Know all about strategic planning process model October 28, Strategic planning is something we are all familiar with, whether we are aware of it or not. We use to get from where we are to where we want to be. It can be a physical destination, like another city, or a goal in life, like getting a master degree.
Michael Porter  Strategic planning activities include meetings and other communication among the organization's leaders and personnel to develop a common understanding regarding the competitive environment and what the organization's response to that environment its strategy should be.
A variety of strategic planning tools described in the section below may be completed as part of strategic planning activities. The organization's leaders may have a series of questions they want answered in formulating the strategy and gathering inputs, such as: What is the organization's business or interest?
What is considered "value" to the customer or constituency? Which products and services should be included or excluded from the portfolio of offerings?
What is the geographic scope of the organization? What differentiates the organization from its competitors in the eyes of customers and other stakeholders?
Which skills and resources should be developed within the organization? The strategy may include a diagnosis of the competitive situation, a guiding policy for achieving the organization's goals, and specific action plans to be implemented.
The organization may use a variety of methods of measuring and monitoring progress towards the objectives and measures established, such as a balanced scorecard or strategy map.
Companies may also plan their financial statements i. The term operational budget is often used to describe the expected financial performance of an organization for the upcoming year.
The strategic planning process is broader—it helps you create a roadmap for which strategic objectives you should put effort into achieving and which initiatives will be less helpful to the business. A business is a series of activities that needs proper strategic business planning process as well as implementation, but that would only be possible if the objective of doing the business is clearly defined. The strategic planning process in a company is the development of a direction, the taking of decisions and allocating resources necessary to achieve the final goal. Also: Strategic planning serves as a road map to help an organization or business discover how to get where it wants to go.
Capital budgets very often form the backbone of a strategic plan, especially as it increasingly relates to Information and Communications Technology ICT. Outcomes[ edit ] Whilst the planning process produces outputs, as described above, strategy implementation or execution of the strategic plan produces Outcomes.
These outcomes will invariably differ from the strategic goals. How close they are to the strategic goals and vision will determine the success or failure of the strategic plan. There will also arise unintended Outcomes, which need to be attended to and understood for strategy development and execution to be a true learning process.
Tools and approaches[ edit ] Video explaining the strategic plan of the Wikimedia Foundation Wikimedia Movement Strategic Plan PDF A variety of analytical tools and techniques are used in strategic planning.
Responsive Evaluationwhich uses a constructivist evaluation approach to identify the outcomes of objectives, which then supports future strategic planning exercises.
In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods. The term "budget" is used for a financial plan for the upcoming year.
A "forecast" is typically a combination of actual performance year-to-date plus expected performance for the remainder of the year, so is generally compared against plan or budget and prior performance. The financial plans accompanying a strategic plan may include 3—5 years of projected performance.
The four stages include: Financial planning, which is primarily about annual budgets and a functional focus, with limited regard for the environment; Forecast-based planning, which includes multi-year financial plans and more robust capital allocation across business units; Externally oriented planning, where a thorough situation analysis and competitive assessment is performed; Strategic management, where widespread strategic thinking occurs and a well-defined strategic framework is used.
Categories 3 and 4 are strategic planning, while the first two categories are non-strategic or essentially financial planning.
Each stage builds on the previous stages; that is, a stage 4 organization completes activities in all four categories.Aug 29, · Strategic planning Sponsor A business plan that asks -- and answers -- the right questions is a powerful tool.
This online course walks you step-by-step through the process of preparing an.
A strategic plan is a document that establishes the direction of a company or work unit. It can be a single page or fill up a binder, depending on the size and complexity of the business and work. The strategic planning process in a company is the development of a direction, the taking of decisions and allocating resources necessary to achieve the final goal.
Also: Strategic planning serves as a road map to help an organization or business discover how to get where it wants to go. Gable simplifies strategic planning through a unified process which analyzes the competitive environment, relative maturity of the industry, markets, products involved, and company objectives.
Strategic options are then distilled out, clarified, and made tangible. The corporate planning team should be involved in the process in a way that is consistent with the management model, and a healthy tension should be established between the corporate center and the business units, resulting in productive strategic dialogues.
As such, a fully developed plan would look like the example of a strategic plan below: Strategic Themes: These are one- to three-word affinity group headings used to compartmentalize strategic and operational plans, such as Quality, Safety, People, Customers, Service, Finance, and Growth.