Step 4 – How are we going to get there?
Typically called – “Strategies” – this section/chapter lays out the strategies that the company has developed to grow revenues and profits for implementation during this business planning period. You’ll want to answer all of the questions for each strategy to ensure full consideration.
The format for this section is (for every strategy):
- What the strategy is (a description of the strategy)?
2. What the rationale is for the strategy (why we are implementing this strategy)?
3. Who is responsible for implementation (a specific manager)?
4. How long is the implementation going to take and what is going to be accomplished quarter-by-quarter (specific activities by quarter)?
5. How much is going to be spent on each activity each quarter (a quarter-by-quarter listing of expenditures)?
6. What is the expected return on the successful implementation of each strategy (the ROI for the strategy)?
When completed, this section should present a clear picture of what the management team plans to accomplish to continue to grow the revenues and profits for the company, and how much that will cost.
This section is particularly important because it lays out the quarterly strategic milestones that have to be reviewed on a quarterly basis, so that depending upon the success or failure of the expectations for each strategy for that quarter, decisions can be made as to how to continue to proceed strategy-by-strategy. And how to continue to allocate investments based upon these results.
This way management can better control the investments in the company’s future depending upon the levels of success or failure of each strategy on a quarterly basis.