Strategic planning is an organizational management activity that is used to set priorities, Resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is? who it serves? what it does? why it does it, with a focus on the future. Effective strategic planning articulates where an organization is going and the actions needed to make progress, how it will know if it is successful.
STRATEGIC MANAGEMENT AND PLANNING
What is a Strategic Plan? A strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise. What is Strategic Management? What is Strategy Execution? Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change. Strategy Execution is basically synonymous with Strategy Management and amounts to the systematic implementation of a strategy.
What Are the Steps in Strategic Planning & Management?
There are many different frameworks and methodologies for strategic planning and management. While there is no absolute rules regarding the right framework, most follow a similar pattern and have common attributes. Many frameworks cycle through some variation on some very basic phases: 1) analysis or assessment, where an understanding of the current internal and external environments is developed, 2) strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented 3) strategy execution, where the high level plan is translated into more operational planning and action items, and 4) evaluation or sustainment / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.
What is STRATEGIC PLANNING?
Strategic planning is a process of defining organizational strategy and to focus on creating the future. It is a creative process that at times does not flow smoothly but does come together in the end. A good planning process will align all the members of the organization toward common goals. With a clear picture of the future decisions become natural decision where limited financial and people resources are to be invested. Strategic planning is a disciplined and guided effort to make fundamental decisions and take action that will shape and guide the organization toward the future.
It determine where it is going, the organization first needs to know
where it is now and then work on closing that gap as detailed as reflected in a document called the strategic plan.
What is STRATEGIC PLANNING?
Strategic plans are talked about as being future oriented, but when pressed, reveal more about todays problems than tomorrows opportunities. Good thinking should result in ideas that will differentiate you from the competition with a sustainable advantage. The real winners will reinvent their industry with radical and innovative ideas.
What is STRATEGIC PLANNING?
Examine the current reality
Test assumptions
Gather and incorporate information about the present
Anticipate the environment of the future
Prepare to respond to the circumstances of the organization's environment
Intentionally set goals
Develop an approach to achieving and measuring those goals
If you dont know where you are going, then any road will take you there. For some, Strategy and Strategic Planning is something that is done once a year which results in a report. Others think it is market position, operational effectiveness or an idea or business model. Strategy is choosing to perform different activities that can be preserved and that will provide a sustainable competitive advantage. It is a mental exercise. It is a way of thinking about the world and approaching business. Strategic planning is a process to produce innovative and creative ideas which serve as the core framework for the company and designing its future. Strategic planning can have an immediate influence on your company and organization.
The 7 Benefits of Strategic Planning
Make your future happen dont let it happen to you It is the difference between being proactive or reactive. Be on the defensive or the offensive. Be a victim of circumstances or be victorious in the fight. Not every situation can be foreseen but you can make decisions and react to changing market conditions with the end in mind. Make wise business decisions How do you distinguish between a good idea and a great idea? Without a clear vision of what you want to achieve, and mission or purpose for doing it, everything seems like a good idea. What project do you invest in? How should you and your staff invest your time? Having clarity about what you want to do, who you need and how to get there will focus limited financial and people resources.
The 7 Benefits of Strategic Planning
Create longevity of the business The world market and industries are changing faster than ever and those companies who do not have a solid foundation and have relied on luck or opportunity most likely will not be around for the future. Data reflects that one out of every three companies at the top of their industry will not make be there in five years. Focus is powerful. Scientists focus light so intently that it becomes a laser which is used for surgery or able to cut through glass and metal. Increased profitability and market share Focused planning and strategic thinking will uncover the customer segments, market conditions, and product and service offerings that are in the best interest of your firm. An intentful and targeted approach to markets and opportunities which guide your sales and marketing efforts, distribution and other business decisions which ultimately mean more profit to the bottom line and a stronger market position.
The 7 Benefits of Strategic Planning
Unique differentiation: avoid competitive convergence Companies have gotten so used to looking at their competitors and their best practices and then trying to duplicate them that it becomes harder to tell the companies apart. They all start to look the same with less distinction in unique value. Strategy means having a unique differentiation that sets you apart from your competitors. Increased job satisfaction meaningful and full of purpose Consistently one of the top reason for leaving a firm is the lack of job satisfaction. People need to have a motivation to come to work and feel like part of the team. It has been proven that employees are the greatest source for innovative ideas. If your employees were in essence bricklayers, would they say that they are building a wall with each brick they lay each day or building a cathedral? The purpose and meaning of work gives a new focus and reason to show up each day.
The 7 Benefits of Strategic Planning
Establish direction Clearly defines the purpose of the organization and establishes realistic goals and objectives consistent with the mission which can be clearly communicated to constituents. Provides a base from which progress can be measured, employees compensated and boundaries established for effective decision making.