Some companies use a top-down, autocratic approach, where the plan gets created by a small group of senior managers and handed down to the rest of the organization. Some prefer a more democratic approach, with employees at all levels contributing their ideas and input to the plan.
Unless that direction is clear, the staff resources of the corporation may wander away from the high priority needs of the marketplace or service area. When the direction of the corporation is clearly defined, that direction forms a pact of sorts between the board and management.
It defines the expectations of the board that management is tasked to carry out. Strategic planning is useful only if it becomes the basis for management action. In short, a planning system must be alive.
Plans, both long and short-range, should be made annually. When new projects are placed before the board or CEO, such as new investment, approval of contracts, etc.
This may mean that energy or resources will not be used well.
To read about a template that better fits the bill, click here. Leadership must be certain that they understand and support the reasons for changes in direction.
To do this, keep the plans in front of you as you consider any new business opportunities or ventures. Elements of the planning system The following are the major elements of a sound and complete planning system: Why are you in business? What is your business?
What difference do you intend to make? What is your unique niche? In our view these should be separated. To make people happy Cargill: To improve the standard of living around the world Merck: To preserve and improve human life 2.
Core Values These are the prioritized guiding principles or credo for everyone in the organization as to how they should operate, what is important to always be or do.
Service to customer above all else Hard work and individual productivity Never being satisfied Excellence in reputation; being part of something special 3. Long-term Vision This is the picture of what it will be like when you get there.
It is a statement of accomplishment or condition you are seeking. It may be stated with a timeframe, e.
In the earlier example from Disney, it is a statement of the result they always want, not just in the long-term, but today, and it works, i. In any case, it should represent a call to action, a galvanizing statement for staff.
It should provide a clear sense of direction and target for all effort. The vision should be viewed as a real stretch, just shy of unattainable, yet real to everyone. For an interesting side note on a vision statement, read our Growthlines newsletter: Strategic Agenda What is the discrete set of projects we are going to undertake in the next years to move toward our vision and make the needed improvements to our operations?When you are aware of the key elements of implementing a business strategy, you can make sure your employees carry out all the activities it requires.
Promising strategies often fail because their. The strategic planning process can be as complicated or as simple as you want it to be.
No matter what approach you take, focus on these four critical elements, which are common to all effective. What matters most is having a strategy and, therefore, an effective strategic plan. An effective plan and execution process require the following attributes: Purpose-driven: A plan based on a mission and a real, true competitive advantage is key.
When you are aware of the key elements of implementing a business strategy, you can make sure your employees carry out all the activities it requires.
The Eight Key Elements of a Successful Business Plan and How to Make Them Work for You By MaryEllen Tribby "I don't have one" was Carl's response when I asked to see his business plan for his new.
Key elements of a Business Plan Written business plans have advantages over good intentions – putting your business idea on paper helps demonstrate a well thought out business proposition, to prospective investors.