Strategic planning for real estate companies.

Strategic planning helps a company decide what it wants to be when it grows up.

Broadly defined, strategic planning shows a company where it is going and how it plans to get there. Especially at a time when the real estate industry is changing and consolidating so rapidly, it is important to define company goals in both absolute and relative terms and to tie goals to specific tactics. Without this important step, strategic planning becomes only an empty exercise that does not reach any goal.

On the other hand, a company with a well-defined strategic plan and business strategy has the distinct advantage of having clearly articulated common direction for the company. For publicly traded companies, this clear focus garners a premium from analysts and shareholders. For all real estate companies, a strategic plan and the strategic planning process itself offers a competitive edge and enables the company to measure achievements against expectations.

Strategy and Business Plans

The outcome of the strategy planning process is a strategy plan document, designed to identify the goals and objectives of a company and the strategies that will be used to reach them. The intent of the strategy plan is to identify guiding principles of an organization that will pass the test of time and reflect a point of view regarding future business operations.

The starting point of a strategy plan is the mission statement which is the organization's fundamental reason for existence and serves as a perpetual guiding star on the horizon.

Core values support the mission statement and are essential and enduring tenets, not to be compromised for financial gain or short-term expediency. Strategies are the means to accomplish the company's goals, providing a framework for establishing the actions or tactics that will be used on a day-to-day basis.

The Strategic Process

The strategic planning process consists of four basic steps:

* Situation Analysis

* Strategy Planning

* Implementation

* Assessment

Situation analysis. Before determining a strategic road map for a business, it is vital to understand where the business is now in terms of its own competencies, in relation to competitors, and in relation to its industry and the economy as a whole.