Strategic planning is a process by which we determine the answers to two questions and then craft a plan to achieve desires results. The two questions are:
• How much?
• By when?
These questions
are generally framed as goals and objectives, while the action plan that
supports these two questions is called strategies and tactics. The key to any
strategic plan is to first answer the two important questions of how much, by
when, and identify baselines and targets for each of its strategic plan
objectives. Without measurable and quantifiable strategic plan objectives, the
planning process remains largely unfocused, with real results weak or
non-existent.
Set a long-term vision through goals, identify strong objectives to measure
progress toward the goals and then create actionable strategies and tactics
that will move the objectives toward the desired results. That is the
fundamental definition of strategic planning.
The Four
Stages of Strategic Planning
Strategic planning is a process
that helps companies focus on how to succeed for the future. Every company,
large or small, should participate in the strategic planning process at least
every three years. This planning will help you, your customers and employees
understand what the core business is, what the expectations are, and what
measurements are important.
Here are the Strategic Planning
Steps and Phases:
· Define where the Company wants to be (i.e. business goals)
· Gather information (internal and external)
· Develop alternative strategies, then select a strategy that will provide the best chances of meeting Company goals
· Implement the plan
· Evaluate and revise when needed
Phase
I: Strategy Formulation
– vision, mission and values developed.
Phase
II: Strategy Development
– SWOT Analysis (internal strengths and
weaknesses, external opportunities and threats).
Phase
III: Strategy Implementation
— Short term objectives established, action plans and resources allocation.
Phase
IV: Strategy Evaluation
– strategy review and measurement (scorecard).