Description
A Strategic Business Plan documents the intended destination of a business stated in operational and financial terms for the short, medium, and long term, which usually spans between 1 to 5 years.
Vision, Mission, and Value Statements
The Strategic Business Plan is documented in high-level, mostly qualitative terms in the Vision, Mission, and Value Statements.
The Vision is the intended outcome or destination of the business journey. Amazon’s vision statement includes: “…to build a place where people can come to find and discover anything they might want to buy online”.
The route to the Vision or what the business will do to achieve the Vision is called the business Mission. Amazon’s mission statement is: “To be the Earth’s most customer-centric company.”
The Value Statement builds upon the Mission in stating what values the business holds most important in achieving its Vision. Again, using Amazon as an example, their value statement includes: “Customer Obsession”, “Hire the Best” and “Earn Trust”.
Plan Details
After the high-level framework of the strategic plan is created, the activities to achieve the high-level objectives contained in the vision, mission and value statements are scoped in terms of goals, objectives and tasks with increasing detail.
Performance Measures
Performance measures are tools to measure whether the expected results are being achieved and to what degree.
Risk Management
A risk management strategy is an integral part of any strategic plan as it sets out carefully thought-out responses and actions to take in the event that unforeseen events occur which could prevent the achievement of the goals and objectives.
Monitoring and Reporting
The progress of the strategic plan should be monitored and reported to ensure that variations from the plan are detected as early as possible and timely corrective actions taken.
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