12 Business Strategic Planning Models and Frameworks

Strategic planning is the backbone of every successful business. Whether you are a startup or a well-established company, a clear strategy can guide your decisions. This can make the difference between growth and stagnation.

At Orufy Projects, we believe in giving you tools to create strong business strategies. Knowing which planning model to use is also important.

In this blog, we’ll explore 12 strategic planning models and frameworks that will help you create a robust plan for your business.

These models cover a wide range of approaches, ensuring that you’ll find the right fit no matter what type of business you're running.

1. SWOT Analyzing

Starting a strategic plan often relies on the SWOT framework. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

This framework helps you evaluate internal and external factors that affect your business.

By looking at these four categories, you can create plans that use your strengths. You can also work on your weaknesses, take advantage of opportunities, and reduce threats.

How to use it: Create a SWOT matrix. List your business's strengths and weaknesses on the left side. These are internal factors.

On the right side, write opportunities and threats. These are external factors. This will provide a clear overview of your current business position and areas for growth.

2. PEST Analyzing

PEST examines outside factors in more detail. It focuses on Political, Economic, Social, and Technological aspects. A useful tool helps businesses think about the larger environment they work in. It helps you see possible changes or challenges ahead.

How to use it: Break down each of the four categories and consider how they might impact your business.

For example, changes in technology or economic policies can impact your strategy. Being aware of these changes helps you plan better for the long term.

3. Balanced Scorecard

The Balanced Scorecard (BSC) is a tool for strategic planning. It looks at more than just financial performance.

It measures a company’s success across four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.

How to use it: Set objectives for each of the four perspectives.

For example, in the customer perspective, your goal might be to increase customer satisfaction by 20%. In the internal process category, you might aim to improve operational efficiency.

4. OKR (Objectives and Key Results)

Popularized by companies like Google, OKR is a goal-setting method. It focuses on setting clear objectives and key results. These results show progress toward the goals.

How to use it: Set a clear objective (the "what") and define 3-5 key results (the "how") for each objective. Key results should be specific and measurable.

For example, if your objective is to grow sales, a key result might be to increase online conversions by 15%.

5. Porter’s Five Forces

Porter's Five Forces framework helps businesses understand the competitive forces at play in their industry.

Five forces exist. They are: Threat of new entrants. Bargaining power of suppliers. Bargaining power of buyers. Threat of substitutes. Industry rivalry.

How to use it: Analyze each of these forces to understand your position in the market.

This will help you identify where you can build a competitive edge and where you may need to protect your business from external pressures.

6. The Ansoff Matrix

The Ansoff Matrix is a framework that helps businesses develop strategies for growth. It focuses on four main strategies: Market Penetration, Market Development, Product Development, and Diversification.

How to use it: Evaluate your current products and markets. Do you want to sell more existing products to current customers (market penetration)? Or perhaps you want to explore new markets with your existing products (market development)?

Use this matrix to map out your growth strategy.

7. VRIO Framework

The VRIO Framework looks at your internal resources and abilities. It helps you see if they provide a competitive advantage. VRIO stands for Value, Rarity, Imitability, and Organization.

How to use it: Assess your resources and capabilities through each of the four VRIO criteria. For instance, does your technology give you a competitive edge?

If something in your business is valuable, rare, hard to copy, and well-organized, it can help you stand out. This advantage can last a long time. It can give you an edge over your competitors.

8. Growth-Share Matrix (BCG Matrix)

The BCG Matrix helps businesses decide where to allocate resources. It divides a company's products or business units into four groups: Stars, Question Marks, Cash Cows, and Dogs. These categories rely on market growth rate and market share.

How to use it: Plot your products or business units into the matrix. If something is a "star," it means it's growing rapidly and needs investment.

"Cash cows" are stable and generate steady income. Use this matrix to prioritize resources across your offerings.

9. Blue Ocean Strategy

Blue Ocean Strategy encourages businesses to create uncontested market space, where competition is irrelevant. Instead of battling competitors, you create a "blue ocean" of opportunity by innovating.

How to use it: Look for ways to differentiate your business and focus on value innovation. Find the customer needs that you are not meeting.

Think about how you can provide something new or improved.

10. Scenario Planning

Scenario planning is a model used to anticipate and plan for multiple future scenarios. Particularly useful in industries with a high level of uncertainty.

How to use it: Create a range of plausible future scenarios (best case, worst case, and moderate case) and plan for each one.

Consider factors like market changes, economic shifts, or technological advances that could influence your business's future.

11. McKinsey’s 7-S Framework

McKinsey’s 7-S Framework focuses on aligning seven key elements of your business to ensure overall effectiveness. These seven elements are Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills.

To use it, evaluate how well your organization aligns with these seven elements. If one area, like staff skills or company culture, is weak or not aligned, it can affect your overall strategy.

12. Hoshin Planning

Hoshin Kanri, also known as Hoshin Planning, is a method that helps align a company’s goals with its daily work. It highlights the importance of clear communication in an organization. This helps everyone work toward the same goals.

How to use it: Start by defining your long-term vision. Then, break it down into yearly goals. Next, divide those goals into actionable tasks for each department or team.

Regularly review progress to ensure alignment and make adjustments as needed.

Choosing the Right Framework for Your Business

Not all businesses are the same, and neither are their strategic planning needs. Some companies may find that conducting a simple SWOT is enough.

Others may need more depth and focus. They can use models like the Balanced Scorecard or Blue Ocean Strategy. The key is to choose a model that suits your business's size, industry, and goals.

At Orufy Projects, we help businesses streamline their strategic planning processes through our project management tools. Our platform makes it easy to put your strategy into action.

You can set goals, manage resources, and align your team's efforts. With customizable workflows, dashboards, and task management features, you can meet your strategic goals and help your business grow.

Start planning your business strategy today with Orufy Projects!