Every business, regardless of its size, needs a strategic plan as part of its corporate governance strategy. This is because a strategic plan steers a business’s governing board, staff, and other internal stakeholders in the right direction.
However, for a strategic plan to be effective, it must be written properly. A sound strategic plan should provide your entire team with a clear roadmap of business operations. It must be easy to understand and actionable, so your team can execute it effectively.
Read on to learn how to craft an effective strategic plan that guides your organization’s day-to-day operations while supporting the company’s overall vision statement.
What is a Strategic Plan?
A strategic plan is a comprehensive framework that outlines an organization’s direction and priorities over a specific period. It specifies the actions needed to achieve the organization’s goals, taking into account the internal and external factors that might influence the organization’s success.
Strategic plans are important for a variety of reasons, including:
- Ensures everyone within an organization is working toward the same goal
- Helps with resource allocation by identifying key areas that need investment
- Establishes benchmarks for performance and accountability, making it easier to measure progress and make adjustments as needed
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Elements of an Effective Strategic Plan
The structure of a strategic plan can vary from organization to organization, but the common elements include:
- Executive summary: Provides a brief summary of the plan
- Scope/situational review: Analyzes the organization’s current state of affairs
- Business context: Offers an overview of the broader environment in which the organization operates, including market trends and competitive landscape
- Strategic initiatives: Lists specific projects or actions required to achieve strategic goals
How to Write a Strategic Plan (Step-by-Step)
Follow these steps to write a strategic plan:
1. Define Your Vision and Mission
Start by determining your organization’s vision (what you aspire to become) and mission (your core purpose and focus). Collaborate with organizational leaders to create statements that reflect the entire business. These statements provide the foundation for a strategic plan.
2. Conduct a Situational Analysis
A situational analysis helps determine where the organization needs to go by assessing its current state, competitors, and the market landscape. A SWOT (strengths, weaknesses, opportunities, threats) analysis helps uncover a company or organization’s current position.
3. Set Strategic Goals and Objectives
Integrate the findings from the situational analysis to set strategic goals and objectives. These goals should align with your vision and mission and address any perceived weaknesses or threats. Ensure goals are SMART (specific, measurable, attainable, realistic, and time-bound).
4. Develop Action Plan
Your detailed action plan should provide step-by-step guidance on how to achieve your organization’s strategic goals and objectives. Action plans should outline specific tasks, timelines, responsibilities, and resources needed, ensuring that everyone involved understands their roles.
5. Monitor and Review Progress
Monitoring and reviewing progress is a proactive way to make sure your strategic plan remains relevant. Establish a process for regularly monitoring and reviewing progress toward your strategic goals. Use key performance indicators (KPIs) to measure success and make adjustments as necessary.
Unlock the Power of Board Management Software
A strategic plan helps guide where you’re going, but how you get there matters. Board management software can streamline your strategic planning process by improving communication, enhancing decision-making, and ensuring all board directors are aligned with the organization’s goals.
For example, OnBoard offers the following features:
- Zoom integration and secure messenger to enhance communication and collaboration among board members
- Drag-and-drop meeting agenda builder for efficient board meetings
- Skills tracking to aid in recruitment and build balanced boards
- Limitless system of record for storing documents like the strategic plan, annual operating plan, CEO reports, and crisis response plan
For more effective meeting reporting and follow-through, check out OnBoard’s free Board Meeting Minutes Template.
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About The Author
- Josh Palmer serves as OnBoard's Head of Content. An experienced content creator, his previous roles have spanned numerous industries including B2C and B2B home improvement, healthcare, and software-as-a-service (SaaS). An Indianapolis native and graduate of Indiana University, Palmer currently resides in Fishers, Ind.
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