The document outlines the key steps in developing a strategic plan, including defining a vision statement, mission statement, values, objectives, strategies using a SWOT analysis, goals, and initiatives. A vision statement describes the optimal future state of the organization, while a mission statement defines its current purpose and answers what it does, who it does it for, and how. Values and culture refer to how the organization thinks and acts. The objectives, strategies, goals, and initiatives provide the framework to achieve the vision and mission.

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How to develop a Strategic Plan

2.  What is a Strategic Plan?
 Basic approach to Strategic Planning
 The Key Steps -
The Vision
The Mission
Business Values / Culture
The Objectives
The Strategies (from a S.W.O.T. analysis)
The Goals
The Initiatives
Overview
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3. A Vision Statement:
 Defines the optimal desired future state - the mental
picture - of what an organization wants to achieve over
time
 Provides guidance and inspiration as to what an
organization is focused on achieving in five, ten, or more
years;
 Functions as the “pole star”
 Is written in an inspirational manner that makes it easy for
all employees to repeat it at any given time.

4. Can be difficult to create but is worth the effort -
 Leaders may change, but a clearly established Vision
doesn’t
 Defining an organization's Vision is not always easy for
senior leadership to do.
 One of the things leaders struggle with the most is
"communicating an image of the future that draws others
in - that speaks to what others see and feel."
 BUT - "being forward-looking - envisioning exciting
possibilities and enlisting others in a shared view of the
future - is the attribute that most distinguishes leaders
from non-leaders."
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5. A Mission statement 'defines the present state or purpose
of an organisation'.
Answers three questions about why an organisation exists
–
WHAT it does
WHO it does it for
HOW it does what it does.

6. Is written succinctly in the form of a sentence or
two, but for a shorter timeframe (one to three
years) than a Vision statement; and,
Is something that all employees should be able to
articulate upon request.
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7. The next step 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.
In other words, the Business 'Culture' - the way
we think about ourselves and the way we act.

8.  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.
 Not only the necessity to achieve regular profits (e.g. a return on
shareholders' funds), but also the expectations and requirements of
all the major stakeholders, including employees.
 They should reflect the underlying reasons for running the business.
 Objectives could cover growth, profitability, technology, offerings and
markets.
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9.  Next are the strategies - the rules and guidelines by which the
mission, objectives etc. can 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:
 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 a S.W.O.T. to help identify possible strategies by building on
strengths, resolving weaknesses, exploiting opportunities and
avoiding threats.

10. Strengths
Market Leader
Location
Low cost base
Strong management
Weaknesses
Poor infrastructure
High staff turnover
Low morale
Narrow product range
Opportunities
New market sectors developing
Competition is struggling
Product development
Threats
New competitors
New Legislation
Higher raw material costs

11.  Once the SWOT review is complete, the future strategy
may be readily apparent or, as is more likely the case, a
series of strategies or combinations of tactics will suggest
themselves. Use the SWOTs to help identify possible
strategies as follows:
 Build on strengths
 Resolve weaknesses
 Exploit opportunities
 Avoid threats
 The resulting strategies can then be filtered and moulded
to form the basis of a realistic strategic plan
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12.  These are specific interim or ultimate time-based
measurements to be achieved by implementing
strategies in pursuit of the company's objectives.
 For example - achieve sales revenue of US$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, utilisation, efficiency.

13.  The Initiatives set out the implementation plans
for the key strategies.
 These should cover resources, objectives, time-
scales, deadlines, budgets and performance
targets.
 For example - We will sell 2 acres of our land
bank to fund the creation of a new Research &
Development facility by the end of 2016 at a cost
of US$1.6 million.
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14. 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 - many businesses
establish clear objectives but still lack strategies, realistic
goals or concise missions.
Don't just 'go with the flow' - 'make the flow!'

15. It is the striving for and the attainment
of goals that makes life meaningful.
Lewis Carroll stated this point
beautifully in Alice in Wonderland:

17. Paul Evans, Partner
Commutare Limited
Thank you!