How to Write The Perfect Plan (Part 2 of 4)

In Part 1 we looked at  Introducing SOSTAC® Planning methodology in 3 mins.

Now let’s actually explore SOSTAC® Stage 1: Situation Analysis -the critical foundation for a great plan….

Have you ever heard any of these shocking sentences? ‘Your plan is unachievable.’, ‘Your plan is unrealistic.’ , ‘Your plan is pie in the sky!’, ‘Your plan has not considered the precarious nature of the economy and the cutbacks on budgets.’, ‘Your plan doesn’t address how we’ll compete with our new hyper-aggressive competitor.’ 

As crushing as these negative comments are, there is often a common, sensible, reason why a plan is rejected. It lacks an in-depth situation analysis. Answers to critical questions will, later help you to develop your strategy and tactics. A strong foundation is built with data, information and intelligence. 

What Should the Situation Analysis Contain?

Your situation analysis should be so thorough that it makes your decisions almost risk-free.  The subsequent answers/decisions around objectives, strategy and tactics, will sometimes almost jump out from a really thorough and deep situation analysis.      

Your Situation Analysis should contain a thorough analysis of:

1.1 Customers

1.2 Competitors 

1.3 Company (Competencies incl. Strengths and Weaknesses)

1.4 Market Trends (incl. Opportunities and Threats) 

Each of these contains answers to a series of questions and sub questions. e.g. Customer Analysis must answer, in-depth, the three big customer questions: Who? Why? & How? Each of these breaks into up to 10 sub-questions. You must know your customers better than they know themselves. Nothing more. Nothing less.

Half of your plan should be devoted to situation analysis.  At first, it’s difficult to find answers to all of the questions, but over time it gets easier as you discover sources including AI e.g. you can summarise your competitors on a table showing their positioning, net value proposition and strengths and weaknesses - all from just your website URL - and within seconds.

Sun Tzu on Situation Analysis

Arguably, the greatest marketing book ever was written over 2,000 years ago. The Chinese military strategist Sun Tzu wrote The Art of War (translated version Wing, 1989). Most senior marketers have a copy of it on their shelves. It has become a classic read, particularly for some enlightened marketing managers. Interestingly, confrontation, or war, is seen as a last resort and the best military strategies win the war without any bloodshed. They win wars through intelligence.

Sun Tzu effectively confirms why situation analysis needs to be comprehensive.

Here’s an excerpt:

Those who triumph,

Compute at their headquarters

a great number of factors

prior to a challenge.

 

Those who are defeated,

compute at their headquarters

a small number of factors

prior to a challenge.

 

Much computation brings triumph.

Little computation brings defeat.

How much more so with no computation at all.

 

By observing only this,

I can see triumph or defeat.

 

‘Much Computation’ or much analysis is required. The better the analysis, the easier the decisions will be later. Decisions about strategy and tactics become a lot easier when you know your customers, your competitors, your competencies and resources (in your organisation) as well as external market trends that create opportunities and threats.

Next month, we will explore Objectives and Strategy.

 

Don’t miss PR Smith’s:

1-hour webinar Business Planning enabled by AI - Worshipful Company of Consultants 5pm Thurs 14 Nov 2024

30 minutes live chat AI, Innovation & Ethics in Business – on LinkedIn every Fri 1pm (UK time)

1-Day SOSTAC® Masterclass (central London)  Thurs 30 Jan 2025

How to Write The Perfect Plan Part 1 – an introduction to SOSTAC® Plans (Oct Issue)