The Strategic Plan is global, it is for the entire organization, despite the fact that the goals should be specific. Strategic planning deals with establishing the global purpose and specific priorities of the company, also the mission and the goals of the company. The strategic plan has the main corporate level, that can be distributed to business level. No matter what methodology is used to elaborate the Strategic Plan and the contents of the Strategic Plan, the focus should always be company wide, referring the corporate level.
A Business Plan should deal with the Business unit or a Strategic unit. Also a Business Plan could be focused on a specific product or service. Here the Business Plan could include all present or future competitive strategy thru product differentiation or niche advantage.
A Strategic Plan is a plan for development and increase, emphasizing the goals and objectives that ensure the development.
A financial plan is a plan to handle and control limited financial resources with priority and ensure the success of the Strategic Plan. Always a Financial plan should ensure the survival of the company. It is a fact that Financial planning and financial monitoring is very important to sustain the Strategic Plan, to ensure that the Strategic Plan could be accomplished using the available financial resources.
Sunday, November 21, 2010
Saturday, April 24, 2010
Objectives and Strategy
Objectives
Make your goals and objectives specific, realistic and rewarding
Avoid being too global with your goals and objectives; you want your employees to clearly understand what's expected of them.
Unrealistic goals and objectives are never motivating. The successful plan consider just goals and objectives that are challenging and attainable within a realistic timeframe. The Board of Directors should keep in mind that people are motivated to attain the company goals with a reward in sight.
The goals and objectives section should consider four fundamental key elements:
1. First is about what the company wants to attain.
2. The second is about what the company wants to keep and sustain.
3. The third is about what the company wants to prevent
4. Naturally the fourth key element is what the company wants to reduce and if possible to remove.
To have success a plan should have reliable financial goals and projections that can be analyzed in detail. Also a strategic plan should discover and reveal the probable threads and state the best strategies for surmounting them.
Strategy
The strategy defines the rules and procedures that will achieve the strategic mission and the strategic goals. The strategy must cover the entire business, all the key development areas, merger or acquisition plans, new products and diversification plans.
Corporate businesses have to define strategic plans for each important level:
1. At Corporate level the strategic plan is defined for CEO and Board of Directors that specifies the structural changes, global policies, the resources and the plans to achieve the strategic goals and objectives.
2. At Business unit or at Strategic Profit Unit level : the competitive strategy thru product differentiation , cost advantage or niche focus.
3. At Functional level for all strategic corporate functions: Marketing, Research, Product Development, Sales, Finance, Legal aspects, Supply and Delivery Management and IT Management.
An important instrument for developing the Corporate strategy is the SWOT analysis. SWOT analysis can help to discover and develop promising strategies by conquering using the strengths, repairing and treating weaknesses, take advantage of all opportunities and preventing threads or even surpassing them.
Make your goals and objectives specific, realistic and rewarding
Avoid being too global with your goals and objectives; you want your employees to clearly understand what's expected of them.
Unrealistic goals and objectives are never motivating. The successful plan consider just goals and objectives that are challenging and attainable within a realistic timeframe. The Board of Directors should keep in mind that people are motivated to attain the company goals with a reward in sight.
The goals and objectives section should consider four fundamental key elements:
1. First is about what the company wants to attain.
2. The second is about what the company wants to keep and sustain.
3. The third is about what the company wants to prevent
4. Naturally the fourth key element is what the company wants to reduce and if possible to remove.
To have success a plan should have reliable financial goals and projections that can be analyzed in detail. Also a strategic plan should discover and reveal the probable threads and state the best strategies for surmounting them.
Strategy
The strategy defines the rules and procedures that will achieve the strategic mission and the strategic goals. The strategy must cover the entire business, all the key development areas, merger or acquisition plans, new products and diversification plans.
Corporate businesses have to define strategic plans for each important level:
1. At Corporate level the strategic plan is defined for CEO and Board of Directors that specifies the structural changes, global policies, the resources and the plans to achieve the strategic goals and objectives.
2. At Business unit or at Strategic Profit Unit level : the competitive strategy thru product differentiation , cost advantage or niche focus.
3. At Functional level for all strategic corporate functions: Marketing, Research, Product Development, Sales, Finance, Legal aspects, Supply and Delivery Management and IT Management.
An important instrument for developing the Corporate strategy is the SWOT analysis. SWOT analysis can help to discover and develop promising strategies by conquering using the strengths, repairing and treating weaknesses, take advantage of all opportunities and preventing threads or even surpassing them.
Wednesday, April 14, 2010
The Values and the Goals
The Values
Values represent the foundation priorities in the company’s culture and concepts. The Values are governing the operation of the company and its relationship not just with customers or suppliers, but also with employees and community. These Values will drive company CEO and Board of Directors priorities and the way they will act in managing the company to reach the goals.
This is why Values are increasingly important in strategic planning.
Articulating values provides company members with an essential guide about distinctive ways of choosing among competing priorities and the course of action about how people will work together for success.
The Goals
The goals should be measurable. A strategic plan should provide the measures of the progress and the feedback mechanism.
The goals must be specific in order to determine if the company is progressing effectively for successfully reaching the goals. The goals should be consistent. Multiple goals of the different departments should be similar and compatible.
Goals should be realistic and achievable. It should be known that unrealistic goals and objectives could be a factor of poor performance. If goals are challenging and achievable in a realistic period of time, employees will be stronger motivated.
Values represent the foundation priorities in the company’s culture and concepts. The Values are governing the operation of the company and its relationship not just with customers or suppliers, but also with employees and community. These Values will drive company CEO and Board of Directors priorities and the way they will act in managing the company to reach the goals.
This is why Values are increasingly important in strategic planning.
Articulating values provides company members with an essential guide about distinctive ways of choosing among competing priorities and the course of action about how people will work together for success.
The Goals
The goals should be measurable. A strategic plan should provide the measures of the progress and the feedback mechanism.
The goals must be specific in order to determine if the company is progressing effectively for successfully reaching the goals. The goals should be consistent. Multiple goals of the different departments should be similar and compatible.
Goals should be realistic and achievable. It should be known that unrealistic goals and objectives could be a factor of poor performance. If goals are challenging and achievable in a realistic period of time, employees will be stronger motivated.
Sunday, April 4, 2010
The Vision and the Mission statement
The Vision
A vision is a statement about what the company wants to become.
The message of the CEO and the board of directors : "That is the view of our company’s future."
Vision is a long term view and creating a vision is an important step in an organizational development process.
A vision shared by all staff of the company helps people to set goals to advance and is an important key for motivation.
The vision reflect the values, knowledge and the philosophy of the company.
The Mission
The company's mission statement reveal the essential undertaking of the company. It should be a steady reminder to employees and stakeholders of the reason of company’s foundation and existence.
Audience: The management team, stakeholders and employees.
Function:
1. To define the company’s reason for existence,
2. To identify the competitive advantages and the distinctive features for the company’s success.
The original founders’ dreams and objectives - when they put their fame and fortune at risk to start the company - must be reexamined and refreshed periodically if the company wants to remain dynamic and competitive.
A vision is a statement about what the company wants to become.
The message of the CEO and the board of directors : "That is the view of our company’s future."
Vision is a long term view and creating a vision is an important step in an organizational development process.
A vision shared by all staff of the company helps people to set goals to advance and is an important key for motivation.
The vision reflect the values, knowledge and the philosophy of the company.
The Mission
The company's mission statement reveal the essential undertaking of the company. It should be a steady reminder to employees and stakeholders of the reason of company’s foundation and existence.
Audience: The management team, stakeholders and employees.
Function:
1. To define the company’s reason for existence,
2. To identify the competitive advantages and the distinctive features for the company’s success.
The original founders’ dreams and objectives - when they put their fame and fortune at risk to start the company - must be reexamined and refreshed periodically if the company wants to remain dynamic and competitive.
Monday, March 29, 2010
Best timing, purpose and benefits of a strategic plan
A strategic plan should be creative, introducing new concepts and future directions. The time when a strategic plan should be made:
1. Strategic planning is an essential step when a company is started.
2. A new strategic plan should be considered before a major venture, or before creating a new important product or service.
3. Each year, before the beginning of the new fiscal year, the strategic plan should be revised and improved, also the action plans should be updated.
4. Once every three years, an entirely new strategic plan should be elaborated, based on new external and internal factors.
The main purposes of a strategic plan are:
1. Clearly define the mission of the organization
2. Establish realistic objectives consistent with that mission
3. Define the time frame for accomplish these objectives
The major benefits of a strategic plan are:
1. Planning of a vision.
2. Communication: the goals and the vision are shared to organization members.
3. Define the key priorities and organize the company resources
4. By passing the SWOT analysis provide the necessary information about the Strengths, Weaknesses, along with Opportunities and Threads.
5. Provide the measures of the progress and the feedback mechanism.
6. Could build a powerful team and a strong relationship between directors and staff.
Personnel involved in elaborating of a Strategic Plan:
1. The chief executive officer CEO is the first person that should be included in the planning group. The CEO should lead and handle the development and implementation of the plan.
2. The board of directors are leading the everyday operations, so them could be too busy for that task. The board should be strongly involved in planning, but a special commission or group should be assigned to elaborate the strategic plan.
3. A consistent part of the stakeholders should be involved in the development of the strategic plan, as their financial decisions are crucial for the success of the strategic plan.
1. Strategic planning is an essential step when a company is started.
2. A new strategic plan should be considered before a major venture, or before creating a new important product or service.
3. Each year, before the beginning of the new fiscal year, the strategic plan should be revised and improved, also the action plans should be updated.
4. Once every three years, an entirely new strategic plan should be elaborated, based on new external and internal factors.
The main purposes of a strategic plan are:
1. Clearly define the mission of the organization
2. Establish realistic objectives consistent with that mission
3. Define the time frame for accomplish these objectives
The major benefits of a strategic plan are:
1. Planning of a vision.
2. Communication: the goals and the vision are shared to organization members.
3. Define the key priorities and organize the company resources
4. By passing the SWOT analysis provide the necessary information about the Strengths, Weaknesses, along with Opportunities and Threads.
5. Provide the measures of the progress and the feedback mechanism.
6. Could build a powerful team and a strong relationship between directors and staff.
Personnel involved in elaborating of a Strategic Plan:
1. The chief executive officer CEO is the first person that should be included in the planning group. The CEO should lead and handle the development and implementation of the plan.
2. The board of directors are leading the everyday operations, so them could be too busy for that task. The board should be strongly involved in planning, but a special commission or group should be assigned to elaborate the strategic plan.
3. A consistent part of the stakeholders should be involved in the development of the strategic plan, as their financial decisions are crucial for the success of the strategic plan.
Thursday, March 25, 2010
5 steps for a successful strategic plan
For a strategic plan you have to think about 4 key elements:
1. First is the time frame we are referring
2. Second is the general objective of the company
3. Third is the framework of actions that should be done to achieve the objective
4. Third is the set of measurable factors that establish if the objective was achieved.
The necesary steps for a successfull strategic plan are:
Step 1: Start by finding and expressing the company or organization's vision and essential values.
Step 2: Develop the action plans to realize the vision but having as central elements the stated values.
Step 3: Build up the necessary business plans that will focus on the particular products or services.
Step 4: Do a strategic analysis: the economical conditions and company SWOT analysis – company’s Strengths, Weaknesses, Opportunities and Threats.
Step 5: Put a measurements and feedback mechanism in place, in order to take corrective action.
The timing, benefits, tools, personnel involved will be covered in a future episode.
1. First is the time frame we are referring
2. Second is the general objective of the company
3. Third is the framework of actions that should be done to achieve the objective
4. Third is the set of measurable factors that establish if the objective was achieved.
The necesary steps for a successfull strategic plan are:
Step 1: Start by finding and expressing the company or organization's vision and essential values.
Step 2: Develop the action plans to realize the vision but having as central elements the stated values.
Step 3: Build up the necessary business plans that will focus on the particular products or services.
Step 4: Do a strategic analysis: the economical conditions and company SWOT analysis – company’s Strengths, Weaknesses, Opportunities and Threats.
Step 5: Put a measurements and feedback mechanism in place, in order to take corrective action.
The timing, benefits, tools, personnel involved will be covered in a future episode.
Monday, March 22, 2010
Why research is a strategic advantage?
It is a question that gives many headaches to any important businessman. Then why not just cut it off? Well because in most cases research is the only source of innovation, new ideas, new products and ultimate source of profit.
Today's changes and so the challenges are both very fast but also complex. We saw that a problem in a country like Greece could give reaction in some remote financial centers like the Asian markets. So how can we do a forecast having systemic interactions where strategic planning has to take into account that change is fast and unpredictable?
By developing the research in multiple ways.
1. First the fundamental research – gives new products with new capabilities. This can give astonishing advantage over rivals
2. Second the market research – is important to know what the market want and search, to be able to reconfigure business.
3. Third the financial research – it is crucial to have a good financing plan, do not get excessively into debts when the market is crushing.
Now it is clear why most companies make tremendous efforts to invest in research.
Today's changes and so the challenges are both very fast but also complex. We saw that a problem in a country like Greece could give reaction in some remote financial centers like the Asian markets. So how can we do a forecast having systemic interactions where strategic planning has to take into account that change is fast and unpredictable?
By developing the research in multiple ways.
1. First the fundamental research – gives new products with new capabilities. This can give astonishing advantage over rivals
2. Second the market research – is important to know what the market want and search, to be able to reconfigure business.
3. Third the financial research – it is crucial to have a good financing plan, do not get excessively into debts when the market is crushing.
Now it is clear why most companies make tremendous efforts to invest in research.
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