Strategic planning - Why do we plan?

Introduction
Strategic reviews
Strategic planning
Business and operational planning
Summary - our three stage approach to planning
Contact us

INTRODUCTION

"There are risks and costs to a programme of action. But they are far less than the long-range risks and costs of comfortable inaction.”

John F. Kennedy

The ultimate goal of strategic planning is to be able to act effectively in a changing environment. Strategic planning requires clarity in seeing both the existing situation, and the future potential. It also requires the ability to clearly assess all possible impacts of a strategic decision.

To plan for the next phase of your business, a very clear understanding of your organisation’s strengths and weaknesses is important. You must be able to identify the market niches in which you are most likely to succeed. This is where a strategic review could play a role – a trusted business advisor assisting you and providing an external perspective could be particularly helpful.

Our approach to strategic planning

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STRATEGIC REVIEWS

“Success is a product of unremitting attention to purpose”

Benjamin Disraeli

Strategic reviews help companies diagnose poor performance and formulate strategy. They provide a basis for improvement and act as a catalyst for evaluating new markets and potential acquisitions.

At a high level, strategic reviews can:

identify areas of competitive advantage

identify profitability and potential

track the interdependencies between various parts of a business

DEVELOPING THE STRATEGIC PLAN

“A plan is nothing…planning is everything”

Dwight D. Eisenhower

Strategic planning focuses on what your company should do, rather than how it should be done. All the energy, drive and determination in the world will never compensate for an inappropriate strategy. Without effective strategies, a business is likely to fail.

Here at Private Client Services we ask you some really important questions:

Where do you want to be in five years? Ten years?

What are the options or alternatives available to you in the pursuit of your vision?

What are the most appropriate action plans to ensure your vision is realised?

What are the most appropriate relationships with potential business partners?

How are you going to manage growth?

What is the most appropriate trading / ownership approach for you and what will be the governance and administration requirements?

What risks will you face, and how can these be effectively managed?

What processes will best manage your people and management information resources to lessen dependence on you personally and, over time, assist in increasing both the capital value and the profitability of the business?
As an impartial and knowledgeable sounding board, we can assess your business and ensure your business model is aligned to meet your overall objectives.

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BUSINESS AND OPERATIONAL PLANNING
In our experience once you have defined your strategy, formal business planning has an important role in maximising the performance of the business. Benefits we believe will be achieved from the planning process include:

Focusing management on the business as a whole

Setting achievable and measurable objectives

Providing a route to be followed through agreed strategy

Providing accountability for performance

Providing a framework for determining priorities and allocating resources

Protecting current business, whilst maximising business growth opportunities and performance

Being proactive in relation to the future of the business

Providing a platform for presenting the business to other parties, particularly potential funding parties

Motivating and renews entrepreneurial instincts.

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SUMMARY - OUR THREE STAGE APPROACH TO PLANNING

Stage 1 : Pre-Planning - "Where Are We Now?"

In this stage of the planning process, our focus is to review past / current performance and the present business position, focusing particularly on identifying areas of competitive advantage and profitability. Organisational weaknesses, and / or limitations are also identified.

Stage 2 : Strategic Planning – "Where do we want to go?"

During this stage, we determine the following:

• Owner / personal objectives;

• Company vision and philosophy;

• Mission or statement of purpose;

• Company objectives;

• Definition of key issues and critical success factors, and their priority

• Identification of core strategies.

This is the most important stage in the business planning process and involves you, the owner, and your senior staff.

Stage 3 : Operational / Business Planning – "How do we get there?"

During this stage, we can expand on the key strategies determined in Stage 2 above.

Detailed sub-strategies and tactical plans, or operational plans can then be prepared for each main business driver. These detailed plans would be in the form of "Action Plans", noting who has the responsibility to undertake various tasks, what the outcomes should be, appropriate time frames and priorities.

Appropriate systems and processes, both operational and governance can also be identified and documented at this stage, along with budget projections and financial models.

We are also here to help you keep on track by reviewing your progress against plans and assisting you with any issues that may arise.

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