Components of Strategic
Plan
Matt H. Evans, matt@exinfm.com
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Strategic Planning Model
ABCDE
Where we are
Assessment
Baseline
Where we want to be
Components
How we will do it
Down to
How are we doing
Evaluate
Specifics
• Environmental Scan
• Situation – Past,
Present and Future
• Mission & Vision
• Performance
Measurement
• Performance
Management
• Background
Information
• Significant Issues
• Values / Guiding
Principles
• Targets / Standards of
Performance
• Review Progress –
Balanced Scorecard
• Situational Analysis
• Align / Fit with
Capabilities
• Major Goals
• Initiatives and
Projects
• Take Corrective
Actions
• SWOT – Strength’s,
Weaknesses,
Opportunities,
Threats
• Gaps
• Specific Objectives
• Action Plans
• Feedback upstream –
revise plans
Matt H. Evans, matt@exinfm.com
2
Components
Matt H. Evans, matt@exinfm.com
3
Major Components of the
Strategic Plan / Down to Action
Components
Strategic Plan
Mission
Vision
Initiatives
Measures
Targets
AI1
M1 M2
T1
T1
Matt H. Evans, matt@exinfm.com
Evaluate Progress
What we want to be
Goals
Objectives
Action Plans
Why we exist
What we must achieve to be successful
O1
AI2
M3
T1
O2
AI3
Specific outcomes expressed in
measurable terms (NOT activities)
Planned Actions to
Achieve Objectives
Indicators and
Monitors of success
Desired level of
performance and
timelines
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Mission Statement
Components
• Captures the essence of why the organization
exists – Who we are, what we do
• Explains the basic needs that you fulfill
• Expresses the core values of the organization
• Should be brief and to the point
• Easy to understand
• If possible, try to convey the unique nature of your
organization and the role it plays that differentiates
it from others
Matt H. Evans, matt@exinfm.com
5
Examples – Good and Bad
Mission Statements
Components
NASA
To Explore the
Universe and Search
for Life and to
Inspire the Next
Generation of
Explorers
Does a good job of expressing the core
values of the organization. Also conveys
unique qualities about the organization.
Walt Disney
To Make People Happy
Matt H. Evans, matt@exinfm.com
Too vague and and unclear. Need more
descriptive information about what makes
the organization special.
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Vision
Components
• How the organization wants to be perceived in the
future – what success looks like
• An expression of the desired end state
• Challenges everyone to reach for something
significant – inspires a compelling future
• Provides a long-term focus for the entire
organization
Matt H. Evans, matt@exinfm.com
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Guiding Principles and Values
Components
• Every organization should be guided by a set of
values and beliefs
• Provides an underlying framework for making
decisions – part of the organization’s culture
• Values are often rooted in ethical themes, such as
honesty, trust, integrity, respect, fairness, . . . .
• Values should be applicable across the entire
organization
• Values may be appropriate for certain best
management practices – best in terms of quality,
exceptional customer service, etc.
Matt H. Evans, matt@exinfm.com
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Examples of
Guiding Principles and Values
Components
We obey the law and do not compromise moral or ethical principles – ever!
We expect to be measured by what we do, as well as what we say.
We treat everyone with respect and appreciate individual differences.
We carefully consider the impact of business decisions on our people and we
recognize exceptional contributions.
We are strategically entrepreneurial in the pursuit of excellence, encouraging original
thought and its application, and willing to take risks based on sound business
judgment.
We are committed to forging public and private partnerships that combine diverse
strengths, skills and resources.
Matt H. Evans, matt@exinfm.com
10
Goals
Components
• Describes a future end-state – desired outcome
that is supportive of the mission and vision.
• Shapes the way ahead in actionable terms.
• Best applied where there are clear choices about
the future.
• Puts strategic focus into the organization – specific
ownership of the goal should be assigned to
someone within the organization.
• May not work well where things are changing fast
– goals tend to be long-term for environments that
have limited choices about the future.
Matt H. Evans, matt@exinfm.com
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Developing Goals
Components
• Cascade from the top of the Strategic Plan –
Mission, Vision, Guiding Principles.
• Look at your strategic analysis – SWOT,
Environmental Scan, Past Performance, Gaps . .
• Limit to a critical few – such as five to eight goals.
• Broad participation in the development of goals:
Consensus from above – buy-in at the execution
level.
• Should drive higher levels of performance and
close a critical performance gap.
Matt H. Evans, matt@exinfm.com
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Examples of Goals
Components
Reorganize the entire organization for better responsiveness to customers
We will partner with other businesses, industry leaders, and government agencies in
order to better meet the needs of stakeholders across the entire value stream.
Manage our resources with fiscal responsibility and efficiency through a single
comprehensive process that is aligned to our strategic plan.
Improve the quality and accuracy of service support information provided to our
internal customers.
Establish a means by which our decision making process is market and customer
focus.
Maintain and enhance the physical conditions of our public facilities.
Matt H. Evans, matt@exinfm.com
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Objectives
Components
• Relevant - directly supports the goal
• Compels the organization into action
• Specific enough so we can quantify and measure the
results
• Simple and easy to understand
• Realistic and attainable
• Conveys responsibility and ownership
• Acceptable to those who must execute
• May need several objectives to meet a goal
Matt H. Evans, matt@exinfm.com
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Goals vs. Objectives
GOALS
Components
OBJECTIVES
Very short statement, few
words
Longer statement, more
descriptive
Broad in scope
Narrow in scope
Directly relates to the Mission Indirectly relates to the Mission
Statement
Statement
Covers long time period
(such as 10 years)
Matt H. Evans, matt@exinfm.com
Covers short time period (such 1
year budget cycle)
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Examples of Objectives
Components
Develop a customer intelligence database system to capture and analyze patterns in
purchasing behavior across our product line.
Launch at least three value stream pilot projects to kick-off our transformation to a
leaner organization.
Centralize the procurement process for improvements in enterprise-wide purchasing
power.
Consolidate payable processing through a P-Card System over the next two years.
Monitor and address employee morale issues through an annual employee satisfaction
survey across all business functions.
Matt H. Evans, matt@exinfm.com
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Strategies
Corporate
Corporate Strategy
Provincial Gov
Competitive
Tourism Pro Office
Competitive
Municipality
Competitive
Rural Dev
Functional
Hotel & Res
Associations
Tour inform & Guide
Services
Matt H. Evans, matt@exinfm.com
Cultural & Arts
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USE SWOT to form Strategies
Opportunities
S ++ Invest
matches of strengths and opportunities lead to
T Clear
comparative advantage
Star
W -+DECIDE - +
of opportunity matched by areas of
n Areas
weakness require a judgement call: invest or
divest; collaborate.
Question Mark
Matt H. Evans, matt@exinfm.com
Threats
+- Defend
Areas of threat matched by areas of strength indicate a need
to mobilize resources either alone or with others.
Cash Cows
--DAMAGE CONTROL - Areas of threat matched by areas of weakness
indicate need for damage control or divest.
Dogs
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Corporate Strategies
• Concentration (Mc Donald, KFC, Pizza Hut,
Pepsi, Coke)
– Market penetration
– Geographic expansion
– Product development (Coke Zero, Pepsi
light, stick rice hamburger)
– Horizontal integration (Bangkok hospital –
PnP, Ram Khon Kaen)
Matt H. Evans, matt@exinfm.com
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Vertical Integration
Betagro
Annimal Feeds
Maize farm
Butcher House
Swine Farm
Drug & Chemical
Matt H. Evans, matt@exinfm.com
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Defend and Damage Control
Strategic Alliances and Joint Ventures
Diversification
• Related diversification
• Conglomerate diversification
Investment Reduction Strategies
• Retrenchment
• Divestment
Matt H. Evans, matt@exinfm.com
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Competitive (Business) Strategies
• Competitive Strategy specifies how the company will
compete
– Cost Leader
– Differentiator
• Product image
• Product durability
• Product Usability
• Reliability
• Focuser
– NZ Milk
– Gifarine
Matt H. Evans, matt@exinfm.com
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Competitive Analysis: The Five Forces Model
Potential
Entrants
Threats of new entrants
Suppliers
Suppliers
Barเgaining power of
suppliers
Industry
Competitors
Rivalry among Existing
Firms
Buyers
Bargaining power of
buyers
Substitutes
Threat of substitute
products or services
Matt H. Evans, matt@exinfm.com
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Functional Strategies
• Functional Strategy is the basic course or
courses of action that each department is to
follow to enable business to accomplish its
strategic goals.
• It must “fit” the competitive strategy
Matt H. Evans, matt@exinfm.com
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Matt H. Evans, matt@exinfm.com
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