Planning is basic human impulse and a vital skill for negotiating modern life. In the realm of business operations, strategic planning consists of a set of activities used to develop a vision for the future direction of an organization. Strategic plans are typically based on a future timeline measured in years, with their primary purpose being to set priorities, establish focus for energy and resources, build consensus regarding desired outcomes and objectives, ensure that employees and stakeholders are onboard and working toward common goals, and make any adjustments demanded by changes in the operational environment.
The strategic planning process may be interpreted in different ways, with component activities referred to by varying names and carried out in any order as determined by needs and context. Individual organizations may adapt the planning process to meet their own requirements. However, at heart all strategic planning efforts comprise formal, disciplined, future-oriented approaches to making fundamental decisions and planning actions that serve to define an organization, outline its purpose, functions, and objectives, identify the stakeholders it serves, and set markers for the success of its endeavors.
A General Model of Strategic Planning
There are a number of different strategic planning models, each based on a slightly different process. Conventional strategic planning is suitable for organizations working in relatively stable external environments, not hampered by many current issues that need addressing, and possessed of the resources to formulate expansive visions and pursue ambitious goals. The general process looks like this:
1. Strategic analysis:
Planners conduct a review of the organization’s operating context and consider factors like the economic, technical, social, and political environment, effects of competition, and other forces that drive environmental change. The strengths and weaknesses of the organization are considered along with any opportunities and threats currently present.
2. Establishing strategic direction
In this step planners decide what the organization will do in regard to the opportunities and issues identified in step 1. Strategic goals are set and strategies for the achievement of those goals are designed or selected. At this time, planners may also establish or update the organization’s strategic philosophy, usually presented in the form of a mission, vision, or values statement.
3. Action planning
This is the process of breaking out the specific moves needed to accomplish each strategic goal. Planning at this level may take the form of setting intermediate objectives or results that must be attained in order to reach the larger goal. Objective setting may be accompanied by the development of detailed listings of the tasks/tactics, responsibility assignments, and timelines associated with achieving each objective. Methods for progress monitoring and outcome evaluation will also be outlined at this stage.
Streamlining Strategic Planning
Strategic planning at the organizational level calls for the same drive for efficiency and waste reduction along with the effective resource management strategies needed to make smaller-scale projects run well. As with any project planning or resource management task, the right tools make all the difference, and today’s strategic planners often avail themselves of software that supports communication, scheduling, information updates, progress reporting, and other critical planning functions.
