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What Is the Meaning of Corporate Planning?

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A Financial Plan Vs. a Pro-Forma Cash Flow Budget

How to pitch a business plan, what is needed for a business restructuring plan.

• Definition of a Successful Strategic Business Plan
• Tactical and Operational Planning

Corporate planning is an effective way for you to plan the direction of your small business to boost revenue and profit margin. Although you may not have the budget to devote an entire department to corporate planning, you can still become proficient by learning basic concepts that will help you create a comprehensive plan.

The Process of Planning

Effective planning requires gathering data about the projected growth of the industry and information about competitors – their strengths, weaknesses and the strategies they are deploying. You must also identify the best opportunities for your company to pursue.

You can begin this process by analyzing customer needs and determining how to create products and services to meet those needs. You can then set goals for your company, which may include revenue targets and productivity goals such as the gross margin percentage you want to achieve. The next step is designing strategies and action plans – the specific steps you and your team will take to reach company goals.

End Products

You need to prepare an annual business plan that includes a narrative discussion of the opportunities your company intends to pursue and the strategies you will implement. Forecast financial results – the projected revenues, expenses and profit for the company – are also part of the plan. Some companies prepare a separate strategic plan, which focuses mainly on the strategies the company will use to beat the competition and the logic behind the strategies. You can also prepare a long-range capital plan, which describes large projects such as building a new manufacturing facility.

Value of Planning

When you commit to corporate planning, you can also identify emerging opportunities by continually gathering information about changes in the business environment, including changes in customer needs. Planning lets you use your human and financial resources more wisely. The strategies you choose have a greater probability of success when based on a more complete understanding of your customers and competitors.

Challenges of Planning

One of the challenges you will face is that your company’s actual results may not match forecasts because it is very difficult for you to anticipate the direction the economy will take and whether your competitors will find success with their own strategies. Predicting how readily your company’s target markets will accept your products or services is difficult as well. The cost of introducing a new product or entering a new market may be significantly higher than you expected.

Making the Process More Meaningful

The plan will be more valuable – and accurate – if you ask your team members for their input. Employees who deal with customers on a daily basis, for example, can provide insight regarding customers’ most pressing needs – and what aspects of its operations the company needs to improve in order to attract more customers. Companies that gather information about competitors on a systematic basis, called competitive intelligence, are better able to identify threats to the business from changes in competitors’ strategies. You should consider revising the financial forecast in your plan during the year if business conditions materially change.

• Entrepreneur: An Introduction to Business Plans
• Entrepreneur: Updating Your Business Plan

Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."

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What is the business planning process, purpose of corporate planning, the differences between business planning & corporate planning, fundamental principles of strategic & business planning models, what does strategy implementation involve, business enterprise planning, techniques of strategy evaluation, what is a strategic business plan, what is the difference between a marketing plan & a corporate plan, most popular.

• 1 What Is the Business Planning Process?
• 2 Purpose of Corporate Planning
• 3 The Differences Between Business Planning & Corporate Planning
• 4 Fundamental Principles of Strategic & Business Planning Models

What is Corporate Planning? Types, Process & Importance (2023)

Planning is considered an indispensable part of businesses, as it offers direction to complete daily actions easily. Corporate planning helps prepare the required course of action to complete different business activities. You will be able to execute the business plan easily through the corporate planning process.

 As you gain an understanding of corporate planning, you will be able to work in an efficient manner. As you read this article, you will understand what corporate planning is, the different types of corporate planning, and the various steps involved in the creation of a corporate plan.

What is Corporate Planning?

Corporate planning refers to the processes by which different kinds of businesses create different kinds of strategies to accomplish different business objectives. It also helps meet various kinds of business goals easily.

The corporate planning process includes strategy direction, strategy definition, resource allocation, and decision-making. With corporate planning, you can be assured that you will be able to accomplish all the business functions —- and operations properly.

It also helps the team work toward similar goals. Furthermore, corporate planning is critical in identifying the critical challenges to achieving business objectives. It refers to a dynamic and continuous process that will last through the business’s life.

Importance of Corporate Planning

It is not possible to perform business operations without a proper corporate plan. The actions and principles that are mentioned in the corporate plan help bring the business plans to life. If you are willing to enhance the returns on investment of the business to 25 percent in the next few years, you should come up with a proper corporate plan.

It is useful in visualizing the steps; you need to get there internally. An integral aspect of turning a profit is decreasing operating costs. Now, we will discuss the benefits of corporate planning:

Offer clear goals for the business enterprise.

Corporate planning has become the need of the hour as it provides a sense of direction for the professionals who are working in a business enterprise. Through corporate planning, you will be able to take the right actions with the utmost certainty, as it includes a plan that guides different actions. As a result, you will be able to comprehend what you require to successfully achieve your business objectives.

Help with resource allocation

Among the instances of corporate or organizational resources are money, equipment, time, information, and infrastructure knowledge. The knowledge of infrastructure includes functionality, procedures, and systems.

The information, on the other hand, refers to external and internal data and the latest trends. Corporate planning helps allocate efficient resources, reduce costs, decrease waste, and boost profitability.

Boost the communication between employers and employees.

With the implementation of corporate planning, you will be capable of easing the group participation process, which helps execute the decisions. It helps to have a prerequisite understanding of the strategies and plans.

It assures that the employees will be able to execute the tasks efficiently. In addition, it helps get the proper review and feedback from the team. Gaining an understanding of the different areas helps boost efficiency. In addition, it improves the workplace culture.

Communicating the brand message

As you define the vision and mission statements, you will be able to define the core values of the business enterprise. It helps convey the brand message effectively. With the implementation of the corporate plan, you will be successful in communicating the brand message to the employees, customers, investors, shareholders, and creditors.

Create better strategies through a local approach.

The term “strategy” refers to an approach you can take to achieve the business’s objectives successfully. If the goal of your business is to create a product that will become the category leader in sales revenue by 2023, you need to come up with a strategy that will convince potential buyers that the specific product is the best in the market.

 It can be achieved by investing in different advertising campaigns for the specific product. As you opt for corporate planning, you will be capable of easing the strategy formulation process as it adopts a methodical and logical approach. Moreover, it plays an integral role in making the decision-making process easy.

Types of Corporate Planning

While drafting the corporate plan, you should connect the specific areas present in the silos. Now, you should come up with corporate plans that will pull together and cut across various kinds of work in the specific company. Now, we will tell about the different types of corporate planning, implemented at the company:

Operational planning

Operational planning involves taking the proper business plans, in which they lay out the actions, and using them to reach the business objectives internally. Individuals are assigned to take the necessary ownership of the specific actions in the operational plan.

Choosing the OKR framework, or objectives and key results is useful in moving the high-level plans to the individual action level. Implementation of the model helps business leaders accomplish their strategic objectives.

 Speaking of the team level, the employees and managers will review the strategic objectives of the business and create the goals. Such a process leads to clear ownership over the smaller objectives that feed into the massive business objectives of the business enterprise.

Strategic planning

This kind of corporate planning process helps with resource evaluation. It helps recognize the gaps, which should be filled to accomplish the business results. It is essential that the department and business leaders enter into the right conversation, which helps recognize the company resources necessary to conduct the business plan.

Project planning

This kind of planning involves breaking the business plan into different individual projects with defined goals. Such plans offer a blueprint for different project managers. They help keep the resources, schedules, and costs on track, which helps deliver the proper results. As the operational planning process connects the project and strategic planning processes, the project planning is tactical.

Tactical planning

This kind of corporate planning includes defining the objectives and determining the ways to achieve them through steps and actions. The business takes this step after the formulation of the strategic plan. Thus, you will be able to break the strategic plan down into smaller objectives.

Contingency planning

It refers to the process by which different kinds of business enterprises create strategies. It assures that the business organization will respond to the specific event, which will affect the operations. It assures that the organization can resume its usual activities after the occurrence of disruptive events and a natural disaster.

Corporate Planning Process

Let’s check out the different phases of corporate planning:

Creation of mission and vision statements for the company

The Monday statement includes the goals of the particular business and the world. It incorporates the primary industry, key services, and products of the business enterprises.

Creation of corporate objectives

As people use different objectives interchangeably, they include certain differences. The goal indicates the short-term statement, defining the goals of the business within a certain period. The objective defines the measurable and actionable step that will take you towards a specific objective. As you try to create objectives for a specific department, you should be specific and detailed.

Taking the strengths and weaknesses of the business into account

After setting the goals, you should take the weaknesses and strengths of the business enterprise into account. SWOT analysis is a common approach to executing this. To conduct this analysis, you need to enlist the corresponding characteristics in every category, after which you should capitalize on the opportunities and strengths to neutralize and counteract the weaknesses of the business enterprise. It is useful in finding potential challenges, which helps accomplish the business objectives.

Integration between long-term and short-term plans

While creating corporate plans, it is of paramount importance to take the long-term and short-term business goals into account. It is possible to achieve short-term goals in as little as 6 months to 2 years. Long-term business objectives, on the other hand, can be met in 3-5 years.

Plan Integration

After having a thorough understanding of the business objectives, you should work toward the plan’s implementation. At this point, the action plan is developed. It includes the responsibilities that are taken on as well as the expected timeline for completion. Moreover, you should track the plans and avoid specific challenges. After this, you should set up regular meetings for the review of the action plan’s progress.

Performance evaluation

The last step involves evaluating the performance. The objective is the alignment of expectations with the plan’s contribution. It is useful in measuring the impact and progress.

Tips to craft an effective corporate plan

Now, here are some pointers for developing an effective corporate plan:

Make the plan public.

It is essential that the whole business enterprise ensure the success of corporate planning. So, you should take steps so that every employee can access the plan. You can also consider sharing it with the department leader and board members for the maintenance of commitment and accountability.

Reduction in annual to quarterly plans

You should reduce the plan to specific management priorities along with the deadlines. You should increase the plan’s frequency to measure the progress. If you come across a challenge, it is recommended that you make certain corrections to the specific quarterly plans.

Drafting action plans

Making action plans will assist you in remaining committed and motivated to the company’s goals. These kinds of action plans play an integral role in completing short-term objectives within a specified time period. It decreases the period necessary for the objectives’ creation.

Executing regular meetings

As you conduct meetings with the employees of the business enterprise regularly, you will be able to review the priorities and KPI s’ progress. Such kinds of meetings are useful for finding the right solutions. As a result, you will be able to make changes as needed. 

If you are looking for a suitable opportunity to manage the business properly, it is essential to go for proper corporate planning. The above-mentioned insights and tips help to deliver useful tips which will ensure business growth. Apart from corporate planning you also need to understand functional planning .

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What is a corporate plan?

A corporate plan is designed to be a Commonwealth company's primary planning document. It provides Parliament, the public and stakeholders with an understanding of the purposes of the company, its objectives, functions or role. It sets out how the company undertakes its key activities and how it will measure performance in achieving its purposes.

The r ole of corporate plans in the Commonwealth performance framework

The corporate plan is published at the beginning of the reporting cycle and sets out a company's key activities and how performance will be measured and assessed.

For any companies that receive appropriation funding, the Portfolio Budget Statements set out the appropriation for the company and how the impact of that expenditure will be measured.

Unlike Commonwealth entities, Commonwealth companies are not required to prepare annual performance statements. However, Commonwealth companies' annual reports are required to report the results of the measurement and assessment of the company's performance for the period. This includes the results of the measurement and assessment of the company's performance against any performance measures and any targets included in the company's corporate plan and Portfolio Budget Statements where relevant.

Does my company need to publish a corporate plan?

Commonwealth companies are required, under section 95 of the PGPA Act, to publish a corporate plan on their website.

Commonwealth companies must prepare their corporate plans in accordance with the requirements of section 27A of the PGPA Rule. This refers to the preparation of a corporate plan under section 16E of the PGPA Rule, other than:

• Item 5 of section 16E(2) that refers to specified performance measures and targets, and
• Section 16EA that refers to performance measures for Commonwealth entities.

Government Business Enterprises (GBEs)

Section 5 of the PGPA Rule identifies those Commonwealth companies that are government business enterprises (GBEs) for the purposes of the PGPA Act.

Commonwealth companies who are GBEs are required to prepare corporate plans in accordance with the requirements set out in section 16E and 27A of the PGPA Rule, together with any additional requirements specified in RMG-126 Government Business Enterprise (the GBE Guidelines). This document can take the form of a complete corporate plan, a redacted corporate plan, or a statement of corporate intent. The plan must address the minimum requirements as prescribed by the PGPA Rule. In doing so it should include sufficient non-confidential or non-commercially sensitive information to inform how the GBE plans to deliver on its purposes.

For further information on the GBE Guidelines, please contact  GBE Policy .

What is a reporting period?

A corporate plan must be prepared at least once each reporting period. For a Commonwealth company, a reporting period is a financial year. This means that the corporate plan will be prepared each financial year.

Period of the corporate plan

The corporate plan must cover at least 4 reporting periods, commencing from the reporting period for which the corporate plan is prepared. This does not prevent a company from producing a corporate plan that covers a longer period if that best addresses the company's specific requirements.

For example, a corporate plan prepared by a company for the 2023-24 financial year would be titled as that ‘company’s 2023-24 corporate plan’. That plan must cover at minimum 2023-24 to 2026-27.

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What is Corporate Strategic Planning?

Corporate Strategic Planning is a companywide approach at the business unit and corporate level for developing strategic plans to achieve a longer-term vision. The process includes defining the corporate strategic goals and intentions at the top and cascading them through each level of the organization. Many organizations confuse the annual budgeting process with corporate planning. Corporate strategic planning should come first and annual budgeting should be driven by the strategy, not by prior year’s budget spend.

Why is Corporate Strategy Important?

A corporate strategy can focus every employee and resource in a company on the same objectives, and it aims to use them all efficiently. It gives every employee a set of guidelines they can use in their everyday work to move toward certain targets, which promote the vision and mission of the company. Corporate level planning can also improve efficiency within the organization and help identify unseen bottlenecks or pain-points.

The corporate strategy gives leaders and employees ideas to use for the improvement of distinctive activities (processes and operations) that create a competitive advantage. The strategy can also help executives to protect the company from entering into costly or irrelevant opportunities. What are the steps involved in strategic corporate planning? Corporate strategic planning begins by clarifying the vision and mission of the organization and the space the business chooses to compete in. Clarifying the organizations position will help you develop and effective strategic planning framework.

1) Competitive Analysis

A competitive analysis needs to be conducted, to understand the trends that could impact the success of your strategy. Common factors that could be analyzed include political, legal, social, environmental, technological. There may be other factors you may want to consider that are relevant to your business and industry.

2) Strategic Goals & Priorities

Once you have completed a competitive analysis, the corporate leadership team will set the overarching strategic goals and priorities for the organization.

Once the strategic goals and priorities are finalized, each business unit needs to define its strategic goals and plans on how it can contribute to the overall direction of the enterprise. That includes not only what is to be accomplished, but how it will be accomplished including high level plans, budgets, human resources, etc.

3) Communication

Once business unit plans and directions have been set, the information needs to be communicated and shared with leadership inside the business unit so that priorities and plans can be aligned and integrated within a single budget.

What is Strategic Business Planning?

At the corporate level, an enterprise develops a portfolio of businesses they choose to compete in. This is a high-level analysis of a business’s competitive and core capabilities, and how each business contributes to the overarching corporate goals. Supported by the corporate strategic business planning process, these businesses are then set up, sponsored, and supported as business units at the operating level.

What Are The Types of Corporate Strategy?

When looking at the types of corporate strategy, it is important to consider a positioning grid that looks at the source of competitive advantage as well as the space where the business competes (markets, geography, size, etc).

Strategy 1: Low Cost Strategy

This type of strategy is one in which your source of advantage is simply competing on cost and being the low-cost provider. With this strategy an organization must exploit all sources of cost advantage. This includes things such as:

• Economies of scale
• Cost of inputs
• Operations excellence to help drive down costs
• This type of strategy requires an organization to compete more broadly (markets, geography, size)

Strategy 2: Differentiated Strategy

In a Differentiated Strategy, the focus is on competing by being unique or distinctively different in your industry. A differentiated strategy provides a product or service in more of a niche market where customers see the importance of offerings and are willing to pay a premium price. While this strategy still has a broad focus on how and where it competes (markets, geography, size), it serves its customers in a differentiated way. Differentiation can include factors such as:

• Technical superiority
• Customization
• Products or services that are difficult to copy
• Customer Service

Strategy 3: Segmented Strategy

A segmented strategy is one in which you have clearly differentiated yourself from the competition. The space in which you compete has a narrow focus. You serve a distinct group of customers with specialized needs. In this space, there are few product or service substitutes that can be offered and while you may not have the volume of customers, profit margins tend to be higher because of the lack of substitutes. and there are few substitutes for your offerings. It is important for every organization to understand where on a strategic position grid it currently sits and where it may want to be — adapted from Michael Porter

What Is the Difference Between Corporate Strategy and Business Strategy?

Corporate strategy, in contrast, involves the plans that a larger enterprise must form when it is composed of multiple smaller businesses or entities. For example a business unit may need to examine factors unique to the industry or competitive landscape that is fundamentally different than its corporate parent.

As a large enterprise, company, or private equity group takes on more acquisitions, it must work with its respective businesses to craft a business strategy and plan that is unique to them and drive competitive advantage through their products, services, and market positioning.

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Corporate Planning Definition – Strategy, Importance, Objectives and Elements

March 30, 2021 | By Hitesh Bhasin | Filed Under: Management

Corporate planning is a type of strategic planning , responsible for mapping out a course of strategies and their implementations to empower top- management . It optimizes exposure, reach, leads, sales, profits, credibility, loyalty, sustainability , and opportunities of a business .

With the help of corporate strategic planning, a business can efficiently channelize corporate management by leveraging its resources with better acumen than the other market players.

Businesses of any size should incorporate such strategic planning, as it offers-

• Clarity & Direction
• Efficient use of resources
• A way of measuring progress
• Optimized decision-making
• Better coordination in business activities
• Effective allocation of responsibilities
• Motivation and guidance to members
• Analysis Strengths and weaknesses along with opportunities and threats via SWOT analysis , etc.

All in all, corporate planning empowers any kind of business to accomplish its business goals in a more effective and organized manner.

Table of Contents

Corporate Planning Definition

Corporate Planning is defined as forming long-term goals and objectives within the organization’s strengths and weaknesses in the existing and prospective environment.

This is done to ensure the achievement of their plans by combining their short-term and long-term objectives or bringing amendments in the structural working in the organization’s composition.

In the words of David E. Hussey, writer of the book- Corporate Planning: Theory and Practice-

Corporate planning includes the setting of objectives, organizing the work, people and systems to enable those objectives to be achieved, motivating through the planning process and through the plans, measuring performance and so controlling progress of the plans and developing people through better decision-making, clearer objectives, more involvement, and awareness of progress.

What is Corporate Planning Strategy?

Corporate Planning is a strategic process applied by several business organizations to form a roadmap to grow in the market, enhance profits, gain industrial exposure, and strengthen brand identity.

It is a vital tool that successful business organizations use to leverage their existing resources better and more analytically than competitors.

It is the determination of business goals, formulation of diverse strategies for attaining objectives, transforming the goals into tactical plans, implementing and reviewing it to find out the progress of strategies, and finding out loopholes.

Different factors around which corporate planning is channelized via effective SWOT analysis and process of corporate management are-

• Creation of long-range corporate goals and objectives.
• Analysis of Macro and Micro Environments .
• Analysis of Strengths and weaknesses of the business
• Coordination between short term and long term business plans
• Structural changes in the business
• Implementation of the strategic plan as per business goals
• Adept use of scarce financial resources.
• Right evaluation of performance as well as feedback for purposeful corporate planning

Importance of Strategic Corporate Planning

In the current modern era, corporate planning holds a crucial position in a business organization, be it large-sized, medium, or even a new entrant.

The importance of corporate planning can be justified because some companies even hire departmental corporate managers to check the industry’s current scenario and the current status of the organization in the market.

Some of the points that describe the need and importance of corporate planning are mentioned below:

1. Long-term goals

Corporate Planning broadly focuses on long-term goals and sets a blueprint to achieve them in a stipulated period. Long-term goals help an organization keep its core focus on maintaining its efforts, workforce, and efforts on a pre-decided target .

Corporate Planning keeps the employees engaged in their respective tasks with deadlines and ensures effectiveness and efficiency . It also brings harmony, peace, and cooperation among the employees and supervisors in a firm as they all smoothly work towards a common objective.

A strategic business plan helps a business organization provide a focal point not to get deviated or distracted from its end goal. The first and foremost step of corporate planning involves devising a mission statement that tells the world its roles and objectives.

Formulation of a mission statement aids the firm stick to its focus, do all the requisite tasks, assign responsibilities to the employees, and evaluate their work to achieve that final destination.

3. Better Decisions

Developing a strategic plan helps a company make better decisions that are beneficial and helpful in attaining the mission statement. A corporate plan should be structured to spell all the information in the organization’s interest, like the skills required with the employees, machinery or equipment required, etc.

Forming a roadmap to achieve the final goal helps the business people hire the best personnel for their form, arrange funds according to the tasks, and further invest in the most viable propositions.

4. A Measure of Success

Corporate planning also acts as a yardstick to determine an organization’s success in achieving its goals. A firm shall periodically analyze its work to check its progress and make further amendments like replacing personnel, hiring more employees, arranging more funds, upgrading the machinery, etc.

Finding, evaluating, and analyzing the loopholes periodically that block the ways of achieving the mission statement helps in the upgradation of the work and ensure efficiency and effectiveness of the tasks devised. The touchstone function of corporate planning works best in the organizations that devise plans that allow for changes in attaining the tasks.

5. Saves money

The extra benefit associated with corporate planning is that it forms budgets that help save substantial sums. Budgeting allows a firm to allocate its financial resources to the projects that require it the most by cutting out unimportant expenses.

Having a detailed budget tells how much cash is earned, spent, or lent. This wipes out confusion regarding the amount of money allocated to different projects.

Objectives of Corporate planning in Management

Following are the basic objectives of corporate plans:

1. Setting a strategy

The fundamental objective of framing a corporate plan is setting a business strategy . At this stage, companies should look at the opportunities and analyze the threats in the market. For this, they can make a SWOT analysis and select viable propositions for investing their funds.

2. Planning the operations

Once a firm knows its mission statement, it can use these objectives and find ways of attaining them. The sole purpose of corporate planning is to help a firm plan and prepare a list of resources it requires to deliver to achieve its goals.

3. Monitoring and Control

There should be measurable indicators present in a strategic plan to evaluate the progress of the work rate vis-à-vis the initial plans. It mainly includes financial theory related to accounts, the value of output, etc.

Establishing and forming well-devised instruments to devise annual reports is a crux to a successful corporate plan. Since the market environment constantly changes with events happening in the economy, a company regularly needs to review its plans, policies, and even rules and regulations associated with the operations.

Elements of Successful Corporate Plan

There are six elements in a successful corporate plan:

1. Gathering information

Having all the information related to the firm, industry, and competitors are the primary step towards a well-defined corporate plan. Either a business is big or small, it should be aware of the happenings in the market in its sectors, find out opportunities, grab them at the right moment and beware of the threats.

2. Set the objectives of the plan

Having a well-devised mission statement helps a firm stick to its focus of achieving it and keeps all the strategic work smooth in operations. Setting objectives helps form a clear mind about the work done, and the purpose of doing the work makes it fascinating.

3. Devise strategies to meet goals

Having a blueprint helps in effectively achieving the objectives. Forming strategies define the work to be done by the employees. Managers and leaders mainly devise strategies considering the funds available, personnel in the organization, and the deadline to achieve the requisite target. It brings efficiency to the operations of a business.

4. Implementing the plan

The next step is to implement the plans effectively. It involves the execution of the assigned tasks by the personnel within the guidelines and deadlines set. It involves the execution of the assigned tasks by the personnel within the guidelines and deadlines set.

5. Monitor plan performance

An organization should monitor its work by forming progress reports, finding the drawbacks, and work on them immediately.

6. Evaluate the effectiveness of the plan

In the end, a firm should see if the corporate strategy devised by it is competitive or up to the market standards. A plan should be challenging to achieve. A plan that is easy to achieve may not be a viable option in the existing scenario. This may require the organization to reset its plans and considering the market standards.

What to include in a Strategic Corporate Plan?

1. vision statement.

The vision statement of a business talks about business goals that it is supposed to achieve. While planning your corporate strategy , it is important to focus on your vision statement. You should also plan as per your short as well as long term goals. Your goals should be backed for your strategic planning, plus your goals should also be SMART.

2. Mission statement

Next thing upon which you should pay heed while making corporate planning is a mission statement. It tells you how you are going to achieve your vision statement. It will let you know what you are planning to offer, the target market , and the USP of your company. It will offer an elevator pitch to your corporate planning just in a few lines.

3. Resources and scope

Your corporate planning should also pay attention to things that you have in your organization such as your systems, structures, employees, products, accounting, assets, divisions, programs, finance, etc that play a key role in accomplishing your goals. You need to map the current structural existence of your organization to have a proper view of things incorporated and associated with your organization.

4. Objectives

You should also include different business objectives and the ways you are going to measure success in your corporate planning strategy. Here, your objectives need to be measurable, strategic, realistic, achievable, and time-driven. Including vague objectives in your corporate planning statement is of no use here. Different types of objectives might include financial objectives, customer objectives, internal objectives, learning , and growth objectives.

5. Strategies

Finally, you should include strategies that will help you accomplish your business objectives. Such strategic planning can be for launching any new product , or decreasing labour costs by a certain percentage, but your strategies have to directly address the associated objectives. You should also chalk out a proper plan for implementing those strategies.

Here is a video by Marketing91 on Corporate Planning.

Corporate planning vs. Business Planning

Business planning involves strategies that a business uses and applies to attain its goals and objectives. Corporate planning consists of strategies that the employees follow to meet the objectives of an organization. The following points highlight the difference between corporate planning and business planning:

1. Interdependency

A business plan may exist without a corporate plan, but its strategies are linked with corporate plans. Without business planning, the goals and objectives of a firm would be ambiguous. Thus, both business plans and corporate plans are complementary to each other.

A planning process aids a business to succeed in the market and suggests new directions and amendments as per the industry’s short as well as long-range requirements. Thus, there can be several diversified effects on business and corporate plans.

3. Considerations

Corporate planning reviews each step of the working of an organization devised for achieving the mission statement. However, a business plan focuses on the organization’s overall goals, objectives, and progress. To evaluate the tasks, a business should consider several factors such as progress rate, personnel performance, requisite funds for further operations, and many more.

Corporate Planning Jobs in an Organization

Corporate Planning jobs fall under the broader career category of Chief Executives. Corporate planners are responsible for determining and formulating policies and strategies to offer an overall direction for the companies as per the guidelines suggested by the board of directors .

Strategy planning in such jobs revolves around planning, directing, and coordinating different activities at the top-most level of management by taking the services of staff managers and subordinate executives. Corporate planner jobs are also understood as strategic planner jobs.

Common corporate planning jobs are-

• Communicating with Supervisors, Peers, or Subordinates
• Getting Information from all relevant sources
• Communicating with Persons Outside Organization
• Directing, Guiding, and Motivating Subordinates
• Developing and Building Teams
• Establishing and Maintaining Interpersonal Relationships
• Developing Objectives and Strategies
• Monitoring and Controlling Resources
• Analyzing Data or Information
• Judging the Qualities of Things, People, and Services
• Resolving Conflicts and Negotiating with Others
• Evaluating Information to Determine Compliance with Standards
• Identifying Objects, Actions, and Events
• Interacting With Computers
• Organizing, Planning, and Prioritizing Work
• Interpreting the Meaning of Information for Others
• Updating and Using Relevant Knowledge
• Compiling, categorizing, coding, calculating, auditing, tabulating, or verifying information or data
• Coordinating the Work and Activities of Others
• Coaching and Developing Others
• Thinking Creatively
• Staffing Organizational Units
• Selling or Influencing Others
• Monitor Processes, Materials, or Surroundings
• Provide Consultation and Advice to Others
• Estimating the Quantifiable Characteristics of Products, Events, or Information
• Scheduling Work and Activities
• Performing Administrative Activities
• Training and Teaching Others
• Performing for or Working Directly with the Public
• Documenting/Recording Information

Wrapping Up!

The corporate planning process is an activity that involves a series of steps to be followed to achieve the end goal. Specifically, it involves a process that personnel in an organization does to achieve the mission statement.

The process to attain the end goal involves strategies at each level or department with clear and detailed tasks assigned to them within stipulated deadlines. The employees then execute the tasks assigned by their leaders and mentors following some guidelines.

Then managers and leaders analyze the work, make amendments to that, and suggest further improvement guidelines. The organization then check the viability of its plan in terms of its difficulty, market standards, and check whether it is practically achievable or not. Further changes to plans are made after evaluating previous plans to upgrade the formation of plans.

On the concluding note, we hope you would have understood what corporate planning is and how crucial it is for an effective business plan to get favorable outcomes.

Liked this post? Check out the complete series on Management

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Corporate Business Plan

The Corporate Business Plan is an internal business planning tool that translates council priorities into operations within the resources available.

The plan details the services, operations and projects a local government will deliver within a defined period. It also includes the processes for delivering these and the costs associated. 

What do I have to gather?

The following information is gathered prior to commencing the review of the Corporate Business Plan. It is important that the initial planning aspect occurs to ensure alignment and resource capability before a budget is determined:

• The Corporate Business Plan is used to drive development of the Annual Budget. Each year of the Corporate Business Plan is intended to drive the Annual Budget.
• Any external trends or key issues that would impact on the objectives in the Corporate Business Plan for the ensuing financial year.
• Performance data to assess where improvement is required over the ensuing financial year.
• Any internal operational issues or requirements that could impact on objectives need to be sourced.
• Reviews of the Strategic Community Plan or reviews of Council priorities which activate short, medium or long term community aspirations.

What do I do with it?

During the review of the Corporate Business Plan and Reprioritisation, the following key processes may be used:

• External analysis - examine and manage external trends and issues that could impact on the local government's operations over the ensuing financial year.
• Internal analysis - examine performance data, assess operational issues and identify the improvement strategies to be deployed throughout the duration of the Corporate Business Plan.
• Service/project evaluation - significant changes in community aspirations, expectations, priorities or external factors may require a method for re-evaluating services and projects to ensure alignment, cost-benefit and resource capability.
• Capability analysis – micro testing of resource capability ensures that the local government responds to changes in the community and business environment by prioritising its operations within its available resources. The long term (10 year) financial projections are updated and utilised during this analysis. They also drive the development of the Annual Budget.

What do I end up with?

The following are outputs of the Corporate Business Plan review and Reprioritisation processes:

• Annual budget - The financial representation of "Year 1" of the Corporate Business Plan, including detailed statutory financial requirements.
• Reprioritised/roll forward Corporate Business Plan - Outlining all of the local government's operations (including services, assets, Council priorities and projects), with detailed financial estimates, administrative responsibility and linkage to the Strategic Community Plan. The interdependent relationship with the Informing Strategies means that the level of resource capability over the extended life of the Corporate Business Plan is reviewed, assessed and updated as required.

Related resources

• pdf Integrated Planning and Reporting Strategic Planning Framework Short Guide Integrated Planning and Reporting Strategic Planning Framework Short Guide (pdf) (483 KB)
• docx Integrated Planning and Reporting Advisory Standard September 2016 Integrated Planning and Reporting Advisory Standard September 2016 (docx) (312 KB)
• pdf Integrated Planning and Reporting Advisory Standard September 2016 Integrated Planning and Reporting Advisory Standard September 2016 (pdf) (163 KB)

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The Ultimate Guide to Corporate Strategic Planning

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blog , Strategic Planning

Corporate strategic planning is essential to businesses and one of the basics of a business plan. It allows you to proceed toward your objectives with direction and focus. However, setting strategic goals is more complex than writing them down during a board meeting. The process requires careful evaluation and analysis to garner the best business results. 

Corporate strategy includes all the steps in strategic planning that turn your high-level goals into actionable objectives, maintain and elevate your competitive position and provide quantifiable feedback to keep a flexible and workable strategic framework. 

In This Article

What Is Corporate Strategic Planning?

Objective setting, allocating resources, making strategic trade-offs, why is corporate strategic planning important, what is the difference between corporate strategy and business strategy.

• Formulation
• Implementation
• Modification
• Establish the Your Corporate Strategic Objectives
• Develop Strategies for Achieving Goals
• Implement Your Corporate Strategy
• Monitor Your Strategic Plan’s Performance
• Analyze the Plan’s Success

How AchieveIt Helps With Strategic Planning

Sharpen your corporate strategy with achieveit.

Corporate strategic planning is a branch of strategy that focuses on the organization. A corporate strategic plan manages a business’s objectives and overall direction, and the associated processes are critical to the organization’s strategic objectives.

The corporate strategic planning process includes defining companywide strategic goals from the top tiers of an organization and implementing them throughout every level. For many businesses, corporate strategic planning is the first step and strategic planning goals define annual budgeting and allocation of resources. 

Corporate strategic plans can be external, focusing on business objectives and the overarching direction for the organization, or internal, such as corporate diversity and inclusion strategic plan.

A corporate strategy — in terms of business planning basics — has four main components, each providing valuable insight through self-evaluation. The four elements of corporate strategic planning include the following:

The Four Elements of Corporate Strategic Planning

Visioning involves creating a high-level direction for your business, including business plan basics like corporate values and vision and mission statements. Setting a vision for your company’s future is a robust tool in corporate leadership. In general, companies plan between three and five years ahead. 

Your vision and values will guide your daily operations and procedures, and involving key team members fosters engagement throughout the organization. 

Aligning your strategic objectives with the overarching vision for your business is the key to successful objective setting. Strategic objectives are the high-level goals of your business and describe what your team needs to do to fulfill its mission over the next three or five years.

The objective setting takes your qualitative goals into measurable objectives , which is critical to get your ideas into an actionable format. In the context of goal setting in an organization, the most effective strategic goals are specific, measurable, attainable, realistic and time-bound (SMART). Communication is also vital in the objective-setting phase. It ensures that team members are focused on priority tasks and operating in a unified manner, aiming towards furthering the company in the future.

With your objectives outlined, you now have a clear list of priorities to allocate human and capital resources. With a clear and actionable overview of your strategic goals, you can plan, manage and assign resources to facilitate reaching them. Determining how best to allocate resources to teams and business units is integral to your overall planning process. 

Also known as prioritization is one of the most challenging core elements of corporate strategy. Taking advantage of every opportunity may not be possible, and almost all business decisions contain an element of risk. Anyone who manages strategic plans and initiatives in an organization must consider all these factors to determine the optimal strategy when setting strategic goals. 

Businesses must balance risk and reward and pay close attention to risk management processes to maximize returns and minimize threats to operational procedures. 

Strategic plans are more than just abstract ideas conceptualized in a board room. When actualized correctly, they power organizational alignment and allow teams to direct their efforts in the most productive places. Strategic planning communicates your mission and vision throughout your organization to effect strategic change at every level and prioritize your most important objectives in your daily operations. 

Strategic planning can highlight your shortcomings and biases and present new opportunities to streamline your operations. Then, you can track your goal process with actionable key performance indicators (KPIs) and align them with your business processes. 

Most importantly, a well-conceived strategic plan provides a competitive advantage in your industry, allowing you to anticipate competitors’ next moves and stay one step ahead. With actionable strategies in mind, your business can accomplish goals ahead of the competition and ensure you provide the best possible results for your customers. 

There is a marked difference between business-level strategy vs. corporate-level strategy. Corporate strategies operate at a higher level than business strategies and focus on growth and profits. A business strategy, on the other hand, focuses on competing in the marketplace. Organizations should develop their business strategies with their corporate strategy in mind. 

Stages of Corporate Strategic Planning

Like any successful strategic plan or initiative, teams must tackle corporate strategic planning in four stages. The four stages of corporate strategic planning include the following:

1. Formulation

For an actionable strategic plan, you must take the time to create a roadmap of your most profitable action to achieve your strategic objectives. In this phase, you and your team will set your strategic plan goals and explore the best means to achieve them. Consider conducting a SWOT analysis — strengths, weaknesses, opportunities and threats — for your business to reveal growth opportunities and areas within your operations that require attention. Consider looking into successful corporate strategic plan examples as part of your research. 

Before you start, ensure you have a purpose for formulating your strategy based on your core vision and mission. You’ll consider current events and trends as part of your SWOT analysis. Ensure you set actionable and measurable goals in the formulation phase of strategic goal setting and communicate them effectively throughout your organization. 

Often, organizational leaders formulate a corporate strategy. Every team member adds a different perspective to the process, so drawing on their input could illuminate and provide a more pronounced competitive edge for your business. 

2. Implementation

Implementation is the phase where your corporate strategies become corporate actions . Your team has designed and communicated your strategy, so that all members understand their roles and responsibilities. Setting up KPIs aligned with your strategic objectives is critical in the implementation phase, as it provides quantifiable feedback on positive impacts and information on opportunities for change. 

During implementation, your team must focus on details and day-to-day processes to implement quick changes. Corporate strategy is a fluid process that requires daily attention to succeed.

3. Evaluation

Evaluating the strategies you executed in the implementation phase provides you with valuable feedback on the efficacy of your corporate strategy. Some businesses  perform a gap analysis to identify the need for new products or additions in the gap between their current and desired future positions. 

At this stage of the process, your data is vital. An   integrated plan management software allows you to track resources, changes, schedules, and the quality of your corporate strategic initiatives. With actionable data on team members and projects, you can make changes and refine your corporate strategy.

4. Modification

In the modification phase, your team can correct and refine underperforming elements of your corporate strategy. You have identified your strongest areas, which your team could leverage to assist in further implementation in areas that need further attention. 

How to Create a Successful Corporate Strategic Plan

You and your team may be used to taking a reactive route where you only deal with problems as they arise. However, this can stifle your vision and make it difficult to see the big picture or prepare for obstacles along the way. By following the fundamentals of strategic planning, your company can gain a better understanding of common issues that complicate your short- and long-term goals and make you more proactive in resolving them.

A progressive approach is critical to corporate strategic planning success, so you can pay attention to each step and garner the best results. The five steps in the strategic management process include the following: 

1. Establish the Your Corporate Strategic Objectives

Corporate strategic objectives must be clear, achievable and easy to communicate. Consider what business objectives your team needs to achieve and communicate these objectives throughout all levels of your organization. Foster collaboration, allow everyone in your organization to think strategically and offer suggestions for achieving your corporate strategic initiatives. 

Employees throughout your organization can provide valuable input to drive your objectives forward. Gather as many insights as possible and set your objectives with as much information as possible. At the end of this step, you should have a broad view of what your business wants to achieve and how the various teams can contribute. 

2. Develop Strategies for Achieving Goals

From your broad overview, you can now break your objectives into specific projects and courses of action within those projects. Include metrics and KPIs to quantify the success or failure of each. Establish objectives and key results (OKR) framework so each goal has quantifiable key results to measure the initiative’s success. 

Pay attention to your human resources during this critical step. Think outside the box, eliminate silos within your teams, and ensure every team member has roles and responsibilities aligned with their strengths. 

3. Implement Your Corporate Strategy

It’s time to take your strategic plan off the boardroom table and implement it into your business workflow . Making your corporate strategy successful requires focus and input from every team member. Ensure everyone in your organization can clearly see and understand their role within your strategy and how their actions move your plan forward. 

You can reply heavily on your OKR framework here for each individual to have a solid view of their roles. When team members see their impact on your overall strategy, they will be more engaged and productive in their efforts to achieve your objectives. Team engagement comes from management and managers should focus on managing outcomes, not people, for the best results. 

Partnering with an integrated planned management specialist is essential for maximizing employee productivity and engagement. Strategic planning software can give you a competitive edge. User-friendly interfaces, clearly defined goals, and change management will make implementation smoother, faster and easier for team members.

4. Monitor Your Strategic Plan’s Performance

Remember that your strategic plan is fluid and needs regular monitoring for your organization to maintain a competitive position. Again, use your valuable human resources and consult everyone who owns a strategic objective. Foster an environment where you can receive honest input on the strategic plan’s progress so your management doesn’t feel more comfortable concentrating their team’s efforts in weak areas. 

Ensure your plan is flexible enough to catch it early if your organization’s efforts go off course. If there’s an opportunity to produce better results, you can stay ahead of the competition and execute it immediately. Measuring your team’s performance with employee performance metrics is an excellent method of assessing where you’re achieving your outcomes and where you may need to rethink the allocation of resources. 

Consider organization performance reporting to analyze how your business performance compares with your goals and initiatives. You can assess your successes and make adjustments when necessary. 

5. Analyze the Plan’s Success

Analyzing the impact of your corporate strategy is vital to set a benchmark for what elements to continue with and change. It clearly shows areas to improve and strengthens your teams’ engagement and commitment to your strategic initiatives. Include team members from across your organization when you conduct your analysis and foster open and thorough communication so they can share their insights and experiences. 

Together, you can define your plan’s strengths and opportunities for improvement . Once you have gathered input from across your teams, your strategic team can apply this insight to your new strategic initiatives and amplify your successes. 

Organizations that struggle to get their important initiatives from the boardroom into reality and keep their performance on track may falter with their objectives. With AchieveIt, your business can improve visibility, uniformity and accountability within your strategic planning process.

Our automated platform and strategic planning software enable your teams to connect, execute your goals and evaluate how your essential plans are performing. Integrated plan management solutions from AchieveIt can revitalize how your organization reaches for its goals with dashboards, reporting, updates and more strategic planning tools.

Some of the many ways AchieveIt can help you with your corporate strategy include the following:

• Streamlining your corporate strategic execution:  Create alignment and organize your strategic initiatives with our process-focused software to integrate and execute corporate strategies. 
• Using automated updates:  AchieveIt focuses on the end user, integrating process updates from different sources for a seamless automated update system. 
• Consistent expert support and training:  AchieveIt conducts regular business reviews, so you can measure your return on investment (ROI) and access quantifiable data about how your corporate strategy aligns with your progress. Your strategic expert is there to provide feedback if needed, and on-site training allows for excellent change management, improved adoption rates and better team engagement. 
• Data-driven insights and accessible results:  You can filter and create outcome-specific reports aligning with your corporate strategy with a holistic view of your strategic business progress to combine your data with applicable contexts. This actionable information gives you a clear picture of what works and what needs work. 

Many businesses use outcomes-based corporate strategies to drive them towards goals, benefit their bottom line and motivate their teams. With AchieveIt, your organization can improve the execution of key plans and initiatives , increase visibility and improve accountability from a centralized, integrated plan management platform. 

Whether you have an existing corporate strategy, want an implementation partner, or like some help streamlining your corporate strategy, you can use AchieveIt’s two-pronged approach to strengthen your competitive position . The combination of our management software and an experienced consultant ensures your initiatives are correctly set up for effortless execution.

Schedule a demo today if you would like to learn more about AchieveIt strategic management software. Alternatively, take a self-guided tour and experience the magic of AchieveIt firsthand. Together we can connect, manage and execute key plans and initiatives with innovative corporate strategic plan management. 

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