Stages in strategic planning

Introduction

1.1 What is strategic planning? Definition and meaning

1.2 Difference between strategic planning and business planning

Main part

2.1 Stages in strategic planning

2.2 Strategic planning process

2.3 Strategic planning cycle

2.4 Ten Key Elements to Strategic Planning

Conclusion

Introduction

1.1What is strategic planning? Definition and meaning

Every organization or major part of a complex organization occasionally has to make some momentous decisions- the sort of decisions that affect the entire destiny of the organization for years into the future. These decisions are designed to address the really biggest and most important issues facing an organization – issues so significant we might call them 'strategic elephants'. So our definition of strategic planning must have something about big decisions.

Such decisions are not simply about small adjustments to activity levels, but are the kind of decisions that may lead to a substantially different organizational structure, or major changes in the relationships among key stakeholders, competitive position, or strategic partners of the organization.

Sometimes the outside world forces such decisions on the organization. Such forces may include major shifts in the market, big changes in government policy, and radical moves by competing organizations.

Sometimes, it is something inside the organization that demands a major reappraisal. Technological change driving new methods of carrying out its work, or weakening of its financial structure, or a change in the senior management of the organization requiring a large re-organization are examples of such internal forces.

Organizations have always faced such pressures to make huge decisions. In recent years, the pressure has risen to the point where a systematic yet flexible process of dealing with such decisions is called for.

Such a process is variously and sometimes confusingly described as: corporate planning, strategic planning, business planning, and variations such as corporate strategic planning, or strategic business planning. Other labels make the subject more industry specific such as military strategic planning, hospital strategic planning, and in some jurisdictions what others know as urban and regional planning is sometimes called strategic planning.

As its name implies simply-strategic-planning.com will focus primarily on ‘strategic planning’. By this we have in mind any plan which looks forward several years and which is concerned with massive factors only. The focus of the decisions in the plan are the organization as a whole in its environment as a whole.

Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future. Effective strategic planning articulates not only where an organization is going and the actions needed to make progress, but also how it will know if it is successful.

1.2 Difference between strategic planning and business planning

While a strategic plan is a type of business plan, there are several important distinctions between the two types that are worth noting.

A strategic plan is primarily used for implementing and managing the strategic direction of an existing organization. A business plan is used to initially start a business, obtain funding, or direct operations. The two plans cover different timeframes as well. A strategic plan generally covers a period of 3 to 5+ years, whereas a business plan is normally no more than one year.

A strategic plan is for established businesses, organizations and business owners that are serious about growing their organization. Whereas a business plan could be for new businesses and entrepreneurs who are startups.

A strategic plan is used to provide focus, direction and action in order to move the organization from where they are now to where they want to go. Whereas a business plan is used to provide a structure for ideas in order to initially define the business.

A strategic plan is critical to prioritizing resources (time, money and people) to grow the revenue and increase the return on investment. Whereas a business plan is critical if the business is seeking funding.

A strategic plan focuses on building a sustainable competitive advantage and is futuristic in nature. Whereas a business plan is used to assess the viability of a business opportunity, and is more tactical in nature.

A strategic plan is used to communicate the direction of the organization to the staff and stakeholders. However, a business plan is used to present the entrepreneur’s ideas to a bank.

Another way to grasp the difference is by understanding the difference in ‘scale’ between a strategic plan and a business plan. Larger organizations with multiple business units and a wide variety of products frequently start their annual planning process with a corporate-driven strategic plan. It is often followed by departmental plans and marketing plans that work down from the Strategic Plan. Smaller companies and startup companies typically use only a business plan to develop all aspects of the business on paper, obtain funding and then start the business. Many smaller companies – including startups never develop a Strategic Plan.

Stages in strategic planning

Strategic planning is a continual process for improving organizational performanceby developing strategies to produce results. It involves looking at where the agency wants to go, assessing the agency’s current situation, and developing and implementing approaches for moving forward. We utilize a framework comprised of four distinct stages:

1. Prepare

Three critical steps must be accomplished prior to developing a strategic

plan:

• visioning

• assessment

• the development and implementation of a planning process.

In each of these areas, you will need to review and build on what is already in place—vision and mission statements

2. Plan

To develop the plan, you must establish priorities by considering the needs, strengths, and resources of your

organization. Three key questions must be answered:

• What do we want to accomplish?

• What will we do to get there?

• How will we know if we are making progress?

Once you have a draft document, circulate it for input, revise and finalize.

3. Implement

The following steps ensure that plans are used to guide the work of the organization:

• Communicating or "marketing" the plan,

• managing the implementation of the plan,

• supervising the actual work,

• monitoring and reporting progress on the plan.

4. Review/Revise

This stage starts the cycle over again, allowing the plan to be continuously updatedThis will keep it current and meaningful to the organization. On an ongoing basis the organization should:

• conduct assessments of its performance by gathering and analyzing information;

•convene the planning group to review performance and reassess goals, outcomes, strategies, and action steps

and to make recommendations for changes;

• revise the plan.

To the extent that the plan is updated, it will stay current and meaningful to the organization. A strong strategic planning process can be a powerful tool for systemic change within child welfare agencies and keep agencies focused on improving outcomes for children and families. Throughout the process, ongoing communication is critical.

Дата добавления: 2015-11-16