The Strategic Planning Checklist

Our Ultimate Guide to Strategic Planning

Part A: Business Strategy Check List

1. Analysis of Existing Situation – Organisational Philosophy & Mission & Value

• Does it reflect what you stand for?
• Do your people understand its true meaning?
• Does it make it clear as to how you have to compete and against whom?
• Is it simply written? Is it clear and unambiguous?  Is it believable and realistic?
• Does it motivate people? Does it attract pride or cynicism?
• Does it give us some indication of what we should be doing and how we should be doing it?
• Do all the constituent parts fit and hang together?
• “Identity Pyramid” – do you have clarity around all the issues?

2. Internal Appraisal of Company

• SWOT analysis – revisit previous analysis & ensure it is complete & current
• Distinguish between endowments and core competencies
• Assess and audit core capabilities.
• Gauge fit between external environment and core capabilities
• Identify fit between customer requirements and core capabilities

Having identified what you perceive to be your competences ask yourself the following questions:

• Will this give us any source of long term sustainable competitive advantage? Clarify the how? (ie. how relevant is it to the needs of our customers (actual and potential)).
• Do customers (broadly) agree with our findings (ie. the market place)?
• Can competitors (present/future) emulate or do better? Do they share our perception?
• How was this list of core competences arrived at (eg. Training, innovation etc)?
• Any weaknesses/shortfall still? If so, what further investments will be required?
• Is there any impact on the strategic balance sheet (ie. Intangible and human assets)?
• Can it be levered, onto other applications and/or markets?
• What happens next?

3. Competitive Analysis

• What is the current process for this task?
• The Positioning Statement (competitive positioning) – refer below
• Scan present competitive position but focus also on future competition.
• Do you really know your competitors strategy?
• Understand changing face of competition
• Who could be a future competitor?
• Is your strategy and your competitors becoming more alike or more divergent?
• What is the most radical thing that your competitor(s) could do?

4.Value Proposition

• Consider or revisit the current Unique Sales Proposition within your Marketing plan & ensure it is complete and up-to-date.
• Do you know why your customers buy from you and not you competitor(s)?
• Have you asked them?
• How can you improve customer experience?

5. Environmental & Industry Analysis

• Consider legal, social, political, economic, technological, markets, labour position, society, pressure groups, and any other environmental issue.
• Assess potential impact of any change(s) and consider timing implications.
• Conduct intensive industry analysis.
• What is the long-term viability of the industry as a whole?
• What could change the industry dynamics?
• What is the nature of current industry changes i.e. radical, creative, intermediate or progressive?
• What could be the impact on your strategy and source of competitive advantage of such changes?
• Five years or so from now how will the industry leaders look and act?

Part B: Strategy Selection

 

1. Identify Strategic Alternatives

• All options to be examined – growth, acquisitions, alliances, JV’s, innovation.
• Upside and downside risks identified

2. Strategy Evaluation & Selection

• Clear choice to be made
• How will we compete?
• Evaluate impact of each option
• Will it give unique competitive advantage?
• Can it last? Can it be sustained?
• Will it differentiate us from our competitors?
• Can it be converted easily into a set of business objectives / KPI’s?
• How will competitors react?
• Easy to implement?
• Contingencies in place?
• What about the next wave?
• Is it consistent with customer requirements and industry changes?
• Will it create shareholder value?
• Is it financially viable?

Part C: Strategy Implementation

 

1. Matching Strategy & Organisational Structure 

• Do we have the necessary resources?
• Is there a logical fit?
• Is current structure adequate? Assess extent of change. Do not ignore culture effect.
• What about the organisation’s values?
• Is strategy personalised enough? Assess flexibility and robustness.

2. Allocation of Resources & Responsibilities

• Planning, Plans, budgets, controls, appraisals etc….. all to be consistent with strategy
• Strategy well translated into clear objectives
• Priorities and constraints identified
• Time horizons clearly laid out
• Management information systems to dovetail strategic choice

Without a comprehensive, up-to-date business plan and an implementation timetable, companies may be missing out on opportunities for growth and not realising their full potential. A formal plan can be an extremely valuable tool for managing and growing a business, as it allows a company to recognise its strengths and weaknesses. Furthermore, research has shown that SMEs that have a business plan in place are consistently more profitable than those who do not have a business plan.

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