Bottom-up vs. Top Down
Unlike top-down approach for Strategy document, strategic business plan is done bottoms-up, keeping in mind the Strategy Blueprint.
Starting from making sub-objectives onwards, typically this work is done by the concerned unit head, and he/she presents the sub-objectives, measures, standards, financial outcomes of his/her unit.
For example the war room decides to launch an offensive battle on northern flank with in next one week. The area commander is called and asked to submit their plan on how to achieve it. The commander makes his plan and submits on the troops, guns, ammunition, air support he/she will need. The war room processes the request and approves the allocations, given the overall availability & priorities at the war level.
Align and Engage all Business units and managers
Just like the whole senior leadership is aligned on Strategy Map, the same will be done for all managers (any one who is leading a team) to be aligned on the strategic plan.
With central strategic planning unit having processed the inputs from all the units, the Strategic Business Plan will be shared with all. This achieves the following objectives:
- Understanding and agreement of cross-functional expectations.
- Joint validation of how the strategic plan is aligned to the Strategy Blueprint.
Publish the Strategic Business Plan
The Strategic Business Plan will have the following sections:
- Performance Comments till date.
- Summary of Strategy Blueprint driving the business plan.
- Organization level business targets (detailed for next 3 years and high level for next ten years)
- Organization Level Financial Business Plan
- Key performance ratios and assumptions
- Unit Level business and financial plans
- Head-count plans
- Commentary on uncertainties and risks to the plan, their sensitivity impacts and mitigation strategy.