There are many, varied types of organizations which want and need to create plans. The small start-up, the large multiple-product business, and the not-for-profit all share have this common thread: planning is essential to success.
Business planning provides management with a realistic and systematic process:
- To evaluate the present and desired status of the company;
- To evaluate the present and expected status of the competition;
- To identify assumptions on which to operate;
- To reconcile conflicting views.
That being said, we decided to put together a list of ten strategic business planning terms that we believe will help tilt the odds of success in favor of any organization that becomes familiar with them and more importantly, understands them.
Use these 10 strategic business-planning terms as an ongoing business reference at your convenience.
#1 – Vision
The view of the future of the organization, which stresses what the visionary, wants the organization to become. It is the integration and synthesis of information with dreams.
#2 – Philosophy
The set of basic beliefs which establish the parameters for the business and its personnel; a statement of what we do and what we do not do.
- Why are we in business?
- How do we do business?
- What do we do and not do as a business?
#3 – Mission
The primary focus of the business which answers the question,
- What business are we in?
#4 – Status
An assessment of the present position which answers the question,
- Where are we?
#5 – Strategy
A method or course of action for dealing with competitors. It can be either proactive or reactive.
- Who else is in this business?
- How do we relate to them?
#6 – Objective
An aim or end of an action; results to be accomplished. For the business as a whole it answers the question,
- Where does the business want to go?
#7 – Goal
A point toward which a planning unit strives; a step forward accomplishing an objective. For the planning unit it answers the question,
- Where does the planning unit want to go?
#8 – Tactic
Methods of using resources to reach goals. It helps to answer the question,
- How do we get there?
#9 – Projection
A qualitative estimate of the results expected from using various tactics, particularly those we expect to employ.
#10 – Budget
The quantification of the plan. It should show expected benefits (in financial terms) and the costs needed to achieve those benefits. It should be driven by the plan rather than driving the plan.
For more information about business planning, or if you would like more information about how we can help, contact the Onisko & Scholz team today at 562-420-3100.