
attaining their objectives.
• The two must be clear and simple not only for employees to
understand but also for easy follow-ups.
• Sometimes the two must go hand in hand with company and
employee culture and believe otherwise they won't be realized.
• In coming up with company mission and vision, junior employees
should be involved because they will be used by the company to
realize them in the long run.
© 2009 Pearson Education, Inc.
Publishing as Prentice Hall Ch 3 -1

Develop strategic Objectives – 5
years
• The role of mission and vision is to realize the objective of the
company.
• The role of objectives in a company is to make sure the company
knows where it is heading to. This means that the objective can be
explained as road to the company where it is heading to.
• A company without objective, is a company which does not realize
where it is going in five years time.

Transfer the objectives into actions (
annual basis)
• A key consideration in effective planning is learning how to transform
goals into attainable steps (actions).
• Many businesspeople have trouble with this; consequently, many of
their goals (especially long-term goals) may never get addressed
adequately (or at all).
• However, there is hope. By developing effective monthly, weekly and
daily plans, businesspeople can more clearly see the attainable steps
needed to fulfill their goals.
• And there are several approaches that can be used for this.

Set Performance Measures (KPIs)
Targets
• In a company key performance indicator (KPI) can be described as a
measurable value which is used to demonstrate how effective the
company is in achieving key business objectives.
• In business market, many organization uses key performance indicator
(KPI) to evaluate their success at reaching targets.
• However, coming up with the right key performance indicator will mostly
depends on the company and the department one is looking to track.
• One must understand that, each department in the company uses
different key performance indicator types in order to measure its success
and growth based on specific business goals and targets.

Set Performance Measures

key performance indicator
• To be useful, key performance indicators need to be monitored and
reported on; if they change in real-time, they should be monitored in
real-time.
• KPI Dashboards are the perfect tool for your performance tracking
reports as they can be used to visually depict the performance of an
enterprise, a specific department, or a key business operation.

key performance indicator

SMART Technique
• SMART is an acronym that one uses as a guide when setting goals in a
company.
• This criteria is mostly attributed to Peter Drucker’s who was a
management by objectives.
• The term was firstly used in November 1981.
• To ma sure and confirms goals in the company are clear and
reachable, one must make sure they are

SMART Technique – Objective
Development
Specific (simple,
sensible,
significant)
Measurable
(meaningful,
motivating)
Achievable
(agreed,
attainable)
Relevant
(reasonable,
realistic and
resourced,
results-based)
Time bound
(time-based,
time limited,
time/cost
limited, timely,
time-sensitive).
© 2009 Pearson Education, Inc.
Publishing as Prentice Hall Ch 3 -9

SMART Technique – Objective
Development
1. Specific
The company goals are supposed to be clear and specific. This will help the company to focus and put all
efforts toward achieving goals and objective.
2. Measurable
Its important for the company to have measurable goals in the long run. This will help a company or
organization to truck its progress and keeping the employees motivated at any time.
3. Achievable
The company’s goal is supposed to be realistic and attainable to help the company to be successful. On
another word, goals must stretch the company abilities but also keep it possible.
4. Relevant
This step helps the company to realize the goals matter to the company.
5. Time-bound
All goals the company set must be target date which means they must have a deadline to focus on which will
also help it to work toward.

Action Plan
• What actions or changes will occur
• The actions which will occur is the company will grow and attain its success in future.
• Who will carry out these changes
• The changes in the company is carried out by the junior and senior employees in the company.
However, management to some extent plays the biggest role.
• By when they will take place, and for how long
• The changes in a company is process which might take many years and never completes.
• What resources (i.e., money, staff) are needed to carry out these changes
• Both capital and staff resources is crucial in implementing the said changes in the long run.
• Communication (who should know what?)
• Customers and employees must be communicated any changes taking place in the company by
senior management to avoid inconveniences caused.