How to Make a Strategy Development Plan

Whether your business is large or small, you need to develop an annual strategic plan to both guide your business activities through the year and measure the accomplishment of your defined goals. A number of variables must be considered when developing a strategic plan, such as industry trends and the activities of competitors. The strategic plan itself clarifies decision-making and project management activities that will result from the thinking and project plans generated from the process.

Instructions

1. A business may develop multiple strategic plans. Large companies will develop objectives for various parts of its operations including sales, marketing, operations, human resources and others. Each division will develop its own set of strategic plans, each doing its part to accomplish the goal of the company.
   Part of the company plan should be to answer the question: What is our main objective? A goal is an objective, quantified whenever possible, that the business wants to achieve within a stated period. By quantifying the objective, you have an objective yardstick to measure success afterward.
   A sales objective might be, "Sell 1,000 bicycles during the next 6 months." A public relations objective might be, "Achieve placement of company news release in the top 3 financial newspapers 30 days prior to launch." In the case of the bicycles, the target audience might be mass merchandiser stores. In the public relations example, it might be the "Wall Street Journal."
   Define your audience from an age, location, income or other factors such as a psychographic profile as it relates to your business. The bicycle company might define its target audience as bicycle enthusiasts, 35 years old and older, who live in New York City and cycle to work at least 3 times/month.

2. Once the objectives and target audience definition have been spelled out, what methods will you use to get the job done?
   Each tactic should be explicit in why this particular activity was selected to accomplish the goal. This rationale is usually based on prior experience with some tactics and, at other times, it might be because it has never been tried but seems promising.
   Tactics are mapped to a calendar so you are able to see how the strategic plans will unfold. It is also a reminder that preparation for tactics needs to be taking place. Tactical program implementation has lead times that need to be considered and put on a timetable for completion. The design and development of a website might take 3 months or more. Before you can mail a brochure, it may need to be written, photography taken, approved by management and printed.

3. Development of a budget is a key element in a strategic plan. All the wonderful tactics in the world will not help if you cannot afford them. Each element of the plan should be a line item in your budget and have a dollar figure assigned to it. When combined, the total is the cost of the strategic plan.
   The budget is also a tool for monitoring the plan's performance. Revisit the budget monthly to revise costs against estimates so you manage and control expenditures for tactics included in your strategic plan.

4. After your planning year has ended, it is important to measure the success of your strategic development plan against its primary goals. Did you sell the 1,000 bicycles? If not, what tactics were ineffective and which ones more effective? By evaluating your performance against plan, you are able to refine and improve your company's strategic plan.