The Long-Term vs. The Short-Term View
A process is a structured workflow that ensures progression and results. For a strategic planning process to be followed in an organization, consideration needs to be given to both the long-term view and the short-term requirements. For example, if an organization has one major client that it is servicing, focus needs to be on delivering the best assistance inherent to that client, while at the same time looking if cross-selling of other products or services into the client can be realized. However, there would also need to be effort made to increase the farranging client base. This would entail multiple focus streams for the plan; more work for sure, but assuredly a strategic necessity. Similarly, if a strategy is to transform the organization, then a shorter-term strategic transitioning plan may be necessary, as well as the long-term strategic plan.
Strategic Planning
Analyzing the Environment
As with any process, the systemic influences need to be addressed. When creating a strategic plan, this would involve analyzing the external environment and predicting what impact this environment could have on the organization over the next few years. Political, regulatory, economic, social, "green" environment and technological changes need to be assessed for their inherent as opportunities for, or threats to, the organization. As with the macro-environment, the store environment that includes competitors, customers, consumers, the incumbent business landscape, suppliers and vendors also needs to be analyzed to settle how changes in it could impact the organization.
In this arena it would not only entail viewing the inherent impact, but also determining how the organization can strategically sway or carry on the variables at this level. It could be by virtue of a new or revised product contribution and marketing efforts, a new price point, or even new supplier contracts. The internal environment forms an foremost part of the principles as well and needs to be focused on so as to ascertain the weaknesses and strengths that exist with regard systems, processes, expertise, leadership, culture, communications, structure, facilities and equipment, among others. Current operating challenges need to be highlighted to ensure that they are adequately addressed as the organization forges forward.
Because everything we do occurs within a larger system, stakeholders (anyone affected by what we do or who can sway what we do) need to be identified and their needs and expectations determined when devising a strategic plan. Through the plan, opportunities need to be harnessed, threats managed, strengths optimized and weaknesses eliminated.
Creating Direction
Analysis of the environment will help to apprise all the choices made for the strategy. However, it is the common focus that will contribute the direction. A short, simple, enthralling vision created by the leader establishes the stretch for the organization in the direction of where it wants to go. The mission statement defines the purpose of the organization and provides the infer for its existence. Once goals are established, it becomes clear what needs to be achieved in key focus areas in order to comprehend the vision. As goals are often large in scope, they need to be broken down into objectives. These definite targets or end-results form the basis for an activity plan. This will ensure that the strategy is made into a working document: one that can apprise sections of the organization on what needs to be done and against which enlarge can be measured.
Who Should Participate?
Participation in strategic planning is key to the plan being successfully translated into action. Everyone in the organization should, at some point, be complex in the strategic plan. Citizen tend to own what they help create. It also allows for separate perspectives and information to be utilized. Of course, not all the participants in the strategic planning process will be strategic thinkers. However, all the inputs could have value, even if it comes to working out the tactics. At the same time, it allows Everyone to have exposure to the bigger picture, the strategic mental process, and the vocabulary. This will, in turn, increase awareness and understanding, thereby hopefully empowering the participants to challenge and enhance on what is being done whilst enthralling forward. It also works to create a common culture throughout the organization and reinforces the need to get behind the organization's time to come direction
Why Should You Embark on Strategic Planning?
As Joel Barker so aptly puts it in his video, The Power of Vision, "Having a vision without activity is daydreaming. Having activity without a vision is just passing time". It truly requires a vision to know what you are aiming for, together with a plan of activity to know what to do in order to achieve your vision. The best possibility mental in the world will not ensure your success. It will ensure the opportunities can be in your reach if you form out the means to capture them. Gone are the days when an organization can be a success despite itself. It takes concerted effort to make the direction you need to go in, position it as a common focus for Everyone in the organization, and have a structured plan of activity that Everyone can execute. The risk of not having a strategic plan could be
• not being prepared to deal with changes in the environment that the organization is confronted with
• sections or individuals in the organization following their own agendas
• incongruent communications transmitted to stakeholders
• inefficiencies and ineffectiveness throughout the operation.
You could choose to do firm as usual, with the hope that the environment does not convert around you. Alternatively, you can make a concerted effort to remain ahead of the curve by ensuring that the organization's position in the marketplace is gather and that its processes and resources are optimized and agile sufficient to convert as the need requires.
What Strategic Planning Skills are Required?
Adding on from the competencies delineated for strategic thinking, you will also need to be able to:
• identify patterns or trends in the environment
• extract relevant opportunities and threats present for the organization
• envision an organization's future
• create a vision statement
• define an organization's purpose
• set goals
• construct a practical strategic plan
• establish measures
• see what parts of the farranging principles will be impacted by the strategy and plan for it.
For a graphical representation visit us at Strategic Planning Process
Strategic Planning
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