The Strategic Planning Process (Process S1)
One of two processes for determining long-term brand identity and creating strategy or direction, and deciding on allocating its resources to pursue this strategy, including capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
Our approach is the simplest and more appropriate for small business is RESZ (Regulatory, Economic, Scientific, and Zeitgeist.
Based upon information and decisions made in Organizational Strategy, Market Segmentation, and Branding, the major elements of Strategy Planning are the Yearly Plan, Internal Venture Capital, and Tactics and Budgeting.
Building A Process - What Questions Need Answers
Strategic View: what is happening that is beyond your control and creates the ground you will compete on over the next 12 months.
1. Regulatory: actions by national and local governments in areas you operate or intend to operate that have an impact on the business.
2. Economic: in the areas you operate or intend to operate, where are they in the business cycle that impact the business.
3. Scientific: what scientific/technical advances in your industry or the customers will impact your business and how.
4. Zeitgeist: what are the current trends in the areas you operate or intend to operate that are impacting customer buying decisions.
5. SWOT: classify all the information collected into a 4 X 4 table (RESZ X SWOT).
6. Current Issues: what Strengths and Weaknesses did you identify for the business today.
7. Future Issues: what Opportunities or Threats did you identity for the business in the near future.
8. Present Initiatives: what actions can the company take to build on Strengths and eliminate Weaknesses.
9. Future Initiatives: what actions can the company take to take advantage of Opportunities and protect from Threats.
10. Value Proposition: which of the Initiatives fit within your unique selling proposition.
11. Targeted Markets: given your Value Proposition, Present and Future Initiatives, which markets are the best fit.
12. Finalize Initiatives: reduce the number of initiatives to 3 per Strengths, Weaknesses, Opportunities, and Threats.
13. Prioritize Initiatives: starting with Weaknesses and Threats, prioritize the list in order of Impact.
14. The Cut: given your current resources how many initiatives can you fund at 100% - the Critical Few.
15. Goals: given your Critical Few state your goal for each of the following areas - financial, customer, products & services, and people.
16. Objectives: given your list of goals determine specific and measurable objectives for each goal.
17. Responsibilities: determine who owns, manages, and performs on each objective.
18. Sequence: determine how the business objectives should be sequenced and integrate with the business calendar.
19. Formalize: create an implementation plan that indicates what is done by whom and when.
Next show: B.013 Building A Financial Process
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