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The goal of this step is to identify and prioritize the issues the agency must address in this planning cycle. The strategic planning group must examine the significant issues in light of their impact on the agency's ability to achieve its stated outcomes. Another consideration is the prioritization of issues so that everyone is clear on each issue's relative importance.

Once the issues list has been developed and prioritized, the participants must develop strategies for each issue. Proper planning at this point will help the organization prepare to deal effectively with concerns that may arise during strategic plan execution. Remember, the whole group must discuss issues that affect the entire organization. Smaller groups must address more specific or local issues.

The result will be divisional and functional strategies in addition to the overall strategies. All these strategies will inform the later parts of the process when strategies must be tied to goals