A strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise.
The five questions can easily be answered on one page and if they take more than five pages i. Strategy is not planning — it is the making of an integrated set of choices that collectively position the firm in its industry so as to create sustainable advantage relative to competition and deliver superior financial returns.
The four stages include: Financial planning, which is primarily about annual budgets and a functional focus, with limited regard for the environment; Forecast-based planning, which includes multi-year financial plans and more robust capital allocation across business units; Externally oriented planning, where a thorough situation analysis and competitive assessment is performed; Strategic management, where widespread strategic thinking occurs and a well-defined strategic framework is used.
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I suspect that CEO will never go back. I find that once this is made clear to line managers they recognize that strategy is not just fancily-worded budgeting and they get much more interested in it.
I reassured him that he had given strategy anything but short shrift. The term "budget" is used for a financial plan for the upcoming year. Which skills and resources should be developed within the organization? The flowchart to the right provides a process for classifying a phenomenon as a scenario in the intuitive logics tradition.
But how does a strategic plan of this sort differ from a budget?