Section A of the ACCA P5 Advanced Performance Management syllabus deals with Strategic Planning and Control. In this article, we’re going to look at the main areas of a Strategic Plan.
What would you expect to see if you’re reading or writing a strategic plan? It boils down to four key areas:
1. Context
Where is the company now? This section will include the results of an environmental appraisals or position audits carried out by the company.
2. Long-Term Plan
The long-term plan section of a strategic plan will include things like the company’s mission statement, it’s long term objectives (for example, positioning, sales volume or % of market share). It will also list some critical success factors to judge whether it has been successful in reaching these goals.
3. Short-Term Plans
A company’s short-term plans will focus on the year ahead. What are the company’s annual goals? Does it have any strategic projects currently under way (e.g. major infrastructure projects)
4. Implementation Plans
Finally, how does the company plan to reach those aims? In this section, you’ll find schedules, budgets, KPIs and other performance measures.