Strategic Planning and Its Process
WHAT IS STRATEGIC PLANNING?
There are certain plans formulated by each organisation for the better functioning. Some decisions have to be taken by the managers that impact the entire working of the organisation. The future of the company also depends upon these plans. The strategic planning is all about making decisions to address the critical issues faced by the organisation. You can also learn the marketing process in easy steps.
These are not the easy decisions, but the company has to make a lot of adjustments for the better planning. These are the planning that has to be decided by the stakeholders, shareholders and partners of the strategy of the organisation. The decisions of the company are affected by the external factors that are not under the control of the organisation.
There is pressure on every organisation to take some big steps. But these can be quite flexible so that the organisation can decide as per their functioning and achievements. It is quite different from the business planning. Business planning is the process to plan the business activities, but the strategic planning is used for further steps more broadly. Business planning can be changed within a few months, but strategic planning remains the same for the long term.
There are some steps involved in strategic planning. Let’s study the process involved in strategic planning.
- Collection of the inputs
Frist of all, there is the collection of the inputs to gather the data so that you can analyse the planning strategy. In the first part, there is a SWOT analysis which studies the strength, weakness, opportunities and threats. The strength and weaknesses are the internal workings of the company but the opportunities and threats are the factors that are outside the company, and the company cannot do anything about it. There is also the study of trends for the past strategic plans so that they can predict the future functioning of the company.
You also have to study the factors that are present in society such as political, social, economic, legal affecting your business. It also involves the identification of processes in the internal working of the organisation and some situations that can also impact the working in the coming time. The importance of the inputs is because of the success of strategic planning. If the information is right, you will be able to make the right decisions at the right time and improve the functioning of the company. Therefore, you have to be careful during the collection of the data so that you can make the functioning better.
- Creating the vision
The most important step is to decide the vision of the company. The vision is the long-term target of the organisation that remains the same for almost 20 years. The company cannot change it time and again, but they have to work on it before finalising it. Vision is something that reflects the main target of the organisation. It works as the foundation of the strategic planning.
You need to study the main agenda for the decision of the vision, and it also influences the employees for the better functioning. They get to know the common objective on which the company works. If deciding the vision has become difficult for you, you can think it otherwise by taking an example such as – you need to imagine success as a place, and you have to think that how would you know if you get there.
The mission is the short-term objectives that can be changed at times. It lasts for a maximum of six months, and every department has its mission on which it works, but the main target remains the same that is the vision of the company. It provides you with an option to work on the strategy of the company. The mission is the main help for the achievement of the vision.
- Define the values
Values are the best contributor to the success of the organisation. If the company has the values that are acceptable to all and they also work on it, then it can achieve heights. These are helpful for the creation of certain behaviours that have to be accepted by every individual working in the organisation. These are quite essential for the better functioning and the success of the organisation. Even the employees working in the organisation will feel content while working in the organisation.
- Threats and risks involved
The process of strategic planning is not that easy as there will be a lot of things that will come into the way of the organisation and it will create a lot of obstacles. The right path to move forward is to identify the threats to the company so that you can study about them and also find perfect solutions for them. The more time you will spend on the threats, the more will be the success of the plan. You must take precautions to manage the risks, and the framework should be ready so that you can work on it at any time.
- Decide the priorities and the tactics
In this part, you can bring big things into the framework for the betterment of your strategic plans. Numerous areas will help you to progress with the accomplishment of the vision. For the better strategic planning, the target should be on the right priorities so that you know what to achieve first. After setting the priorities, there should be the measure of its success. After that, there is the requirement of following individual action steps which will contribute to the achievement of the targets.
- Plan for communication
In this step, you have to communicate your plans to your team. The communication should be clear and proper so that you can put light on all the main highlights of the plan. There should be the discussion of everything, the pros and cons of the alternative plans should also be discussed so that the employees know the reason for choosing the particular plan. The two-way communication will be effective for the better functioning. It is the responsibility of the employees to provide feedback to their seniors.
The success of strategic planning would be accomplished if we focus on it and thrive to achieve it.