A farmer, when planning a cropping enterprise in the long-term, may forecast the eventual replacement of a combine with a newer model that has increased efficiency and capacity. However, when developing a strategic plan, long-term market trends, alternative opportunities, new technology and other factors are analyzed. This analysis might determine the emphasis on cash crops versus other farm enterprises, decisions on the future expansion of land, labour or capital, and other strategic decisions. However, strategic planning may result in facility expansion or major changes to programs as a result of social or demographic trends. When strategic planning, your organization should emphasize team planning.
Strategic planning requires a significant investment of time and energy.
A visible commitment from top leadership is required for effective strategic planning. The strategic planning process is shown by the model accompanying this Factsheet. Note that the arrows indicate a continuous need for feedback, evaluation and comparing with previous steps. New information or further analysis of issues may suggest a modification of objectives or even of the basic mission of an organization. The mission statement establishes what the organization plans to do, for whom, and for what benefit it will exist.