Define strategic planning

Elements of strategic planning

Given that distinction, successful organizations opt to view their strategic plans not as static roadmaps but as living documents that need to be revisited on a regular timetable as determined by the organization. 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, and why it does it, with a focus on the future. 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. 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 strategic planning committee can opt to use one of many different methodologies that have been developed to guide leaders through this process. Michael Porter [4] 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. The strategic planning framework and committee A strategic planning committee typically leads this process. 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. Another form of planning is issues-based planning, which clarifies current issues that the organization must soon address and how it will address them. The strategic plan is intended to guide the organization's leaders in their decision-making moving forward.

In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods. It is about knowing how to get the optimum performance from the people you interact with and are responsible for, whether at work, in your community or at home.

strategic planning definition and examples

What differentiates the organization from its competitors in the eyes of customers and other stakeholders? Beyond the hype, however, strategic planning can bring real value to an organization that takes the process seriously. The strategic planning committee works by researching and gathering the information required to understand the organization's current status as well as the factors that will impact it in the future.

It forces organizations to be aware of future opportunities and challenges.

Strategic planning examples

The strategic planning committee works by researching and gathering the information required to understand the organization's current status as well as the factors that will impact it in the future. Mintzberg argues that strategic planning can help coordinate planning efforts and measure progress on strategic goals, but that it occurs "around" the strategy formation process rather than within it. Strategic planning vs. In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods. A strategic plan will generally include: An executive summary, which is usually written at the end of the process A company description Your mission, vision and value statements A strategic analysis that can be in the form of a SWOT analysis strengths, weaknesses, opportunities and threats An explanation of your strategies and tactics An action plan. Responsive Evaluation , which uses a constructivist evaluation approach to identify the outcomes of objectives, which then supports future strategic planning exercises. Given that distinction, successful organizations opt to view their strategic plans not as static roadmaps but as living documents that need to be revisited on a regular timetable as determined by the organization. It requires individuals capable of strategic thinking, that is, individuals who can take information and offer insights on how that information can influence or impact the future organization. Experts in the strategic planning discipline say the strategic planning committee should include representatives from all areas within the enterprise and it should work in an open and transparent way where information is documented from start to finish. Categories 3 and 4 are strategic planning, while the first two categories are non-strategic or essentially financial planning.

Latest Blogs by Terry Sterling Jul 8, One of the key elements of effective leadership centers around relationships. There are many different perspectives on how to best do strategic planning — and many different practitioners and facilitators have very strong feelings about how strategic planning should be done.

Capital budgets very often form the backbone of a strategic plan, especially as it increasingly relates to Information and Communications Technology ICT.

Importance of strategic planning

They work from the future to the present. Latest Blogs by Terry Sterling Jul 8, One of the key elements of effective leadership centers around relationships. What is strategic planning? The organization may use a variety of methods of measuring and monitoring progress towards the strategic objectives and measures established, such as a balanced scorecard or strategy map. It forces organizations to be aware of future opportunities and challenges. The strategic planning framework and committee A strategic planning committee typically leads this process. Your strategic plan outlines where your company is going, so that everybody in your business is working with the same information. 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. What differentiates the organization from its competitors in the eyes of customers and other stakeholders? The flowchart to the right provides a process for classifying a phenomenon as a scenario in the intuitive logics tradition. What is the geographic scope of the organization? Benefits of strategic planning Strategic planning has many benefits. By Carter McNamara on September 30, Simply put, strategic planning is clarifying the overall purpose and desired results of an organization, and how those results will be achieved. Sekora, Project Socrates founder in the Reagan White House, during the cold war the economically challenged Soviet Union was able to keep on western military capabilities by using technology-based planning while the U.

What is Strategy Execution? Strategic planning vs. Another form of planning is issues-based planning, which clarifies current issues that the organization must soon address and how it will address them. And without a map, you're lost in a highly competitive business environment that will inevitably throw challenges your way.

strategic planning process model
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Strategic Planning Basics