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Creating a clear statement of strategic direction

Creating a clear statement of strategic direction

09 October 2025

A statement of strategic direction (SSD) is a governance document that helps an organisation describe the future it wants to create. It sets out the key goals and how to measure success.

We designed this guide to help chief executives and boards understand their roles in shaping strategy – where the board sets the strategic direction and provides oversight, while the chief executive develops and carries out strategy within the framework that’s been set.

The guide focuses on providing clear strategic outcomes (what you want to achieve – the expected results) and performance measures (how you’ll know you’ve achieved them).

While it is aimed at Sport NZ partners, any organisation can use this guide to improve their strategic planning from a governance perspective.

  • A good statement of strategic direction

    A strong SSD clearly shows what the organisation wants to achieve and how it will work with its stakeholders to get there. It should be short, inspiring and easy to understand. Everyone involved should be able to see the organisation’s priorities and what success looks like.

    Table 1 shows the key parts of an SSD and reflects good governance practice. Each element helps the board set a clear direction and stay focused on what matters most.

    Table 1: Key elements of a strong SSD

    Element Description

    Vision 

    A clear and achievable picture of the future 

    Purpose  

    Why the organisation exists 

    Values 

    Principles to inspire effort and guide behaviour 

    Strategic outcomes  

    The expected results the organisation wants to achieve by the end of the strategic period 

    Performance measures 

    How you will know if the results are achieved  

    Key initiatives 

    The focus areas or programmes to help achieve the outcomes 

    Resource allocation 

    How you will allocate resources (funding and effort) to support the strategy and meet the outcomes 

  • Three distinct leadership roles in strategy development

    Strategic development involves coordinated leadership across 3 key groups: the board, the chief executive and the management team. Each plays a vital role in shaping and delivering the organisation’s strategic direction. 

    Board leadership 

    The board is responsible for determining and articulating the results the organisation aims to achieve during the strategic period. These results are framed by the organisation’s vision and purpose, grounded in its values and expressed as measurable outcomes – the expected results that define success. 

    Shared board and chief executive leadership 

    Together, the board and chief executive lead the process of identifying, exploring, and prioritising the key high-level initiatives, including programmes, projects and activities that are designed to achieve the strategic outcomes. This shared leadership ensures alignment between strategic intent and operational focus. 

    Chief executive and management team leadership 

    The chief executive and management team are responsible for translating the agreed initiatives into detailed operational plans for the chosen strategic period. They also allocate the necessary resources – people, funding, systems to ensure the organisation can effectively deliver on the expected results. 

    In simple terms: 

    • the board decides where the organisation is going 
    • the chief executive and management team figure out how to get there 
    • the board then checks to make sure the journey is on track. 

    Engaging key stakeholders and incorporating cultural expertise is a crucial responsibility shared across all leadership roles and strategic processes. This ensures the strategy is not only well-informed but also grounded in the lived realities, values and aspirations of those it serves. Each organisation will approach this engagement in a way that reflects its unique context.  

  • Strategic outcomes and performance measures

    What does ‘good’ look like? 

    A recent Sport NZ review of partner organisation SSDs shows us that for boards to be impactful they need:

    Outcome statements that clearly describe and measure the result the organisation wants to see (eg, what will change, by how much and when), rather than describing the actions/activities (eg, advocacy and stewardship) that need to be undertaken to get to the result.
    Improving Statements of Strategic Direction Report, 2024

    Focusing on outcomes – the intended results of a strategic period – helps organisations clearly identify the impact they’re working toward.

    Effective outcome statements:

    • focus on what will change, not just what activities will be done
    • use a phrase that describes something you will have achieved by a specific future date, such as “by 2026 we will have increased [who or what will experience the change]” 
    • include a specific timeframe (eg, by the end of the strategic period)
    •  are measurable, to track progress.

    Effective measures:

    • measure results at the end of the chosen timeframe, and align with the outcome statement
    • are simple and clear, covering all key areas of work
    • clearly specify the change – what will change, by how much and when
    • are consistent and repeatable, enabling reliable comparisons over time
    • are within your control and measurable during the SSD period.

    Note: Broader metrics like regional/national participation levels often take longer to shift and may not be suitable for SSDs.

    Additional considerations for a strong measurement process 

    • When developing your measurement approach, it is important to consider the following: 
    • How aligning measures with strategic outcomes enables more targeted, data-driven decisions. 
    • How telling a clear performance story builds trust in your organisation’s effectiveness and supports ongoing improvement. 
    • What available resources and system capacity mean for your ability to collect, manage and use data well.  
    • What data or information is available, who owns it, and what limitations exist on access or use. 
    • When key decision points occur in your annual reporting and planning cycle, and how measurement can inform them. 
    • How well the measurement process is embedded into your business planning and management practices.  
  • Gathering data: Building your performance story

    To effectively assess progress toward strategic outcomes, collect data aligned with your chosen measures, keeping in mind any limitations in data availability. Make the most of existing data sources, but consider collecting new data where it fills critical gaps and is cost-effective.

    The goal is to create a clear, evidence-based performance story that supports learning, accountability and decision-making.

    In the tables below, we have compiled commonly measured outcomes in our sector, along with suggestions for how to assess them. This list is not exhaustive – we encourage you to consider additional or alternative outcomes that reflect your organisation’s unique priorities.

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