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Strategic Planning and Management

Strategic planning involves 5 key steps: identifying the current strategic position, prioritizing goals and objectives, developing plans to achieve goals, implementing plans, and updating plans over time. It helps organizations formulate better long-term strategies through a logical process, enhances communication between employees and managers, and empowers individuals in the organization.

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517 views3 pages

Strategic Planning and Management

Strategic planning involves 5 key steps: identifying the current strategic position, prioritizing goals and objectives, developing plans to achieve goals, implementing plans, and updating plans over time. It helps organizations formulate better long-term strategies through a logical process, enhances communication between employees and managers, and empowers individuals in the organization.

Uploaded by

fredie unggay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Reporter:

Course Code - Title: STRATEGIC PLANNING AND MANAGEMENT


Topic: STRATEGIC PLANNING RATIONALE
PERSPECTIVE IN STRATEGIC PLANNING
Sem / A.Y. : MID YEAR / 2022 – 2023
Professor:

INTRODUCTION
Strategic planning is a systematic and structured process that organizations use to define their long-term
goals and objectives and to develop a roadmap for achieving them. It is a critical management activity that helps
organizations align their resources, actions, and decisions with their overall mission and vision.
Strategic planning is an organization's process of defining its direction and long-term goals, creating
specific plans to achieve them, implementing those plans, and evaluating the results
BODY
What are the steps in the strategic planning process?

Identify. A strategic planning cycle starts with the determination of a business's current strategic position. This
is where stakeholders use the existing strategic plan -- including the mission statement and long-term strategic
goals -- to perform assessments of the business and its environment. These assessments can include a needs
assessment or a SWOT (strengths, weaknesses, opportunities and threats) analysis to understand the state of the
business and the path ahead.
Prioritize. Next, strategic planners set objectives and initiatives that line up with the company mission and goals
and will move the business toward achieving its goals. There may be many potential goals, so planning
prioritizes the most important, relevant and urgent ones. Goals may include a consideration of resource
requirements -- such as budgets and equipment -- and they often involve a timeline and business metrics or
KPIs for measuring progress.
Develop. This is the main thrust of strategic planning in which stakeholders collaborate to formulate the steps or
tactics necessary to attain a stated strategic objective. This may involve creating numerous short-term tactical
business plans that fit into the overarching strategy. Stakeholders involved in plan development use various
tools such as a strategy map to help visualize and tweak the plan. Developing the plan may involve cost and
opportunity tradeoffs that reflect business priorities. Developers may reject some initiatives if they don't support
the long-term strategy.
Implement. Once the strategic plan is developed, it's time to put it in motion. This requires clear communication
across the organization to set responsibilities, make investments, adjust policies and processes, and establish
measurement and reporting. Implementation typically includes strategic management with regular strategic
reviews to ensure that plans stay on track.
Update. A strategic plan is periodically reviewed and revised to adjust priorities and reevaluate goals as
business conditions change and new opportunities emerge. Quick reviews of metrics can happen quarterly, and
adjustments to the strategic plan can occur annually. Stakeholders may use balanced scorecards and other tools
to assess performance against goals.
Benefits of Strategic Planning
1. Helps formulate better strategies using a logical, systematic approach
This is often the most important benefit. Some studies show that the strategic planning process itself
makes a significant contribution to improving a company’s overall performance, regardless of the success of a
specific strategy.
2. Enhanced communication between employers and employees
Strategic planning also helps managers and employees show commitment to the organization’s goals.
This is because they know what the company is doing and the reasons behind it. Strategic planning makes
organizational goals and objectives real, and employees can more readily understand the relationship between
their performance, the company’s success, and compensation. As a result, both employees and managers tend to
become more innovative and creative, which fosters further growth of the company.
3. Empowers individuals working in the organization
The increased dialogue and communication across all stages of the process strengthens employees’
sense of effectiveness and importance in the company’s overall success. For this reason, it is important for
companies to decentralize the strategic planning process by involving lower-level managers and employees
throughout the organization. A good example is that of the Walt Disney Co., which dissolved its separate
strategic planning department, in favor of assigning the planning roles to individual Disney business divisions.

SUMMARY
Strategic planning is vital in defining where your business is going in the next three to five years. With
the right strategic planning models and frameworks, you can uncover opportunities, identify risks, and create a
strategic plan to fuel your organization’s success.
REFERENCES
Strategic Planning - Definition, Steps, and Benefits (corporatefinanceinstitute.com)
What is Strategic Planning? Definition and Steps - TechTarget
Strategic Planning: 5 Planning Steps, Process Guide [2023] • Asana

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