Strategic planning is the process of defining a company or organization’s fundamental identity and direction. The strategic planning process helps organizations determine business decisions and the allocation of resources that support and further that determination. Moreover, it includes a salient understanding of the business’s current position and a meaningful exploration of effective strategies for the future.

In order for a strategic plan to be effective, the strategic planning process must include the following basic components:

  • A communication strategy – deciding who will participate in the planning process as well as the extent of their involvement and how they will relay the points of the plan to their departments
  • Strategic task force – a core team of organizational leaders representing key business areas to ensure the plan reflects the concerns and objectives of the entire company/organization
  • Vision statement – the group’s road map for future directions and decisions
  • Mission statement – the definition of an organization’s identity and self-understanding that includes a statement of their core values and goals
  • Values – an organization’s central beliefs as well as a clear definition of acceptable organizational behavior
  • Goals – essential plans or strategies to realize a company’s mission
  • Objectives – concrete, actionable and measurable steps that advance a company’s goals and vision
  • Tasks – specific duties and responsibilities assigned to individuals or departments to support and further a company’s objectives
  • Implementation strategy – a crucial tactical plan that ensures not only the feasibility of the strategic policy, but also the proper prioritization of company initiatives and allocation of key resources
  • Monitoring of strategic plan – a crucial aspect that includes measuring the success as well as missteps in the implementation of the strategic plan and corrective actions that need to be taken (if any) to keep the plan on track.