Strategic planning is the process of developing a strategy and planning its execution. Organizations and teams typically develop a concrete strategy for a financial year. Beyond that it is somewhat common to create a long term plan that sets targets for the future. The following are techniques that are commonly used to plan a strategy.
Benchmarking is the comparison of your metrics with a competitor or industry average. For example, a firm may consider how much its spending on innovation or technology relative to its industry.
- Budget Planning
In many cases, strategy formation is closely tied to an annual or quarterly budget planning process.
- Business Analysis
Validating the assumptions that underlie your strategy with business analysis techniques such as voice of the customer or statistical analysis.
- Business Case
A formal proposal for a strategy that includes analysis of benefits, costs and risks.
- Business Models
A business model is the framework that an organization uses to capture value. In most cases, a strategy adds products, services and capabilities to an existing business model. Occasionally a strategy may also seek to transform a business model or enter new industries.
- Business Plans
A business plan is a proposal for a major new initiative such as entering a new market or transforming a technology platform. Business plans are most typically targeted at investors in new businesses but can be developed internally where due diligence is required.
- Capability Analysis
Describing your organization as a set of capabilities and identifying gaps that represent a competitive weakness or new capabilities that represent a potential advantage.
- Competitive Intelligence
The practice of gathering information about competitors, markets, products, industry trends and customers. Competitive intelligence is a fundamental input for strategy planning.
Developing preliminary estimates for strategic plans using a high level estimation methodology such as reference class forecasting.
- Financial Analysis
Analysis of financial metrics such as return on investment and payback period.