Know-How Exchange : Strategy

The strategic plan is a "document" normally internal to the company which describes its objectives, strategies, tactics, measures, action plans and provides explanations of all those points.

It usually contains analysis and research information and assumptions, e.g. SWOT, PEST, Porter Analysis, Product/Service Portfolio and Market Segmentation Analysis, Project Plan Overviews, milestones, and summaries, resources plans, strategy maps, and KPIs.

At its most detailed level, the strategic plan is a communications tool and handbook for management and staff so they know what they are doing, how they are doing it, how it is being measured, when it needs to be done by, and who does what. (Disclaimer - Individual examples may vary)

On the other hand, a business plan is a document which is used to demonstrate the credentials of a business to external parties such as prospective investors, partners or trade financiers (e.g. banks) and provides summary financial projections, ROI, CFP, projected P&Ls.

It explains why the business has a future, who's running it, why they should be there, and how key staff are being attracted and retained.

It explains why this business has a market, who it targets, and why they will buy from the business in preference to a competitor.

Now a marketing plan... is another story again!

For an insight into some of the key strategy tools look at www.quickmba.com/strategy

For a success story have a look at the medical devices summary example here www.asvpconsulting.com/cases.htm

Strategic Planning is, of course, completely optional.

It only becomes essential if you are serious about being successful in your business.

The more serious you are, the more detailed the plan needs to be, and the more carefully you need to conduct your strategic reviews.

BTW, Kaplan & Norton surveyed the Fortune 500 and found 68% of companies failed to execute their strategic plan properly. So planning is but a first step; execution is next and must be done properly for the strategy to succeed!

Failing to Plan = Planning to Fail.

Hope this helps.

ChrisB