There are a variety of strategic planning models but most of them consist of the following components:
- Developing a mission statement the reason for the organization's existence.
- Performing an external audit what opportunities or threats exist outside the organization.
- Performing an internal audit what strengths and weaknesses exist within the organization.
- Determining what factors are critical to the successful accomplishment of meeting the mission.
- Establishing long-term objectives long-term reflects the organization's conviction to stay the course.
- Generating, evaluating, and selecting strategies determining what is the best way to take advantage of the opportunities and avoid or find ways around the threats using the organization's strengths.
- Establishing policies and annual objectives making sure that the actions and operations undertaken during the year are part of a long-range plan.
- Allocating resources limiting scarce resources to the most critical activities.
- Measuring and evaluating performance the justification for having taken an action or for stopping and adjusting an action taken.