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Master the Strategic Planning Process: Essentials Overview

Strategic planning is a crucial process that helps organizations map out their goals, objectives, and action plans to achieve long-term success. It begins with an analysis of strengths, weaknesses, external opportunities, and threats and results in the organization setting goals and cascading them through the organization. Once objectives are well defined, the leaders can develop plans and processes that focus the company efforts on achieving them. Today, strategic planning has become more important than ever. The constant evolution of technology, changing economic dynamics, and extreme pressure from customers to adapt to their changing needs means that companies are in a constant state of transformation and need to have focus and purpose to everything they do.

A strategy provides your businesses with the direction you need to navigate challenges and capitalize on opportunities. A strategic plan ensures you have a roadmap and accountability to implement it.

Understanding Strategic Planning

Strategic planning is a process that allows organizations to assess their current position, identify key issues, and plan for the future. It involves a systematic analysis of internal and external factors, setting goals, developing strategies, documenting action plans, setting metrics and KPIs and managing the execution of the strategy program. By understanding strategic planning, businesses can gain a competitive edge, adapt to changes, and position themselves for long-term success.

The 5 Steps Involved in the Strategic Planning Process

Effective strategic planning consists of five key components:

5 Components of Strategic Planning: agreed on organizational goals. Your approach for achiving those goals. Specific actions needed to achieve those objectives. How you evaluate progress against the goals. Program managing and iterating.

Strategic Assessment: The Foundation

This is the first step of strategic planning. It involves analyzing internal strengths, weaknesses, external opportunities, and threats (SWOT). Organizations need to evaluate potential opportunities and risks in four key perspectives: Financial, Customer, Internal Processes, and Learning and Growth. It means looking internally, at capabilities, operations and talent, and externally at the needs of customers, the direction of the industry, and competition. By conducting a SWOT analysis and a Balanced Scorecard assessment, businesses can gain insights into their current position and identify strategic issues that need to be addressed.

Strategic assessment: components and frameworks. Explains the framework for SWOT, Porter's 5 forces and Balanced Scorecard.

Goal Setting: The Most Critical Step of Strategic Planning

Goal setting is the first step in the strategic planning process. It involves setting top-level goals that align with the organization's mission, vision, and strategic objectives. Through the goal setting process, the organization determines the vision for where they want to be in the near future, for example in a year or three years. For small businesses, it is recommended to have around three top-level goals. These goals should be clearly defined using the SMART goals framework, if possible. Each goal should then cascade down to functional goals, ensuring alignment across the organization.

Strategy Development: Crafting the Blueprint for Achievement

Once goals are set, leaders need to map out their strategy for achieving those goals. This process involves bringing independent ideas for approaches and plans, considering the company's culture, values, and mission. Priorities and sequencing of plans and goal achievement should be determined, taking into account the company's data, which can help identify effective approaches and predict results.

Action Planning: Translating Strategy into Reality

After strategy development, the next step is action planning, where leaders break down the approaches into specific plans and action items. During this phase of strategic planning:

  • Initiatives and approaches are translated into specific actions with assignments and responsibilities.

  • Budgets are assigned to projects.

  • Decisions about dependencies and timing are made.

  • Reports and dashboards are sketched to help monitor progress.

While this can be done on an annual basis at a high level, this step needs to be repeated regularly to adjust for new realities and incorporate new learning and opportunities. While setting major milestones 6-12 months in advance, other items can be planned quarterly or monthly. Brainstorming techniques like "categorize before you prioritize" can help identify key action items and ensure effective execution of the strategy.

Progress Evaluation: Keeping Track of Goals

Regularly monitoring key performance indicators (KPIs) is crucial to assess progress towards strategic objectives. Establishing a timeline for progress evaluations, ensuring accountability, and making action plan adjustments are key components of progress evaluation. Using balanced scorecard methodology, quarterly evaluations can align with the strategic management process, enabling effective strategic decisions informed by results.

Program Management: Key to Strategy Execution

Strategy is not a set-it and forget-it activity. New information and insights constantly shift the focus of the team and the direction of the plan. To ensure that as opportunities and challenges arise plan adjustment is done with the overall strategy in mind, the team needs to revisit the strategy regularly and evaluate if the plan is achieving the objectives. Additionally, key stakeholders are aware of the plan and strategy and changes to it, so they can be active and proactive participants in it. Excellent strategy implementation requires change management, program management, and regular, collaborative working sessions across the team.

StratCraft's Strategy Operating System framework is one example of a complete strategic planning system that includes all 5 steps of the process, as well as coaching and training that ensures all executives in the team have the skills to put plans into action.

What is the role of Software & Data in Strategic Planning?

Today, the pace of digital transformation is extreme and can feel overwhelming. But software and data play a key role in strategic planning process, analysis, and execution. Data-driven decisions guide strategic position, ROI evaluation, scenario planing and evaluation of the strategic plans. Technology enhances strategic mapping, action planning, and strategic program management. By leveraging the power of software and data, organizations can enhance their strategic planning process and make more informed decisions.

Role of Data in Strategic Planning. 1. Historical data informs what worked and didn't work. Market and Customer data: shows opportunities and trends. ROI assessments: demonstrate marginal costs and benefits of new initiatives. Financial Data: provides insights on risk and fincnaces available for investment. Operating metrics: show challenges and opportunities for improvement.

The Importance of Strategic Planning in Business Success

Strategic planning is crucial for business success, as it provides organizations with a roadmap to achieve their goals and objectives. It enables businesses to anticipate and adapt to changes in the market, identify opportunities, and mitigate risks. By aligning resources, priorities, and goals, strategic planning helps businesses make effective decisions, allocate resources efficiently, and drive performance. In a previous article, we've focused in on how strategic planning is critical for business growth and how team alignment enables better decision making and stronger effort.

How Strategic Planning Supports Scaling and Transformation

Strategic planning plays a crucial role in supporting business scaling and transformation. When a company is scaling quickly, strategic planning enables the executive team to be thoughtful and purposeful. It brings focus to the team, reduces overwhelm, and minimizes distractions. Strategic planning expedites decision making because everyone shares the same vision, goals, and priorities. The plan highlights dependencies, helping team members work together towards a common goal.

Planning also unearths risks, so that they can be managed and avoided before they evolve into problems that halt progress. Having a strategic planning process gives leaders a dedicated forum to work through challenges in a disciplined and collaborative way. This awareness and focus improve day-to-day problem-solving and give leaders the freedom to make decisions independently within a shared framework. A company that is growing quickly needs to be able to address risks quickly - since growth always uncovers operational weaknesses. A team that has excellent strategy execution practice will be more effective at addressing challenges before they evolve and become intractable.

The Impact of Strategic Planning on Winning New Opportunities

An effective strategic plan provides a lens for perceiving new opportunities, both in the market and internally. By having a clear strategy, leadership teams can act more quickly on high-priority items, seize opportunities, and gain a competitive advantage. Strategic planning enables businesses to stay agile, adapt to changes, and position themselves for growth and success.

The Role of Different Stakeholders in Strategic Planning

In strategic planning, involving key stakeholders is essential to ensure effective execution of the plan and alignment across the organization. Different stakeholders bring unique perspectives, expertise, and insights, contributing to the development of a comprehensive strategic plan. An aligned executive team will have a compounding effect and create a positive trajectory and growth attitude for the whole company.

Who Should Be Involved in the Strategic Planning Process?

In the strategic planning process many people need to be involved, so the process of involvement needs to be well designed. Too many people at the same time can create indecision by committee. Too few and critical perspectives will be missing. Generally, the CEO provides strategic vision. The COO or CTO brings an operational and product perspective. The CMO and CSO contribute their customer perspective and research what is going on in the industry and among the competition. The CFO provides the financial perspective. Additionally, compliance, security, talent and data executives should be involved, if possible, to ensure a holistic outlook on the strategy and plan.

Investors, board members, and advisors should provide input to the organizational goals and the top priorities. They can also contribute expertise during strategy mapping and planning. . There should be clear expectations about how they engage and regular sessions where they can advise the leadership team.

Fractional executives or strategy consultants can also be involved on a regular basis in the planning meeting, or recruited for advising or consultations on specific issues. Having a dedicated Program Manager, Chief of Staff, or Strategy Management consultant to orchestrate the process can ensure effective management of the strategy.

Top-down vs Bottom-up Strategy and Planning

Comparison of top-down vs bottom-up strategic planning.

Strategic planning can be approached from both top-down and bottom-up perspectives. Top-down strategy planning involves setting goals at a company level and cascading them down into plans.

On the other hand, bottom-up strategy planning leverages internal contributors in surfacing opportunities and threats, and using department plans to stitch together a company plan strategy. For example: business units might set their own strategy and have all the resources they need to support it without needing to align with other business units too much. This can provide a lot of decision making power and is sometimes used in companies with distributed structure.

Each company is different and has different levels of strategic capabilities in different functional areas. Because of this, the balance of top-down vs bottom-up approaches needs to be explored in the context of the company's organizational design.

Communicating Your Strategy to Employees & Customers

Communicating strategy effectively is key to successful strategy execution. By clearly communicating the organization's mission, vision, goals, and action plans, leaders can align employees, inspire action, and foster a sense of ownership. Communication should also extend to external stakeholders, such as customers, to ensure alignment, transparency, and trust.

Determining the Frequency of Strategic Planning

The frequency of strategic planning depends on various factors, such as the organization's size, industry, and business goals. Establishing time frames and milestones is crucial to drive accountability and ensure effective planning. Smaller teams that require agility may benefit from iterative planning, such as quarterly planning, while larger projects may require waterfall planning, with significant upfront investment. Expect that some initiatives and plans may need to be re-planned as new information flows in, ensuring adaptability and flexibility.


Strategic planning is the backbone of a successful growing business. It allows you to define your organizational goals, develop a roadmap to achieve them, and evaluate your progress along the way. By involving key stakeholders, using data-driven insights, and communicating your strategy effectively, you can ensure that everyone is aligned and working towards a common objective. Remember, strategic planning is not a one-time event but an ongoing process. Regular evaluations and adaptations are necessary to keep up with the ever-changing business landscape.

If you're ready to take your business to new heights, sign up for our strategic planning masterclass and master the art of planning for success.


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