Strategic planning is the process through which organizational leaders define their future vision as well as the organization’s goals and objectives. Strategic planning is a management activity used to set priorities, focus energy and resources, strengthen operations, and ensure that employees and other stakeholders are working towards common goals.
Establishing agreements around intended outcomes/results, assess and adjust the organization’s direction in response to a changing environment. It is a disciplined endeavor that results in basic decisions and activities that define and drive what an organization is, who it serves, what it does, and why does it, with a future-oriented emphasis. Effective strategic planning articulates not just where a company is headed but also asses required steps for getting there.
IMPORTANCE OF STRATEGIC PLANNING
For everything throughout everyday life, a system or an arrangement is critical to see where life is heading. The technique is significant in all places similarly, in the working environment strategic planning is significant. Strategic planning is a process where an outline is characterized for the business to keep track of its growth. While doing strategic planning, an organization’s main goal and vision are remembered to ensure that the business is coordinated the correct way.
The significance of strategic planning expanded steadily when individuals began to understand the necessity of a plan and strategy in long-term achievement. All organizations today plan for the future for their business and plan every one of the things that can turn out badly so they are constantly ready. This planning saves the business from panicking at the time of crisis. It also helps in keeping the focus on the solution more rather than crying at the problem.
PROCESS OF STRATEGIC PLANNING
When it comes to strategic planning, most organizations look three to five years ahead. The strategic planning process generates a strategic plan, which is a document that articulates both the decisions made regarding the organization’s goals and the methods by which those goals will be achieved. The strategic plan is meant to guide the organization’s executives in their future decision-making.
There are several frameworks and techniques available for strategic planning and management. While there are no hard and fast criteria for selecting the best framework, most follow a similar pattern and share characteristics. Many frameworks go through some variants on the following fundamental phases:
DISCUSSION PHASE
The discussion stage is intended to assemble as much data, feelings, and contribution as could be expected. Set up a routinely booked gathering with the representatives and some other staff in your business who will be engaged with key arranging. Ensure you have a plan and clear assumptions for what you need to achieve in each gathering. This will keep conversations on target and assist with forestalling interruptions.
A SWOT analysis can also be performed. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. When performing a SWOT analysis, you and your workers will look at what your company does well, where it may improve, any potential possibilities to pursue that could aid in development and success, and any competitors or external factors that could hinder the company from prospering.
DEVELOPMENT PHASE
Once all the information is collected and discussed thoroughly, the next step is to plan the strategy by keeping all the information in mind. A strategic plan consists of 5 basic things that are:
• Mission statement
• Vision statement
• Goals
• Action plan
• Details
Mission and vision statements are important because they define the aims and objectives of the business. The goals mentioned should be attainable, measurable, and realistic.
Work with your employees to create goals and objectives for at least the next one to three years. Discuss how these goals and objectives will be measured and tracked.
REVIEW AND UPDATING PHASE
The last phase of the plan is reviewing and updating. It allows you to examine your priorities and course-correct based on past achievements or failures. Determine the KPIs your team has met and how you can continue to fulfill them on a quarterly basis, adjusting your plan as needed.
It is critical to assess your goals and strategic position on a yearly basis to ensure that you remain on course for long-term success. Balanced scorecards may be used to track your progress and give a thorough picture of your company’s success.
Consider reading: What is a Process Costing System
BENEFITS OF STRATEGIC PLANNING
Strategic planning offers several advantages. It compels companies to consider potential possibilities and problems in the future. It also requires organizations to consider the resources that will be required to capitalize on or overcome such opportunities and obstacles. Furthermore, strategic planning provides individuals with a feeling of purpose and unites them around a shared goal. It establishes norms and holds people accountable. Strategic planning also assists businesses in limiting or avoiding time spent on crisis management, which involves reacting to unanticipated changes that they did not anticipate or prepare for. It is also beneficial for following outcomes
COMMUNICATION:
Strategic planning enhances communication amongst the organization. As the goals and objectives will be clear and upfront to the employees. The plan will explain everybody’s role thoroughly. This will also analyze employees’ performance and give them leverage to improvise ideas that can lead to a better strategic plan. A business owner can even discuss the strategic plan with other people outside of the company to see what their perspective is as a third person.
PRODUCTIVITY:
When a strategic plan is made and everybody is aware of the aims and objectives of the company, they make sure to increase their productivity. They try to contribute to fulfilling the objectives of the company.
IDENTIFICATIONS:
In process of this strategic planning, a business can also identify their strengths and weaknesses that can help them in improving themselves and working on their weaknesses, and embracing their strengths.
FORECASTING:
Forecasting and predicting business objectives can help understand the vision. The predictions help in preparing for future hurdles. Many times, these hurdles can be dodged by better planning.
QBM GUIDELINE
QBM is software that can help you throughout the structure and planning of your business. From finances to strategy building everything is covered with QBM. QBM has provided its services for over 17 years and has 8000+ satisfied customers. Strategic planning is made more convenient with QBM as the information system organizes, manages, and reports performance in the longer and shorter runs enabling the organization to make strategic decisions taking into account a holistic approach.
Organize your strategic decisions with a systematic approach using QBM. Contact us today to get your QBM trial and get started.
