Statement of expected results - Strategic Management

Some where in the plan there must be an interpretation of its meaning in terms of money, and a comparison of results with the targets and objectives set. It is often convenient to have this at this point, so that it summarises actions before the reader becomes involved in the details of strategies. If the ‘gap’ between target and expected results is not closed, this is something which top management should be aware of from the beginning, as it will condition their interpretation of the plan. The expected results should show key figures using the company’s standard accounting definitions, but under main summary headings only.

The figure should illustrate profits, cash flow, and the main efficiency ratios. It is always helpful to back up this summary with several previous years’ history. It is good discipline to include a section here, comparing previous plans with actual results and the new plan. Although I always recommend completion of a strategic plan on a rolling basis, with the opportunity to update and revise annually, this does not mean that changes should be made without thought. Any changes must be made responsibly and the fact that a record is kept helps this to happen.

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Strategic Management Topics