A good strategic plan for any private business or a government agency must be able to consider the businesses’ short term goals, as well as the midterm and the long term goals. Just like the Chinese proverb that says: when making annual plans, plant corn, when making decade long plans, plant trees and when making life long plans, educate and train the people involved.
The decisions made must be based on the present condition of the business and where it wishes to be after a predetermined period. As statistic analysts, the concept of the present condition of the business and where it wants to be should be virtually easy to understand, but many are the times that it is not which in turn becomes a liability.
Many private and government businesses have adapted to some undeveloped strategic plan. Many of these organizations, however, have not yet formalized the plan. They will have the understanding of what products and services are being offered, who is being offered and where they are being offered. When a strategic plan is formalized, the business will not only require the vague understanding, but will be required to follow the plan and update it annually. This will result into increased productivity and improved customer relations.
A good strategic plan should be simple, specific and address the key points required by any business. Some of these key points to include in the plan are:
- SWOT analysis- this involves analyzing the strengths of the business, weaknesses, the opportunities and threats. Some organizations’ strength can also turn out to be its weakness. Having many employees and many types of equipment, for example, can be the strength of an organization, but, it can also turn out to be a weakness due to the complexity it brings into the organizational structure of the organization. When conducting a SWOT analysis, opportunities that the business may take advantage of may be discovered as well as the types of threats that can harm the business.
- Blueprint, which is the general plan describing the value of the proposal, the goals and objectives, put in place, the organizations’ main values, operations and vision.
- Penetration of new markets- A good strategic plan must put into consideration the potential market the business can explore and an honest assessment of effort and capital the organization will be required to put into the potential market.
- Competition Analysis- A good competition analysis must be based on the results of the SWOT analysis. It should be able to show where the organization measures against its competitors.
- M&A analysis and organic Growth- If an organization is considering improving its business, it must consider whether this will be achieved by hiring new employees or by obtaining new businesses.
- Development of talent- Every organization must consider its employees to be great assets and come up with ways to develop them and how to hold on to them. This can be achieved by providing professional training services to them.
The strategic plan, through SWOT analysis, will help be more aware of the opportunities and threats available in its business environment than before. It will allow me to find ways to utilize the opportunities and eliminate the threats. A good strategic plan will not only give the satisfaction of having control of the company's future, but also help the company envision the future and find ways of improving it.
Jay. A & Jeff. L. (2011). Business Management 101: Strategic planning for Businesses and
Government agencies. Retrieved 8th NOV 2013, from Directions Magazine Articles: http://www.directionsmag.com/articles/business-management-101-strategic-planning-for-businesses-and-governme/171672
Chris. A. (2008). Basics of Strategic Planning. Retrieved 8th NOV 2013, from Iowa State