�ݺ�ߣ

4 Components of
Strategic Planning
An Essential Guide to Strategy
Adapted from The Executive Guide to Facilitating Strategy leadstrat.com | 800-824-2850

What’s Inside?
Introduction 3
The Whys – The 5 Reasons to Plan 4
The How – A Simple, Scalable Approach 5-8
The Whats – Shared Terms and Definitions 9-10
The Who – The Right Facilitator for Your Strategic Planning 11-12
Bonus Checklist 13

The Four Components
Developing an effective strategic plan for your organization is not an easy task, but with
a focused, scalable approach, it is absolutely possible. While there are different models
that work for different organizations, at the core of strategic planning are universal
components that every leader needs to know in order to develop a strategy that works.
These components include:
1
The Whys – The 5 Reasons to Plan: To gain buy-in for developing a strategy, start
with an understanding of why you need to do this and get your organization’s leaders
on board. The stronger the understanding of the benefits of planning, the more
committed you and your leaders will be to carry out your plan.
2
The How – A Simple, Scalable Approach: Leadership Strategies has developed the
Drivers Model, a method for taking a strategic approach to addressing a business
situation.Themodelprovidesasimplecommunicationtoolforhelpingorganizations
constructastrategicplan.ThemodelisfullyscalableandappliestoFortune500companies,
non-profit organizations, government agencies, a field office, an individual department, a
work team, etc.
3
The Whats – Shared Terms and Definitions: Whether this is your first time or your
tenthtimedevelopingastrategy,havingacommonunderstandingoftermsiscrucial.
At the most basic level, your plan should delineate vision and mission, goals and
objecitves, critical success factors and barriers, strategies and priorities. Get your group in
unison when defining the whats.
4
The Who – The Right Facilitator for Your Strategic Planning: Last but certainly not
least is the critical piece of WHO is guiding your group through the strategic planning
process. Strategy work is important and delicate. Without the guidance of an expert
who will remain neutral but committed, the planning can be more challenging than it
already is. Making an informed decision in selecting the right person to lead your group is
an important component of your work.
3
leadstrat.com | 800-824-2850

4
Component 1:
The Whys – The 5 Reasons to Plan
A critical part in beginning your strategy
work is agreeing on the why — your purpose
for doing this in the first place.
Developing strategy takes time and
resources. It requires commitment from
some of the most highly-paid and highly-
experienced people in your organization.
So, if your team isn’t willing to invest in what
is needed, we recommend that you don’t
do it. Poor planning is often worse than not
planning at all.
So, why do you need a strategy? Why
take time for planning? There are many
reasons. Our Drivers Model focuses on five in
particular:
1. Set direction and priorities:
First and foremost, you need a strategy
because it sets the direction and establishes
priorities for your organization. It defines
your organization’s view of success and
prioritizes the activities that will make this
view your reality. The strategy will help your
people know what they should be working
on, and what they should be working on
first.
Without a clearly-defined and articulated
strategy, you may very well find that your
priority initiatives — the ones that will
drive the highest success — are being
given secondary treatment.
2. Get everyone on the same page:
If you find you have departments working
to achieve different aims or going in
different directions, you need a strategy.
Once you define your strategic direction,
you can get operations, sales, marketing,
administration, manufacturing, and other
departments moving together to achieve
the organization’s goals.
3. Simplify decision making:
If your leadership team has trouble saying
“no” to new ideas or potential initiatives,
you need a strategy. Priorities make it
easier to say no to interesting, but not
critical distractions.
4. Drive alignment:
Many organizations have hard-working
people putting their best efforts into areas
that have little to no effect on strategic
success.
They’re essentially majoring in the minors
— because their activities aren’t aligned
with the priorities. Your strategy serves
as the vehicle for answering the question,
“How can we better align all our resources
to maximize our strategic success?”
5. Communicate the message:
Many leaders walk around with a strategy
locked in their heads. Unfortunately, the
strategy isn’t down on paper and hasn’t
been communicated thoroughly. As a
result, few people are acting on it.
To achieve buy-in from your leadership
team, we recommend holding a strategy
briefing - a key tool for getting your
executive team ready to plan. During this
60-90 minute session, your leadership
team does the following:
• Identify the critical issues to address
• Walk through the proposed planning
process
• Adjust the process to ensure critical
issues are addressed
• Identify key information needed prior
to planning
• Develop a timeline
• Make a go/no go decision

5
Component 2:
The How – A Simple, Scalable Approach
Many executives see planning, and
specifically strategic planning, as a highly
challenging and complex activity. The
Drivers Model provides an approach
that is elegantly simple, yet robust and
comprehensive.
“The format of the strategic plan enabled
us to easily cascade detailed action plans
and related accountabilities deeper into
the organization shortly following the
workshop.”
– David Head, Chief Financial Officer
Manheim Asia Pacific
Phase 1: Situation Assessment –
Where are we now?
Understanding the current situation is
vital to identifying the approaches needed
to drive success. A full understanding of
the current situation includes an analysis
of several areas. Here is a sample list of
assessment areas and one or two of the
key questions to be answered for each:
• Performance trends – How are we
performing by product, by market, by
channel?
• Recent goals and initiatives – How are
we achieving against our plan?
• Organization profile – What are our
strengths and areas for improvement
in our organization structure,
processes, technology, culture, etc.?
• Customers – What are their current
and future needs?
• Employees – What are their
perceptions of our organization and
how we can improve?
• Industry trends – What have been
recent shifts in the industry?
• Competitors – How do we compare
against our competitors?

6
Component 2: The How – A Simple, Scalable Approach
(continued)
Often, planning teams summarize the current situation
information into a SWOT: a summary of the organizations
key Strengths, Weaknesses, Opportunities and Threats.
Phase 2a: Strategy Sessions –
Where do we want to be?
The heart of strategic direction setting is
this second step. In our Drivers Model,
the information from the situation assessment is combined
with the understanding of future trends to develop the
vision statement and the mission statement.
• Vision – the organization’s preferred picture of the future
• Mission – the overall purpose of the organization (i.e.,
what the organization does, for whom it does it, and the
benefit)
*Note: The sample extract below shows a single membership goal. While a
strategy has only one vision and mission, there will be multiple goals.
Sample Strategic Plan Extract:
Strategic direction setting also includes the defining of goals and
objectives.
• Goals – the broad, long-term aims that define accomplishment
of the mission. An orgaization typically has 3-8 goals.
• Objectives – specific, quantifiable, realistic targets that
measure the accomplishment of a goal over a specified period
of time. Each goal typically has 2-5 objectives as shown in the
sample membershhip goal below.
The objectives establish the bar for the rest of the planning effort.
All the strategies, action plans and investments should be focused
on achieving one or more of the plan objectives. Therefore, it is
critical that you select the right objectives for measuring success.
Establishing objectives is perhaps the toughest work in planning.
The planning effort also includes establishing Guiding Principles —
general guidelines that set the foundation for how the organization
will operate. Guiding principles are more than just a statement
of values. Guiding principles also describe the actions the
organization will take based on the values.
Sample Strategic Plan Extract*:

7
Phase 2b: Strategy Sessions –
How do we plan to get there?
Once the objectives are established, the
next step is to develop the road map for
achieving the direction. For the road map
to be viable, however, it must focus on
three areas in particular.
• Barriers represent the challenges or
obstacles which must be overcome
to achieve one or more objectives.
Barriers answer the following ques-
tions: “Why haven’t we achieved our
objectives already? What is standing in
our way?”
• While barriers address the challenges,
the critical success factors identify
those key conditions that must be met
to achieve the objectives. Critical suc-
cess factors, typically no fewer than
two and no more than seven per goal,
serve as a guide for determining the
strategies to be developed.
• The strategies (i.e. the drivers) are
specific activites that will be taken to
acheive an objective, create a critical
condition, or overcome a barrier.
An important activity at this stage is the
prioritization of strategies to determine
the items to focus on first. For each prior-
ity strategy, an action plan is developed
which details steps, responsibilities, costs
and timetables. The action plans can
then be summarized to identify resource
requirements and to develop a resource
plan to meet those strategic require-
ments.
(continued)

8
Phase 3: Implementation –
How will we monitor progress?
Many organizations benefit simply from
going through the process of creating a
strategy. At this point, everyone is clear on
where we are going and how we plan to get
there. However, the key value to strategy
developmentcomesintheimplementation
of the plan. Unfortunately, all too often,
strategic plans become space fillers on
an executive’s bookshelf. To prevent this
occurrence, we recommend a structured
monitoring process every three-to-six
months.
The structured review involves:
• Assessing progress on strategies
• Grading the current and projected
performance against the objectives
• Identifying changes in the
environment, new barriers, additional
critical success factors
• Making adjustments to the
objectives
• Re-establishing priorities for
strategies, removing strategies and
adding new strategies as needed
While often a sobering process, this
detailed level of monitoring provides a
method for ensuring that the long-term
strategy stays on the front burners, de-
spite the pressures of the day-to-day
business operation.
Having a scalable approach ensures you’re
utilizing a method that will work for your orga-
nization. There is no need to reinvent the wheel
– choose a proven approach, like the Drivers
Model, that is designed to fit your organization.
Year 1 Year 2 Year 3
Prioritized
Initiatives
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1. $ $ $ $ $ $ $ $ $ $ $ $
2. $ $ $ $ $ $ $ $ $ $ $ $
3. $ $ $ $ $ $ $ $ $ $ $ $
4. $ $ $ $ $ $ $ $ $ $ $ $
5. $ $ $ $ $ $ $ $ $ $ $ $
6. $ $ $ $ $ $ $ $ $ $ $ $
Totals $ $ $ $ $ $ $ $ $ $ $ $
Sample Resource Requirements:
(continued)

9
Component 3:
The Whats – Shared Terms and Definitions
Don’t get hung up on misinterpreted
or ambiguous terminology. When your
team is thinking strategically, the last
thing you want to be doing is wasted
time debating definitions. Consider
following this guide from the Drivers
Model:
Vision
A picture of the “preferred future”; a statement that describes how
the future will look if the organization achieves its ultimate aims.
“The vehicles of choice for a value-focused world”
Mission
A statement of the overall purpose of an organization.
Describes what you do, for whom you do it and the benefit.
“Our mission is to provide the consumer with high quality, price
competitive automobiles to meet their personal, business and
recreational needs.”
Guiding
Principles
General guidelines which set the foundation for how an organization
will operate.
“Responsiveness to consumer needs will be a first priority in our
operations. Therefore we will...”
Goals
Broad, long-term aims that define accomplishment of the mission.
“Growth- Maximize growth, revenue, and profits.”
Objectives
Specific, quantifiable, realistic targets that measure the accomplishment of
a goal over a specified period of time.
“Increase revenues by 12% annually. Limit increases in overhead costs to 2%
annually. Achieve a 5% reduction in management staff over the next three
years through increased automation.”
Strategic Planning Terms and Definitions:

10
Component 3:
The Whats – Shared Terms and Definitions (continued)
Strategic Planning Terms and Definitions:
Critical
Success
Factors
Key conditions that must be created to achieve one or more
objectives.
“Body styles that are pleasing to the public. Effective
dealer network. Successful office automation project.”
Barriers
Existing or potential challenges that hinder the achievement
of one or more objectives.
“Inefficient northeast plant. Price competition from Japan
manufacturers. Public perception of poor quality by USA.”
Strategies
Broad activities required to achieve an objective, ccreate a critical
condition, or overcome a barrier.
“Establish partnership with Japanese manufacturer to revamp
the Northeast plant. Implement program to widely promote
our success as a quality producer.”
Actions
Specific steps to be taken, by whom and by when, to implement a
strategy.
“Initiate discussions with PR firm on Quality Promotion BPC 2/1
Develop first draft of Promotion AKO 3/15
Review Promotion internally and update BPC 4/1”

11
If you’ve ever attempted leading a group
through strategic planning, you know
how difficult it can be to stay focused
on critical issues, acheive consensus on
strategy, and gain committment on follow
through. This is why this last component –
the who – is vital.
Experienced, professional facilitators
bring with them a series of proven,
successful processes that create the
framework for your strategic plan. They
also have numerous tools and techniques
that allow them to adapt to your people
and the needs of the group. Strategic
planning facilitators are able to help
participants excel as a team in focusing on
the issues, building a common vision and
creating commitment.
When dealing with something as critical
as a strategic plan, many organizations
will invest time and dollars to train and
build up the facilitation skills of internal
resources to ensure a smooth planning
process and desirable results. But, others
choose to bring in outside professional
facilitators with years of training, experi-
ence and proven results. This is the pre-
ferred option especially if:
• You don’t have a clearly-defined,
tested and proven approach for
the strategic planning process
• There is a lack of experience in
effectively facilitating strategic plan-
ning
• There are many strong opinions
among the planning team
• You, the group leader, are strongly
vested in a particular position, but
want to be open to other possible
• The discussion is best guided by
a neutral party to engender trust
or participation.
Six Questions to Ask When
Choosing Your Facilitator
If you choose to bring in an outside
facilitator, once you have narrowed the
search to a handful of candidates, you
need a finer screen to help you select one
facilitator over another. We recommend
the following six questions to
help guide your selection:
1. “What questions do you have for
me?” Great facilitators know the
5Ps to prepare for your strategy
work – the purpose, the products,
the participants, the probable
issues, and the process. Be wary of
facilitators who want to describe
how they can help you (their
process) before they understand
your needs (your purpose, desired
products, participants and probable
issues).
Component 4: The Who -
The Right Facilitator for Your Strategic Planning

12
Component 4: The Who –
The Right Facilitator for Your Strategic Planning (continued)
2. “What is your approach for getting
the group interacting and focused?”
Some facilitators have great days
but don’t necessarily understand
why. Consciously-competent
facilitators know the keys to success.
They understand what works, what
generally doesn’t,
and why. Your facilitator should
be able to describe techniques
to get groups interacting right away,
keeping focus and avoiding side
issues.
3. “How will you address
dysfunctional behavior?”
Great facilitators know that the key
to dysfunction is preventing it from
happening in the first place. Your
facilitator should ask you about the
participants, their issues and the
problems typically seen in meetings.
The facilitator should recommend
actions such as establishing specific
ground rules, holding conversations
with particular participants, or other
strategies for dysfunction prevention.
4. “What type of orientation will you
need if we decide to move ahead?”
Great facilitators understand that
the more they understand about
your business, the less they will
slow down the group. They will
seek documentation and want to
schedule a time to further discuss
your organization, your products
and your issues.
5. “What do your clients typically
say they like about the way
you facilitate?”
Listen specifically for what the
person doesn’t say. Most facilitators
bring neutrality and control to
a group. Great facilitators bring
much more. Listen for words like
‘great energy level,’ or ‘insightful
questions,’ or ‘a process that allowed
us to get so much more done,’ or ‘a
way of herding the
cats without getting anyone upset.’
6. “Based on what you have heard,
what might the agenda be for
the meeting?”
Great facilitators have a pool of
common processes they have
customized over and over again for
clients. They know these processes
cold and, in the middle of a session,
can quickly pull from their resource
pool and create a customized
process on the spot if needed.
Therefore, if facilitators are not
willing to give you a “first thought”
of how they might approach your
needs, you might question if they
will have the flexibility and speed to
change course on the spot if needed.

13
Bonus Checklist:
Six Questions to Ask When Choosing
Your Facilitator
1. “What questions do you have for me?”
2. “What is your approach for getting the group interacting and focused?”
3. “How will you address dysfunctional behavior?”
4. “What type of orientation will you need if we decide to move ahead?”
5. “What do you clients typically say they like about the way you facilitate?”
6. “Based on what you have heard, what might the agenda be for the meeting?”

14
Are you ready
to execute a
successful
strategic plan?
@LeadStrat
@LeadStrat
Leadership Strategies
youtube.com/OfficialLSI
Give us a call when you’re ready to Level Up! 800-824-2850
This guide provides a foundation for executing strategy.
For many, the next step is to bring the team together for a
strategy briefing to identify strategic issues and agree upon
an approach for addressing them.
Let us be your strategy partner. Our team of professional
facilitators are skilled in the Drivers Model and can guide
you through the strategy process. Whether you are looking
for a review of your existing plan, want us to facilitate a
strategy briefing for your team, or need assistance in the
entire planning process, we are here to help.
Contact us for more strategic planning support from an
experienced facilitator.

�ݺ�ߣ

4 components of strategic planning

Recommended

More Related Content

Similar to 4 components of strategic planning (20)

Recently uploaded (20)

4 components of strategic planning