Basic Elements of a Strategic Plan

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8/16/22, 10:03 AM

Basic Elements of a Strategic Plan | Gorman Houston | Strategic Management

a Basic Elements of a Strategic Plan

Essential Elements of a Strategic Plan A strategic plan is an outline of how a company or organization will achieve success. This plan varies in size and complexity, from being one page to hundreds of pages, but its use is essential. The extent of the plan depends on the goals of the company. Every strategic plan is prepared with the same types of essential elements. What is the Purpose of a Strategic Plan? A strategy is a detailed, multi-step plan that is created to achieve one or several long-term goals. Developing a process is necessary to reduce waste and human errors caused by a lack of planning. The Basic Elements of a Strategic Plan Goalsetting is the main element of a strategic plan. Every plan must start with a goal that achieves a result. A company prepares a list of goals that are revealed in its vision or gormanhouston.org/basic-elements-of-a-strategic-plan/

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8/16/22, 10:03 AM

Basic Elements of a Strategic Plan | Gorman Houston | Strategic Management

mission statement. The vision statement is a broad vision of how the company will appear in the future. The mission statement is a brief overview of the actions needed to achieve this vision. The next element involves the actions that are needed to carry out the plan and achieve each goal. Next is to prepare a list of resources, such as capital or equipment, necessary to perform the actions. Setting deadlines is another element that is needed to achieve goals in a timely manner. A deadline increases the value of a goal. A goal becomes less valuable if it can be completed at any time. This means that someone could wait years before starting it and take several more years to nish it. Some companies prepare SWOT analyses that outline all of their strengths, weaknesses, threats, and opportunities. It’s a form of risk analysis that determines the business’s chances of achieving success or failure. The primary purpose is to help the sta become fully aware of the work needed to achieve goals, meet deadlines, and create long-lasting results. Strategic planning is crucial to the creation of a successful individual, company, or nonpro t organization. This planning consists of many di erent steps that are needed to set and achieve meaningful goals. The rst step is to determine the elements that are essential to the development of a good plan.

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