What is a strategic plan?


Quick Answer

A strategic plan is a document that delineates the goals of a company or an organization and establishes the actions that are necessary to achieve those goals. It encompasses all critical elements developed in the planning stage to strengthen the operations and ensure a directed endeavor among all employees.

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Full Answer

A strategic plan is the written form of a process that seeks to create an agreement with regard to desired outcomes between the management and the workers. As a document, it defines the fundamental purpose of a company and establishes the targeted customer base, services, the purpose behind the endeavor and its future. In addition to articulating the goals and necessary actions, an effective strategic plan needs to create an efficient means of assessing whether the set goals have been achieved.

The strategic element of the plan is reflected in its focus on preparation and realizing the most efficient way to tackle the problems that arise within the business structure. The strategies contained within the document help companies appropriately respond to a dynamic organizational environment in accordance with its available resources.

A strategic plans typically employs a framework that starts with the assessment of the current internal and external business milieus, followed by the establishment of strategies and ways those strategies can be executed as operations and actions. Finally, the plan concludes with a means of evaluation that seeks to evaluate overall performance and analyze any issues that might arise.

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