Some strategic plans are fantasies. They promise profit growth and market share increases in all segments while increasing prices, cutting headcount, and reducing investment spending. Needless to say, such strategic plans fail, and sometimes strategic planning is blamed as a useless effort. In fact, the effort was not strategic at all.

Tough review of business strategy and goals is not an easy role for internal staff. The objective and apolitical outsider can greatly assist the business leader in providing a fair test of strategic integrity and stretch.

A thorough strategy review should at least cover the points shown in the chart below. In our Growth Development Practice, we go further to ensure that multi-year strategies are linked to annual budgets. The existence of such a strategic budgeting linkage is crucial in ensuring strategy implementation.

THOROUGH STRATEGY REVIEW

Strategic Development Phase	Key Review Points
Strategic Situation Assessment	Strategic issue identification New proprietary consumer and customer insights Deeper or broader segmentation Explanation of competitor actions and share shifts Validity of business economic model
Strategy Development	Fit with strategic growth principles Alternatives and tradeoffs made between growth, share, and profitability Program priorities
Stretch Goals for Investment and Return	Relative rate of growth in key segments Relative investment levels Planned time frame Level of growth/profitability

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