Traditionally Strategic Planning results in the publication of a lengthy document. The document will contain graphs, charts and a bewildering explanation of the state of the economy. The documents will also include the effect an interest rate increase may have on your business and a detailed analysis of your competitors.

These documents are compelling, yet rarely do they inspire action from the business, more often than not, we bind and place our lengthy strategic plan on a shelf where it sits gathering dust until our next strategic planning session.

If you are a corporate strategist, product or portfolio manager or a general manager then you will need the complexity of a traditional strategic plan, otherwise you can use the simplified strategic planning process.

Who should use basic strategic planning?

Junior and middle managers in large organisations and small business operators who cannot justify producing a lengthy strategic planning document, these are typically people with a penchant for action.

The How to of Basic Strategic Planning

All of the benefits in half of the time

Basic strategic planning eliminates unnecessary paperwork and the duplicated analysis that traditionally occurs in strategic planning. Use your planning time wisely, only do the things that add value.

For example, why state?

If interest rates go up, interest expense on borrowings will increase reducing the availability of cash for other activities!

Anyone running their own business or in a management position knows this so do most kids. Why state the obvious in your plan?

A basic strategic plan is completed by identifying the things that matter most to your business, us MBA’s call this a SWOT analysis, the SWOT analysis is a list of your businesses strengths and weaknesses and the external opportunities and threats to your business.

Once you have completed a SWOT you will prioritise and develop actions. Take a moment to read on and discover how

The key is you!

What goes in a SWOT analysis? The answer is your knowledge, your knowledge about your business, your industry and the world in general.

Examples: Carpenters have less work when new home building approvals is in decline, more work when new housing is busy. If you have a retail shop, you will know if sales have been increasing or decreasing. If you are a division of a large company, you will still know if you are competing with local businesses or imported products. You have extensive knowledge! This process will help you use it.

Now get an A4 piece of paper, divide it into 4 quadrants, and write one heading at the top of each quadrant, strengths, weaknesses, opportunities and threats. Example SWOT

Upgrade your Future!

Things you may like to consider in your SWOT include

are your customers/suppliers moving, staying put of increasing in your area?

is the government looking to make changes that affect your industry? (Regulation or deregulation)

what is the economic outlook for your country and the country where you sell your products?

are your products acceptable by future environmental standards?

Discover your competition

Talk to your customers and suppliers ask them

about your competitors, you will be surprised what you will learn.

how happy they are with your service and what plans they have for the future

Use your Existing Knowledge

The best strategic thinkers I know are small business owners with no tertiary eduction. Put your thoughts on paper identifying your

Internal (in your business)

Strengths (what are you good at?)

Weaknesses (What do your competitors do better than you do?)

External

Opportunities, (where can you grow your business?)

Threats (What will stop you growing?)

Spend a bit of time, ask a few people for suggestions, try asking your

Internal customers and suppliers

External customers and suppliers

Peers, staff and manager

Now you have a list, highlight the most important items on the list, only pick a few, not too many not too few. Say five to eight.

Take Action for Results!

Courageous leadership is about taking action, you have identified the issues now identify the actions that will help you achieve your goals!

List your actions and post them somewhere prominent in your business, where you will be reminded of them.