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An information technology (IT) strategic plan is a document that details the comprehensive
technology-enabled business management processes an organization uses to guide operations.
It serves as a guide to IT-related decision. The plan also helps guide an organization as it
formulates its overall IT strategy. While an IT strategy focuses on how IT will help the
business succeed, an IT strategic plan is a roadmap to help the business implement those
strategies. The plan outlines areas where IT can contribute business value and where an
organization can gain competitive advantage by making the best use of technology resources.
The objectives outlined in an organization's IT strategic plan align with the organization's
goals and mission, but are pliable enough to accommodate new business priorities and
technologies that have the potential for driving business growth. It is important for an
organization's IT team to know its priorities and identify the IT projects that the business
should invest in. According to Gartner, an IT research and consultancy company, the plan
delineates what has to be done, in what priority and how the plan's success will be measured.
Example: Microsofts vision early on: A Computer on Every Desk in Every Home.
Stanford University in the 1940s:To become the Harvard of the West.
4. Strategic Agenda
What is the discrete set of projects we are going to undertake in the next 1-3 years to move
toward our vision and make the needed improvements to our operations? The answer here is
the strategic agenda. Note the strategic agenda is not restricted only to projects that move the
company toward its vision, expand its client base, etc. The agenda also encompasses those
internal projects that fix the organization and give it the ability to tackle its long-term goals.
The estimation in the eyes of employees (the followers) of the quality of leadership in the
organization, including the board, will hinge in large measure on whether they view
leadership got the strategic agenda right. Do they understand the true condition and what
needs to be fixed? Have they developed a winning strategy that assures a secure future for the
company and all those who work within it?
5. Project Plans
For each of the projects in the approved strategic agenda, a project plan should be developed.
Each project plan should include the following list of elements.
One year target for accomplishment for the project; a result or condition to be achieved
Two or three year target for accomplishment on projects that will take more than a year to
implement
Metric: the measure that will show whether the project is having its intended impact, e.g.
growth in revenue, market share, reduced employee turnover, improved customer
satisfaction. Note that a solid metric is not one that measures whether or not a project is being
completed, but rather that it is accomplishing the intended goal. Not all projects will have a
metric, either because of the nature of the project, e.g. construction of a new building, or
because it is not time and cost-effective to do so, e.g. improved employee morale. Good
metrics are ones in which it is cost-effective and appropriate to gather and assess data on a
monthly basis. (For more on metrics visit these blog posts.)
Milestones to reach annual target: What are the major steps or milestones that must be
completed to reach the target? Most projects have 3-10 major steps. Management should be
spell out what each step is and when it will be accomplished during the year in order to reach
the target by year end.
Accountability: A member of management should be assigned accountability for each
milestone or major step on every project in the strategic plan. This individual is committing
to see the milestone through to completion, not necessarily to do all the work. The work can
be assigned to a team, but there should be one person who answers for that team in leadership
meetings. Ultimately, the CEO is responsible for the plan as a whole, and is the one who
answers to the board on progress.
6. Annual Budget
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The budget for the year is the financial map for accomplishing this years objectives
described in the strategic plan. The strategic plan makes clear what the priorities are and
where resources should be concentrated. The budget outlays the use of resources to complete
objectives and goals.
7. Capital Expenditures Plan
This is the plan leadership puts in place for replacement of facilities and equipment as
needed. The reason for such a plan is that if equipment suddenly breaks down and must be
replaced, the money has to come from reductions in funding for operations, unless you have
already planned for the replacement. This can be disruptive to the financial condition of the
organization and thus to operations.
4. Strategic Agenda
Recall that the strategic agenda comprises both strategic, vision-related projects and internal
improvement projects.
For those projects that move the organization toward its vision, the boards involvement is a
function of the level of expertise and level of understanding of the organization and its
strategic context. That is, can the board or some of its members add value to consideration of
strategy? If not at this point, getting there should be a goal in the boards development. If yes,
then board members should serve on committees of management and staff that assess the
strategic environment, define opportunities and threats to growth and then recommend a
discrete set of priority strategic initiatives for the coming year. At a minimum, the board
should assure that a sound strategic assessment process is conducted by management and
then approve or revise as needed the list of recommended strategic projects for the coming
year.
For improvement projects geared to operations, the board serves as a sounding board and
offers final approval to management on their recommendations as to where attention and
resources should be applied in order to realize improvements.
5. Project Plans
The board gives final approval to management of the projects, targets, metrics and milestones
developed in the strategic plan. If done well, the set of project plans form a type of contract
between management and the board as to the work committed to by the organization in the
coming year. Regular review of this contract can keep the board current on progress and
catch potential problems early.
6. Annual Budget and Capital Expenditures Plan
The board is responsible to adopt a financial plan. This includes an operating budget and a
capital expenditures plan. Again, the level of involvement of the board will range from
simply approving the work of the management team on one end to active involvement in
committees that work on preparing the budget. Where, the board is on that scale is a function
of the expertise and understanding the organization amongst board members. If the board can
add value to the exercise, be more active. If not, they assure that it is being done well by staff.
Involved in the budget exercise are major policy questions such as insurance levels, salary
scale, employee incentives and benefits.
Role of staff
The role of staff in planning does not alter with the level of competency and active
involvement of the board. Depending on their knowledge level, members of the board are
either partnering in the processes that are spearheaded by management or only approving the
results of those processes.
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1. Mission Statement/Purpose, Core Values and Vision (i.e., the Core Ideology)
The board is ultimately responsible to develop the core ideology. However, management is
encouraged to participate and lend their expertise in the discussion. Once developed, it is the
responsibility of staff to incorporate these elements into both the work they do and the way
they do it. In particular, when management begins its assessment for the strategic agenda, the
vision should be a source of direction on where the strategic projects should take the
organization.
2. Strategic Agenda
Management completes a strategic assessment that evaluates how well customer needs are
being met, how the organization stacks up against competitors, uses technology and responds
to political, socio-demographic, and economic trends. From this assessment should come a
recommended set of priority initiatives for growing the organization and/or improving
services to customers.
Also in developing the strategic agenda, management completes an internal assessment that
gives the board a full report on the condition of the company. Where can performance,
morale, profitability, quality, and consistency be improved? Included is the determination of
what improvements to operations are needed. Again, management should be assessing how
well the organization is performing on the current strategic agenda or set of products/services.
Are we efficient? Is our quality high and consistent? Is our profitability where it should be? Is
our morale high? Are our systems effective? There are a myriad of questions to be answered
to truly understand the condition of the organization and then to define areas where attention
and resources should be applied in order to realize improvements
3. Project Plans
Management develops detailed project plans for each project on the approved strategic
agenda for the coming year. The plans can be tracked by the board, so that members can
determine whether progress is satisfactory and if projects are meeting expectations. Included
is the definition of measurement methods for evaluating whether the strategic and
improvement initiatives are having their intended impacts.
Conclusion
Strategic planning sets the course and desired future for an organization. It is the anchor to
which staff and leadership can come back to again and again to say This is who we are. This
is what we desire to achieve. A solid strategic plan should become both a key management
tool for the staff and a performance contract between the board and management.