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Examples of strategic objectives, what are strategic objectives.

Strategic objectives are often one of the most challenging components of a strategic plan. They create the bridge between your big, bold vision and the annual goals needed to achieve it.

Strategic objectives establish the boundaries for what your organization’s effort must focus on. They create the top layer of your organizational strategy and strategic plan’s framework, articulating what you’ll focus on to achieve your vision of success.

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We’ve put this guide together to show you how to develop your strategic plan’s objectives!

Tip The best strategic objectives are built from your SWOT Analysis and Vision Statement. Check out our guides if you need to complete those planning elements first.

Defining Strategic Objectives

Strategic Objectives Defined

Video Transcript – Strategic Objectives Defined

Hi, everyone, its Erica from OnStrategy.

Welcome to today’s whiteboard session on defining strategic objectives. From my point of view, strategic objectives are the hardest part of strategic planning. And why is that? That’s because they’re really in between a big vision and translating that big vision into annual goals or actions. And they make the bridge between the big idea and what’s actually getting done this year, this quarter this week. So strategic objectives serve such an important purpose. And they can take a little bit to get right. This is a two part series, check out this one first.

So we’re going to go through what they are. And the other one, we’re going to talk about how to build them. So let’s define strategic objectives. First of all, you can call them anything you want. We’ve heard them called strategic priorities, strategic goals, pillars, planks, kumquats, oranges, it doesn’t really matter. Today, we’re going to call them strategic objectives. And we are defining them as broad statements of direction. And again, they’re little mini vision statements that translate your vision into a bridge to build an annual plan.

Okay, so broad statements. That’s the that’s the idea. Let’s look at the anatomy of so here’s an example of a really good strategic objective. We like to start with a label. So what is it market growth, let’s just say that, followed by a colon, a strong verb, and a statement of impact, in this case, strengthen our competitive position. Super simple, this is a little bit generic, you could continue the sentence if you want to, to make it a little more relevant to your organization. But you know, quick talking points, one of the strategic objectives for the organization is market growth. And what we’re trying to get done is strengthening our competitive position. Great.

Then underneath that, and I don’t have it fully built out here. But we like to actually build out an intent, couple of sentences, maybe even a paragraph, and this is really the the sense of where are you trying to go with this strategic objective, it really starts to bring it to life. And we like to have three sections in that intent statement. Where are you now, in the context of this, this strategic objectives in this case, your competitive position, you know, strategic plans have a lifespan.

And so it’s nice to know at the time in which you wrote it, where are you now a couple of sentences? What are the shifts that are needed in order to actually realize strengthening your competitive position? In this case, this will help you build great goals and initiatives? And then what’s the approach? What’s your method for strengthening competitive your competitive position. And by that, I mean, organic acquisitive, those types of things. So you could envision your intent statement, having, you know, a couple of sentences here, a couple of sentences here, and a couple of sentences here. Okay.

How do you use your strategic objectives? There are two really great ways to use them. Number one is you’re going to roadmap your strategic objectives by year and what we mean by that is this starts to become your framework for how do you actually build a plan that has a horizon. Now, in agile planning, it’s hard to have a really long horizon, but you do have a direction. So when this starts to build out your swim lanes, your strategic objectives, start to build out your swim lanes for your plan.

The second thing that you use your strategic objectives for are is building out your annual plan. So of course, for each strategic objective, you’ll have a handful of annual statements. In this case, I’m calling them goals, what are you actually going to achieve in the you know, the year that you’re in in order to move this objective forward? And then so on and so forth. So it starts your cascade? So a really nice thing to think about is strategic objectives answer the question where, and then following under that is the what, and then following under that is the how doesn’t matter what you call them? But absolutely, those are the components that make a strat plan go from a big idea to actually something that’s producing results.

And that’s all we have for you today. Check out part two for an example of how to build a framework with your strategic objectives. Don’t forget, subscribe to our social channels. Happy strategizing.

Strategic goals, priorities, pillars, planks, and strategic objectives— they’re all the same thing! Whatever you call them, they’re a critical component of your plan. For this whitepaper, we’re going to call them strategic objectives.

Strategic objectives are broad statements of direction that create a bridge from your vision to the annual plan or goals. We like to refer to strategic goals or strategic objectives as “mini vision statements” because they should support your overall vision of success but break it down into manageable and actionable focus areas.

Get the Free Guide to Build Your Strategic Objectives (with Examples!)

Ideally, strategic objectives should be broad, 3-year(ish) statements that address the core functional areas of your organization. We’re fans of Kaplan and Norton’s Balanced Scorecard.® which guides strategic objectives to address various factors such as the people of your organization and their skills and growth, operations and internal processes, customer service, and financial areas of your organization. Having an SO in each of the Balanced Scorecard perspectives ensures your plan is focusing on the core aspects of your business (people, process, customers and financial).

Answer These Questions to Create Intent for Your Strategic Objectives

One of the things we like to complete as we build our new strategic objectives is a statement of intent. We include the answer to the following questions as a short paragraph with each strategic objective to clarify intent:

  • Where are we now & where do we need to be in X years?
  • What strategic shifts are needed to get there?
  • What is our approach to achieve success?

Answering these core questions will help you create your new strategic objectives with clarity about what you’re seeking to achieve and what the cascading goals or OKRs need to focus on.

The Anatomy of a Strategic Objective

Anatomy of a Strategic Objective

Strategic objectives or goals should start with a label. The label should clearly identify what it is you’re seeking to achieve. In this example, we’re seeking to achieve Customer Retention.

Begin your SO’s descriptive statement with a ‘power’ verb: a strong, action-oriented verb. Think “Create” or “Increase,” not passive verbs like, “Confirm” or “Facilitate.”

Statement of Impact

A short description of what you will achieve and how it will impact the organization. This should answer the intent questions from the previous section.

Building a Strategic Framework

Building Your Strategic Framework

With an understanding of the anatomy of a strategic objective, you can build the framework of your strategic management plan. As we’ve mentioned, strategic objectives are the bridge between your big, bold vision and your annual execution of goals and initiatives.

They Are Multi-Year in Nature

Tip Annual goals are cascaded from the Strategic Objectives. Check out our guide on SMART goals if you need help writing your goals.

Your Framework Has 6 or Fewer Strategic Objectives

Tip Unsure how to prioritize your opportunities as you create your Strategic Objectives? Check out this exercise on prioritizing strategic objectives to help.

It Provides Company-wide Direction

It is not a mish-mash of department goals, example: balanced scorecard framework.

This is a traditional balanced scorecard framework. We like this framework because it covers all aspects of an organization and creates a balanced plan:

Tip It is essential to not use words that you found in someone else’s strategic plan! Use the words that are relevant to your organization and its culture and the message you want to send to your team about the investment the plan is making in them and the organization’s future.

Example: Themed Framework

A different way to think about creating a framework is theming your strategic objectives. Here’s what that might look like:

Strategic Objectives Examples:

We prefer to organize these types of strategic objectives into these four buckets and have provided some examples of each:

Financial Strategic Objectives

  • Financial Growth: To exceed $10 million in the next 10 years.
  • Financial Growth: To increase revenue by 10% annually.
  • Financial Efficiency: To decrease expenses by 5%.
  • Financial Efficiency: To increase net profit by 10% annually.

Customer/Constituent Strategic Objectives

  • Current Customers: Expand sales to existing customers.
  • Current Customers: Increase customer retention.
  • Current Customers: Achieve and maintain outstanding customer service.
  • Current Customers: Develop and use a customer database.
  • New Customers: Introduce existing products into a new market.
  • New Customers: Introduce new products to new and existing markets.
  • New Customers: To expand sales to the global marketplace.
  • Customer Services: Improve our service approach for new and existing customers.

Internal/Operational Strategic Objectives

  • Product/Service/Program Management: To have all product meet standard of excellence guidelines. (Some businesses prefer to list their individual products or services as separate objectives.)
  • Operations Management: Capitalize on physical facilities (location, capacity, etc.).
  • Operations Management: Increase community outreach.
  • Technology Management: Increase efficiencies through use of wireless or virtual technology.
  • Communication Management: Improve internal communications.
  • Customer Management: To execute and maintain a CRM process that is producing results.
  • Marketing Management: Develop and implement a promotional plan to drive increased business.
  • Alliance Management: Establish one new strategic alliance annually.
  • Channel Management: Improve distributor and/or supplier relationships.

People/Learning Strategic Objectives

  • People: Employ professionals who create success for customers.
  • Training: To develop the leadership abilities and potential of our team.
  • Culture: To align incentives and staff rewards with performance.
  • Knowledge: To continually learn and adopt current best practices.

Remember, these are just examples of strategic objectives. Sometimes seeing an example makes understanding the process easier.

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35 Comments

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Makes it easy for me as a student to have a grip of what objectives are and in particular the way they are spelt out. As a PR student am now able answer at least some questions about PR objectrives

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This would really help me in my Strategic Management paper. Thank you!

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Hey there!!

found it very good and informative. it educates me to set something strategically for the benefit of my organisation and to grow it.

further more i would like to know every organisation having different departments to fulfill particular requirements. say purchase/procurement, finance/accounts, personnel management/HR. I request you to guide on departmental stratagic ideas too.

Thanks a ton..

Regards Amit

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Don’t objectives need to be SMART?

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yes, they need to be. Are they not?

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It was very nice common strategic objectives to start with. Also can add Improve Market Share Increase, Share Holder Value, Brand Image, Customer Satisfaction, Return on Investment (ROI), Decrease Production Time, Increase Quality of the product, Safety Measures like Decrease Accidents, Environmental Measures etc. This will help for new companies.

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Can a strategic plan like for instance Operational Excellence tie into objectives and tactics? If so, how?

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How to Set Strategic Planning Goals

Team setting strategic planning goals

  • 29 Oct 2020

In an ever-changing business world, it’s imperative to have strategic goals and a plan to guide organizational efforts. Yet, crafting strategic goals can be a daunting task. How do you decide which goals are vital to your company? Which ones are actionable and measurable? Which goals to prioritize?

To help you answer these questions, here’s a breakdown of what strategic planning is, what characterizes strategic goals, and how to select organizational goals to pursue.

Access your free e-book today.

What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees, and ensure organizational goals are backed by data and sound reasoning.

Research in the Harvard Business Review cautions against getting locked into your strategic plan and forgetting that strategy involves inherent risk and discomfort. A good strategic plan evolves and shifts as opportunities and threats arise.

“Most people think of strategy as an event, but that’s not the way the world works,” says Harvard Business School Professor Clayton Christensen in the online course Disruptive Strategy . “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry."

Related: 5 Tips for Formulating a Successful Strategy

4 Characteristics of Strategic Goals

To craft a strategic plan for your organization, you first need to determine the goals you’re trying to reach. Strategic goals are an organization’s measurable objectives that are indicative of its long-term vision.

Here are four characteristics of strategic goals to keep in mind when setting them for your organization.

4 Characteristics of Strategic Goals

1. Purpose-Driven

The starting point for crafting strategic goals is asking yourself what your company’s purpose and values are . What are you striving for, and why is it important to set these objectives? Let the answers to these questions guide the development of your organization’s strategic goals.

“You don’t have to leave your values at the door when you come to work,” says HBS Professor Rebecca Henderson in the online course Sustainable Business Strategy .

Henderson, whose work focuses on reimagining capitalism for a just and sustainable world, also explains that leading with purpose can drive business performance.

“Adopting a purpose will not hurt your performance if you do it authentically and well,” Henderson says in a lecture streamed via Facebook Live . “If you’re able to link your purpose to the strategic vision of the company in a way that really gets people aligned and facing in the right direction, then you have the possibility of outperforming your competitors.”

Related: 5 Examples of Successful Sustainability Initiatives

2. Long-Term and Forward-Focused

While strategic goals are the long-term objectives of your organization, operational goals are the daily milestones that need to be reached to achieve them. When setting strategic goals, think of your company’s values and long-term vision, and ensure you’re not confusing strategic and operational goals.

For instance, your organization’s goal could be to create a new marketing strategy; however, this is an operational goal in service of a long-term vision. The strategic goal, in this case, could be breaking into a new market segment, to which the creation of a new marketing strategy would contribute.

Keep a forward-focused vision to ensure you’re setting challenging objectives that can have a lasting impact on your organization.

3. Actionable

Strong strategic goals are not only long-term and forward-focused—they’re actionable. If there aren’t operational goals that your team can complete to reach the strategic goal, your organization is better off spending time and resources elsewhere.

When formulating strategic goals, think about the operational goals that fall under them. Do they make up an action plan your team can take to achieve your organization’s objective? If so, the goal could be a worthwhile endeavor for your business.

4. Measurable

When crafting strategic goals, it’s important to define how progress and success will be measured.

According to the online course Strategy Execution , an effective tool you can use to create measurable goals is a balanced scorecard —a tool to help you track and measure non-financial variables.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” says HBS Professor Robert Simons in the online course Strategy Execution . “These additional perspectives help businesses measure all the activities essential to creating value.”

The four perspectives are:

  • Internal business processes
  • Learning and growth

Strategy Map and Balanced Scorecard

The most important element of a balanced scorecard is its alignment with your business strategy.

“Ask yourself,” Simons says, “‘If I picked up a scorecard and examined the measures on it, could I infer what the business's strategy was? If you've designed measures well, the answer should be yes.”

Related: A Manager’s Guide to Successful Strategy Implementation

Strategic Goal Examples

Whatever your business goals and objectives , they must have all four of the characteristics listed above.

For instance, the goal “become a household name” is valid but vague. Consider the intended timeframe to reach this goal and how you’ll operationally define “a household name.” The method of obtaining data must also be taken into account.

An appropriate revision to the original goal could be: “Increase brand recognition by 80 percent among surveyed Americans by 2030.” By setting a more specific goal, you can better equip your organization to reach it and ensure that employees and shareholders have a clear definition of success and how it will be measured.

If your organization is focused on becoming more sustainable and eco-conscious, you may need to assess your strategic goals. For example, you may have a goal of becoming a carbon neutral company, but without defining a realistic timeline and baseline for this initiative, the probability of failure is much higher.

A stronger goal might be: “Implement a comprehensive carbon neutrality strategy by 2030.” From there, you can determine the operational goals that will make this strategic goal possible.

No matter what goal you choose to pursue, it’s important to avoid those that lack clarity, detail, specific targets or timeframes, or clear parameters for success. Without these specific elements in place, you’ll have a difficult time making your goals actionable and measurable.

Prioritizing Strategic Goals

Once you’ve identified several strategic goals, determine which are worth pursuing. This can be a lengthy process, especially if other decision-makers have differing priorities and opinions.

To set the stage, ensure everyone is aware of the purpose behind each strategic goal. This calls back to Henderson’s point that employees’ alignment on purpose can set your organization up to outperform its competitors.

Calculate Anticipated ROI

Next, calculate the estimated return on investment (ROI) of the operational goals tied to each strategic objective. For example, if the strategic goal is “reach carbon-neutral status by 2030,” you need to break that down into actionable sub-tasks—such as “determine how much CO2 our company produces each year” and “craft a marketing and public relations strategy”—and calculate the expected cost and return for each.

Return on Investment equation: net profit divided by cost of investment multiplied by 100

The ROI formula is typically written as:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula uses slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

An estimate can be a valuable piece of information when deciding which goals to pursue. Although not all strategic goals need to yield a high return on investment, it’s in your best interest to calculate each objective's anticipated ROI so you can compare them.

Consider Current Events

Finally, when deciding which strategic goal to prioritize, the importance of the present moment can’t be overlooked. What’s happening in the world that could impact the timeliness of each goal?

For example, the coronavirus (COVID-19) pandemic and the ever-intensifying climate change crisis have impacted many organizations’ strategic goals in 2020. Often, the goals that are timely and pressing are those that earn priority.

Which HBS Online Strategy Course is Right for You? | Download Your Free Flowchart

Learn to Plan Strategic Goals

As you set and prioritize strategic goals, remember that your strategy should always be evolving. As circumstances and challenges shift, so must your organizational strategy.

If you lead with purpose, a measurable and actionable vision, and an awareness of current events, you can set strategic goals worth striving for.

Do you want to learn more about strategic planning? Explore our online strategy courses and download our free flowchart to determine which is right for you and your goals.

This post was updated on November 16, 2023. It was originally published on October 29, 2020.

types of strategic planning objectives

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How a strategic planning framework can help you achieve your big goals

Don’t worry — it’s not nearly as complex as it sounds

Browse topics

A strategic planning framework is a tool you and your team will use to focus on and fill in a specific element of your strategic plan.

You’ve got big ideas and bigger goals for your company. Maybe you’re set on making the world a better place (hey, aren’t we all?). Or maybe you want to be known for unmatched customer care. Regardless of your specific aim, your whole team is gung-ho about your mission. 

But now’s the hard part: How do you transform that idea into an actionable strategy?

The strategic planning process can be daunting, but a strategic planning framework can help. You’ll use your framework (or frameworks) to tackle a specific piece of the strategic planning process with zero confusion and eyerolls, and plenty of energy and enthusiasm.

Who needs a strategic planning framework?

Here’s the short answer: Anyone who’s completing a strategic plan, whether it’s a strategic plan for a single project or an entire organization.

The good news is that these frameworks are way more straightforward than you think. Anyone from your grandma to your dog will be able to use them. 

Alright, maybe not your dog…but you get it.

What is a strategic planning framework?

A strategic planning framework is a tool you and your team will use to focus on a specific element of your strategic plan. 

Your entire strategic plan needs to cover a lot, including:

  • Where you are now
  • Where you want to go
  • How you’ll achieve those goals

Pulling all of that together can be overwhelming, but a strategic planning framework will help you chip away at that iceberg.

For example, you could use the objectives and key results (OKRs) framework to iron out the goals included in your strategic plan. Or, you might use the framework called Porter’s five forces (we’ll cover this later) to dig into your competition and understand how competitive factors will impact the future of your organization.

Strategic planning frameworks help you dig deep into a specific section of your plan, so you can create something comprehensive that actually helps you turn ideas into action.

Arrows going in different directions

Strategic planning frameworks vs. models: One of these things is not like the other

Many people use the terms “strategic planning framework” and “strategic planning models” interchangeably. However, the terms represent two parts of a whole.

Your strategic planning model provides a high-level overview of all of the elements of your strategic plan. Your model comes first, as it dictates the structure of your entire plan. 

Tom Wright, CEO and co-founder of Cascade Strategy, a strategy execution platform, likens it to building an airport. “A model of the airport would show you at a high-level how the approach roads connect to the departure hall, and how the departure hall connects to immigration, which then connects to the terminals, the runways, etc.,” he writes in a blog post . 

In contrast, frameworks help you fill in different elements with specific information. 

“In our airport example, we might apply a building framework that is designed to maximize the speed at which people move through the airport for efficiency,” Wright adds. “Or alternatively, we might apply a framework which is designed not to maximize speed, but rather to maximize the amount of time people spend in the airport shops.” 

The model encompasses all pieces of your strategic plan, but your framework is your approach for a specific piece. Think of your model as the forest, and your different frameworks as the trees. You’ll only use one strategic planning model, but you can use numerous frameworks.

8 strategic planning frameworks to hash out your strategy with confidence

You’ll use different frameworks for different aspects of your strategic plan, from developing your action items to evaluating your competitors. 

Here are eight of the most common strategic planning frameworks, and which piece of your strategy they can help you with. 

1. SWOT analysis

Use this framework: To grasp what internal and external factors can impact your strategy

SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors (meaning you have some control over them), while opportunities and threats are external factors (and you have little to no control). 

Get your team together for a brainstorming session where you can tackle each category. Using our customer service example, you might determine: 

  • Strengths: We have a new and innovative product that people love. 
  • Weaknesses: Our customer ticketing system is outdated and ineffective. 
  • Opportunities: Customers have a growing interest in chat support, which we could roll out relatively easily. 
  • Threats: All of our competitors are prioritizing customer service. 

You’ll use this framework at the beginning of your strategic planning process, as it helps you understand where things are going well for your company — as well as where you need to improve. That’s important information as you hash out your strategy.

2. Issue-based strategic planning

Use this framework: To build a strategic plan that addresses your organization’s biggest problems

While most of the strategic planning frameworks start with objectives (where you look to the future), this one starts with problems (where you look to the present). You’ll identify the challenges your organization is facing right now and create action plans to address them. 

This is another framework that you’ll use at the very beginning of the strategic planning process, as it will shape your entire plan. 

Start by asking: What are the biggest problems our organization is dealing with?

Perhaps you’ll realize that your customer feedback scores are plummeting. From there, your strategic plan should detail the steps you’ll take to resolve that issue.

3. Balanced scorecard

Use this framework: To define your goals and the steps you’ll take to get there

A balanced scorecard (BSC) outlines what your team or organization is trying to accomplish, as well as what work everybody needs to do in order to make it happen. It’s helpful for understanding objectives, connecting and prioritizing day-to-day work, and monitoring progress using established metrics.

With this framework, you’ll need to identify:

  • Objectives:  The goal you want to achieve (i.e. be looked to as the industry standard for quality customer care)
  • Measures: How you’ll define success (i.e. average customer feedback score of B+)
  • Initiatives: Programs established to achieve objectives (i.e. launch a new customer ticketing system to manage your customer support cases)
  • Action items: Individual steps one person or a small team will take (i.e. Rico will research ticketing software, Sarah will complete the migration from our current platform, etc.)

See how you move from the big, seemingly unattainable goal all the way down to bite-sized actions you can take? That’s the beauty of a balanced scorecard — it connects your organization-wide goals to the daily tasks of everybody on the team.

4. Strategy mapping

Use this framework: To understand how all of your company’s objectives fit together

A strategy map is often used as a supplement to your balanced scorecard. You’ll list every objective from your balanced scorecard on your strategy map. It should be represented by a shape.

Next, you’ll group objectives into different perspectives. Think of these as buckets or themes for similar goals. The most common perspectives are:

  • Internal business processes
  • Learning and growth

Once all of your ovals are drawn out, you’ll draw arrows between them to show cause and effect. Does one objective have a direct impact on another?

For example, perhaps boosting the expertise of your customer service team (perspective: learning and growth) directly impacts your ability to provide top-notch customer care (perspective: customer). 

Your strategy map can become a living resource, and you can color-code your objective bubbles (green, yellow, and red) to show your progress toward that objective. 

5. Objectives and key results (OKRs)

Use this framework: To keep a close eye on progress

Objectives and key results (OKRs) is a popular goal setting methodology to help teams go after audacious goals. With this framework, you’ll identify: 

  • Objectives: What you want to achieve
  • Key results: How you’ll measure your progress

Keep in mind that your key results need to be quantitative, measurable outcomes and not tasks or to-dos. So, sticking with our example of world-class customer service, a key result could be, “Secure 25+ five-star reviews by the end of Q2.”

OKRs are designed to be ambitious, and you don’t want to overdo it and overwhelm your team. Set only three to five at a time ( this template can help ) to make sure they’re motivating, and not anxiety-inducing.

6. Porter’s five forces

Use this framework: To understand the ins and outs of your existing and prospective competitors 

Most strategic plans include a section for competitive analysis, and Porter’s five forces is a framework you’ll use to fill in that section. The five competitive forces you’ll identify are:

  • Competition in the industry: Are your competitors growing rapidly?
  • Potential of new entrants into the industry: Are a lot of new players able to easily enter your market and thrive? Or is it tough to get going?
  • Power of suppliers: How much bargaining power do your suppliers have to pressure you to lower costs?
  • Power of customers: How much bargaining power do your customers have to pressure you to lower costs?
  • Threat of substitute products: Is your product easily replaced with another product? Or are you one-of-a-kind?

Your competition will shape your strategy, and this framework will help you understand how. If you realize that there’s a high threat of substitute products, then maybe differentiating yourself needs to be a key piece of your strategic plan.

7. Gap planning

Use this framework: To determine how you’ll close the gap between where you are and where you want to be 

You have a strong vision for your organization. Maybe that vision feels like it’s within arm’s reach, or maybe it feels like it’s still miles and miles away.

Either way, bridging the gap between where you are now and where you want to be is no easy task. That messy middle is where all of the hard work happens.

That’s where gap planning (also called a needs assessment) comes in. It zeros in on everything you need to do to move from your current state to your vision. When you analyze a gap, you need to challenge yourself to think about why you haven’t achieved your ideal state. What’s the root cause? 

Here’s a very simple example of what this could look like:

Vision: Reputation for industry-leading customer service

Current state: Good customer service, but not great (average feedback score of B-)

Gap: Customer service representatives are using outdated software

Improvement: Implement a new ticketing system to support the customer service team

This framework is another way to break your vision down into more tactical steps and improvements. 

8. PEST analysis

Use this framework: To understand the external factors that can impact your company 

When drafting your strategic plan, you can’t just think about what’s happening internally — you also need to think about what’s happening externally. A PEST analysis will help you take a holistic look at the environment your company is operating in.

PEST stands for political, economic, sociocultural, and technological, and this framework requires that you determine how each of those factors could impact your company’s overall health. Here are a few (of many) examples: 

  • Political: Are there a lot of government regulations that dictate how your industry can correspond with customers?
  • Economic: Are customers in your industry watching their wallets closely? 
  • Sociocultural: Do customers expect an increasingly fast response? 
  • Technological: Are you operating with outdated customer ticketing software? 

These are important considerations to make, so you avoid hashing out a strategy that doesn’t align with what’s happening around you.

There are plenty of strategic planning frameworks to choose from, and one isn’t inherently better than the others. They all serve different purposes.

So, when you need to choose a framework, start with your goal and work backward from there. 

Do you need to identify clear action items? Then gap planning or a balanced scorecard are your best bets. Do you want to understand the impact of outside forces? Look at a PEST or SWOT analysis. 

Keep in mind that you don’t have to choose only one. You can use different frameworks for different stages and elements of your strategic planning process. Plus, strategic plans are often revisited and reevaluated. You might require a different framework as your plan and company evolve over time.

Regardless of which framework(s) you use, you’ll want to keep your strategic plan and all of your supporting documentation somewhere organized and accessible. Your strategic plan doesn’t do any good if it sits and collects digital dust. A collaborative workspace like Confluence makes it easy for your entire team to reference that information whenever they need it.

Goals require strategy (and action)

Coming up with goals is easy. The hard part is figuring out how you’ll achieve them. 

Your strategic plan takes your high-level vision and breaks it down into actionable steps you’ll take to make it happen.

The strategic planning process itself can sound dry and daunting, but a strategic planning framework makes it way easier to dig into the details of every element of your strategic plan. 

Use one (or even a few) of the eight frameworks we discussed here, and you’ll be ready to take action on your company’s most ambitious goals. 

Document all of your company’s goals, plans, challenges, and more. Check out the Confluence template gallery to make knowledge sharing even easier. 

You may also like

Strategic planning template.

Capture and present your business strategy to the executive team and board of directors.

OKRs Template

Use this goal-setting template to set measurable, ambitious milestones.

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What Are Strategic Objectives? Examples & How To Track Them

  • Julie Simpson
  • May 18, 2023

Strategic objectives are an organization’s long-term goals to achieve its overall mission and vision. These objectives provide direction for the organization and serve as a roadmap for success.

If the term strategic objectives are not ringing any bells, you might have heard them discussed in another way. Also described as objectives that are specific, measurable, attainable, relevant, and time-bound (SMART ), these objectives guide an organization in decision-making and resource allocation .

You would want to incorporate strategic objectives within your organization for many reasons. They are more than just goals or daily tasks that you accomplish. They are components of your business’s strategy that require serious forethought and commitment.

In this article, we will discuss some of the steps your organization should take to build out strategic objectives, some examples to get you started, and a few ways to track your progress and measure your success.

Strategic objectives vs. goals

Okay, so I initially thought both of these concepts were the same thing. So, if your brain goes there, you are not alone! However, after further review and research, goals and strategic objectives are two different processes.

While both goals and strategic objectives are related – they accomplish different concepts. Goals are broad, long-term aspirations that an organization aims to achieve, while strategic objectives are the SMART steps that support achieving those goals.

Essentially, goals are often qualitative and may be more abstract than strategic objectives. They provide a sense of direction for the organization and may be set for a long time horizon, such as five or ten years. Goals typically do not have a defined timeline for completion, and they may not be broken down into smaller, actionable steps.

Strategic objectives, however, are more concrete and can be extremely specific. They are the actionable steps that an organization takes to achieve its goals. They are often quantitative and SMART and may have a shorter time horizon, such as one to three years.

Goal example:

To become the leading provider of widgets in the southern region of Florida.

Strategic objective example:

Launch a new line of widgets within the next 12 months that are more efficient and cost-effective than the current widget offerings, targeting commercial and industrial customers.

Examples of strategic objectives

Strategic objectives vary depending on the organization’s size, industry, and goals. However, some common strategic objectives include increasing revenue, improving customer satisfaction , expanding market share, reducing costs, and enhancing operational efficiency. Examples of strategic objectives to grow your business include:

  • Increase revenue
  • Improve customer satisfaction
  • Expand market share
  • Reduce business costs
  • Enhance operational efficiency
  • Strengthen innovation and R&D

Increase Revenue

Increasing revenue is a common strategic objective for businesses. Using a strategic objective to achieve this could be through expanding into new markets, introducing new products or services, improving sales and marketing strategies, or increasing customer retention.

Improve Customer Satisfaction

Customer satisfaction is crucial to the success of any business. Customer satisfaction can be improved through providing efficient customer service , developing new products or services that meet customer needs or offering an upgraded personalized experience.

Expand Market Share

Expanding market share is a way businesses scale and expand their product reach. Companies can do this through campaigns targeting new customer segments, acquiring competitors, or partnering with other businesses to get a foothold into new markets.

Reduce Costs

Reducing costs is a strategic objective that can help businesses improve profitability. Companies seeking to improve operational efficiency can look to renegotiate supplier contracts or outsource non-core functions. For example, you can decide to switch from your current costly communication channel to a more efficient and budget-friendly business phone service . 

You can check out sites like TheNewWorkforce.com for more information on outsourcing your tasks.

Enhance Operational Efficiency

Improving operational efficiency is a strategic objective that can help businesses streamline processes and reduce costs. Companies may aim to achieve this objective by adopting new technologies, improving employee training, or implementing lean manufacturing processes.

Strengthen Innovation and R&D

Fostering innovation and R&D (research and development) is a strategic objective that encourages businesses to stay competitive and adapt to changing market demands. This goal can be achieved through allocating resources for R&D activities, encouraging creative thinking and idea generation , and promoting a culture of experimentation and continuous improvement.

How do you track your strategic objectives?

If you cannot track your strategic objectives, how do you know how much progress you are making toward achieving them? Strategic objectives are not just a “set it and forget it” process but must be constantly assessed and measured for success.

To ensure you meet and exceed your strategic objectives, follow these five tips to ensure you hit your objectives:

  • Establish Key Performance Indicators (KPIs): Measurable metrics help organizations track progress towards their strategic objectives. Organizations should identify the most critical KPIs for each type of strategic objective proposed and establish specific benchmarks for success.
  • Monitor Progress: Regularly monitoring your progress towards strategic objectives will help your organization identify areas that require improvement and make necessary adjustments.
  • Communicate Results: Communicating results to stakeholders and peers can help organizations build support for their strategic objectives. It also allows the team to celebrate successes and discuss any setbacks.
  • Adjust Strategies: As organizations track progress toward strategic objectives, opportunities arise that allow you to identify and adjust the strategies as needed. Organizations should be flexible and willing to change strategies to ensure they remain relevant and effective.
  • Use tracking software: Using a project management software platform or goal-tracking tool will be your best friend. With so many moving parts for strategy, using a software platform that can communicate, pull reports, and automate your processes for time-savings, will help keep you on track and team members on the same page.

By implementing these tips into your process of tracking your strategic objectives, you will ensure that you are making steady progress toward achieving each goal. Doing this will set the pace for your strategic objectives and set you up for success. If you set up and follow through with your objectives, you are guaranteed to improve performance, achieve success, and build support for their mission and vision.

Using Hive To Set Your Goals

Are you ready to start making strategic goals with your team? You’re in luck —  Hive’s newest (and most exciting) feature is Goals . Everyone wants to know how they’re moving their organization forward, and your team is more than just a project. With Goals, you can set various goals, visualize progress, and keep everyone aligned in one centralized dashboard. You can also:

  • Create one, ten, twenty, or more goals for your team, so everyone understands what they’re contributing to.
  • Centralize and automate your goal tracking and reporting.
  • Pull data from other systems into Hive to streamline operations and reporting.
  • Share your goal or goals, assign the goal to relevant teammates, track activity, and give yourselves a deadline.
  • Understand how your team and organization are pacing towards an individual goal or a set of goals.
  • Color-coded designations allow an easy understanding of “on-track” items.
  • When it’s time to review progress, accomplishments, and achievements, easily export all relevant information.

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Strategic Planning Models: The 5 Best Strategy Models

Download our free Strategic Planning Template Download this template

New business models, global disruptions, and a need for rapid changes inspired various approaches to strategic planning, also known as strategic planning models. 

What all planning models have in common is that they help you translate strategies into action and aim to provide you with structure in the process of creating a strategic plan. But there are now countless frameworks, each with its own approach.

We summarized the 5 most popular strategic planning models in one place so you can start building your own strategic plan in no time.

To get there, let’s explore: 

  • What is a Strategic Planning Model?
  • Planning or strategy: Where to start?

The Cascade Model

The hoshin kanri model, balanced scorecard, strategic planning process model vs strategic frameworks.

  • Strategy Model: Which One Is Right For You?

Free Download Download our Strategic Planning Template Download this template

What is a Strategic Planning Model? 

A strategic planning model is a collective term for several elements contributing to the strategic planning process . The core components of a strategic planning model include:

  • A templated structure for creating strategic goals.
  • A loose structure of governance to help you manage and track your strategy.

You can think of strategic planning models as “templates” into which you can drop your own ideas. In the end, you'll come out with a strategic plan which is sensibly structured and gives you a clear strategic roadmap to hit your business goals. 

Now that we've defined what a strategic planning model actually is, let's look a bit deeper into each element that one should contain.

2 essential elements of any effective strategic planning model

  • Structure refers to the different elements of your strategic plan and how they all fit together. For example, your structure may start with a Vision and Mission Statement, then flow into Values, Focus Areas, and any number of Goal levels.
  • Governance refers to how you'll go about actually tracking and reporting on the execution of your strategy.

Planning or strategy: Where to start? 

Before we move into the planning section of this article, let’s clarify a common confusion around strategy and strategic planning. What’s the difference and what comes first?  

First, do not mistake strategy for a plan. In short, strategy is the act of making strategic choices, while a plan is a roadmap with timelines, owners, and deliverables. 

Before laying out your plan, you should get a better understanding of your internal and external business environment so you can make strategic choices and prioritize initiatives. 

“ The heart of the strategy is the matched pair of Where-to-Play and How-to-Win. ” - Roger Martin , Bestselling Author and Strategy Advisor

You should always start with strategic analysis. Through this process, you will be able to identify competitive advantage, assess organizational capacity, analyze external factors that might impact your strategy, and find other opportunities you could exploit.  

Feel free to use multiple strategic analysis tools since each has its own purpose. 

📚Here’s a list of the most popular strategic tools and frameworks that can help you brainstorm your strategy:  

  • VRIO Framework 
  • SWOT Analysis
  • PESTLE Analysis
  • Porter’s Five Forces  
  • Ansoff Matrix
  • McKinsey 7S Model
  • Blue Ocean Strategy 

Once you have a clear picture of where you want your organization to be in the short-term and long-term future (and where you do NOT want it to be), you can start building a strategic plan that will take you to your destination. And this is where strategic planning models come into play.  

Note: Every organization is unique and has different stakeholder needs. Thus, every strategic plan is unique. The goal here is to give you perspective on how you can approach your planning before you dive into the details.

Below, you’ll find examples of strategic planning models that include both Structure & Governance since both are critical to implementing your strategic plan. Because, what's the point in having an awesome strategy on paper if you have no effective way to actually execute it?

The Cascade model is hands-down the most effective example of a strategic planning model that you can find. 

It is simple to understand and easy to implement, facilitating the execution of your strategy. Its straightforward structure is suitable for organizations and teams of any size and industry. 

Here's a snippet of the structure:

the cascade strategic planning model

Let's dive into the key elements of the Cascade Strategic Planning Model, its structure and governance.

The structural elements of the Cascade strategic model:

  • Identify your vision statement . This statement(s) describes why the organization exists, i.e., its basic purpose.
  • Define your company’s values . Describe how you want your organization to behave as it strives towards its Vision.
  • Craft your focus areas . They articulate the key areas on which you'll be focusing your efforts to help deliver your Vision.
  • Create your objectives . Your strategic objectives define more specifically the outcomes you want to achieve under each of your Focus Areas.
  • Define your KPIs . Each of your Objectives should contain at least one or two KPIs to help you measure whether or not you're close to reaching your desired outcomes (Objectives).
  • Create your projects . These are one of the most critical elements in your strategic planning model, as they state exactly what actions you will take to deliver against your Objectives.

The governance elements of the Cascade strategic model:

  • Monthly Strategic Reports . Team members can create reports at the objective, team, individual, KPI, and action levels. Using Cascade, users can add text, charts, and tables to their reports to provide more context for the reader.
  • Project Updates. These are ad hoc updates made against the Project level of the plan and include general project management updates and progress.
  • KPI Dashboards. In addition to providing real-time data, they allow users to look back and understand what happened over time using data sources that are available. Live dashboards are essential for identifying deviations from KPI tolerance levels, explaining the difference, and setting an action plan to resolve the issue.

dashboard cascade (1)-1

When you combine the goal and the governance elements of this strategic planning model, you get a comprehensive set of tools that you can use not just for creating your plan but also for executing it.

📚 Recommened reading: 

  • How To Write A Strategic Plan + Example
  • 18 Free Strategic Plan Templates (Excel & Cascade) 2023

The Hoshin Kanri model is a strategic planning model that organizations use to drive a consistent focus throughout many levels of their structure.

This makes it ideal for large organizations with different layers of management, including “top-level” executive management, “middle managers,” and “front-line” staff.

Much of the work we did to create the Cascade Strategic Model was inspired by Hoshin Kanri.

So it's certainly a strategic planning model that we respect and admire here at Cascade. Let's dive into the detail of the Hoshin strategic planning model with a quick visual:

Strategic Planning Models_Hoshin Kanri (1)

The structural elements of the Hoshin Kanri strategic model:

  • The first level of the Hoshin Kanri strategic planning model refers to your vision . A distant horizon that will guide everything that sits beneath.
  • Then you move on to your 3-5 Year Strategies . These are high-level summaries of what you want to achieve (qualitatively and quantitatively).
  • Beneath that, you define Annual Objectives , which will be split between different departments.
  • Finally, you determine your Action Items . They are specific things you are going to do to reach your Annual Objectives.

The governance elements of the Hoshin Kanri strategic model:

  • Monthly Reviews . These are done against the Annual Objectives and require the goals' owners to provide descriptive progress updates.
  • Annual Reviews . These are also done against the Annual Objectives. However, they happen at the end of the time period and encompass a decision point on whether to mark the Annual Objective as complete or roll it over into another year.

There are many different ways to implement the Hoshin Kanri strategic planning model. Above is a simplified explanation that covers most of the core elements.

  • Hoshin Kanri: Close Strategy Execution Gap In 7 Steps

OKRs (Objectives and Key Results)

The OKR model is a goal-setting and planning framework that focuses on quarterly sets of OKRs and is reviewed by every management level in the organization. 

The basic structure of the OKR strategic planning model looks something like this:

Strategic Planning Models_OKR (1)

As with the Cascade Strategic Planning Model and Hoshin Kanri, the OKR strategy model has the following key elements.

The structural elements of the OKRs strategic model:

  • Objectives. These describe the outcome you are looking for in the current quarter.
  • Key Results. These are specific metrics that describe your progress toward your Objective in numerical terms.
  • Initiatives. These are tasks or projects that sit against each of your Key Results. Once completed, they should help you reach your Key Results.

The governance elements of the OKRs strategic model:

  • Weekly Check-Ins. Each Key Result should have a weekly check-in that covers your confidence level in achieving that OKR, action plan, and general progress updates.
  • Quarterly Review. For each Objective, a formal quarterly review should be undertaken where that OKR is given a “score” (usually from 0 to 1) and a decision is made on what to do with that OKR in the next quarter.
  • OKRs: How To Avoid The Trap That Kills Performance
  • The OKR Framework: How To Implement It & Mistakes To Avoid
  • Using Cascade as your OKR Software

Balanced scorecard (also known as BSC) helps organizations drive and assess business performance by organizing key performance indicators (KPIs) into four focus areas: Financial, Customer, Internal Processes, and Learning & Growth.  

Here is an example of a basic Balanced Scorecard structure:

Strategic Planning Models_The Balanced Scorecard

The structural elements of the Balanced Scorecard:

  • Four perspectives that act as your focus areas.
  • Strategic objectives where you define your desired outcomes.
  • Projects that outline specific initiatives, timelines, and resources.
  • KPIs that measure progress and success.

The governance elements of Balanced Scorecard: 

  • Strategy dashboards where you should see the real-time status of each perspective and a summary of your key objectives, projects, and KPIs. 
  • Weekly or Monthly reports where each owner provides progress updates and short-term action plans.  
  • The strategy map shows how are four perspectives layered and cause-and-effect connections between strategic objectives.

📚Recommended reading: 

How To Implement The Balanced Scorecard Framework (With Examples)

  • Balanced Scorecard Template (Free)

V2MOM is one of the most simple strategic planning and alignment models out there. Developed by Salesforce's cofounder, Marc Benioff, it helps you implement and drive alignment across your organization. 

The model can be used in a variety of organizations, including small businesses, startups, and nonprofits.

As a top-down approach, V2MOM scales across your organization at all levels, including the business unit, department, team, or individual. However, this model won't work if your organization is siloed, as each V2MOM document should be aligned with the top-level V2MOM plan.

An example of a basic V2MOM structure would look like this:

Strategic Planning Models_V2MOM

The structural elements of the V2MOM:

  • Vision. Like with the Cascade Model, this is where you define your vision of the future. 
  • Values. A set of values that drive your company’s culture.
  • Methods . Strategic objectives, projects, or other strategic initiatives that will help your organization get one step closer to its vision. 
  • Obstacles. Compared to other models, this is a unique element. It should identify all possible obstacles and risks that can prevent you execute the plan. 
  • Measures. A set of KPIs that will measure your performance and progress. 

The governance elements of V2MOM: 

The original V2MOM approach only outlines the structure, but it does not offer a solution to track and measure performance. To meet the needs of our clients, we leveled up V2MOM to help teams measure their performance against set goals in a strategy execution platform : 

  • Customizable strategy dashboards where leadership teams and team members can get insight into what’s happening across the organization or with specific initiatives.  
  • Reports that analyze in-depth raw data of the past, and turns it into actionable narratives for regular review meetings and faster decision-making.

📚 Recommended reading: 

  • The V2MOM: Overview, How To Use It, Examples (2022)

It's important to distinguish between strategy frameworks and strategic planning models before you jump into the strategic planning process. Online resources use these terms interchangeably, but they are in fact quite different.

Strategic planning models provide a way to structure the information of your strategy and the content of your strategic plan. 

Strategic frameworks , including analysis tools, provide the context that surrounds your strategic plan, and the information that helps you define your strategy. 

There are a few different views on this subject, but here is what we think makes the most sense:

  • A strategic framework is a general term that covers different types of frameworks, including strategic analysis frameworks, goal-based frameworks, and strategic planning frameworks (in this case, also called strategic planning models). 
  • A strategic planning model refers to the overall structure you apply to your strategic planning process. It roughly describes the various components and how they interact with one another. For example, imagine an architect building an airport.

A model of the airport would show you at a high level how the approach roads connect to the departure hall and how the departure hall connects to immigration, which then connects to the terminals, the runways, etc.

A strategic planning model functions much the same way in that it describes each of the elements of a coherent strategy: what they do, how they fit together, and in what order.

Strategy Model: Which One Is Right For You? 👀

The examples of strategic planning models we've picked have a lot in common. There's a good reason for it.

The best strategic planning models are simple, contain all the right elements, and combine goal setting with governance. 

As a result, they serve you well when it comes to building a highly effective strategic management process and executing your strategy.

You can't really go wrong with any of the strategic planning model examples we've outlined above: Cascade Model, Balanced Scorecard,  V2MOM, Hoshin Kanri, or OKRs. 

In the Cascade strategy execution platform , you can import or create a strategic plan no matter the model you use since our strategic planning tool is sophisticated enough to customize it to your way of doing strategy.  

Interested in seeing Cascade in action? Start building your strategic plan for free or book a demo with a Cascade expert.

What is the difference between strategic planning and strategic management?

The main difference between strategic planning and strategic management is that strategic planning is just a stage within the strategic management process. 

What are the 5 models of strategic management? 

There are more than five models of strategic management. A strategic management process involves multiple stages, including strategic analysis, strategy formulation, strategy execution, and strategy evaluation. There are multiple models and frameworks suitable for each stage of the strategic process.  

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Strategic Planning 101

How do you create a strategic plan for your company that will lead to transformational results? What type of strategic planning is the most impactful? In this short guide, we will cover what strategic planning is, the importance of strategic planning , 8 common strategic planning frameworks, characteristics of successful strategic plans, and the best strategic planning tools . Before we dive into the types of strategic planning, let’s take a moment to look at one of the many strategic planning examples . 

‍ Related reading:  The 7 Steps of Strategic Planning

What Is an Example of Strategic Planning?

A very common one is the 5-year strategic plan example. A five-year strategic plan is a living document that gives a high-level view of goals for the upcoming years. Notice the emphasis on “living”—this is because strategic plans tend to evolve and change. Strategic plans can be made for any length of time, although the most common time frames are 12 months, three years, and five years. They typically have three major sections: 

  • A mission statement with a major goal.
  • A list of initiatives to meet the goal.
  • A financial plan to show how money will be spent and where revenue will be generated.

This isn’t a rigid framework, but rather more of a roadmap that helps you get to the right destination (even if that destination isn’t exactly what you originally envisioned). 

Related reading: What is a Strategic Plan Example?

What Are Strategic Planning Frameworks?

When it comes to strategic planning techniques , there is different terminology that is used: models and frameworks. These terms are typically used interchangeably, although some think there are shades of difference. In general, both frameworks and models provide you with a process for how to develop a strategic plan that is unique to your business. 

‍ Related reading: 4 Steps to Build and Roll Out Your Strategic Plan

strategic plan framework

What Are the Types of Strategic Planning?

There are many different types of strategic planning, running the gamut from informal to formal. It’s important to note that many of these frameworks can be used in combination with each other. Let’s take a look at the most common 8 types of strategic planning:

SWOT Analysis

Sometimes referred to as a “SWOT Matrix” or “SWOT Matrix Analysis,” the name is drawn from the four components: S trengths, W eaknesses, O pportunities, and T hreats. This comprehensive analysis takes into account internal and external factors in addition to current and future potential.

The main benefits of the SWOT Analysis are that it generates a fresh perspective and actionable data about the company. Additionally, this framework is very cost-effective. In fact, anyone who is familiar with the organization can conduct one. However, the limitations of this framework include inaccurate information, as preconceived notions can influence the data, and SWOT Analysis may not be the right fit for complex, multifaceted planning.

PEST Model   

PEST stands for P olitical, E conomic, S ocial, and T echnological. This model is typically used by businesses to study and understand the external market they operate in. The PEST Model is particularly useful when attempting to enter a foreign market. A major limitation is obviously the fact that the model only examines external factors and does not take into consideration any internal variables.

This model is a good candidate for using in combination with other frameworks. 

OKRs (Objectives and Key Results)

Objectives and Key Results , informally known as OKRs, is a collaborative goal-setting methodology that is widely used within software companies today. OKRs originated at the computer company Intel and was quickly adopted by other tech companies.

In his book Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs , John Doerr shared why this method was so transformational at Google: “Contributors are most engaged when they can actually see how their work contributes to the company’s success. Quarter to quarter, day to day, they look for tangible measures of their achievement. Extrinsic rewards—the year-end bonus check—merely validate what they already know. OKRs speak to something more powerful, the intrinsic value of the work itself.” 

Using this method is simple—choose an objective and three to five key results. The objective should be a significant, ambitious goal that is clearly defined. The key results should be easily measurable in order to determine success.

OKRs are an excellent tool that companies can use to set challenging goals and push themselves further than might have been thought possible. However, if too many OKRs are set and followed, it can lead to a lack of prioritization and objective overload. 

Porter’s Five Forces  

Businesses who are seeking to increase their competitive advantage often use the Porter's Five Forces framework. By looking at five competitive forces that are present in the marketplace, companies can understand what factors influence their profitability. The five competitive forces are: 

  • Competition in the industry
  • Potential of new market entrants
  • The power of suppliers
  • The power of customers
  • The threat of substitute products

A few of the benefits of Porter’s Five Forces are that you can easily identify opportunities to expand and that the information gathered will help you create the most value with your strategic plan. A significant  limitation is the fact that there are more than five forces that impact companies, like technological advancements or changing governmental regulations to name just a few. This framework may not be practical for companies that are operating in several industries.

VRIO Framework   

V alue, R arity, I mitability, and O rganization are the four prongs of this framework, helping businesses to understand their competitive potential and plan accordingly. By looking at the four components and asking questions, the VRIO framework allows companies to identify and leverage their specific advantages. Because this method focuses on resources that you actually possess, rather than more general strengths, tangible solutions often surface rather than intangible suggestions. Limitations of the VRIO Framework are that smaller, less established companies may struggle to use it and that it only focuses on internal factors, excluding external variables. 

Gap Planning   

Where are you going with your business? Where do you want to be? By asking these two questions, you can identify the gap and start addressing it. There are four steps in Gap Planning, also known as Gap Analysis . These steps are: 

  • Analyze your current state
  • Identify your ideal future state
  • Find the gap and analyze potential solutions
  • Create and implement a plan

Gap analysis can give a comprehensive view of a company and help to prioritize strategies. However, gap planning can be costly and time consuming, as external consultants are often brought in to perform the analysis. 

Balanced Scorecard (BSC)

The Balanced Score , or simply BSC, draws from four different perspectives to provide a “balanced” and high-level view of performance. This framework is used to communicate goals, align day-to-day work towards those goals, and measure and monitor progress. Characteristics of the balanced scorecard include a focus on strategy, a defined set of measurements to monitor performance, a mixture of financial and non-financial perspectives, and a portfolio of initiatives.

The four perspectives that BSC examines are: 

  • Financial stewardship - how the company uses financial resources
  • Customer/stakeholder - looking at performance from the perspective of customers and key stakeholders
  • Internal process - examines the quality and efficiency in internal workflows
  • Organizational capacity - encompasses the resources that impact growth, like human capital, infrastructure, and culture 

A balanced scorecard is a great tool for facilitating alignment and connecting each employee to the overall goals. However, this approach requires a lot of data and can quickly get complicated.

Blue Ocean Strategy  

Written in 2004 by professors from the international business school INSEAD, Blue Ocean Strategy has influenced many companies to great success. In fact, Nintendo used this framework to develop the Nintendo DS and the Wii, specifically incorporating a touch screen interface and motion controls to reach people who may have never thought to pick up a controller . That’s what Blue Ocean is all about: new markets and uncontested spaces. 

In the book, the authors define the terms ‘red ocean’ and ‘blue ocean.’ The red ocean is the known market—the boundaries are clear and everyone is playing by the same competitive rules. Everyone is jostling for the same customers and attempting to corner the market, leading to fierce competition and cutthroat strategies (thus the term ‘red ocean’). However, the blue ocean represents the unknown market—industries that don’t exist yet, where demand must be created rather than fought for. There is no competition because there is no industry! When Nintendo released the Wii, there weren’t any similar products on the market, leading to the creation of an entirely new way of gaming. 

The Blue Ocean Strategy provides a step-by-step approach that builds execution into the strategy. The six steps in one part of this strategy are to examine: 

  • Alternative industries
  • Strategic groups within your industry
  • Buyer groups
  • Complementary product and service offerings
  • Functional-emotional orientation of an industry
  • Historical trends

The benefits of the Blue Ocean Strategy are clear: having an entirely new market space with no competition gives huge advantages. On the other hand, there are great risks like arriving too early or not identifying the right idea for a new product or service.

What Are 5 Characteristics of an Effective Strategic Plan?

No matter what framework(s) you choose to formulate your strategic plan, the final outcome should reflect these five characteristics:

  • A Central Vision - Your strategic plan should communicate to every employee and stakeholder the big picture and the central vision for the business. 
  • Clear Values - Values impact everything that companies do. Your strategic plan should clearly spell out what the company’s values are to encourage buy-in. 
  • Long-term Thinking - Strategic plans should prioritize outcomes and objectives for the long-term rather than focusing on the present.
  • Accountability - While it may not be spelled out in the strategic plan itself, it is still important to dictate who is responsible for updating and executing the plan. 
  • Built-in Measurement - Whether you decide to use KPIs or other metrics, measurement and analysis are vital for evaluating the success of the strategic plan. 

Interestingly, a 2021 survey by McKinsey found the companies who experienced the most transformational results from their strategic planning were those that:

  • Assessed their company’s present situation rigorously.
  • Identified the current state of corporate capabilities as well as problems and the underlying mind-sets that must change for the transformation to succeed. 
  • Broke down the process of the transformation into specific, clearly defined initiatives.

Essentially, this study shows that  it doesn’t particularly matter which frameworks you choose as long as you are meeting these characteristics.

What Are the Best Strategic Planning Tools?

The best strategic planning tools are ones that are flexible, integrated, and accessible. They also should include: 

  • Data integration that ensures your team is not posting to several different places
  • Seamless alignment of your company's vision with plan execution
  • A flexible space where you can set, prepare, review, and take action on the top priorities

Here at Elate, we have created the leading strategic planning software that covers all of these factors. No matter what framework(s) you use, when it comes time to create, communicate, and quantify your strategic plan, we can help. In fact, we even wrote the playbook on strategic planning ! 

With 61% of senior executives reporting that their companies often struggle with the day-to-day implementation of strategy, it’s important to have the tools that can help bridge this gap. With Elate, you are empowered and enabled to do just that. You can easily communicate your vision, create alignment, and track performance all in one place. Ready to see Elate in action and experience the difference that the best strategic planning tool can make? Try a free demo or contact us today to take your strategy to the next level.

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  • 65 strategic goals for your company (wi ...

65 strategic goals for your company (with examples)

Julia Martins contributor headshot

Strategic goals are a critical part of your strategic plan. In order to achieve your long-term goals, you need a clear sense of where you want to go—and an easy way to share those goals with your team. In this article, we take a look at the difference between strategic goals and other goal setting methodologies, then offer 65 example metrics and strategic goals you can use to get started. 

Goal-setting is a critical part of your business strategy. You want to make sure your team is cohesively moving in the right direction—and goals are a great way to do that. 

But in order for goals to be effective, they need to be measurable. The important thing isn’t just to create goals, but to create strategic goals that help you accomplish your overall company mission. 

In this article, we’ll walk you through when to set strategic goals—vs. other types of goals—and how to do so. 

What is a strategic goal? 

Because strategic goals are closely connected to strategic planning, they tend to be three to five year goals. But the most important part of setting a strategic goal is to identify where you want to go, and what goals you need to achieve to get there. 

How strategic goals compare to other business processes

There are a lot of different strategy and goal setting frameworks you can use. Here’s how strategic goals differ from other types of goals. 

Strategic goals vs. strategic planning

Strategic planning is the process of defining the direction your company wants to go in the next three to five years. A strategic plan includes longer term goals, strategic goals, and shorter-term goals that describe how you’ll achieve your strategic goals. The strategic planning process is typically run by decision-makers and stakeholders. 

Part of defining your strategic plan is coming up with strategic goals. Your strategic plan should also include customer insights, a SWOT analysis , your company values , your organization’s competitive advantages, specific goals on a quarterly or yearly timeline, and a high-level project roadmap if you have one.

Strategic goals vs. strategic management

Strategic management is the organization and execution of business resources in order to achieve your company goals. These usually help you implement your overall organizational strategy. 

Strategic goals, on the other hand, are generally three to five year objectives that tie closely to your strategic plan. 

Think of strategic goals as the specific things you want to achieve in three to five years. These strategic goals are part of your strategic plan, which provides more context and direction for why your company wants to move in that direction. Your strategic plan fuels your strategic management process, which is how you’ll actually achieve those goals. 

Strategic goals vs. strategic objectives

The difference between strategic goals and strategic objectives is somewhat subjective. In general, objectives tend to be more specific than goals—some people argue that objectives are always quantitative, while goals can be either qualitative or quantitative. 

Whether you use the terminology strategic goals vs. objectives , it’s critical to make sure your goals are specific, measurable, and actionable. 

Strategic goals vs. big hairy audacious goals (BHAGs)

Big Hairy Audacious Goals (BHAGs) are long-term goals that typically take between 10 and 25 years to complete. These are industry-defining goals, like Microsoft’s famous goal to put "a computer on every desk and in every home." 

Not every organization has—or needs—BHAGs. Depending on your business strategy, a vision statement might be enough. Whether or not you set BHAGs, strategic goals are shorter-term goals that help you accomplish these bigger, ambitious goals. 

Strategic goals vs. OKRs 

OKRs , which stands for Objectives and Key Results, is a goal setting methodology developed by Andy Grove that follows a simple but flexible framework: 

I will [objective] as measured by [key result] .

OKRs can span multiple years, but most commonly these are one to two year objectives that help your company accomplish your larger strategic plan. In a typical OKR structure, your OKRs feed into your broader strategic goals. 

Strategic goals vs. KPIs

KPIs, or key performance indicators , are qualitative measures of how you’re progressing. Like OKRs, KPIs tend to be shorter in time frame than strategic goals. This is partially due to the fact that KPIs are nearly always quantitative. Achieving several long-term KPIs helps you achieve your broader three to five year strategic goals. 

Strategic goals vs. business goals

Business goals are predetermined targets that organizations plan to achieve in a specific amount of time. Technically, strategic goals—along with BHAGs, OKRs, and KPIs—are a type of business goal. 

65 example strategic metrics and goals

If you’ve never written a strategic goal before, it’s helpful to check out common goals. Though your strategic goals are unique to your strategic plan, use these examples as templates to create measurable, actionable goals with clear success metrics. 

Set strategic goals that are:

Simply phrased

Easy to track

For more tips on what constitutes a good goal, read our article on how to write SMART goals . 

Keep in mind that these goals should be achievable in three to five years. For shorter goals, consider setting OKRs or KPIs instead. For longer goals, check out vision statements and BHAGs . 

Strategic goals: finance

Financial strategic goals typically center around a few different important financial metrics, including:

1. Increasing revenue

2. Attaining or maintaining profitability

3. Growing shareholder value

4. Diversifying your revenue streams

5. Becoming a financially sustainable company

6. Reducing production costs

7. Increasing profit margin

8. Setting revenue targets for new products

9. Reducing department-specific budgets

10. Influencing the percentage of local vs. international sales

Examples of financial strategic goals

These examples do not represent Asana’s goals, and are merely included here for educational purposes. 

11. Increase total revenue by $10M in the next three years.

12. Reduce cost by 12% to become a profitable company by 2024.

13. Grow a specific product’s revenue to 30% of overall business revenue within the next five years.

14. Reduce marketing budget by 10% in the next three years.

15. Update our sales profile so 50% of our sales are international by 2026.

Strategic goals: customer-focused

Strategic goals that focus on your customers can help you break into a new market or further develop a trustworthy brand. These metrics can include:

16. Reducing customer churn

17. Measurably increasing customer satisfaction

18. Increasing the number of new customers

19. Increasing customer retention

20. Offering great customer value

21. Boosting customer outreach

22. Increasing customer conversion rates

23. Breaking into new customer segments

24. Increasing the number of returning customers

25. Decreasing the percentage of returned products

Examples of strategic goals focused on customer metrics

26. Increase net promoter score (NPS) by three points in the next year, and 10 points in the next five years.

27. Capture 23% market share by 2025.

28. Provide the best customer experience in the market—measured based on reaction time, customer sentiment, and brand tracking. 

29. Increase customer retention by 3% every year.

30. Reduce the percentage of returned products to 2% by 2023.

Strategic goals: growth

On an organizational level, growth refers to how your company expands and develops. Growth metrics include:

31. Increasing market share

32. Breaking into new markets

33. Developing new products, features, or services

34. Increasing operational reliability and/or compliance

35. Increasing company velocity

36. Opening new locations

37. Building your brand on social media

38. Increasing website traffic

39. Acquiring a new company

Examples of strategic goals about growth

40. Open 12 new locations within the next four years. 

41. Increase market share to 8% by 2026.

42. Reach 5M followers on social media (including Instagram and Twitter).

43. Increase web traffic to 300K visitors per year by 2024.

44. Start three new product streams by 2027.

Strategic goals: internal

You can also set strategic goals focusing on your internal company goals. Example employee-centric metrics can include:

45. Increasing employee retention

46. Adding new team members

47. Building a healthy organizational culture

48. Implementing a performance review cycle

49. Standardizing titles and/or levels

50. Improving cross-functional productivity

51. Spinning up a project management office (PMO) to standardize processes

52. Attracting the best talent

53. Building high-performing teams

54. Investing in personal and professional development

55. Reducing burnout and impostor syndrome

56. Building employee-focused training programs

57. Reducing employee turnover

58. Improving workplace safety

59. Building better facilities management

Examples of internal strategic goals 

60. Add 20 new team members within the next four years. 

61. Increase overall engagement scores by 7% based on yearly surveys.

62. Increase new hire referrals to 5,000 team members per year by 2026.

63. Develop and circulate new company values by 2023.

64. Implement a biannual performance review cycle within the next three years.  

65. Attain maximum workplace safety score rating within the next three years. 

Achieve your goals with goal tracking technology

Once you develop your goals, you need a clear way to track, measure, and communicate those goals. Too often, teams set great goals and then don’t know how to track those goals over time. 

Instead of letting your goals collect dust in a slide deck or spreadsheet somewhere, use goal tracking technology to connect your strategic goals to your team’s daily work. With Asana , you can track long-term goals, as well as the shorter-term objectives that feed into those goals. 

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Objectives And Goals Of Strategic Planning

In an overly competitive business world, it’s highly crucial for organizations to consistently ace up their game to stay relevant….

Strategic Planning Objectives

In an overly competitive business world, it’s highly crucial for organizations to consistently ace up their game to stay relevant. A part of it comes from effective strategic planning that involves crafting long-term strategic goals , and formulating a strategic plan that outlines the organization’s process to achieve these goals. Strategic Planning not only builds a competitive advantage for an organization, but also removes uncertainty and confusion. Let’s dive deep into the topic and build a deeper understanding of it.

What Is Strategic Planning?

How is strategic planning different from business planning, purpose of strategic planning and importance, the strategic planning process, effective strategic goals, what is strategic planning .

Strategic planning is the systematic process of defining an organization’s long-term goals and proposing strategies to achieve them. This is essential to elucidating the organization’s long-term vision and its process of making that vision a reality. The strategic planning process is used to effectively allocate resources, prioritize work, and ensure that organizational goals are backed by statistical data and sound reasoning.

In a nutshell, the process of strategic planning includes answering questions like:

  • Where are we now?
  • Where are we going?
  • What is going to get in our way?
  • What do we need to do to get to where we want to go?

Strategic planning differs greatly from business planning. Strategic planning requires you to withhold your general day-to-day activities and enunciate where your organization is heading. It also requires crafting strategic goals and objectives for the future and setting up milestones and steps required to achieve those goals. A business plan , on the other hand, is more concerned with creating and working on short- or mid-term goals. It focuses on goals that are not more than a year long and serves a specific purpose, such as directing operations, launching a product and acquiring funding.

The main purpose of strategic planning is to set clearly defined goals for the growth and success of your organization and achieve them with the help of an effective strategic plan. It establishes a connection between your organization’s mission, its long-term vision and the established plan. 

It’s important because of a variety of factors:

  • It’s crucial to determine the direction and focus of an organization. 
  • It ensures organizational alignment, allowing everyone to work towards shared goals. 
  • It helps an organization understand its weaknesses and analyze potential risks.
  • It boosts productivity and builds a positive work environment. 

Following are the steps involved in the development and execution of a strategic plan:

  • Understanding your organization’s mission and defining its ultimate purpose.
  • Describing your organization’s vision.
  • Crafting long-term goals and objectives that are clearly aligned with the organization’s vision.
  • Formulating a strategic plan that outlines how the organization will achieve its goals in the next 3–5 years.

Big Picture thinking is a critical aspect of the strategic planning process. Furthermore, the strategic planning process might look a bit simple at first, but the challenges start creeping in over time. It’s important for your organization to persistently stick to its plan, and leverage short term implementation to reach its goals.

Objectives of strategic planning are detailed statements of direction that indicate what all is necessary and important in an organizational strategy. Specifically, these are clear goals that the organization strives to achieve in the near future. Ideally, these are statements for the next 3-5 years that address the core competency and functional areas of an organization. These objectives help you draft strategies that include effective measures and initiatives. 

The following are some characteristics of effective strategic goals: 

Purpose-driven

Focused on the long term.

Some of the key aspects that you should focus on while drafting the right goals and objectives of strategic planning for your organization, include understanding your industry, and what your organization is seeking to achieve.

Objectives of Strategic Planning differ greatly based on the industry your organization is operating in. For instance, if you’re in IT, construction or technical services, which are fast-paced industries, you should focus on creating objectives that work for your organization’s growth goals. Launching a new range of products or investing in marketing and customer acquisition can be a few appropriate strategies. Organizations operating in slow-growing industries, such as coal power production and steel manufacturing, should bank on objectives that focus on stability, by managing expenses and protecting assets.

For creating goals of strategic planning , always begin with a label. The label must clearly define your organization’s long-term goals. For example, if customer retention is what your organization is eyeing, the objectives should focus on offering more value-for-money products and better customer services. But if your organization is seeking to improve employee retention rate, crafting objectives such as enhancing the recruitment process, streamlining the onboarding process and creating a better culture would help.

It’s essential to understand that while some organizations may require a comprehensive strategic plan for the future, others might just want to update their existing strategic plan, or specifically revise some elements of the plan. A lot of organizations focus on crafting a plan that tackles a particular strategic issue such as an unexpected competitive initiative, the latest technological trends or a possible M&A transaction. 

Let’s look at a few examples of strategic goals to understand them better.

Financial Objectives

  • Increase revenue
  • Maintain profitability
  • Grow shareholder value
  • Ensure favorable bond ratings
  • Ensure financial stability

Internal Objectives

  • Grow sales percentage for new products.
  • Decrease employee turnover rate.
  • Improve customer service and relationships.
  • Invest in total quality management.
  • Reduce a certain amount of cost annually.
  • Streamline core business processes.

Customer Objectives

  • Offer the best value for money.
  • Cross-sell more products.
  • Provide the best service.
  • Increase market share.
  • Expand product offerings.

Learning And Growth Objectives

  • Enhance technical and analytical knowledge.
  • Improve staff productivity.
  • Build a performance-focused culture.
  • Invest in productivity tools.
  • Maintain alignment across the organization.

Strategic planning is important, and one can readily assume that with a good plan, any business will prosper. Harappa’s Making Decisions course that includes effective strategies, frameworks and mental models that will help you avoid uncertainty and make smarter strategic goals. Check it out now!

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9 effective strategic planning models for your business

types of strategic planning objectives

Strategic planning models can make a big difference to your organization. That remains true whether you’re a startup developing an overall strategy or an established business fine-tuning internal processes.

But there are many strategic planning models, and it’s vital to pick one that suits your purpose and needs. The right framework will help you streamline processes, drive alignment, and propel your business.

To help your research process, we’ve compiled a list of the most effective strategic planning models and their top use cases. Let’s take a look.

🧐 Looking for a flexible framework to help you reach your business objectives? Leapsome’s goal management tools fit any strategic planning process. 👉 Learn more

What is a strategic planning model?

A strategic planning model is a framework that allows organizations to map out their short- and long-term business plans. They can help:

  • Identify and overcome obstacles 
  • Improve and streamline operations
  • Reach overarching business goals
  • Create alignment between different departments
  • Track progress over time

And you don’t have to limit your organization to one strategic planning model. Businesses can benefit from using multiple approaches, even simultaneously. But different strategic planning models are best suited for different situations, so make your choice based on your business type, growth stage, priorities, and goals. 

9 models for strategic planning

These are some of the most popular strategic planning models. Our list covers a definition of each model, an example of it in action, and which use cases it works best for.

1. Objectives & key results (OKRs)

OKRs are a popular goal-setting framework that organizations, teams, and individuals use to define long-term objectives and track progress. To better understand the meaning of OKRs , let’s unpack the acronym:

  • Objectives — ambitious but achievable long-term goals
  • Key results — milestones used to measure progress toward each objective

When establishing your OKRs, create quarterly objectives for all company levels — Leapsome has a free OKR template to help you get started. Then, revisit your OKRs regularly to monitor your progress and make adjustments if necessary. You can also introduce regular OKR meetings to your organization’s internal processes.

OKR example

Here’s an example of an OKR for a B2B SaaS company:

Objective | Significantly scale our customer base and deliver our great product to more people

  • Key results: 
  • Increase sales conversion rate from 25% to 30%
  • Reduce user churn from 5% to 3%
  • Publish a successful case study on our website every quarter
  • Achieve a minimum of 4.7 out of 5 rating across all major review sites

OKRs work best for organizations that want to create more alignment behind their goals. By breaking down company-wide objectives into smaller, more manageable tasks, OKRs ensure everyone works toward a common purpose.

‍ OKRs also show employees how their work contributes to the big picture, giving them a sense of purpose and boosting employee engagement . Research by Gallup links engaged employees to lower turnover rates, better work performance, and a thriving work culture. Consequently, OKRs help companies build successful workplaces.

A screenshot of Leapsome’s Goals & OKRs product showing company-wide objectives.

💡 Wondering how to introduce OKRs to your organization? Use Leapsome’s flexible framework to set company-wide objectives and track them in one intuitive place. 👉 Learn more

2. SWOT analysis

SWOT stands for strengths , weaknesses , opportunities , and threats . Use the SWOT model to define internal and external factors affecting your business. Then, compare the different factors to assess the risk of a potential strategy. 

For example, if your organization’s strengths match opportunities in the market — say, you have a lot of capital, and your competitors don’t — you know you have a competitive advantage. In that scenario, you can take an offensive business strategy with relatively low risk.

SWOT example

Here’s a SWOT example for a sales-based organization:

  • Strengths — We have an excellent rapport with our customers and a loyal customer base.
  • Weaknesses — Our current supply chain is inadequate.
  • Opportunities — There’s high customer demand for one of our products.
  • Threat — Our main competitor is developing a similar product.

Based on this SWOT analysis, our example organization isn’t in a strong strategic position. There’s a risk they won’t produce or distribute enough of their product to meet demand, and their competitor has the potential to outperform them. They should prioritize optimizing their product offering and solving supply chain issues over generating leads or working on an aggressive marketing campaign.

Any business can benefit from SWOT analysis. However, it’s best to use it at the beginning stages of a new strategy and with a specific goal in mind. You could try a SWOT approach when deciding priorities, like implementing new technology or restructuring your organization.

3. PEST or PESTLE analysis

PEST analysis focuses on external factors that can affect your organization. The letters stand for:

  • Socio-cultural
  • Technological

And depending on your industry, you might add legal and environmental factors to make PESTLE. 

PEST or PESTLE example

Here’s an example of a PESTLE analysis for a multinational confectionery company:

  • Political factors — The government of a country where we sell many products is planning to raise import tariffs.
  • Economic factors — Our target demographic (13 to 21-year-olds) has more disposable income now that Covid-19 restrictions have been lifted.
  • Socio-cultural factors — Surveys report that customers consider our products healthy.
  • Technological factors — Engineers devised a more efficient way to farm the main ingredient in half our products.
  • Legal factors — The FDA approved our latest chocolate bar.
  • Environmental factors — NGOs are pressuring us to use more environmentally friendly processes.

PEST analysis lets you assess the business environment for a product or service, so it’s best used during the beginning stages of a project.

4. The Balanced Scorecard framework

The Balanced Scorecard framework lets you take a holistic approach to business planning that doesn’t just focus on economic performance. Instead, you look at four perspectives: 

  • Financial perspective — how well your organization is performing economically
  • Customer perspective — your customer satisfaction and retention levels
  • Internal business perspective — the quality and efficiency of your internal operations
  • Innovation and learning perspective — your ability to improve, pivot, and grow your business

Then, create objectives and define measures to track your progress for each perspective. Those measures will support you in planning and executing initiatives to achieve your goals. And as you carry out this strategy, you can update your scorecard to show your progress.

Balanced Scorecard example

The management at ECI (Electronic Circuits Inc.) wanted to improve their delivery times. But when they talked to customers about the issue, the organization received unreliable feedback — different people had different definitions of being ‘on time.’

Using the Balanced Scorecard framework, managers shifted focus to their operations and checked the efficiency of their manufacturing process. They discovered ways to optimize the business’s cycle time, yield, and costs. 

Despite not having a reliable customer perspective, the Balanced Scorecard’s comprehensive overview of the ECI organization provided a versatile solution for reducing delivery times and streamlining the business’s overall operations.

The Balanced Scorecard framework is best for understanding your business health and creating alignment across your company.

5. Porter’s Five Forces

Porter’s Five Forces is an approach that lets you assess your product or service’s competitive advantage in the market. Identifying potential threats can guide your organization in developing a more dynamic strategic plan.

The ‘Five Forces’ that may affect your product are:

  • The threat of new competitors — Are many new businesses popping up in your industry? How easy is it for new companies to develop a product or service similar to yours?
  • The number of existing competitors — How many direct competitors are you contending with? What about adjacent competitors? Are any of them growing quickly?
  • The bargaining power of suppliers — Could suppliers put pressure on you to lower costs or change your business model?
  • The bargaining power of customers — Are your products or services available elsewhere? Is there a demand for them? Do people have issues with your pricing or quality?
  • The threat of a substitute — How likely is a similar product or service to enter the market?

Porter’s Five Forces example

Let’s take the example of a cosmetics company planning to release a shampoo with SPF 50:

  • The threat of new competitors — The shampoo requires expertise to develop, which is an obstacle for competitors entering the market.
  • The number of existing competitors — Two companies with similar products are poised to grow. They could create an almost identical product and pressure them to lower costs.
  • The bargaining power of suppliers — There’s a large number of suppliers, so they have little bargaining power.
  • The bargaining power of customers — Depending on where customers live, they’ll consider the shampoo a seasonal product. As it’s almost winter in the countries with the largest customer base, demand is lower.
  • The threat of a substitute — Research suggests that no products currently in development could fill the same need (protecting the scalp from sunburn).

Porter’s Five Forces are best for evaluating your product or service after development but before entering the market. It’s also helpful for assessing an organization’s overall competitive position. 

6. The VRIO framework

The VRIO framework helps organizations determine whether they can turn a resource into a competitive advantage. These can be physical resources like inventory, tools, and technology, or nonphysical ones like patents, skills, and work culture.

Let’s break down the VRIO acronym to understand how to evaluate each resource:

  • Valuable — The resource increases revenue or decreases operational costs.
  • Rare — The resource is limited or you control the supply.
  • Inimitable — The resource is unique or complex, meaning it’s difficult for competitors to copy.
  • Organizational — Your organization can exploit the full potential of the resource.

VRIO example

Here’s an example of a delivery company determining whether they can exploit their resource — distribution centers — to gain a competitive advantage:

  • Valuable — All the distribution centers are in strategic positions, which makes them a valuable resource as the company can use their location to create more efficient delivery routes.
  • Rare — The distribution network is a scarce resource because there are only a few ports for international delivery.
  • Inimitable — Competitors could build distribution centers in nearby locations.
  • Organizational — Delivery drivers aren’t using the most efficient routes between distribution centers.

The delivery company could have a temporary competitive advantage, but they’re not exploiting this resource. Management needs to address whatever stops delivery drivers from using the fastest route before rival delivery companies copy and control the same resource. ‍

Photo of professionals evaluating their organization's resources around a table.

The VRIO framework works best for businesses deciding how to launch a new product or service or determining how to improve their existing business model. 

Specifically, the organizational metric shows how efficiently your organization uses its resources. If you have a high score for the first three metrics but consistently fail to capture the value of your resources, it’s a sign you need to improve your internal processes.

Combine the VRIO framework with Porter’s Five Forces for a clear strategic direction when launching a new product.

7. The Hoshin Planning framework

The Hoshin Planning framework is mainly a top-down approach. This method outlines seven strategic planning stages, which are:

  • Define your vision to clarify your organization’s primary purpose.
  • Develop your main objectives to give your organization a competitive advantage.
  • Break down objectives into smaller annual goals.
  • Set goals across your entire organization — at C-level, managerial, departmental, and individual levels.
  • Implement your plans.
  • Perform monthly reviews to reflect and monitor progress.
  • Do an annual review to determine if you’ve achieved your goals and what to work on next.

It’s worth noting that the Hoshin Planning framework doesn’t have to be strictly top-down. Another core idea behind this method is that managers should ‘play catch ball’ — that is, bounce ideas between management, department heads, and team members during the first four stages.

Hoshin Planning example

Here’s how a car manufacturer might implement the Hoshin Planning framework:

  • Management shares their vision of developing the most innovative technology on the market.
  • They decide their main goal is to develop the first self-driving car by the end of 2025. But when leadership talks to the head of engineering, they say this breakthrough won’t be possible by 2025. They collectively adjust the deadline to 2027.
  • Management breaks this goal down into smaller targets. One of them is mapping out what the self-driving car should be able to do in every scenario. The engineering department agrees with this plan.
  • ​​Those targets inform detailed initiatives, like observing real-life driving incidents and collecting data on traffic and accidents.
  • All parties carry out the agreed-upon initiatives. After a month, management conducts a meeting to check everyone’s progress.
  • A year later, the engineering department has data on most scenarios the self-driving car would encounter on the road.

Companies with complex processes — like manufacturing and tech businesses — are more likely to use the Hoshin Planning framework. Their operations benefit from the ‘catch ball’ idea because it’s easier to spot problems when you filter them through diverse teams.

The Hoshin Planning Framework is also ideal for creating alignment within your company. Consider it for a larger organization that’s experienced project issues and bottlenecks.

8. The Theory of Change model

The Theory of Change model involves establishing long-term goals and working backward. Start with your desired outcome and go through all preconditions necessary for it to become a reality. During this process, you determine what needs to change to reach your objectives.

Theory of Change example

Nonprofit organizations with specific missions often use the Theory of Change model. Take adult literacy, for example. The project team would start with an ideal situation — like their country having a 100% literacy rate — and work backward to find out what’s preventing them from achieving that aim. The issues might range from a lack of funding to a need to increase awareness about resources that are already available. Then, the nonprofit team could start addressing the issues they identified.

Any organization can benefit from the Theory of Change framework. Still, it works best for specific projects, like expanding your company abroad or opening a new department, as it involves scenario planning. 

9. The Blue Ocean strategy

The Blue Ocean strategy is a strategic planning model that’s become popular recently. Developed in 2004, this method assesses whether your organization operates in a saturated market. If so, the underlying assumption of the Blue Ocean strategy is that it’s better to create new demand.

In the strategy, the ‘ocean’ is a metaphor for the market. The ‘red ocean’ is full of predators (large companies) competing for food (customers) and turning the water red, whereas the ‘blue ocean’ is deep, unexplored water that’s full of potential (uncontested market space). Here’s a list of indicators that you’re in a ‘blue ocean’:

  • You’ve found uncontested market space
  • You’ve made the competition irrelevant
  • You’re creating and capturing new demand
  • You’re breaking the value-cost trade-off

Blue Ocean example

Apple is a famous example of a business that operates in a ‘blue ocean.’ Although it’s one of the leading technology companies in the world, the Apple team still prefers to innovate new products rather than beat the competition.

The Blue Ocean strategy is ideal for small businesses and start-ups trying to establish themselves among larger organizations. Established companies in dynamic industries like tech can also use it to stay ahead of their competition.

How to implement a strategic planning model

Once you’ve set up your strategic plan, you’ll want to utilize it to its full potential. Here are some tips to make sure your strategy goes into action.

Align your approach to strategic planning with your values

There are many strategic planning models to choose from, and your organization can only implement so many. Although all of them have pros and cons, none are necessarily better than the others. So, choose the strategic planning models that reflect your organization’s values. That way, it’ll be easier to introduce your strategy and get all team members on board.

If you’re a people-first organization, OKRs are an ideal choice. OKRs involve your employees in company initiatives, make internal decisions more transparent, and give everyone a sense of purpose. 

Allocate resources to the strategic planning process

Strategic planning is like any other task: It requires resources like funding, time, and research. You should have a budget and schedule for every part of the process.

The employees helping you with strategic planning and implementation are also vital assets — offer them training and consistent support. Free up their schedule for strategic planning and create a timeline for the entire process to set your team up for success. ‍

Photo of a group of professionals working on a strategic plan around a table.

Review your progress

Aside from planning and implementing your strategy, you’ll need to check on your progress regularly. That means monthly and annual reviews at all levels.

Many strategic planning models already have reviews built into their stages. But even if they don’t, you should reevaluate at regular intervals. You can define some key performance indicators (KPIs) to measure the success of your initiatives and your overall business health. Popular KPIs include revenue growth, client retention rate, and employee satisfaction.

Be ready to adjust your strategic plan

As the saying goes, even the best-laid plans often go awry. You may find that conditions change as you implement your strategic plan or that you didn’t predict certain issues. The key isn’t necessarily to strategize better, but to have a dynamic strategy. This will allow you to adjust your plan and deal with problems as they arise.

For instance, you might opt for the PEST analysis, but be open to considering important legal and environmental factors when they come up. You can try to predict what new legislation or world events may affect your industry. Then, if any conditions arise that affect your business, you’ll be able to pivot your strategy without too much additional effort.

Boost your organization’s performance with strategic planning models

Strategic planning models help you assess the current state of your organization, decide which direction to take in the future, and communicate your plans to your employees. They can be the difference between your business merely sustaining itself and thriving.

If you’re wondering how to implement a new strategic planning model, Leapsome can offer professional support. Our Goals and OKR Management Software provides an adaptable framework for your chosen strategic model.

🚀 Kickstart your strategic plan with Leapsome Our goals and OKR management tools make it easy to implement your strategy of choice. 👉 Book a demo

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  • Section 1. An Overview of Strategic Planning or "VMOSA" (Vision, Mission, Objectives, Strategies, and Action Plans)

Chapter 8 Sections

  • Section 2. Proclaiming Your Dream: Developing Vision and Mission Statements
  • Section 3. Creating Objectives
  • Section 4. Developing Successful Strategies: Planning to Win
  • Section 5. Developing an Action Plan
  • Section 6. Obtaining Feedback from Constituents: What Changes are Important and Feasible?
  • Section 7. Identifying Action Steps in Bringing About Community and System Change
  • Main Section

VMOSA (Vision, Mission, Objectives, Strategies, and Action Plans) is a practical planning process used to help community groups define a vision and develop practical ways to enact change. VMOSA helps your organization set and achieve short term goals while keeping sight of your long term vision. Implementing this planning process into your group's efforts supports developing a clear mission, building consensus, and grounding your group's dreams. This section explores how and when to implement VMOSA into your organization's planning process.

What is VMOSA?

One way to make that journey is through strategic planning, the process by which a group defines its own "VMOSA;" that is, its V ision, M ission, O bjectives, S trategies, and A ction Plans. VMOSA is a practical planning process that can be used by any community organization or initiative. This comprehensive planning tool can help your organization by providing a blueprint for moving from dreams to actions to positive outcomes for your community.

In this section, we will give a general overview of the process, and touch briefly on each of the individual parts. In Examples, we'll show you how an initiative to prevent adolescent pregnancy used the VMOSA process effectively. Then, in Tools, we offer you a possible agenda for a planning retreat, should your organization decide to use this process. Finally, the remaining sections in this chapter will walk you through the steps needed to fully develop each portion of the process.

Why should your organization use VMOSA?

Why should your organization use this planning process? There are many good reasons, including all of the following:

  • The VMOSA process grounds your dreams. It makes good ideas possible by laying out what needs to happen in order to achieve your vision.
  • By creating this process in a group effort (taking care to involve both people affected by the problem and those with the abilities to change it), it allows your organization to build consensus around your focus and the necessary steps your organization should take.
  • The process gives you an opportunity to develop your vision and mission together with those in the community who will be affected by what you do.  That means that your work is much more likely to address the community’s real needs and desires, rather than what you think they might be.  It also means community ownership of the vision and mission, putting everyone on the same page and greatly increasing the chances that any effort will be successful.
  • VMOSA allows your organization to focus on your short-term goals while keeping sight of your long-term vision and mission.

When should you use VMOSA?

So, when should you use this strategic planning process? Of course, it always makes sense for your organization to have the direction and order it gives you, but there are some times it makes particularly good sense to use this process. These times include:

  • When you are starting a new organization.
  • When your organization is starting a new initiative or large project, or is going to begin work in a new direction.
  • When your group is moving into a new phase of an ongoing effort.
  • When you are trying to invigorate an older initiative that has lost its focus or momentum.
  • When you’re applying for new funding or to a new funder.  It’s important under these circumstances to clarify your vision and mission so that any funding you seek supports what your organization actually stands for.  Otherwise, you can wind up with strings attached to the money that require you to take a direction not in keeping with your organization’s real purpose or philosophy.

Let's look briefly at each of the individual ingredients important in this process. Then, in the next few sections we'll look at each of these in a more in-depth manner, and explain how to go about developing each step of the planning process.

Vision (the dream)

Your vision communicates what your organization believes are the ideal conditions for your community – how things would look if the issue important to you were perfectly addressed. This utopian dream is generally described by one or more phrases or vision statements, which are brief proclamations that convey the community's dreams for the future. By developing a vision statement, your organization makes the beliefs and governing principles of your organization clear to the greater community (as well as to your own staff, participants, and volunteers).

There are certain characteristics that most vision statements have in common. In general, vision statements should be:

  • Understood and shared by members of the community
  • Broad enough to encompass a variety of local perspectives
  • Inspiring and uplifting to everyone involved in your effort
  • Easy to communicate - for example, they should be short enough to fit on a T-shirt

Here are a few vision statements which meet the above criteria:

  • Healthy children
  • Safe streets, safe neighborhoods
  • Every house a home
  • Education for all
  • Peace on earth

Mission (the what and why)

Developing mission statements are the next step in the action planning process. An organization's mission statement describes what the group is going to do, and why it's going to do that. Mission statements are similar to vision statements, but they're more concrete, and they are definitely more "action-oriented" than vision statements. The mission might refer to a problem, such as an inadequate housing, or a goal, such as providing access to health care for everyone. And, while they don't go into a lot of detail, they start to hint - very broadly - at how your organization might go about fixing the problems it has noted. Some general guiding principles about mission statements are that they are:

  • Concise . Although not as short a phrase as a vision statement, a mission statement should still get its point across in one sentence.
  • Outcome-oriented . Mission statements explain the overarching outcomes your organization is working to achieve.
  • Inclusive . While mission statements do make statements about your group's overarching goals, it's very important that they do so very broadly. Good mission statements are not limiting in the strategies or sectors of the community that may become involved in the project.

The following mission statements are examples that meet the above criteria.

  • "To promote child health and development through a comprehensive family and community initiative."
  • "To create a thriving African American community through development of jobs, education, housing, and cultural pride.
  • "To develop a safe and healthy neighborhood through collaborative planning, community action, and policy advocacy."
While vision and mission statements themselves should be short, it often makes sense for an organization to include its deeply held beliefs or philosophy, which may in fact define both its work and the organization itself. One way to do this without sacrificing the directness of the vision and mission statements is to include guiding principles as an addition to the statements. These can lay out the beliefs of the organization while keeping its vision and mission statements short and to the point.

Objectives (how much of what will be accomplished by when)

Once an organization has developed its mission statement, its next step is to develop the specific objectives that are focused on achieving that mission. Objectives refer to specific measurable results for the initiative's broad goals. An organization's objectives generally lay out how much of what will be accomplished by when. For example, one of several objectives for a community initiative to promote care and caring for older adults might be: "By 2025 (by when), to increase by 20% (how much) those elders reporting that they are in daily contact with someone who cares about them (of what)."

There are three basic types of objectives . They are:

  • Behavioral objectives . These objectives look at changing the behaviors of people (what they are doing and saying) and the products (or results) of their behaviors. For example, a neighborhood improvement group might develop an objective around having an increased amount of home repair taking place (the behavior) or of improved housing (the result).
  • Community-level outcome objectives . These are related to behavioral outcome objectives, but are more focused more on a community level instead of an individual level. For example, the same group might suggest increasing the percentage of decent affordable housing in the community as a community-level outcome objective.
  • Process objectives . These are the objectives that refer to the implementation of activities necessary to achieve other objectives. For example, the group might adopt a comprehensive plan for improving neighborhood housing.

It's important to understand that these different types of objectives aren't mutually exclusive. Most groups will develop objectives in all three categories. Examples of objectives include:

  • By December 2030, to increase by 30% parent engagement (i.e., talking, playing, reading) with children under 2 years of age. ( Behavioral objective )
  • By 2025, to have made a 40% increase in youth graduating from high school. ( Community -level outcome objective )
  • By the year 2026, increase by 30% the percentage of families that own their home. ( Community-level outcome objective )
  • By December of this year, implement the volunteer training program for all volunteers. ( Process objective )

Strategies (the how)

The next step in the process of VMOSA is developing your strategies. Strategies explain how the initiative will reach its objectives. Generally, organizations will have a wide variety of strategies that include people from all of the different parts, or sectors, of the community. These strategies range from the very broad, which encompass people and resources from many different parts of the community, to the very specific, which aim at carefully defined areas.

Examples of broad strategies include:

  • A child health program might use social marketing to promote adult involvement with children
  • An adolescent pregnancy initiative might decide to increase access to contraceptives in the community
  • An urban revitalization project might enhance the artistic life of the community by encouraging artists to perform in the area

Five types of specific strategies can help guide most interventions . They are:

  • Providing information and enhancing skills (e.g., offer skills training in conflict management)
  • Enhancing services and support (e.g., start a mentoring programs for high-risk youth)
  • Modify access, barriers, and opportunities (such as offering scholarships to students who would be otherwise unable to attend college)
  • Change the consequences of efforts (e.g., provide incentives for community members to volunteer)
  • Modify policies (e.g., change business policies to allow parents and guardians and volunteers to spend more time with young children)

Action plan (what change will happen; who will do what by when to make it happen)

Finally, an organization's action plan describes in great detail exactly how strategies will be implemented to accomplish the objectives developed earlier in this process. The plan refers to: a) specific (community and systems) changes to be sought, and b) the specific action steps necessary to bring about changes in all of the relevant sectors, or parts, of the community.

The key aspects of the intervention or (community and systems) changes to be sought are outlined in the action plan. For example, in a program whose mission is to increase youth interest in politics, one of the strategies might be to teach students about the electoral system. Some of the action steps, then, might be to develop age-appropriate materials for students, to hold mock elections for candidates in local schools, and to include some teaching time in the curriculum.

Action steps are developed for each component of the intervention or (community and systems) changes to be sought. These include:

  • Action step(s): What will happen
  • Person(s) responsible: Who will do what
  • Date to be completed: Timing of each action step
  • Resources required: Resources and support (both what is needed and what's available )
  • Barriers or resistance, and a plan to overcome them!
  • Collaborators: Who else should know about this action

Here are two examples of action steps, graphed out so you can easily follow the flow:

Of course, once you have finished designing the strategic plan or "VMOSA" for your organization, you are just beginning in this work. Your action plan will need to be tried and tested and revised, then tried and tested and revised again. You'll need to obtain feedback from community members, and add and subtract elements of your plan based on that feedback.

Everyone has a dream. But the most successful individuals - and community organizations - take that dream and find a way to make it happen. VMOSA helps groups do just that. This strategic planning process helps community groups define their dream, set their goals, define ways to meet those goals, and finally, develop practical ways bring about needed changes.

In this section, you've gained a general understanding of the strategic planning process. If you believe your organization might benefit from using this process, we invite you to move on to the next sections of this chapter, which explain in some depth how to design and develop your own strategic plan.

Online Resources

Concerns Report Handbook: Planning for Community Health

The Free Management Library  presents a thorough guide to strategic and action planning, plus links to online discussion groups.

Imagining Our Dream Community provides guidance for visualizing your organization's ideal community.

Preventing Adolescent Pregnancy: An Action Planning Guide for Community-Based Initiatives

Preventing Adolescent Substance Abuse: An Action Planning Guide for Community-Based Initiatives

Preventing Child Abuse and Neglect: An Action Planning Guide for Community-Based Initiatives

Preventing Youth Violence: An Action Planning Guide for Community-Based Initiatives

Promoting Child Well-Being: An Action Planning Guide for Community-Based Initiatives

Promoting Health for All: Improving Access and Eliminating Disparities in Community Health

Promoting Healthy Living and Preventing Chronic Disease: An Action Planning Guide for Communities

Promoting Urban Neighborhood Development: An Action Planning Guide for Improving Housing, Jobs, Education, Safety and Health

Reducing Risk for Chronic Disease: An Action Planning Guide for Community-Based Initiatives

The Ruckus Society  offers an Action Planning Manual that discusses strategies for nonviolent direct action.

Strategice Plan information page from Implementation Matters.

The Strategic Planning Process outlines 8 steps to developing a customized strategic plan for a coalition.

Work Group Evaluation Handbook

Your Action Planning Guide for Promoting Full Community Participation Among People with Disabilities , a resource for independent living centers and other community-based initiatives, from the KU Research & Training Center on Independent Living and the KU Center for Community Health and Development.

Youth Development: An Action Planning Guide for Community-Based Initiatives

Print Resources

Barry, B. (1982).  Strategic planning workbook for non-profit organizations . St. Paul, MN: Amherst H. Wilder Foundation.

Bryson, J. (1988).  Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement . San Francisco: Jossey-Bass Publishers.

Coover, V., et al. (1985).  Resource manual for a living revolution: a handbook of skills & tools for social change activists . Philadelphia: New Society Publisher.

Fawcett, S., Paine, A., Francisco, V., Richter, K.., Lewis, R., Williams, E., Harris, K., Winter-Green, K., in collaboration with Bradley, B. & Copple, J. (1992).  Preventing adolescent substance abuse: an action planning guide for community -based initiatives . Lawrence, KS: Work Group on Health Promotion and Community Development, University of Kansas.

Fawcett, S., Schultz, J., Francisco, V., Cyprus, J., Collie, V., Carson, V., & Bremby, R. (2001).  Promoting urban neighborhood development: An action planning guide for improving housing, jobs, education, safety and health, and human development . Lawrence, KS: Work Group on Health Promotion and Community Development.

Halfon, N., Inkelas, M., Rice, T., Sutherland, C., Tullis, E., & Uyeda, K. (2004).  Building State Early Childhood Comprehensive Systems. Volume 6: A Strategic Planning Guide for State-Level Early Childhood Systems-Building Initiatives: From Resources to Results for Young Children and Their Families.  Los Angeles: UCLA Center for Healthier Children, Families, and Communities.

Kansas Health Foundation.  VMOSA: An approach to strategic planning . Wichita, KS: Kansas Health Foundation.

Lord, R. (1989). T he non-profit problem solver: a management guide . New York, NY: Praeger Publishers.

Murray, E., & Richardson, P. (2002).  Fast Forward: Organizational Changes in 100 Days . New York, NY: Oxford University Press.

Olenick, J., & Olenick, R. (1991).  A non-profit organization operating manual: planning for survival and growth . New York, NY: Foundation Center.

Stonich, P. J. (1982).  Implementing strategy: making strategy happen . Cambridge: Ballinger Publishing Company.

Unterman, I., & Davis, R. (1984).  Strategic management of not-for-profit organizations . New York, NY: CBS Educational and Professional Publishing.

Watson-Thompson, J., Fawcett, S.B., & Schultz, J. (2008).  Differential effects of strategic planning on community change in two urban neighborhood coalitions . American Journal of Community Psychology, 42, 25-38.

Wolff, T. (1990).  Managing a non-profit organization . New York, NY: Prentice Hall Press.

Wolff, T. (2010). The Power of Collaborative Solutions: Six Principles and Effective Tools for Building Healthy Communities . San Francisco: Jossey-Bass.

Strategic Planning: Types, Process, Examples, Importance

Meaning of strategic planning.

In every business organization, there are some pre-defined goals and objectives that need to be achieved at a particular time. These objectives may be short-term or long-term. Short-term objectives are realized through the proper implementation of various plans and procedures. However, long-term objectives require proper planning and a series of steps to fulfill them. This planning is made after taking into consideration various aspects of business, such as business risk, financial risk, cash flow, return on investment and many other aspects. A critical evaluation of all these aspects and redefining the objective of business in an enhanced way is termed strategic planning

What Is Strategic Planning?

Strategic planning is a process in which an organization’s leaders define and communicate the goals and objectives of an organization and determine a series of steps to attain an organization’s objectives. In simple words, it is the process of creating specific strategies and their implementation to achieve the organizational long-term objective. This concept involves the cooperation and coordination of various departments of a business to accomplish its strategic goals.

Strategic planning is simply done to realize long-term goals that are going to affect its growth and profitability in the long run. The main product of strategic planning is an accurate, absolute, and affirmative strategic plan. A strategic plan is a plan that is easy to understand, focused on the attainment of organizational goals, and communicated either written or verbally to the organization’s people.

Types Of Strategic Planning

Broadly speaking, strategic planning is of three types, namely business strategic planning, corporate strategic planning, and functional strategic planning.

Business strategic planning

A business strategic plan is a centric plan which focuses on creating and regulating plans related to the competitive edge of a business, such as creating competitive advantages, developing new growth opportunities, and making the product more profitable. These types of business plans involve a proper evaluation of the external environment, targeting the customers, analyzing their needs and requirements, setting goals accordingly, allocating finance and putting together the human and material resources for the achievement of these goals. This strategic planning involves setting goals according to the needs of customers and following a series of steps for their accomplishment.

Corporate strategic planning

A corporate strategic plan defines the workings of a company. These types of plans are focused on the organizational and structural needs of a company. This involves determining the business structure, policies and procedures of the business, and leadership and management rules for the accomplishment of predefined goals. The entire work of the company is based and directed according to these organizational and structural needs.

Functional strategic planning

Functional strategic planning co-exists with corporate strategic planning and provides detailed working of specific departments such as the HR department, marketing department and Finance and development department. Functional strategic planning is concerned with deciding and determining the policies and procedures related to a specific department.

Process of Strategic Planning

The process of strategic planning involves critical thinking and analysis of various elements in a business and a need to form a plan accordingly. Formulating and implementing a plan and determining steps to achieve, it requires a thorough study of all the available options and the selection of the best option among them. Management should focus or rely on a plan that yields higher income or more positive results with minimum cost. A plan made and implemented will be one that has cost-effectiveness, higher return, minimized risk, and a high volume of success.

The strategic planning took place in three steps:

Strategy formulations

It is a process in which a business takes advantage of the available knowledge to formulate a strategy for the success and achievement of its goal. It is a process which is certainly the least understood but most controversial aspect of strategic planning. In this case, the company first conducts an internal and external audit to collect information related to its business environment. This is mainly done to conduct a SWOT (strength, weakness, opportunities, and threat) analysis. It helps the company to:

  • Analyze the strength and weaknesses of its human resource and management.
  • Analyze the upcoming opportunities in the market and utilize them.
  • Analyze the threats and develop the best possible alternative ways to deal with them.

This analysis helps a company to focus on the areas of key importance, develop ways to reallocate the resources, and take necessary actions wherever needed. The entire strategy formulation is based on a proper SWOT analysis. A small error in the SWOT analysis has a huge impact on the strategy formulation.

Business strategies are made after a lot of thinking, evaluation, and consideration as they have a long-term effect and affect the business in the long run. It is the most difficult step of strategy formulation as it involves a huge mental framework, innovative thinking, and unique competencies and approaches. A company must be wise and careful while creating and formulating a strategy.

Strategy implementation

If said in simple terms, it is the implementation of the strategy developed in the first step. It involves developing activities, arranging resources, and putting the strategy into action. The very first step in this process is to communicate the strategy to other people. Everyone must be aware of what our strategy is and what the goal should be towards which all actions and efforts should be directed. Afterwards, it involves the allocation of resources, the arrangement of actions, the assignment of roles, responsibilities, and duties, and the establishment of accountability.

The success of any strategy depends upon how perfectly it is implemented and followed. A successful implementation of a strategy must involve a solid structure, a good framework, proper implementation, maximum utilization of resources, and efficient and effective marketing efforts.

Strategy evaluation

Strategy evaluation is a process by which management evaluates the performance of its chosen strategy, analyzes its work and interprets its success. In simple words, strategy evaluation is the process of reviewing, measuring, and appraising the implemented strategy. Strategy evaluation involves three important aspects:

  • Reviewing all the internal as well as external factors that affect the strategy and its working.
  • Measuring and evaluating the performance and,
  • Taking necessary steps wherever required.

All these three aspects are crucial in strategy evaluation and take place at different levels of management, i.e., upper management, middle management, and operational level. Also, strategy evaluation is seen as an important part of the entire strategy formulation process, as the success of any strategy cannot be interpreted or assumed without its evaluation.

Importance Of Strategic Planning

Strategic planning is of great importance to any organization. It helps an organization establish goals and objectives and take accurate measures to achieve them. Without proper strategic planning, it is very difficult for any organization to achieve its objectives. Apart from this, other aspects of the importance of strategic planning are:

Provide direction to the human efforts

Often it happens that due to increased workload and high mental and physical pressure, employees lose their concentration and work in a direction opposite to the objective of the organization. But, Strategic planning tries to remove such types of incidents by providing the same direction to all human efforts. It ensures that all people working in an organization should work in the same direction towards the achievement of the organization’s goal. It also helps the management and employees to reach their full potential for the achievement of a common goal.

Help in gaining a competitive advantage

A company with proper planning, implementation, and proper evaluation achieves its goals and objectives before its competitors in the market and gains a competitive advantage. A company with better strategic planning always studies the market conditions, customer needs and demands, competitors’ strategies, market trends, and new ideas for innovation. This helps them to better understand the external environment, grab all the opportunities, identify related threats and take measures for their prevention. 

Promote innovation

Strategic planning allows a business to understand the external as well as the internal environment and develop policies accordingly. The knowledge of the external environment allows a company to identify new market trends and develop innovative ideas accordingly. An innovative idea may be related to marketing strategy, product development, advertising, product manufacturing, or anything else depending on the internal and external forces. An innovative idea allows a company to establish itself and its brand as different from its competitors and survive in the long run.

Make the company proactive rather than reactive

While working in a business, there are many situations that an organization has to face. These may be related to business risk or financial risk or problems related to working capital requirements, fixed capital requirements, technology upgradation or anything else. A proper strategic planning helps a company to develop itself in a more proactive manner rather than being reactive to these kinds of future issues and problems. As long as the business runs, it faces more and more problems, and with the help of proper strategic planning, it can develop itself to be proactive. 

Enhanced productivity and efficiency

With the right strategy or plan, a business can diversify its approach and become more productive. A properly formed and implemented strategy works as a roadmap for the entire organization. This enables the team to know and understand the objective and how to achieve it. The team will be ready to face any issue if it arises and develop ways to solve it. This further helps to increase the overall organization’s efficiency.

Benefits Of Strategic Planning

If you don’t know what your goal is, then all the efforts you are putting to make your business run and grow are worthless. If you know what your goal is, you will put in all your efforts to achieve it. But having a goal and putting your effort to achieve it is not worthless until and unless you assure that the objective is worthwhile and all efforts are going in the same direction. Strategic planning helps you to ensure this and allows your business to achieve great heights of success. Apart from this, the following are the benefits of strategic planning.

Helps in directing employees in the same direction

Strategic planning helps to establish the same direction for all the efforts of employees working in an organization. It makes the employees aware of what the organization is, in which direction they have to work, what their roles and responsibilities are, and to whom they are accountable. Also, it ensures coordination and a sense of belongingness among the employees working together. It further helps the organization to achieve its goal faster and fulfill its commitments to its customers, investors, shareholders and other groups. 

Help businesses in making wise decisions

You won’t be able to achieve an objective unless you establish a clear, meaningful, and growth-oriented objective. You won’t be able to differentiate between a good idea and a great idea unless you have multiple options to differentiate. Strategic planning helps you to set the most appropriate and growth-oriented objectives. Also, it further enables a business to develop various ways to achieve that objective and choose the best idea among them. It helps the business to make the most appropriate decision taking into consideration various aspects of the business.

Enhanced longevity

It is obvious that a business that achieves its objective at a fast speed can survive in the competitive world as compared to a business that fails to meet its commitments on time. Strategic planning allows a business to set objectives according to the needs of a changing environment and competitive world and develop ways to achieve them faster. This allows a business to survive in the long run. Also, it empowers a business to stand firm against its competitors. 

Helps in increasing profitability

A business that continuously sets objectives and achieves them at a faster speed can make huge profits from time to time. Strategic planning helps a business to meet its commitments to customers and fulfill their needs and demands more effectively. This further increases the sales and marketing of the business, thereby increasing the profit at a fast speed.

Limitations of Strategic Planning

Despite its importance and benefits, strategic planning has some limitations that make it a matter of concern.

Lack of sufficient knowledge

Strategic planning is one of the most demanding fields that requires a lot of knowledge before putting it into effect. Not only does it require knowledge, but it also requires in-depth skills, training, and sufficient experience. A manager must possess all this before making any strategic planning. If he fails to possess knowledge about strategic planning, he fails to successfully implement it as well. As a result, the organization has to bear the consequences.

Different departments working separately

In a business, there are various departments such as sales and marketing, finance, public relations, operations, human resources, purchasing, and many other departments that work separately from each other. The skills, jobs, functions, roles, and responsibilities of each department are different from those of another. It often becomes difficult to coordinate the functions and work of all departments, which creates problems and differences within the organization.

Strategic planning is a costly process. It takes a lot of money to properly analyze the external environment and set a lofty goal to achieve. It further requires a huge amount of time in forming a plan, implementing it, observing and analyzing it, finding deviations if any, and taking necessary and corrective measures. Thus, the overall financial outlay from choosing an objective to accomplishing it becomes very costly.

Time-consuming

Strategic planning is a very time-consuming process as it requires a lot of time to establish an objective, analyze whether it is profitable or not, and analyze its success rate. Further, it also takes a lot of time to decide which actions and steps to be taken, analyze the suitability of a plan, and, after its implementation, find deviations and hindrances and make further plans to remove them. 

Elements Of Strategic Planning

Elements of a strategic plan can be defined as essentials of strategic planning without which a strategic plan is incomplete. There are seven important elements of strategic planning that make it successful and complete.

Vision statement

It is a statement that represents the way you envision your entire business. In a more descriptive way, it is a statement that should represent and communicate your dream to your employees and other groups in an inspirational and effective way. It should clearly state your vision, aspirations, and expectations.

Mission statement

A mission statement is one which describes your current work and the mission on which you are working or have to work. It is a way or path to achieve your vision in an enhanced and descriptive manner. A mission statement broadly contains your actions and goals to convert your vision into reality.

Core values

Core values are simply the beliefs and behaviors around which you and your organization work. Core values define your work, your behavior towards each other, and the beliefs and values that you follow and admire. Also, it is the value you follow while completing your mission to achieve your vision.

SWOT Analysis

SWOT stands for “strengths, weaknesses, opportunities, and threats.” This is the most important element of strategic planning, and the entire planning process is based on this analysis. It helps an organization analyze its strengths and weaknesses and work on them properly. At the same time, it allows an organization to identify the opportunities and threats in the external environment and take action accordingly. 

Long term goals

Long-term goals are the commitments that a company makes to make its vision a wonderful reality. These are a set of goals and objectives that are stated clearly in the memorandum of the company. These are a level below the vision of the company, or we can say that the vision of a company is a wider concept than long-term goals. 

Yearly objectives

As the name reflects yearly, it is the objective that is set for a period of one year. These are also called short-term goals that need to be fulfilled within a period of one year. These objectives are SMART in approach. SMART stands for specific, measurable, achievable, realistic and time-based.

Action plan

Action plans are plans that are developed to achieve objectives. Every objective has an action plan, and every action plan is made for a particular objective. These plans depend upon the durability, details, flexibility, approach, and success rate of an objective.

Concluding Remarks

Strategic plans are of great importance to any organization as they tell us what objectives have to be achieved and what the steps and plans are to achieve these objectives. A strategic plan helps a company to put all its actions in the same direction, attain objectives faster, make decisions, and make the firm grow and earn profit. Although it suffers from some limitations as well, such as being very time-consuming, costly, and requiring a lot of knowledge and experience. It depends on the organization whether it includes strategic planning in its organizational structure or not.

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types of strategic planning objectives

9 Strategic Planning Models and Tools for the Customer-Focused Business

Meredith Hart

Published: July 11, 2023

strategic plan abstract visual of hands holding a tablet with a plan on it and chess pieces to the right.

As the economist and business strategy guru, Michael Porter, says, “The essence of strategy is choosing what not to do.”

With strategic planning, businesses identify their strengths and weaknesses, choose what not to do, and determine which opportunities should be pursued. In sales operations, having a clearly defined strategy will help your organization plan for the future, set viable goals, and achieve them.

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So, how do you get started with strategic planning? You‘ll begin with strategic planning models and tools. Let’s take a look at nine of the most prominent ones here.

types of strategic planning objectives

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Strategic planning models.

Strategic planning is used to set up long-term goals and priorities for an organization. A strategic plan is a written document that outlines these goals.

Don't confuse strategic planning and tactical planning . Strategic planning is focused on long-term goals, while tactical planning is focused on the short-term.

Here are a few strategic planning models you can use to get started.

1. The Balanced Scorecard

The Balanced Scorecard is one of the most prominent strategic planning models, tailored to give managers a comprehensive overview of their companies' operations on tight timelines. It considers both financial and operational metrics to provide valuable context about how a business has performed previously, is currently performing, and is likely to perform in the future.

The model plays on these concerns: time, quality, performance/service, and cost. The sum of those components amount to four specific reference points for goal-setting and performance measurement:

  • Customer: How customers view your business
  • Internal Process: How you can improve your internal processes
  • Organizational Capacity: How your business can grow, adapt, and improve
  • Financial: The potential profitability of your business

Those four categories can inform goals that are more thoughtful and focused while surfacing the most appropriate metrics with which you can use to track them. But the elements you choose to pursue and measure are ultimately up to you. As there's no definitive list, they will vary from organization to organization.

That being said, there‘s a universally applicable technique you can use when leveraging the model—creating a scorecard. This is a document that keeps track of your goals and how you apply them. Here’s an example of what a scorecard might look like:

Strategic Planning Model Balanced Scorecard

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The Balanced Scorecard is ideal for businesses looking to break up higher-level goals into more specific, measurable objectives. If you're interested in translating your big-picture ambitions into actionable projects, consider looking into it.

Example of the Balanced Scorecard

Let‘s imagine a B2B SaaS company that sells a construction management solution. It’s been running into trouble from virtually all angles. It‘s struggling with customer retention and, in turn, is hemorrhaging revenue. The company’s sales reps are working with very few qualified leads and the organization's tech stack is limiting growth and innovation.

The business decides to leverage a Balanced Scorecard approach to remedy its various issues. In this case, the full strategic plan—developed according to this model—might look like this:

  • The company sets a broad financial goal of boosting revenue by 10% year over year.
  • To help get there, it aims to improve its customer retention rate by 5% annually by investing in a more robust customer service infrastructure.
  • Internally, leadership looks to improve the company's lead generation figures by 20% year over year by revamping its onboarding process for its pre-sales team.
  • Finally, the business decides to move on from its legacy tech stack in favor of a virtualized operating system, making for at least 50% faster software delivery for consistent improvements to its product.

The elements listed above address key flaws in the company‘s customer perception, internal processes, financial situation, and organizational capacity. Every improvement the business is hoping to make involves a concrete goal with clearly outlined metrics and definitive figures to gauge each one’s success. Taken together, the organization's plan abides by the Balanced Scorecard model.

2. Objectives and Key Results

As its name implies, the OKR strategic planning model revolves around translating broader organizational goals into objectives and tracking their key results. The framework rests on identifying three to five attainable objectives and three to five results that should stem from each of them. Once you have those in place, you plan tactical initiatives around those results.

After you‘ve figured out those reference points, you determine the most appropriate metrics for measuring their success. And once you’ve carried out the projects informed by those ideal results, you gauge their success by giving a score on a scale from 0 to 1 or 0%-100%.

For instance, your goal might be developing relationships with 100 new targets or named accounts in a specific region. If you only were able to develop 95, you would have a score of .95 or 95%. Here's an example of what an OKR model might look like:

Strategic Planning Model Objectives and Key Results

It's recommended that you structure your targets to land at a score of around 70% — taking some strain off workers while offering them a definitive ideal outcome. The OKR model is relatively straightforward and near-universally applicable. If your business is interested in a way to work towards firmly established, readily visible standards this model could work for you.

Example of the Objectives and Key Results

Let's consider a hypothetical company that makes educational curriculum and schedule planning for higher-education institutions. The company decides it would like to expand its presence in the community college system in California, something that constitutes an objective.

But what will it take to accomplish that? And how will the company know if it's successful? Well, in this instance, leadership within the business would get there by establishing three to five results they would like to see. Those could be:

  • Generating qualified leads from 30 institutions
  • Conducting demos at 10 colleges
  • Closing deals at 5 campuses

Those results would lead to initiatives like setting standards for lead qualification and training reps at the top of the funnel on how to use them appropriately, revamping sales messaging for discovery calls, and conducting research to better tailor the demo process to the needs of community colleges.

Leveraging this model generally entails repeating that process between two and four more times, ultimately leading to a sizable crop of thorough, actionable, ambitious, measurable, realistic plans.

3. Theory of Change (TOC)

The Theory of Change (TOC) model revolves around organizations establishing long-term goals and essentially “working backward” to accomplish them. When leveraging the strategy, you start by setting a larger, big-picture goal.

Then, you identify the intermediate-term adjustments and plans you need to make to achieve your desired outcome. Finally, you work down a level and plan the various short-term changes you need to make to realize the intermediate ones. More specifically, you need to take these strides:

  • Identify your long-term goals.
  • Backward map the preconditions necessary to achieve your goal, and explain why they're necessary.
  • Identify your basic assumptions about the situation.
  • Determine the interventions your initiative will fulfill to achieve your goals.
  • Come up with indicators to evaluate the performance of your initiative.
  • Write an explanation of the logic behind your initiative.

Here's another visualization of what that looks like.

Strategic Planning Model Theory of Change

This planning model works best for organizations interested in taking on endeavors like building a team, planning an initiative, or developing an action plan. It's distinct from other models in its ability to help you differentiate between desired and actual outcomes. It also makes stakeholders more actively involved in the planning process by making them model exactly what they want out of a project.

It relies on more pointed detail than similar models. Stakeholders generally need to lay out several specifics, including information related to the company's target population, how success will be identified, and a definitive timeline for every action and intervention planned. Again, virtually any organization — be it public, corporate, nonprofit, or anything else — can get a lot out of this strategy model.

Example of the Theory of Change

For the sake of this example, imagine a business that makes HR Payroll Software , but hasn‘t been doing too well as of late. Leadership at the company feels directionless. They think it’s time to buckle down and put some firm plans in motion, but right now, they have some big picture outcomes in mind for the company without a feel for how they're going to get done.

In this case, the business might benefit from leveraging the Theory of Change model. Let‘s say its ultimate goal is to expand its market share. Leadership would then consider the preconditions that would ultimately lead to that goal and why they’re relevant.

For instance, one of those preconditions might be tapping into a new customer base without alienating its current one. The company could make an assumption like, “We currently cater to mid-size businesses almost exclusively, and we lack the resources to expand up-market to enterprise-level prospects. We need to find a way to more effectively appeal to small businesses.”

Now, the company can start looking into the specific initiatives it can take to remedy its overarching problem. Let's say it only sells its product at a fixed price point that suits midsize businesses much more than smaller ones. So the company decides that it should leverage a tiered pricing structure that offers a limited suite of features at a price that small businesses and startups can afford.

The factors the company elects to use as reference points for the plan's success are customer retention and new user acquisition. Once those have been established, leadership would explain why the goals, plans, and metrics it has outlined make sense.

If you track the process I‘ve just plotted, you’ll see the Theory of Change in motion. It starts with a big-picture goal and works its way down to specific initiatives and ways to gauge their effectiveness.

4. Hoshin Planning

The Hoshin Planning model is a process that aims to reduce friction and inefficiency by promoting active and open communication throughout an organization. In this model, everyone within an organization—regardless of department or seniority—is made aware of the company's goals.

Hoshin Planning rests on the notion that thorough communication creates cohesion, but that takes more than contributions from leadership. This model requires that results from every level be shared with management.

The ideal outcomes set according to this model are also conceived of by committee to a certain extent. Hoshin Planning involves management hearing and considering feedback from subordinates to come up with reasonable, realistic, and mutually understood goals.

Strategic Planning Model Hoshin Planning

The model is typically partitioned into seven steps:

  • establishing a vision
  • developing breakthrough objectives
  • developing annual objectives
  • deploying annual objectives
  • implementing annual objectives
  • conducting monthly and quarterly reviews
  • conducting an annual review.

Note: The first three steps are referred to as the “catchball process.” It's where company leadership sets goals and establishes strategic plans to send down the food chain for feedback and new ideas. That stage is what really separates Hoshin Planning from other models.

Example of Hoshin Planning

For this example, let‘s imagine a company that manufactures commercial screen printing machines. The business has seen success with smaller-scale, retail printing operations, but realizes that selling almost exclusively to that market won’t make for long-term, sustainable growth.

Leadership at the company decides that it's interested in making an aggressive push to move up-market towards larger enterprise companies. However, before they can establish that vision, they want to ensure that the entire company is willing and able to work with them to reach those goals.

Once they‘ve set a tentative vision, they begin to establish more concrete objectives and send them down the management hierarchy. One of the most pressing activities they’re interested in pursuing is a near-comprehensive product redesign to make their machines better suited for higher volume orders.

They communicate those goals throughout the organization and ask for feedback along the way. After the product team hears their ideal plans, it relays that the product overhaul that leadership is looking into isn‘t viable within the timeframe they’ve provided. Leadership hears this and adjusts their expectations before doling out any sort of demands for the redesign.

Once both parties agree on a feasible timeline, they begin to set more definitive objectives that suit both the company‘s ambitions and the product team’s capabilities.

Strategic Plan Example

The strategic plan above is for a fictitious shoe company and outlines the way in which it'll differentiate itself within the market. It effectively uses each step in the strategic planning model framework and is written in a way to give a brief overview of how the company will enter the market and sustain longevity.

If you're working on a strategic planning model for an existing business, your plan will look similar, but have a few tweaks to the goals, including more goals about improving sales and processes. When drafting the action plan and evaluation parts of the plan, be sure to think tactically about the actions that will help you achieve the goals, and use your mission, vision, and values to guide the choices you make.

Strategic Planning Tools

There are additional resources you can use to support whatever strategic planning model you put in place. Here are some of those:

1. SWOT Analysis

SWOT analysis is a strategic planning tool and acronym for strengths, weaknesses, opportunities, and threats. It's used to identify each of these elements in relation to your business.

This strategic planning tool allows you to determine new opportunities and which areas of your business need improvement. You'll also identify any factors or threats that might negatively impact your business or success.

Strategic Planning Tools SWOT Analysis

2. Porter's Five Forces

Use Porter‘s Five Forces as a strategic planning tool to identify the economic forces that impact your industry and determine your business’ competitive position. The five forces include:

  • Competition in the industry
  • Potential of new entrants into the industry
  • Power of suppliers
  • Power of customers
  • Threat of substitute products

To learn more, check out this comprehensive guide to using Porter's Five Forces .

Strategic Planning Tools Porter's Five Forces

3. Visioning

Visioning is a goal-setting strategy used in strategic planning. It helps your organization develop a vision for the future and the outcomes you'd like to achieve.

Once you reflect on the goals you‘d like to reach within the next five years or more, you and your team can identify the steps you need to take to get where you’d like to be. From there, you can create your strategic plan.

4. PESTLE Analysis

The PESTLE analysis is another strategic planning tool you can use. It stands for:

  • P: Political
  • E: Economic
  • T: Technological
  • E: Environmental

Each of these elements allow an organization to take stock of the business environment they're operating in, which helps them develop a strategy for success. Use a PESTLE Analysis template to help you get started.

Strategic Planning Tools: Pestle

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Module 4: Environments and Strategic Management

Stages and types of strategy, learning outcomes.

  • Explain the stages of strategy.
  • Explain Porter’s general types of competitive strategies.
  • Explain e-commerce strategy.

The previous sections have examined the role of strategy in management and looked at common frameworks for analyzing the external and internal environment of business organizations. But what are the specific steps in the strategic management process? How do managers decide what to do, when to do it, and make sure it is happening the way they want? This is what the strategic management process is all about.

The Strategic Management Process

The strategic management process consists of three, four, or five steps depending upon how the different stages are labeled and grouped. But all of the approaches include the same basic actions in the same order. A brief description of these steps follows:

  • Strategic Objectives and Analysis. The first step is to define the vision, mission, and values statements of the organization. This is done in combination with the external analysis of the business environment (PESTEL) and internal analysis of the organization (SWOT). An organization’s statements may evolve as information is discovered that affects a company’s ability to operate in the external environment.
  • Strategic Formulation. The information from PESTEL and SWOT analyses should be used to set clear and realistic goals and objectives based on the strengths and weaknesses of the company. Identify if the organization needs to find additional resources and how to obtain them. Formulate targeted plans to achieve the goals. Prioritize the tactics most important to achieving the objectives. Continue to scan the external environment for changes that would affect the chances of achieving the strategic goals.
  • Strategic Implementation. Sometimes referred to as strategic execution , this stage is when the planning stops and the action begins. The best plans won’t make up for sloppy implementation. Everyone in the organization should be aware of his or her particular assignments, responsibilities and authority. Management should provide additional employee training to meet plan objectives during this stage, as well. It should also allocate resources, including funding. Success in this stage depends upon employees being given the tools needed to implement the plan and being motivated to make it work.
  • Strategic Evaluation and Control. Because external and internal conditions are always changing, this stage is extremely important. Performance measurements (determined by the nature of the goal) will help determine if key milestones are being met. If actual results vary from the strategic plan, corrective actions will need to be taken. If necessary, reexamine the goals or the measurement criteria. If it becomes apparent that the strategy is not working according to plan, then new plans need to be formulated (see Step 2) or organizational structures adjusted. Personnel may need to be retrained or shifted to other duties. You may even have to repeat the strategic management process from the beginning, including the information and knowledge gained from this first attempt.

Graphic representation of the text above on strategic objectives, formulation, implementation, and evaluation and control

The graphic depicts the basic steps of the strategic management process. Note that analysis, decision making, and action happen in all of the steps and throughout the process.

Practice Question

Porter’s competitive strategies.

The strategic management process described earlier can be successfully used for a wide number of business strategies. In practice, however, most organizations develop strategies that focus on the competition.

Besides studying the nature of industry profits in the Five Forces Theory, Michael Porter is also recognized for his work on four general types of competitive strategies. (More recently, a fifth strategy has been added.) Porter’s model describes two ways of achieving competitive advantage, either by differentiation or by cost. It also identifies two ways of targeting the market, by focusing on a particular market segment or appealing to the overall (broad) market. This approach results in four separate competitive strategies: overall differentiation, overall low cost, focused differentiation, and focused low cost. The fifth strategy combines elements of both low cost and differentiation. This is called the integrated approach.

Porter’s Competitive Strategies. The Overall Differentiation strategy has a broad market scope and a superior value competitive advantage. The Focused Differentiation strategy has a focused market scope and a superior value competitive advantage. The Overall Low Cost strategy has a broad market scope and a low price competitive advantage. The Focused Low Cost strategy has a focused market scope and a low price competitive advantage. Finally, the Integrated strategy lands in the middle between focused and broad market scope, and superior value and low price competitive advantage.

Porter classified competitive strategies by cost and differentiation, with a focused or broad market scope. He later recognized a fifth (integrated) classification.

Low Price Leadership Strategy

An organization seeking a low-cost strategy seeks to become a leader in providing low-cost products to its customers. The strategy is to produce (or purchase) comparable value goods or services at a lower cost than its competitors. The lower cost will attract the majority of customers and allow it to profit by the volume of goods sold. For this strategy to be successful, it requires that only one or two companies can be industry leaders in this position. For example, Walmart and Costco are leaders in the overall low-cost strategy . IKEA is a low-cost leader using a focused low-cost strategy , appealing to a particular segment of the overall market.

Differentiation Leadership Strategy

A strategy based on differentiation ( distinction ) calls for goods and services that offer unique features and that have high value for the target customer. The features must be perceived by the customer to be so much better than what the competition offers that they are worth an additional cost.

The differentiation may be based on the total number of features, quality of the features, customer service, or other criteria. Marketing campaigns are one way to differentiate a product and create a strong emotional attachment to it, supporting premium prices. Examples of companies in the overall market scope that pursue an overall differentiated strategy include Sony and Apple. They produce a large number of quality products that appeal to the wide technology consumer market. Businesses that sell luxury goods in any industry are employing a focused differentiation strategy . Prada, BMW, and Rolex are all companies whose strategy depends upon maintaining a loyal customer base convinced of the superior quality and uniqueness of their products—and who are also willing to pay a premium for the perceived quality value.

Differentiation Strategy Advantages and Disadvantages

Integrated Strategy

In today’s highly competitive market, customers expect distinction and low cost. Some companies have responded by adopting an integrated strategy . Porter originally argued that this integrated, or “stuck in the middle,” strategy would fail, but other researchers showed real-world examples. Later, Porter modified his view. The organizations strive to provide more value than the average competitor but also focus on keeping costs low. Examples of integrated strategy firms include the automobile companies who manufacture a “luxury” brand, such as the Kia K900. Kia keeps costs down by using many components of its low-cost models but adds additional features comparable to luxury car producers. This approach is risky, because these products run the risk of being too expensive for the economy-driven customer but not having the prestige of the classic luxury brands.

E-Business and E-Commerce

Businesses today need a strategy for competing with online “upstarts” who can underprice and steal customers . Companies that once thought they were immune to online competition have discovered that the Internet is biting into their profits. Warby-Parker is an online provider of eyeglasses that offers lenses at up to 70 percent off the price opticians charge. The customer only needs to choose frames, pick a lens, and enter the prescription. Returns are guaranteed. Even many routine medical procedures are being addressed digitally as patients meet online with doctors.

E-business can be defined as any business that takes place over digital processes using a computer network rather than in a physical location (“brick and mortar”). Organizations of all types, military and nonprofit, educational and governmental, use e-business strategies. The strategies are geared to three purposes:

  • those related to decreasing production costs and increasing efficiency.
  • those creating customer focus.
  • those addressing internal management.

E-commerce is a more limited term than e-business. It refers specifically to exchanges or transactions that occur electronically. The younger the shopper, the more likely he or she is to conduct “business” using a smart phone. E-commerce strategies rely on the power of the Internet, both in the growing popularity of online purchasing and in shaping marketing strategies. About 8.5 percent of all retail sales were made online in 2016 and this figure is increasing rapidly every year. Many organizations have sales and marketing teams dedicated to devising strategies for capturing their share of the growing online market. Amazon clearly dominates e-commerce with a whopping 33 percent of all online purchases. Its e-commerce strategy is “simply” to make it as easy as possible for the customer to find, order, pay, receive, and return (if necessary) the goods that it buys from the giant corporation. It doesn’t wait for the customer to search out a product, but rather pushes products to the customer based on past purchases.

Retailers and manufacturers also use the aspects of the internet such as Twitter, Facebook, and other social media sites to predict trends as they are developing to get a jump on production. First to market can be a key competitive advantage, in part because of the short life span of many fads. Many of the strategies needed to succeed in e-commerce are very different from competing in a nondigital environment. To survive today, organizations need to be present in both environments.

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What Is Strategic Planning: Definition and Process

FEB.19, 2024

Strategic Planning

What Is Strategic Planning in Business?

Strategic planning in business is a way of making a path for your company’s future. It assists in determining goals, creating tactics, measuring progress and making adjustments.This process is vital because it gives you a clear direction and helps an organization use its resources effectively.

Operational and strategic planning services enables an organization to:

  • Understand its customers’ needs and expectations
  • Identify its strengths, weaknesses, opportunities, and threats (SWOT analysis)
  • Assess its core competencies and distinctive capabilities
  • Define its value proposition and differentiation strategy
  • Select its target markets and segments
  • Develop its product/service portfolio and pricing strategy
  • Establish its distribution channels and promotional strategy
  • Align its organizational structure, culture, and processes with its strategy
  • Implement, monitor, and control its strategic initiatives

The Strategic Planning Process: A Step-by-Step Guide

The organizational strategic planning process requires considerable thought by the company’s upper-level management. The process is different for different organizations, depending on how big, what kind, and how complex they are, but it usually has these steps:

What Is the First Step in the Strategic Planning Process?

Establishing the Scope and Purpose is the first step. This means you need to state what the organization wants to be in the future (vision), why it exists (mission), what it stands for (values), and what it wants to accomplish (objectives). You also need to specify how long it will last and what it will cover (time frame and scope).

What Is the Second Step in the Strategic Planning Process?

Conducting a Situational Analysis is the second step. Collect and analyze relevant data and information about the organization’s internal and external environment. A common tool for this step is the SWOT analysis, which identifies the organization’s strengths, weaknesses, opportunities, and threats.

What Is the Third Step in the Strategic Planning Process?

Identifying the Strategic Issues, Goals, and Objectives is the third step. Prioritize the most critical and urgent issues and challenges the organization faces and set the long-term and short-term goals and objectives that address them. The goals and objectives should be SMART: specific, measurable, achievable, relevant, and time-bound.

What Is the Fourth Step in the Strategic Planning Process?

Formulating the Strategies, Tactics, and Action Roadmaps is the fourth step. Develop and select the best courses of action that will help the organization achieve its goals and objectives. The strategies are the general approaches and directions, the tactics are the specific methods and techniques, and the action roadmaps are the detailed steps and tasks, along with the responsibilities, resources, timelines, and indicators of success.

What Is the Fifth Step in the Strategic Planning Process?

Implementing, Monitoring, and Evaluating is the fifth step. Execute the actions, track the progress and performance, and measure the results and outcomes. The implementation, monitoring, and evaluation should depend on the indicators of success, such as key performance indicators (KPIs), metrics, and milestones. Use the feedback and learning from this step to improve and adjust the goals as needed.

What Is the Sixth Step in the Strategic Planning Process?

Reviewing and Revising the Plan Regularly is the sixth step. Conduct a periodic and comprehensive review and make the necessary changes and updates based on the changing environment and circumstances. The review and revision should also involve input and feedback from the relevant stakeholders, such as the management, staff, customers, partners, and others.

What Is the Importance of Strategic Planning

Strategic planning is crucial for the success of any organization. A study by Harvard Business School found that 48% of leaders spent less than one day per month on strategy discussion. These organizations failed to meet at least half of their targets. This shows how vital it is to devote enough time and attention to developing a strategic map , as it can make or break the success of an organization.

Purpose of Strategic Planning

The main reason for strategic planning is to establish a clear direction for the organization. It brings together efforts and resources to achieve the company’s vision and mission. It acts as a guide, helping with decision-making, allocating resources, and operational planning – making sure these activities contribute to the organization’s long-term objectives.

Goals of Strategic Planning

Strategic planning sets specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives for the organization. SMART goals are the foundation for developing tactics and roadmaps, enabling the organization to focus on achieving desired results.

Value of Strategic Planning

Strategic planning provides significant value to organizations by:

  • Facilitating decision-making
  • Guiding choices toward achieving common goals
  • Enhancing performance
  • Improving resource allocation efficiency
  • Anticipating and responding proactively to changes, challenges, and opportunities
  • Fostering collaboration and communication across the organization
  • Providing a framework for organizational growth and sustainability

Who Does Strategic Planning in Business?

Strategic planning in business typically involves various stakeholders, each with distinct roles and responsibilities:

Board of Directors

Role: The board of directors serves as the guardians of the organization, providing oversight and guidance for the overall process.

Responsibilities:

  • Establish the organization’s vision, mission, and values 
  • Provide tactical direction and approve the overall decisions
  • Monitor the implementation and progress of the decisions
  • Ensure alignment between the strategies and the organization’s purpose

Senior Management

Role: Senior managers, including the CEO, president, and executive team, lead and drive the strategic planning process within the organization. 

  • Develop and facilitate the planning process 
  • Analyze the internal and external environment to identify opportunities and threats 
  • Define goals, objectives, and tactics
  • Ensure effective communication and alignment across the organization 
  • Allocate resources and monitor the implementation of the overall plan

Middle Management

Role: Middle managers act as a bridge between senior management and frontline employees, providing operational insights and ensuring the execution of the tactics within their respective departments or units. 

  • Contribute to the process by sharing operational knowledge and experience – Refer to our operational vs strategic section to learn more
  • Translate the plan into actionable initiatives and goals for their departments 
  • Align departmental goals and activities with the overall goals and direction
  • Implement and monitor the execution of the plan within their areas of responsibility

Role: Employees across various levels and functions contribute to the process by providing insights, feedback, and support for the organization’s strategic direction. 

  • Participate in focus groups, surveys, or feedback sessions to share their perspectives 
  • Understand and align their efforts with the organization’s goals 
  • Support the implementation of the decisions through their day-to-day work and activities

External Consultants or Advisors

Role: External consultants or advisors bring objective expertise and insights to enhance the process and offer guidance to the organization.

  • Facilitate planning sessions and discussions 
  • Offer industry knowledge, best practices, and benchmarking 
  • Provide an external perspective to challenge assumptions and identify blind spots 
  • Advise on methodologies and tools to enhance the quality of the decisions

What Is Strategic Management?

Strategic management is a comprehensive and systematic approach to:​

  • Setting organizational goals
  • Developing tactics to achieve them
  • Implementing those tactics
  • Assessing the results of the actions in reaching the desired outcomes.

Strategic management is an ongoing process. It allows an organization to match their resources and capabilities with their vision and deal with emerging issues and opportunities.

Strategic planning management involves several key activities:

  • Strategic Analysis: This involves assessing the organization’s internal strengths and weaknesses, as well as external opportunities and threats (often referred to as a SWOT analysis). It helps in determining the organization’s competitive advantages and core competencies.
  • Strategic Planning: Based on the strategic analysis, the organization develops a plan. As we discussed before, the main focus should be on understanding the current situation, setting the vision and mission, making goals and objectives, and creating strategies.
  • Strategy Implementation: After the plan is ready, the organization has to put the strategies and initiatives into action. This means using resources, giving roles, and doing the necessary actions to reach the goals and objectives.
  • Strategy Evaluation: It is very important to check and evaluate how the plan is going. This means measuring key performance indicators, seeing how well the strategies and initiatives are working, and changing them as needed to fit the situation.
  • Strategy Revision: Based on the evaluation results, organizations might have to change their tactics, goals, or actions to match the organization’s vision and mission or to solve any problems or challenges found during the evaluation.

Strategic management planning is closely related to strategic planning but is more comprehensive and dynamic. This table highlights the key difference between these terms:

Benefits of Strategic Planning

Strategic planning offers several benefits to an organization:

  • Clarity of vision, mission, and values to align efforts
  • Proactive thinking and anticipation of changes
  • Efficient allocation of resources (human, financial, technological)
  • Identification of priorities and measurable goals
  • Culture of accountability and continuous improvement
  • Evaluation of performance and adaptation to changing circumstances
  • Stakeholder engagement and buy-in through collaborative process
  • Foundation for decision-making and roadmap for achieving desired outcomes

Strategic planning is a crucial process for any business that wants to succeed in the long term. At OGSCapital , we understand the pivotal role strategic planning plays in driving organizational success. Our experienced consultants bring industry expertise and a proven track record to deliver comprehensive plans. We offer:

  • Customized plans that suit your specific needs and goals
  • Expert guidance and support from senior business consultants
  • Access to the latest market research and data from globally recognized sources
  • Assistance with tactical implementation and execution, as well as performance monitoring and evaluation
  • High-quality documents that are well-written and well-designed

With OGSCapital, you can be confident that you will get a strategic plan that will help you achieve your vision, mission, and objectives, and give you a competitive edge in your market. Contact us today to get started.

Frequently Asked Questions

Q. How to write a strategic plan?

To write a strategic plan: analyze the current situation, define the vision and mission, set goals and objectives, develop strategies and initiatives, create an action roadmap, and monitor and evaluate progress. This is a collaborative process involving input from various stakeholders and requires regular review and adjustment.

Q. What is the difference between strategic planning and strategy?

Strategic planning is the process of outlining specific steps and actions to achieve a defined goal or objective. Planning focuses on the how and involves detailed tasks and timelines. Strategy is the broader approach used to accomplish long-term objectives. Strategy focuses on the what and involves choosing the best option among various alternatives.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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  3. Stages and Types of Strategy

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  1. What Are Strategic Objectives? How To Write Them + Examples

    — Published March 27, 2023 Writing strategic objectives is part of the strategic planning process. It's also the most fun and exciting part of it. It follows the creation of your strategy's focus areas and breathes life into your vision and strategy.

  2. 7 Strategic Planning Models and 8 Frameworks To Start [2023] • Asana

    1. Basic model The basic strategic planning model is ideal for establishing your company's vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise.

  3. Examples of Strategic Objectives

    Internal/Operational Strategic Objectives. Product/Service/Program Management: To have all product meet standard of excellence guidelines. (Some businesses prefer to list their individual products or services as separate objectives.) Operations Management: Capitalize on physical facilities (location, capacity, etc.).

  4. What Are Strategic Objectives? (With Steps and Examples)

    Updated March 10, 2023 Companies often create specific and measurable goals for progress. Strategic objectives allow businesses to plan steps that help make their vision a reality.

  5. How to Set Strategic Planning Goals

    29 Oct 2020 Catherine Cote Staff Disruptive Strategy Economics for Managers Global Business Strategy Sustainable Business Strategy In an ever-changing business world, it's imperative to have strategic goals and a plan to guide organizational efforts. Yet, crafting strategic goals can be a daunting task.

  6. Strategic Planning: A Guide to Develop a Strategic Plan

    Strategic planning is an organization's process of defining its direction and long-term goals, creating specific plans to achieve them, implementing those plans, and evaluating the results. On one hand, that definition makes strategy planning sound like a Business 101 concept—define your goals and a plan to achieve them.

  7. 8 Strategic Planning Frameworks to Achieve Your Goals

    The Workstream Strategic planning Frameworks How a strategic planning framework can help you achieve your big goals Don't worry — it's not nearly as complex as it sounds A strategic planning framework is a tool you and your team will use to focus on and fill in a specific element of your strategic plan.

  8. Chapter 8. Developing a Strategic Plan

    There are three basic types of objectives. They are: Process objectives. These are the objectives that provide the groundwork or implementation necessary to achieve your other objectives. For example, the group might adopt a comprehensive plan for improving neighborhood housing. In this case, adoption of the plan itself is the objective.

  9. What is strategic planning? A 5-step guide

    How to build an organizational strategy Get our free ebook and learn how to bridge the gap between mission, strategic goals, and work at your organization. Get the ebook What is strategic planning? Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years.

  10. Strategic Planning Tools: What, Why, How, Template

    Strategy and strategic plans: How they are different and why it matters. Strategy creates a common understanding of what an organization wants to achieve and what it needs to do to meet its goals. Strategic plans bridge the gap from overall direction to specific projects and day-to-day actions that ultimately execute the strategy. Job No. 1 is ...

  11. What Are Strategic Objectives? Examples & How To Track Them

    Strategic objective example: Launch a new line of widgets within the next 12 months that are more efficient and cost-effective than the current widget offerings, targeting commercial and industrial customers. Examples of strategic objectives. Strategic objectives vary depending on the organization's size, industry, and goals.

  12. Strategic Planning Models: The 5 Best Strategy Models

    The Cascade Model. The Cascade model is hands-down the most effective example of a strategic planning model that you can find. It is simple to understand and easy to implement, facilitating the execution of your strategy. Its straightforward structure is suitable for organizations and teams of any size and industry.

  13. What Are The Different Types of Strategic Planning?

    Let's take a look at the most common 8 types of strategic planning: ‍ SWOT Analysis Sometimes referred to as a "SWOT Matrix" or "SWOT Matrix Analysis," the name is drawn from the four components: S trengths, W eaknesses, O pportunities, and T hreats.

  14. 20 Strategic Planning Frameworks for Business Success

    1. Balanced Scorecard The Balanced Scorecard is a strategy management framework created by Drs. Robert Kaplan and David Norton. It takes into account your: Objectives, which are high-level organizational goals. Measures, which help you understand if you're accomplishing your objective strategically.

  15. 65 strategic goals for your company (with examples)

    A strategic goal is the objective you want to achieve at the end of your three to five year strategic plan. These goals are broader than your yearly objectives, but shorter than long-term goals like BHAGs and vision statements. Because strategic goals are closely connected to strategic planning, they tend to be three to five year goals.

  16. 56 Strategic Objective Examples For Your Company To Copy

    ‍ Your objectives are only part of your strategy. Use this step-by-step guide to define your entire strategic plan. Choosing The Strategic Objectives That Work Best For You Here's some practical advice based on years of experience: Don't put 56 objectives in your scorecard—that's too many. You need to pick and choose.

  17. Objectives And Goals Of Strategic Planning

    Where are we going? What is going to get in our way? What do we need to do to get to where we want to go? How is Strategic Planning Different from Business Planning? Strategic planning differs greatly from business planning.

  18. 9 Effective Strategic Planning Tools & Models for 2023

    A strategic planning model is a framework that allows organizations to map out their short- and long-term business plans. They can help: Identify and overcome obstacles. Improve and streamline operations. Reach overarching business goals. Create alignment between different departments. Track progress over time.

  19. Chapter 8. Developing a Strategic Plan

    It's important to understand that these different types of objectives aren't mutually exclusive. Most groups will develop objectives in all three categories. Examples of objectives include: ... J. (1988). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. San Francisco ...

  20. Strategic Planning: Types, Process, Examples, Importance

    However, long-term objectives require proper planning and a series of steps to fulfill them. This planning is made after taking into consideration various aspects of business, such as business risk, financial risk, cash flow, return on investment and many other aspects. ... Types Of Strategic Planning. Broadly speaking, strategic planning is of ...

  21. 9 Strategic Planning Models and Tools for the Customer-Focused Business

    Learn more Strategic Planning Models Strategic planning is used to set up long-term goals and priorities for an organization. A strategic plan is a written document that outlines these goals. Don't confuse strategic planning and tactical planning.

  22. 11. Strategic planning, 2014

    There are several types of planning processes and plans, including strategic, operational, tactical, and contingency. For this document, operational planning includes tactical planning. ... Further, the goals and objectives outlined in the strategic plan must incorporate the same respective indicators of function that are used to describe the ...

  23. Stages and Types of Strategy

    Prioritize the tactics most important to achieving the objectives. Continue to scan the external environment for changes that would affect the chances of achieving the strategic goals. Strategic Implementation. Sometimes referred to as strategic execution, this stage is when the planning stops and the action begins.

  24. What Is Strategic Planning: Definition and Process

    It acts as a guide, helping with decision-making, allocating resources, and operational planning - making sure these activities contribute to the organization's long-term objectives. Goals of Strategic Planning. Strategic planning sets specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives for the organization.

  25. DOH, WHO launch 2024-2028 National Integrated Cancer Control Program

    The Department of Health (DOH) and the World Health Organization (WHO) launched today the 2024-2028 National Integrated Cancer Control Program (NICCP) Strategic Framework, coinciding with the commemoration of the 5th anniversary of the National Integrated Cancer Control Act (NICCA).The new strategic framework outlines the vision and mission of the National Integrated Cancer Control Council ...