Strategic Planning Techniques you need to Succeed in Business

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.

1. Benchmarking

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.

2. Budget Planning

In many cases, strategy formation is closely tied to an annual or quarterly budget planning process.

3. Business Analysis

Validating the assumptions that underlie your strategy with business analysis techniques such as voice of the customer or statistical analysis.

4. Business Case

A formal proposal for a strategy that includes analysis of benefits, costs and risks.

5. 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.

6. 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.

7. 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.

8. Competitive Intelligence

The practice of gathering information about competitors, markets, products, industry trends and customers. Competitive intelligence is a fundamental input for strategy planning.

9. Estimates

Developing preliminary estimates for strategic plans using a high level estimation methodology such as reference class forecasting.

10. Financial Analysis

Analysis of financial metrics such as return on investment and payback period.