Techniques That Organizations Use for Strategic Direction and Business Plans
- Strategic planning is a common technique used by organizations. This technique typically begins with a mission statement created by executive-level employees who then create strategic goals for the overall organization. Once these goals are set, managers and business units work together to create and implement processes, procedures and policies to bring the operational units into alignment with the overall strategic plan.
- A SWOT analysis is a common technique used by executives and managers to influence a strategic direction for the organization. This technique is used to identify the internal Strengths and Weaknesses of the organization as well as the external Opportunities and Threats. Once these aspects have been identified, managers can take steps to take advantage of the company's strengths and opportunities and combat its weaknesses and threats.
- A gap analysis is also commonly used, either in conjunction with a SWOT analysis or on its own, to determine the extent of gaps between where the organization is now and where it wants to be. According to BusinessDictionary.com, a gap analysis "begins with (1) listing of characteristic factors (such as attributes, competencies, performance levels) of the present situation ('what is'), (2) cross-lists factors required to achieve the future objectives ('what should be'), and then (3) highlights the 'gaps' that exist and need to be 'filled.'"
- The use of SMART goals is a common technique to create strategic goals for an organization's business plan. SMART goals are specific in nature and easily measurable. These goals must be reasonably attainable as well. SMART goals are also relevant to the mission statement or strategic direction identified by organizational leaders. Finally, SMART goals are tied to a reasonably accomplished time line.