Strategic Plan

September 16, 2025
« Back to Glossary Index

What is a Strategic Plan?

A strategic plan is a structured document that outlines an organization’s long-term goals and the actions required to achieve them. It serves as a roadmap that connects a company’s mission and vision to its day-to-day operations. Typically created by senior leadership, it helps guide decision-making, prioritize initiatives, and allocate resources effectively. The plan typically spans a three- to five-year period and is reviewed regularly to ensure it remains aligned with evolving internal and external conditions.

In project management, a strategic plan helps align projects with broader business objectives. This alignment ensures that every project contributes to the organization’s overall success. The document often includes a situational analysis, strategic goals, performance indicators, and implementation plans. It also identifies potential risks and outlines strategies for mitigating them.

Key Points

  • Defines long-term goals and the steps needed to achieve them.
  • Aligns daily operations and projects with broader organizational objectives.
  • Supports better decision-making by setting clear priorities.
  • Involves input from key stakeholders, including leadership and department heads.
  • Requires regular review and updates to stay relevant in a changing environment.

Related Terms

  • A mission statement defines the purpose of the organization, which serves as a foundation for creating a strategic plan.
  • A vision statement outlines the desired future state of the organization and guides strategic goal setting.
  • A business case justifies the initiation of a project and should align with the objectives in the strategic plan.
  • An operational plan breaks down strategic goals into specific short-term tasks and responsibilities.
  • Key performance indicators (KPIs) measure progress toward the objectives outlined in the strategic plan.
  • A SWOT analysis is often included in the planning process to identify strengths, weaknesses, opportunities, and threats.
  • A risk management plan addresses potential barriers to achieving strategic goals.
  • A project portfolio should reflect the priorities and initiatives identified in the strategic plan.

Strategic Plan: Example

A municipal government develops a five-year strategic plan to improve public transportation. The plan outlines goals, including increasing bus ridership by 30%, reducing traffic congestion, and reducing emissions. It includes strategies like expanding bus routes, introducing electric buses, and partnering with local transit agencies. The plan ties each initiative to measurable outcomes and a timeline for implementation.

Strategic Plan: Best Practices

  • Involve stakeholders early to ensure broad support and understanding.
  • Set specific, measurable, achievable, relevant, and time-bound (SMART) goals.
  • Review and adjust the plan annually based on performance data and external changes.
  • Clearly communicate the plan across all levels of the organization.
  • Ensure all major projects and initiatives directly support the strategic objectives.

Additional Resources

Strategic Plan - A Guide to the Project Management Body of Knowledge (PMBOK Guide)     Strategic Plan - Project Management in the Hybrid Workplace (The Future of Work)

Preparing for a PMI certification?

« Back to Glossary Index