Strategic direction setting is a process that encourages high level strategic thinking within the organization. It consists of four major activities; creating a current strategic profile of the organization, examining internal and external variables and strategic options, developing a strategic profile that looks to the future, and identification of areas where results must be accomplished to make that future vision a reality. The outcome of the Strategic direction setting process is often a performance system that includes goals, metrics, a tracking and monitoring system and a process for communication and celebration of results. Includes 5 references.