Strategic Plan Template
Strategic Plan Template
Strategic Plan Template
for
(company name)
for Period
TABLE OF CONTENTS
Executive Summary
Section
1.
2.
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Page
Strategic Focus
The Business
Market Analysis
Products
Marketing
Research and Development
Production and Delivery
Supply Chains
Business Systems and Processes
Stakeholder Relationships and Alliances
Organisational and Management
Environmental and Social Impacts
Risk Factors and Regulatory Compliance
Corporate Governance
Financials
Application of Investment Funds
Strategic Action Plan
Plan Improvement
Appendices:
1.
2.
3.
Clearly identify the readers of this document. Then write the plan in a style that is easily
understood by readers
Remember that this plan is a working document that has the clear purpose of initiating focussed
action and generating clear and measurable results. Avoid the excessive use of descriptive
adjectives to 'pad' or over-sell the plan. Flowery, highly descriptive language can cloud key
issues, blur the plan's focus and slow/confuse its implementation
Keep the plan 'tight'; ensure it remains concise, balanced, clear and logical. Where possible use
quantitative rather than qualitative information. Remember the KISSS approach to planning;
keep it simple, short and specific. Interlink all Sections, with the Market Analysis providing a
clear focus for all subsequent sections.
Focus on facts and information from credible and reputable sources. Where possible avoid
critical dependencies on one source of information. Build redundancy in to information sources.
Validate, validate, validate all key information used in the plan
Always remember that faulty assumptions and faulty logic are some of the greatest hazards to
business performance and business planning. Also remember that a good plan implemented
today will always beat an excellent plan implemented some time in the future. So, get the plan
completed and in to action as soon as is practicable. Also, plans must be adaptive to changing
circumstances. If the plan is not performing be prepared to complete 'major surgery' on it.
Am I satisfied that all readers of this plan will clearly understand it?
Appropriateness
Am I satisfied that the strategic/business directions proposed are aligned with the
company's constitution?
Sustainability
Am I satisfied that the strategic/business directions proposed are of a nature and
quality that should ensure the future?
Feasibility
Am I satisfied that:
* All company implications of the strategic/business directions proposed have been
considered thoroughly,
* Implementation is possible, and
* All supporting goals, objectives and strategies are realistic, practically achievable,
affordable and comprehensive?
Accountability
Am I satisfied that:
* Management accountability is clearly defined,
* Management is adequately resourced and well prepared to implement this plan,
* Effective remedial action has been planned in the event a management shortcoming
occurs with plan implementation?
EXECUTIVE SUMMARY
The Executive Summary is the last section written. It should be restricted to two to three pages in
length. In essence the Executive Summary is a very effective distillation of the overall business plan
into a 'hard hitting' summary of key performance initiatives and performance targets. Typically it
would include the following:
The Product
The Market Strategy
The Management Team
Profit and Cash Projections
Investment Needs
Returns to Investors
SECTION ONE
STRATEGIC FOCUS
The Aim of this Plan
What do we wish to achieve with this plan?start, grow, consolidate, downsize or exit.
Our Mission
A Mission Statement clearly defines the primary purpose or reasons for our existence. It is
heavily focused on Customer Value. It is also vital to achieving organisational alignment
A mission statement typically provides clear and concise answers to the following questions:
Answers to the above questions provide a start-point for preparing a statement that clearly positions
the company in the minds of key stakeholders and customers
Organisational Values
What core organisational values must be imbedded in our organisation to establish a culture capable
of achieving our Mission?
Goal One.
Goal Two
Goal Three
Goal Four
Performance Objectives
The performance objectives below, in combination, form a performance scorecard for easily tracking
the performance improvements generated by this plan. Section 17 provides the inputs for this
scorecard. The planning team determines the composition of the performance scorecard.
Performance
Area
Financial
Performance
Customer and
Market
Performance
Internal Efficiency
and Effectiveness
Long Term
Development and
Innovation
Performance
Measures
Target
Time Frame
SECTION TWO
THE BUSINESS
Provide a concise overview of the business. Areas for consideration when preparing this section to
include:
Owners/Directors/Shareholders/Shareholdings
A brief history of the business
Corporate and business cultures
Nature of the business and it main activities
Location
Current stage in its life cycle
Past performance and key achievements
Key business advisors - Solicitor, Banker, Accountant, and Consultants
Relationships with key stakeholders
Competitive strengths and weaknesses
SECTION THREE
MARKET ANALYSIS
Conduct a detailed analysis across each of the following areas to identify and quantify key market
opportunities/gaps, barriers to market entry, threats, compliance requirements, risks, performance
multipliers, critical success factors etc that must be considered when developing high priority
product development, marketing and business strategies. All budgetary and financial constraints
must be factored in to this planning.
Global/National Trends, Developments, Cycles and Changes of Relevance
Macro-environment (eg, political, economic, legal, social/cultural, demographics, technology)
Industry
Markets, Customers and Suppliers
Competitors and their Products
Questions typically asked during the analysis would include:
- What are the industry's economics, critical success factors, key risks, competitiveness, compliance
and standards requirements, emerging trends and key technologies?
- Who are the key customers and major competitors in each target markets?
- What are the sizes of the target markets? Are they growing? If yes, at what rate?
- What market share does each major competitor hold in your primary markets
- What are the strengths and weaknesses of major competitors and their products?
- What are the competitive price points for products in each market?
- What competitive advantages must your products have to successfully enter and compete in target
markets? How will you differentiate your products and add more-customer-value than competitors?
- Key questions about your primary customers:
* Specifically what need or problem does your product target?
* Who will make the decision to purchase your products?
* What are their decision criteria?
* Where are the products bought?
* How are the products bought?
* When are the products bought?
* Why are the products bought?
- How well do you know your primary customers and key competitors?
- How strong are your relationships with key customers and key stakeholders. How do you involve
them in product development? What factors will be critical to building strong and enduring brands
with them?
- What levels of demand for your products are realistic across your primary markets?
- In order of priority what are your primary markets? Why?
- How will your primary competitors react when you enter their markets, now and over the next
two years? What are you going to do about their responses?
- What are the major barriers to market entry?
- What are the critical success factors for each market?
- What key product distribution, product support and customer service issues must be considered?
- Which companies and products are likely to become competitors in the future?
- What new or emerging technologies and substitute products are likely to become threats in the
future?
SECTION FOUR
PRODUCTS
Based on the findings of Section Three identify your product's key strengths and weaknesses as they
relate to key market opportunities and threats. Then develop strategies to address each issue (eg,
build on strengths and correct weaknesses) for each product in your product portfolio. When
preparing this section consider the following framework for clustering key issues and related
strategies. All budgetary and financial constraints must be factored in to this planning.
Also consider conducting the product analysis and planning for this section across the following
stages:
Current Situation
Key Product and Market Issues
Key Strategies
Performance Measures and Targets
SECTION FIVE
MARKETING
Based on discussions at previous sections develop a concise set of highly focussed marketing
strategies for your most attractive and highest priority markets. These strategies will guide your
market entry, market development, and brand building activities. Establish budgets for these
activities. Set realistic and measurable performance targets and time lines for each market
entry/development strategy. These targets are critical to designing and building business and
production capacities aligned with expected market demands on entry, and in to the future.
In essence marketing strategies in combination create the well differentiated, high value and
compelling proposition to customers that persuades them to purchase from you rather then a
competitor. These strategies should build on the competitive strengths of the company while
exploiting the weaknesses of key competitors. A highly competitive, high-value proposition to
customers is typically created around the following drivers of competitive advantage:
SECTION SIX
RESEARCH AND DEVELOPMENT
Provide a background to current activities. Then identify key issues (strength, weakness, gaps,
threats and opportunities) and develop related strategies for addressing each key issues. Link the
R&D effort to your market research, product development and marketing activities discussed in
previous sections. All budgetary and financial constraints must be factored in to this planning.
Areas to be analysed to include:
Sources of R&D
- Current and planned
- Strategic alliances for R&D
Processes employed for the development and commercialisation of new products and
technologies
SECTION SEVEN
PRODUCTION AND DELIVERY
Provide a background to current activities. Then identify key issues - strengths, weaknesses, and
gaps in production capacities and capabilities - as they relate to meeting the marketing requirements
and targets, and R&D requirements developed in earlier sections. Then develop linked strategies
with clear targets, time lines and budgets to develop and progressively expand production
capabilities and capacities. All budgetary and financial constraints are factored in to this planning.
Key issues are typically identified following an evaluation of key production and delivery
performance-drivers. Typical areas to be addressed during this evaluation include:
- Plant design, location, size and site requirements
SECTION EIGHT
SUPPLY CHAINS
Provide a background to current activities and list all key suppliers. Then identify key issues strengths, weaknesses, and gaps in supply chain capacities and capabilities - as they relate to meeting
the production and delivery requirements and targets developed at Section Seven. Then develop
linked strategies with clear targets, time lines and budgets to develop and progressively improve
supply chain capabilities and capacities. All budgetary and financial constraints must be factored in
to this planning. Supply chains assessments to include out-sourcing. For example any R&D that is
out-sourced should be included in this assessment.
Conduct the analysis and planning for this section across the following stages:
Current Situation
SECTION NINE
BUSINESS SYSTEMS AND PROCESSES
Based on the plans/strategies developed and performance targets established in sections One to
Eight identify key issues - strengths, weaknesses and gaps - within the business systems and
processes that drive business performance. Then develop strategies to address these issues.
Performance reviews to improve internal business systems and processes typically include an
assessment of the following performance areas:
Quality Management (eg, ISO 9001 - Quality Standard, AS 4269 - Complaints Handling
Standard)
Risk Management (eg, AS/NZS, Risk Management Standard)
Regulatory Compliance (eg, AS 3806, Compliance Program Standard)
Information Management and Security (eg, Security Standard AS/NZS ISO/IEC
17799:2000)
Financial management
Managing the environmental and social impacts of business operations
SECTION 10
STAKEHOLDER RELATIONSHIPS AND ALLIANCES
Describe the current situation and list those key stakeholders that currently contribute to business
performance. Identify key issues - strengths, weaknesses and gaps - that relate to improving
stakeholder relationships and alliances. Then develop strategies to address each key issue.
Stakeholder groups typically include customers, suppliers of good and services, employees,
regulators, the environment, community, government departments and investors. Questions asked
during the stakeholder analysis include:
Are all of our key stakeholders clearly identified?
Who will become key stakeholders in the near future?
Are their expectations and requirements clearly understood?
Are they regularly consulted?
Are they kept updated, and involved in those business decisions that will affect them?
SECTION 11
ORGANISATIONAL AND MANAGEMENT
Section Seven provides clear production and delivery projections and targets for the company.
Current organisational structures and human resource capabilities will most likely require
improvement to meet these increasing business demands.
Conduct an analysis of the current situation and growth projections for the company to identify the
key organisational and human resource issues that must be addressed if these growth projections are
to be realised. Then develop strategies with key performance measures and targets to address these
key issues.
Areas to be addressed typically include:
The Management team with brief resumes - show the situation now and in to the future
Job descriptions and work design for management and staff - now and in to the future
Human performance standards, measurement and feedback - now and into the future
Management and staff training and development - now and in to the future
Industrial relations
SECTION 12
ENVIRONMENTAL AND SOCIAL IMPACTS
Conduct the analysis and planning for this section across the following stages:
Current Situation
Key Environmental and Social Issues
Key Strategies
Performance Measures and Targets
SECTION 13
RISK FACTORS AND REGULATORY COMPLIANCE
Risk Management
Establish key risks to the overall business and its performance by identifying high priority risks
within each performance area represented by the sections of this plan. Quantify these risks by
assessing the gravity of their impacts on the business should they be realised, and determining the
probability that they will be realised.
Following quantification of the risks establish an order of priority for their control. Then develop
risk management strategies - with performance measures, targets and time lines - that address the
highest priority risks.
The Australian Risk Management Standard AS/NZS 4360 provides a good framework for
conducting risk management activities within this sub-section
Regulatory Compliance
Conduct an audit of regulatory compliance requirements across each area of the business as
represented by the sections of this plan. Develop strategies to address regulatory gaps and
weaknesses. Australian Compliance Programs Standard AS 3806 provides a good framework for
developing an effective compliance management system.
A regulatory compliance audit would typically embrace:
Corporate governance
Taxation
Superannuation
Employing staff
Health and safety
Trade Practices
Intellectual Property Rights
Environmental Issues
The Privacy Act
SECTION 14
CORPORATE GOVERNANCE
Areas to be addressed by this section typically would include:
Corporate Structures
Company Constitution
Board of Directors - Size and Composition
Duties and Responsibilities of the Board
Board Performance
Advisors to the Board
Shareholder Agreements
SECTION 15
FINANCIALS
Based on the strategies and plans formulated, costings calculated, and sales projected develop a set
of financials for the duration of the plan. These financials should include cash flows, profit and loss,
balance sheets, investment requirements, and key financial performance indicators and related
performance targets.
SECTION 16
APPLICATION OF INVESTMENT FUNDS
This section should be linked to all prior planning and at minimum address the following:
What will be the total investment requirement across the duration of this plan - when and
how much?
Which investors will be involved; how much will they provide and when will they provide
it?
How will the funds be used at each round of investment?
What will the capital structure and ownership be after each round of investment?
SECTION 17
STRATEGIC ACTION PLAN
Primary Goals, Objectives and Strategies
The Aim of this section is to integrate all strategies developed across previous sections into a
cohesive and balanced plan of highly focussed action that will achieve the overarching purpose of
this Strategic Business Plan.
Firstly..High-priority, clear, action-orientated, time-bound and practicably achievable goals are
formulated around clusters of 'like' strategies developed across the previous sections. Goals mark a
clear and well-marked pathway for achieving the aim of this plan. To ensure the plan has a sharp
focus the number of key goals should be restricted to six or less when ever possible. A clear time
frame and performance target should be integrated in to each goal statement. An example of a goal
statement: By 30 June 2002 to construct and commission a world-standard production and delivery
facility capable of producing two 20 metre road bridges per month for direct installation in to
Australia's public road system.
After each goal has been clearly formulated develop a set of supporting objectives and strategies.
Objectives define the best pathway for achieving each goal. Strategies define the pathway for
achieving each objective. Objectives and strategies are also written using the SMAAART acronym Specific, Measurable, Action-orientated, Affordable, Achievable, and Time-bound. The final step in
developing an interacting hierarchy/network of focussed action is the Task plan. This plan allocates
people and resources to completing those tasks required for achieving each strategy. Vital budget
and resource considerations are integrated in to the overall planning process to ensure all planned
actions are affordable.
The interacting hierarchy/network of action for achieving the aim of the plan is illustrated below.
The hierarchy/network of focussed action is not a rigid structure and, where possible, should be
adapted to the each situation to ensure it provides fast, effective and relatively simple action
pathways for delivering results of significance.
Plan Implementation
Typically management in consultation with staff and key stakeholders implements each Goal and its
supporting objectives, strategies and action/task plans. Balanced teams can be effectively employed
to implement strategies and supporting action/task plans.
SECTION 18
PLAN IMPROVEMENT
Performance Measurement
The plan's performance should be assessed against its effectiveness in achieving its high priority
goals and performance targets.