The preparation of a strategic plan is a multi-step process covering vision, mission, objectives, values, strategies, goals and programs.
1. Setting the context
- Vision: What do we want to be?
- Mission: Why are we in business?
- Values: What do we care about?
The Vision
The first step is to develop a realistic Vision for the business. This should be presented as a pen picture of the business in three or more year’s time in terms of its likely physical appearance, size, activities etc. Answer the question: "if someone from Mars visited the business, what would they see (or sense)?" Consider its future products, markets, customers, processes, location, staffing etc. It is thus written in the present tense.
The Mission
The nature of a business is best expressed in terms of its Mission which indicates the purposes of the business,
It explicitly states in terms of the results it needs/wants to achieve in the medium/long term. Aside from indicating a necessity to achieve regular profits (expressed as return on shareholders' funds), objectives should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business. These objectives could cover growth, profitability, technology, offerings and markets.
The Values
The Values held govern the operation of the business and its conduct or relationships with society at large, customers, suppliers, employees, local community and other stakeholders. These must be the values that truly apply to the operation of the business; the values you believe and live by.
The Objectives
The final 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. Aside from presumably indicating a necessity to achieve regular profits (expressed as return on shareholders' funds), objectives should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business. These objectives could cover growth, profitability, technology, offerings and markets.
