Before starting to build your plans, set some strategic goals. This will focus your thinking in priority areas and will also set parameters for subsequent decisions.
Some of your strategic goals will be defined by converting the aspirations described in your vision and mission statements into concrete goals. Instructions on how to go about converting your vision into concrete goals are outlined in more detail in our Leading Your Organisation Online Guide.
Set SMART goals
Other goals will be influenced by financial factors like the return on investment you need to generate, or marketing factors like choosing the markets you wish to grow. Other factors could include which customer targets you set, what you decide to do to keep your employees engaged in the business and what you decide to do in areas like environmental management.
There is no set approach to goal-setting because owners and managers define the goals based on their specific circumstances. However, all your goals should be SMART (specific, measurable, achievable, realistic and time-bound).
Set concrete strategies
With the goals in place, strategy formulation moves on to the design and selection of appropriate business strategies to realise those goals. As an example, imagine you had established a strategic goal to increase market share in the UK walking-holiday market by 20% within three years.
How would you achieve this goal? What are the marketing, product, service, pricing, employee development implications of seeking to realise that goal?
In short, strategies are essentially choices you make, or options you take which are designed to help move you from your current position towards the goals you want to achieve. Strategies should also help you to play to your strengths, address your weaknesses, capitalise on opportunities and prepare for threats.
Take resources into account
As you develop general strategies you must also think of the resource and competence implications for the business. There is no point having a strategy that you don’t have the resources to implement, or that you lack the internal competences to achieve. These issues must be considered early in the process, not late.