Information and internal perceptions are compared with the external perspective of the marketplace and customers, and a comprehensive analysis of the organization and its competitive environment is carried out. This process includes the following:
- Understanding of the market or sector.
- Evaluation of growth opportunities.
- Analysis of the economic and political situation.
- Mission, vision and values.
- SWOT analysis (strengths, weaknesses, opportunities, threats).
- Definition of value proposition.
- Evaluation of capacities and competitive advantages.
- Definition of strategic objectives, strategies and goals.
- Design of an action plan and Balanced Scorecard.
As a result, a strategic plan is obtained that allows for systematic and sustainable growth.
As for the public sector, strategic planning is conducted using the same techniques, though these are adapted to public institutions’ requirements on several levels. Each sector associated with a ministry formulates a Multi-Year Sector Strategic Plan. Also, subnational governments formulate development plans for their respective territories. Furthermore, national or special plans are formulated to render certain policies viable. The Institutional Strategic Plan (PEI, for its acronym in Spanish) is a management tool that guides the development of public institutions in the medium and short term. On the other hand, Institutional Operational Plans (POI, for its acronym in Spanish) propose short-term activities, specific tasks, and goals of each area within the institution.