Learn a strategic planning process that covers the missions and goals, scanning, strategies, execution, and monitoring that is essential to a company’s success.
The Strategic Planning Process
We all have plans, dreams, visions, ambitions, or projects we set out to accomplish. So, too, do we need strategic plans and maps that will guide us toward achieving the strategic goals that we want. That is why a plan like this is essential.
In the high-competitive business landscape of today, some aspects like the budget planning are not enough to keep the big companies alive and well. To ensure survival, the business needs to undertake the right kind of strategic planning. To achieve that, they need to create the plan following a strategic process. This involves taking a number of steps that are well-defined.
1. Mission and Goals
This is step one of the Strategic Plan. The company should have its mission, vision, and short or long term objectives objectives outlined in clear terms. It should outline what it truly wants to accomplish with its operations. It should have a clear view of where it wants to go in the future. Guided by a company’s vision and mission, a company’s leaders and strategic management team can set financial and strategic objectives that are measurable.
2. Environmental Scan
The firm must perform an extensive ecological analysis. By that, it means conducting a firm-by-firm analysis, industry analysis for the company, and an outside macro-environment. By conducting the environment analysis, a company can determine strengths, weaknesses, opportunities, and threats, aka a SWOT analysis.
3. Formulation of the Strategies
After gathering lots of insights through internal as well as external analytics, a company needs to align its strengths with opportunities that have been identified, while also countering weaknesses and threats externally. The strategy formulation will include key objectives such as company goals. This is essential for every big or small firm. They must consider all possible strategies that can bring about the desired success.
4. Strategy Implementation of the Business
After a strategic plan is created, a firm may then execute the action plans through programs, budgets, and specific procedures. Implementation involves the collection of resources in the firm, setting up of special committees to supervise implementation, and motivation of staff for achieving its stated objectives.
The success or failure of a company is purely dependent on the way in which a plan is implemented. Decisions made about matters within the strategic plan will be crucial in this phase.
5. Monitoring and Evaluation
The execution of strategy should be monitored and adjusted as appropriate. It is vital that progress in planning is monitored so that we can understand what is happening and what is not. This is to determine whether or not a business has achieved its desired market share, i.e. the longer-term and shorter-term goals. They need to know also that they have met set planning timelines
This kind of tracking is essential for businesses to make sure they are moving in the right direction. For that, a company needs to have the right personnel. It must also have strong Management of risks.
More on the Process of Strategic Planning
Financial experts define strategic planning simply as the roadmap or path of growth for the company, with a goal to achieve a set objectives within a set period of time. It involves having a clear goal in mind and setting out a viable plan of action. Strategic planning can be defined as a collection of management techniques used to establish priorities, concentrate energy and resources in the business, including in-house personnel and stakeholders, towards achieving a desired goal.
In addition, it helps in assessing and adapting the company’s direction and modus operandi to meet ever-changing business needs. With appropriate planning, an organization can define its objectives, values, responsibilities, missions, and vision in clear terms. Also, the organization will be able to quickly analyze their progress in order to understand their current situation and how much further they have yet to travel.
In order to create a powerful strategic plan, you need to include powerful planning tools. Some basic strategic tools you can use during your planning process include; visioning, metrics/charts, a strategic SWOT analysis, affinity charts, and cross-relationship diagrams.
Planning is a very important aspect of our lives. It will determine whether or not you achieve success and greatness, or if you will end up on the bottom. Any poor plan has deleterious effects on a business future.