Creating a business strategy is all about taking a group of people and getting them to agree on a set of Goals, Objectives, and Plans that will result in an organization moving from its current position to one that is improved. Ultimately, for this to be successful, there has to be agreement on how the change will be measured as well.

Organizations consist of people who gather together to meet the needs of others. Some organizations are philanthropic in their mission and others are profit oriented. Regardless of the type, enterprises are more likely to succeed if they have a plan than if not and to the extent there is agreement among decision makers, it is even more likely the organization can succeed.

The starting place for strategy creation in an organization is understanding what the business is all about. While one might assume everyone knows what is done in the business that is not the same thing as answering the question “what business are we in?” For many, this means reexamining mission, vision and values. It is also important to understand the finances of the business and to define the markets that are currently active as well as those you want to enter.

There are a myriad of tools used to analyze the markets that range from SWOT (Strengths, Weaknesses, Opportunities, and Threats, to use of the BCG (Boston Consulting Group) matrix. Other tools include use of financial ratios, decision trees, Porters Five Competitive Forces. There is literally a different tool for every letter of the alphabet.

The best strategic plan without an implementation roadmap is better suited as a framed piece of art. A critical component to a strategic plan is getting the organization aligned and committed with a roadmap identifying milestones and timeframes. A flawed implementation plan can derail the even the best strategies.

The best strategic plan is never complete as it requires constant monitoring and adjustment. Plans are not set in concrete, but neither should they constantly shift with the wind. They need to be flexible enough to respond to a changing environment but be given enough time to be adequately evaluated.

To summarize, a business strategy responds to these four questions.
Where are we now?
How did we get here?
Where do we want to go?
How can we get there?