Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and PEST analysis (Political, Economic, Social, and Technological analysis).Continuous changes in the form of planning takes place where understanding of the changing customer needs, technological developments, competitors initiatives play a significant role.
Strategic planning determines where an organization is going over the next several years, how it's going to get there and how it'll know if it got there or not. The plan includes inputs from various partners and can be continuously revised to develop clearer vision and mission statements, objectives. Strategies and detailed action plans. There are a variety of ways to approach strategic planning. It depends on the environment in which the organization operates, culture of the organization, leadership, size of the organization, planners expertise etc.
Strategic Planning consists of eleven core elements:
1. Preparation for Planning: Prior Planning is essential for Strategic Planning and it should be conducted by a Planning Team. The Team should consist of a Coordinator who drives the development and implementation of the plan. Clarify Preferences and establish Expectations for the participants to understand the overall flow of the Planning process.
2. Vision: Vision defines where the organization wants to be in the future. It reflects the optimistic view of the organization's future. It reflects the long term future picture of the organization if it runs successfully through these years.
3. SWOT: Strengths, Weaknesses, Opportunities, Threats
SWOT Analysis helps us to understand the internal and external analysis as to what the organization is, what are its strengths, weaknesses, threats and opportunities. It is an effective tool for Strategic Decision Making. Internal Analysis is done via self-assessment by planning participants, gathering inputs from stakeholders through a survey while external analysis is done through understanding factors like economy, demographics, technological changes etc.
4. Context: Strategic Planning is done on the basis of the context in which the organization is established. Context might include Population Demographics, Economic Trends, Forecasted Growth Rate etc which can used as a basis on which planning can be done.
Strategic planning determines where an organization is going over the next several years, how it's going to get there and how it'll know if it got there or not. The plan includes inputs from various partners and can be continuously revised to develop clearer vision and mission statements, objectives. Strategies and detailed action plans. There are a variety of ways to approach strategic planning. It depends on the environment in which the organization operates, culture of the organization, leadership, size of the organization, planners expertise etc.
Strategic Planning consists of eleven core elements:
1. Preparation for Planning: Prior Planning is essential for Strategic Planning and it should be conducted by a Planning Team. The Team should consist of a Coordinator who drives the development and implementation of the plan. Clarify Preferences and establish Expectations for the participants to understand the overall flow of the Planning process.
2. Vision: Vision defines where the organization wants to be in the future. It reflects the optimistic view of the organization's future. It reflects the long term future picture of the organization if it runs successfully through these years.
3. SWOT: Strengths, Weaknesses, Opportunities, Threats
SWOT Analysis helps us to understand the internal and external analysis as to what the organization is, what are its strengths, weaknesses, threats and opportunities. It is an effective tool for Strategic Decision Making. Internal Analysis is done via self-assessment by planning participants, gathering inputs from stakeholders through a survey while external analysis is done through understanding factors like economy, demographics, technological changes etc.
4. Context: Strategic Planning is done on the basis of the context in which the organization is established. Context might include Population Demographics, Economic Trends, Forecasted Growth Rate etc which can used as a basis on which planning can be done.
5. Mission: A mission defines where the organization is going now, describing why this organization exists. A mission statement reflects the purpose and includes some strategic reflection. A mission statement does not reflect what a firm should do in order to survive but what it has to do to develop in a unique way.
6. Problem Statement: A problem statement summarizes key issues that are faced by the organization and provides a background for strategic choices. It consists of the Organizational needs, Causal factors, Analysis of existing resources and leadership etc.
7. Organizational Rationale: This approach is based on the assessment of Organization’s View of best practices and come up with some Strategic Decisions that are given more priority than others, targeting say a particular segment of the market.
8. Goals: Goals are those ends that can be achieved within the planning horizon. It is the statement for a long term purpose and should clearly state specific measurable outcomes within the planning horizon. Strategic Planning produces lots of ideas and action steps while formulating the goals for the organization.
9. Objectives: Objectives may not be fully achieved within the planning horizon, but can eventually be achieved. The target objectives are even clearer statements of the specific activities required to achieve the goals, starting from the current status. Objectives basically address the difference between where we are (current status), and where we want to be (vision and goals), by spelling out what we have to do (target objectives and action plans) to get there. Objectives are specific, measurable results produced while implementing strategies.
10. Action plans: Action plans basically translate the Strategic Plan into implementation steps. People who are involved in Strategic Planning are held responsible for implementation of the plan and a Cross-functional team is made use of to ensure the plan is realistic and collaborative.
11. Evaluation: Evaluation plans help you to understand the current status of the efforts of the organizations in achieving the goals it intended to. If the steps are followed judiciously and are tracked, then it would be easier to track the outcomes. The data collected should be integrated in the Action Plan with responsibilities and timelines being clearly listed.
References:
1. Strategic Planning. http://socrates.berkeley.edu/~pbd/pdfs
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