Why is there so much emphasis on the need to create a plan, a life plan, a business plan, a Country plan, a World plan, a plan to be successful, etc. Many argue that to be successful you do not need a plan because they have met successful people in business without plans with only the instinct of the owner, while there are others with well written plans but have not achieved the success they want.
A plan without strategies and without actions is a dead letter, plans are dynamic, just as markets are, life, the universe and business. Every second there are changes in the world that affect and modify relationships, direction and trends, and the existing correlation in the complexity of variables that intervene in the relationships between Customers, Suppliers and the Markets.
A Plan is a very valuable instrument that allows projecting and managing complexity, producing “planned actions” in response to the changes that occur. A plan allows to project the desired future, the photograph of the desired future, the vision and perfect utopia of the future, known as “Objective Situation” (SO). This Objective Situation (SO) describes and characterizes the "Vision" that is desired of the future from the point of view of the following factors: External Factors and Internal Factors.
- External Factors (Opportunities and Threats)
- Finance and Economics Government Policies Geographical (distribution channels, access and proximity to markets) Technological Social and Cultural (behavior of buyers, preferences, etc.) Competition (who are the Competitors, Products and Strategies) Market (Customer and Supplier relationships, size of the markup, Customer purchasing power and Suppliers' selling power, prices, and quantities).
- Required Competencies Distinctive Competencies (What we do that the competition does not do) Inventory of Comparative Competencies (indicating where we surpass the Competitors and where we surpass us).
The Plan also includes the characterization of the "Current Situation" (SA) in terms of the factors indicated above and used to characterize the "Target Situation" (SO). Subsequently, both characterizations must be crossed and analyzed to identify the existing gaps that must be closed with "planned actions" and determine the "Directional Arc" that leads from the "Current Situation" to the "Target Situation". (See graphic below).
As can be seen, there are external and internal forces that act and modify the current characteristics of the markets (Environment, Government, Competitors, Suppliers, Clients, Unions, etc.), new competitors enter and others graduate, new products and services enter, products and substitute services, the preferences, demands and relationships with the Clients, and the techniques and marketing methods of the Suppliers that pressure and produce "Intermediate Situations" (SI) that may move away or deviate from the "Directional Arc" and require new "Planned actions" as responses to correct the deviation produced. (See graphic below).
The External Forces act as a consequence of the interrelations and interdependence existing between the different variables that intervene in the Markets, and which produces a new intermediate situation (SI) and completely different from the “Current Situation” (SA). For the purpose of analysis, this "Intermediate Situation" (SI) will be taken as the new "Initial Situation" (SA). As you can see, the Plan is in constant review and analysis to identify the changes produced, evaluate the threats and opportunities of the new initial situation, determine if the change positively favors or negatively affects us, moving away from the “Objective Situation” (SO) and planning the "Actions" in response to the change produced. (See graphic below).
Once the characterization of the Current Situation, Objective Situation is documented, the "Gaps" that need to be closed are identified, the "Strategic Business Objectives" must be defined and prioritized, the "Initiatives" that lead to defining the "Cases" must be defined. of Business ”and consequently the“ Portfolio of Projects ”that must be executed according to the priority, availability of financial resources and budget.
As a result, the Plan Monitoring Matrix must be built, which contains the Objectives, Initiatives, Projects and Responsibilities. (See graphic below).
The Strategic Planning Process is cyclical and iterative, it must be reviewed and updated frequently.
