What is strategy?

Core elements of strategic thinking…

Go to a dozen different organisations and you can probably find a dozen different versions of a strategic plan. To a certain extent, the format doesn’t matter too much. What is important is that the thinking and analysis undertaken in developing the strategy is robust and inclusive?

Generally, you would hope to see at least the following elements captured in the strategy document….

• An analysis of the external environment – this should cover factors such as market forces, industry trends, political and economic considerations etc.
• An analysis of the internal environment – often developing in terms of strengths and weaknesses
  of a SWOT (strengths, weaknesses, opportunities and threats) analysis.
• Vision statement – a concise summary of where you see your organisation in five to ten years’ time.
  You may also see a higher level mission statement but these are not always included in contemporary plans.
• Strategic levers – what are the key levers to success for the organisation – e.g.: growth / merger and acquisition / scaling up or down / new capability etc
• High-level business objectives – these are captured as the major goals that are necessary to achieve the vision for the business. These might include capturing a new customer segment, developing new products and services, or securing new sources of revenue.
• Execution plan – this should include laying out the key initiatives and actions (with desired outcomes and deadlines) that will need to be completed to attain your high level business objectives.
• Resourcing – this should highlight the implications your proposed strategy will have on human and other resources. This will reflect financing requirements, as well as factors such as capability costs, staffing levels, new facilities/premises and equipment or infrastructure costs.