Strategic Planning is the process of developing, proposing and organizing several schemes and ideas that could help achieve the organization’s goals and objectives. A good strategic plan includes values and commitments that are non-negotiable.
What is the purpose of Strategic Planning?
The aim of Strategic Planning is to develop goals and objectives of the organization and propose several schemes and ideas that could help the organization achieve those objectives. It is impossible for a business to achieve its objectives if it does not have a direction that takes it towards its goals. A goal without a clear direction is impossible to achieve. That is where strategic planning comes into the picture.
What are the types of Planning?
Planning has different types which are used by businesses as well as organizations as per their preference.
What are the types of Strategic Planning?
Strategic Planning is divided into various categories which will be discussed in detail in this section.
· Basic strategic planning
· Issue based Planning or Goals based Planning
· Alignment Model
· Scenario Planning
· Organic Planning
Types of corporate level strategies
Corporate and large institutions have a choice of four types of strategy out of which they can choose any of the strategies and make a plan accordingly. Different strategies that exists in an organization are as follows –
· Diversification Strategy
· Vertical Integration Strategy
· Consolidation Strategy
· Geographic Expansion Strategy
What are the components of Strategic Planning?
Understanding important elements or attributes of strategic planning is imperative for the business. Below are certain elements of strategic planning that is important for every company to follow –
· Mission, vision and aspirations
· Core values, competencies and market opportunities
· Strengths, weaknesses, opportunities and threats
· Objectives, strategies and operational methods
· Measurements and funding streams
How does a good Strategic Planning help the business?
A great strategic planning is imperative for every business. Let us understand several benefits that planning does to a business and why it is considered as one of the most important process which guides the business towards the accomplishment of its goals.
· It allows organizations to be proactive
· It outlines measurable goals
· It provides a sense of direction
· It helps increase operational efficiency
· It makes the business stable and effective
What is a strategy model?
A structure is an overall view of the plan or the strategy that creates a direction and clear road map which makes it easier to reach the ultimate goal or objective. It is a blueprint which serves as a guide post for the organization.
A framework provides a deeper understanding of the strategy and creates an outline which helps in taking the decision of prioritizing areas which needs more attention and focus of the management of the management. A framework contains methods by which the goals that are set out can be achieved.
Once the management starts to work on the basis of the strategy, it is crucial to keep a track of the progress. Meetings, weekly progress reports help the company understand if actions being taken are in alignment of the plan.
Understanding the process of Strategic Planning
The procedure of strategic planning is followed by companies and businesses keeping in mind their goals and objectives and various other factors. The process could be simple for some companies and complicated for other companies, depending on the type of business they are involved in.
Let us go through each step in the process of strategic planning.
Setting a goal for the organization
There is always a reason why an organization or a company is started. Every company has a goal which must be stated in the starting of the planning process.
In Depth Analysis of several factors
All the important factors with regards to the goal must be clearly stated in the plan. The more specific the plan is, the easier it will be to accomplish goals of the organization.
This step involves writing down all the necessary points that are related to the company such as mission, vision, objectives, methods by which necessary actions will be taken.
After forming the strategy, the management should start the execution of the set strategy. This involves working towards areas that needs more attention and understanding various ways to successfully implement the strategy.
This is an important step as it shows the result of the strategy. Adequate monitoring of the strategy is mandatory and it must take place at regular time periods.
What contents are included in the strategic plan?
Certain points define a great strategic plan which is crucial for every organization and help to achieve a successful plan.
- Executive summary
- Signature page
- Company description
- Mission, vision and value statement
- Strategic analysis
- Action plan
What are the different ways by which strategic planning can boost organization’s efficiency?
An organization or a large corporation with a strategic plan does much better as compared to companies that do not have a plan. A plan that is created after proper research has a higher chance to perform well. Let us discuss some ways in which strategic planning boosts the efficiency of a corporation.
Strategic planning helps in the enhancement of company’s efficiency –
- By streamlining all the business activities of the organization
- By optimizing time management and allotting time to all the tasks
- By leveraging the organization’s resources in an adequate amount
- By making optimal use of human resources and
- Assign tasks to employees as per their experience
- By producing products or services with high quality
- By keeping a track of the progress of the plan
- By improving organizational overall performance
- Optimum use of latest technology
- Giving customers the highest priority
The earlier organizations understand the significance of strategic planning, the better it is going to help in the accomplishment of organizational goals.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.