Facilitate Strategy Formulation & Business Planning
Following the 360° Situational Analysis, the time has come to consider possible strategic options, and to (re)articulate a number of Strategic Initiatives the organization is going to work on during the upcoming business cycle.
Mission, Vision, and Core Values
Whereas the mission statement provides a concise explanation of the organization's reason for existence, the vision provides a mental image of the ideal state that the organization wishes to achieve in the context of the expected future. The core values list the core principles that guide and direct the organization and its culture.
Strategic Options and Pro/Con Analysis
Articulation and weighting the PROs/CONs of strategic options is an important - optional step - which mostly practiced by larger multinational companies (MNCs) for whom the CAPEX implications of strategic investments are having a major impact on the long term profitability of the organization.
Strategic initiatives are giving direction of change and are often directly related to a Balanced Score Card. Strategic initiatives provide perspective, represent measurable objectives and leading metrics (also known as KPIs), and broadly articulate initiatives to achieve the objectives.
Business Plan Development
Whereas the previously presented topics are all part of the annual Business Plan (BP), the delivery of a complete and cohesive plan is an intensive task by itself that requires a lot of time, dedication and preferably experience.
In general, the whole process including the production of the business plan, including operational plans, and budget approvals takes between 3-5 months.
The size and number of chapters of the BP varies depending on the time and ambition of the organization, but globally covers at least the following topics:
- External and internal situation.
- Generic strategies & functional objectives and strategies.
- One year tactical programs and budgets.
- Balanced scorecard, KPIs, SLAs and other metrics.