https://onstrategyhq.com/wp-content/themes/msp/downloads/OnePagePlanWhitepaper.

pdf

STRATEGIC PLANNING DEFINITIONS:

 Strategic Issues – What are we trying to fix, accomplish, or avoid as a result of this process and
plan?
o Strategic issues are critical unknowns that are driving you to embark on a strategic
planning process now. These issues can be problems, opportunities, market shifts or
anything else that is keeping you awake at night and begging for a solution or decision.
 SWOT – What are our strengths, weaknesses, opportunities, and threats?
o A SWOT analysis is a quick way of examining your organization by looking at the internal
strengths and weaknesses in relation to the external opportunities and threats.
 Mission Statement – What is our purpose? Why do we exist? What do we do?
o The mission statement describes an organization’s purpose or reason for existing.
 Vision Statement – Where are we going?
o A vision statement defines your desired future state and provides direction for where
we are going as an organization.
 Values Statement – How will we behave?
o Your values statement clarifies what your organization stands for, believes in, and the
behaviors you expect to see as a result.
 Competitive Advantages – What are we best at?
o A characteristic (s) of an organization that allows it to meet their customers’ need(s)
better than their competition can. What are we best at in our market?
 Organization-wide Strategies – How will we succeed?
o Your strategies are the general methods you intend to use to reach your vision. No
matter what the level, a strategy answers the question “hoe.
 Strategic Objectives – What must we focus on to achieve our vision? What are the “big rocks”?
o Long-term, broad continuous statements that holistically address all areas of your
organization including financial, customer, internal/operational, and peoples/learning.
 Corporate Goals – What is the most important now to reach our long-term strategic
objectives?
o Annual statements that are specific, measurable, attainable, realistic and time bound
(SMART). These are outcome statements expressing a result expected in the
organization.
 Department Goals and Action Items – Who must do what by when?
o Functional goals/action items support the accomplishment of the annual objectives and
align with individual performance plans.
 Key Performance Indicators – How will we measure success?
o Key Performance Indicators (KPI) are the key goals that you want to measure that will
have the most impact in moving your organization forward. It is recommended that you
guide your organization with measures that matter.

The terms above are key elements in the development of a strategic plan. These are areas to focus on,
gather data, and analyze. Having the answers for the questions of each will be your guide in you
strategic planning.
https://www.kevinanye.com/understanding-the-strategic-planning-process-a-guide-for-
smes/#:~:text=What%20Steps%20Are%20Involved%20In%20the%20Strategic%20Planning,review
%20your%20strategic%20plan%20and%20make%20changes%20accordingly.

A lot of SMEs are unable to define and execute a proper strategic plan. This is usually because most
SMEs do not understand strategic planning and the role it plays in managing a business.

STRATEGIC PLANNING FOR SMALL BUSINESS

What is the Strategic Planning Process? It is a process used by organization to develop a plan for
achieving their long-term organizational goals. It works as a roadmap that is used to identify strategic
goals and objectives, as well as what needs to be done to achieve them.

STEPS IN THE STRATEGIC PLANNING PROCESS:

Step 1: Analysis of your strategic position.

Small business strategic planning begins with analyzing the current strategic position of the
business. This involves understanding the external and internal environment of the organization and
identifying strengths, weaknesses, opportunities, and threats (SWOT analysis).

An analysis of the internal environment of the organization helps understand its strengths and
weaknesses. As a result of analyzing the external environment, insights are gained regarding the
opportunities and threats present.

In order to conduct a SWOT analysis, gather input from sources such as the executives of the
organization, customers and external market data. When you gather this information, it will help
identify your strategic position in the market. This is used to identify the strategic goals and objectives
for the organization and help in developing a plan for the future.

You should also conduct a PESTLE analysis. This involves understanding the political, economic, social,
technological. Legal, and environmental factors that affect the organization. A PESTLE analysis is
normally conducted before the SWOT analysis. The results of this analysis are used to identify the
potential opportunities and threats in the external environment of the organization.

Step 2: Develop a vision.

The second step is developing a vision. Using the information gathered in the previous step, you
must develop a roadmap for the future. An organization’s vision is the foundation of the strategic
planning process. This is important because you an organization’s vision was developed according to
the condition of the market. Market conditions change on a daily basis and organizations must adapt
accordingly. However, abandoning the organization’s vision and strategic plan in favor of short-term
success will affect the sustainability of the organization.

Step 3: Developing a mission statement.

Many organizations fail to understand the difference between the vision and the mission
statement. A company’s vision represents its long-term plan and where it wants to go.
A mission statement on the other hand, identifies the purpose of the company. It helps answer
questions such as what the company does, who its customers are, what value they hope to provide, etc.
Essentially, it helps determine how you plan to accomplish the vision of the organization.

Step 4: Establish organizational values.

In order to accomplish your mission, organizational values must be established. These core
values will define the culture of the organization. They will help establish how employees are expected
to behave and what they must strive to achieve.

Core values are the things that you truly care about and live every day. Creating core values that are
nothing more than a “wish list” is a waste of time and energy.

The culture and values of an organization play a very important role in its success or failures as well.
What the employees do on a day-to-day basis will determine the achievements through the course of
the year.

Step 5: Risk assessment.

This is an extension of the weaknesses and threats identified earlier in the first step of the
planning process. There must be constant awareness of the risks and roadblocks that stand in the way
of the goals and objectives.

Assessing the possible risks associated with executing the strategic plan helps in planning ahead. It
allows the organization to take on a proactive approach to act quickly and resolve any problems that
arise.

Step 6: Developing a Small Business Strategic Plan.

Now, the organization’s strategic position in the market as well as vision, mission, and the risks
associated with the plan have been identified. You are now ready to develop a strategic plan for a small
business. To develop a plan, the following must be considered:
 What strategies will have the greatest impact and help achieve the vision and mission of the
company?
 Which types of impacts should you prioritize? (ex. Are you looking to establish a value-based
relationship with your customers or focus on generating revenue?)
 How do you expect your competition to behave?
 Which objectives need to be achieved urgently?
 What tactics should you employ to execute your strategies?
 What resources do you have available?
 How should these resources be allocated?
 How will you measure the progress of your strategic plan?

You must use the vision, mission statement, and organizational values as a reference when selecting
strategies. This helps discard any initiatives that do not further the progress of the organization and
help improve strategic position.

Step 7: Executing and managing the strategic plan.

 Once a strategic plan for the business have been developed, you can move on to implementing
it. To execute the strategic plan, it must first be communicated to the rest of the organization.

This is done through meetings, email, conversations and sharing the relevant documentation. Ensure
that employees are given a clear outline of the organization’s vision, mission, values, goals, objectives,
strategies, and tactics. Organizations that fail to communicate these crucial aspects of the strategic plan
to the employees are likely to fail.

Once the entire organization is on the same page, start executing the strategic plan. This involves
setting up teams, organizing and allocating resources, guiding and motivating employees, and keeping
track of the progress made.

Step 8: Reviewing the strategic plan.

In the final stage of the strategic planning process, the strategic plan must be reviewed and
make changes accordingly. This involves analyzing the amount of progress made and the current
performance of the team.

Compare the progress with the standard of performance that was expected. Priorities and any shifts in
the internal and external environment of the organization must also be re-evaluated.

If any changes that influence the strategic position is observed, revise your strategic plan and implement
it accordingly. This helps to ensure long-term success.

BENEFITS OF STRATEGIC PLANNING:

1. It helps to minimize risks.
2. It gives a sense of direction.
3. It minimizes the inefficient use of resources.
4. It enhances operational efficiency.
5. It improves employee engagement.
6. It provides a formal framework.
7. It improves the scope of improvement.

THE VALUE OF HAVING A STRATEGIC PLANNING PROCESS IN PLACE:

Strategic planning is an extensive and dynamic process that encapsulate the organization’s
vision, mission, goals. Objectives, and strategies. It helps provide a defined framework under which an
organization must operate.

Having an effective strategic planning process in place can benefit an SME in several ways. It improves
the financial and operational efficiency of small businesses, helping them stay viable. It also plays a
crucial role in identifying and establishing the values and work culture of a small business.

Most importantly, it defines the vision of the business, purpose and thus, its identity,

Working without a strategic plan can put you in a risky and uncertain business environment that can
lead to the eventual demise of a small business.