2.2. Strategic Analyses - Analyzing External and Internal Environments

A frequent complaint about strategic plans is that they are merely "to-do" lists of what to accomplish over the next few years. Or, others complain that strategic planning never seems to come in handy when the organization is faced with having to make a difficult, major decision. Or, other complain that strategic planning really doesn't help the organization face the future. These complaints arise because organizations fail to conduct a thorough strategic analysis as part of their strategic planning process. Instead, planners decide to plan only from what they know now. This makes the planning process much less strategic and a lot more guesswork. Strategic analysis is the heart of the strategic planning process and should not be ignored [⁷]. The results of two next steps form so popular and important SWOT-analysis that is an essential part of strategic planning for business of every size:

1. Taking a wide look around the outside of the organization to identify Opportunities and Threats

2. Looking around inside of organization to identify Strengths and Weaknesses

2.3. Setting Strategic Direction

One of the most important reasons that organizations do strategic planning is to ensure that they remain sustainable -- that they not only survive, but that they thrive well into the future. So it's important to understand what makes an organization sustainable - it's not just getting enough money.

1. Do a SWOT analysis of results of Looking outside and inside the organization

Now that you've identified opportunities (O) and threats (T) and also strengths (S) and weaknesses (W), you could to do a SWOT analysis in order to identify important priorities to address and how to address them, i.e., identify strategic goals and methods/strategies to achieve them.

2. Other guidelines to identify strategic goals and methods to achieve goals

In addition to a SWOT analysis, or you choose not to do one, consider the guidelines given. Each might give ideas for how to identify the best approaches to selecting the best goals and methods/strategies to achieve those goals.

• Consider your business model

• Evaluate your strategies

4. Developing the IDEA of an organization

Ideas, not unlike living beings, grow and decay. Setting the organizational objectives is the starting point of managerial actions. An organization’s end results for which an organization strives is termed as “mission”, purpose, objective, goal, target etc. Many times these terms are used interchangeably as all these denote end results[⁸].

Vision Statements and Mission Statements are the inspiring words chosen by successful leaders to clearly and concisely convey the direction of the organization. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and motivate your team or organization to realize an attractive and inspiring common vision of the future. "Mission Statements" and "Vision Statements" do two distinctly different jobs[⁹].

• Developing/Updating a Mission Statement

A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal – to define the key measure or measures of the organization's success – and its prime audience is the leadership team and stockholders.

• Developing/Updating a Vision Statement

Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values rather than bottom line measures (values are guiding beliefs about how things should be done.) The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers' understanding of why they should work with the organization.

• Developing/Updating a Values Statement

A value statement is an expression of a company's or individual's core beliefs. Companies write the statement to identify and connect with the consumer. Additionally, the declaration allows for the company's staff to be aware of the priorities and goals of the company. The value statement, along with a mission and vision statement, will form the corporate culture and climate. Guiding principles are positive statements about the core mission of the agency. They share the company's aspirations with their customers.