Strategic planning is an important element of organizational management that sets the goals to which the company needs to follow in the foreseeable future. Strategic plan helps the company to determine the essence of competitive advantages in a certain period of time. The ability to think strategically, to plan is the most important managerial quality for any manager. A specialist who possesses these features is able to actively shape the future of the company, so he will always be in demand in the labor market.
Strategic planning is a structure, scheme or a set of management methods and tools for determining the main directions of the organization’s activities. Such planning is used for forecasting, formation of indicators of the company’s development, determination of its purpose in the market, prospects and success in this business.
Proper organization of strategic planning activities in the management system allows correct assessment of external threats to the company, search for potential opportunities for development based on the analysis performed. The result of the process is a strategic plan it’s a document describing strategic and tactical goals supported by calculations and practical research. Strategic plans are made for a long-term period (from three to five years), medium-term period (annual), there is also a composite short-term plan (less than a year). They are united by the combination of a common business idea and the management will of the owners of the organization.
The pros of implementing a strategic planning system include:
Strategic planning is carried out regularly and recorded in writing. This is necessary for the plans to be clearly and correctly understood by all participants in the work process. No matter how concrete and clearly formulated plans may seem in the heads of managers, they must be recorded and communicated in writing to subordinates to avoid incorrect interpretation or double interpretation. In this way, a number of misunderstandings are avoided, and coherence and accountability of the actions of managers and staff are ensured.
Strategic planning is an effective tool that helps in making management decisions. It helps to make timely adjustments in the activities of the organization. The essence of strategic planning lies in its functions. They include:
Strategic planning is a multi-step management process consisting of several steps. These steps include:
The mission of the company forms its purpose, philosophy, direction of activity. It affects the principles of the company’s work, its status, basic business characteristics. Shapes the image of the company, reflects its values. Helps in the development of corporate standards. Provides the relationship of the organization with the external environment: population, economy, political system.
The mission lays down the vector of the company’s future development. It demonstrates the direction in which efforts should be directed. It does not depend on the financial stability and state of the enterprise at a given time. Despite the fact that the reason for the existence of commercial organizations is to make profit, their mission should pursue other goals.
The purpose of strategic planning is a detailed description of the company’s mission. It creates clear guidelines for its development for a certain time interval. Be specific, commensurate, not contradictory to the mission and resources available to the company. To be targeted and controlled. It is necessary for planning not to be “detached” from real life.
Includes a detailed study of the external, internal environment in which the company operates. The external environment is formed by the following factors:
Internal analysis is done with consideration:
Strategic plans are drawn up on the basis of actual data containing detailed information on market conditions, customers, competitors. They are made on the basis of two-dimensional matrices that help to analyze the work of departments, product quality, production status by various criteria.
There are three approaches used to implement strategic analysis:
Strategy indicates the way to achieve the goal. It determines the course of development for a long period of time. Affects all areas of the company’s activities, including the form of production, personnel, and market position. When developing a strategy, several options are considered and the best one is chosen. The following points are taken into account:
The strategy must lead to the achievement of the ultimate goal. By choosing a strategy of development and staying on the market, the company moves in the right direction. In a simplified form, the options of strategic development can be as follows:
Downsizing involves three scenarios:
These strategies can be used individually or in combination.
All employees are involved in the implementation of the strategy. Each of them performs their own functions and tasks to achieve the desired result. For successful implementation of the strategy, the following conditions must be met:
At this stage, the most important guidelines of strategic planning are developed: tactics, policies, procedures and rules of the company’s existence.
This is the final stage of strategic planning, which compares projected and achieved results with an assessment of profitability. The purpose of the assessment is to get answers to the following questions:
Quantitative and qualitative criteria are used to evaluate and analyze the strategy.
Any planning requires clear structuring. A correctly drafted, realistically achievable strategic plan is the key to success and effective development of any company. It is convenient to use special software an electronic planner LeaderTask – to compile, adjust, and control its execution.
In the application you can make to-do lists, future and current tasks. Set goals, structure them in the form of a prioritized tree. Make any changes to tasks and projects. Share information with colleagues and subordinates. Delegate tasks with progress and deadlines control. The application has an option to color-code important tasks, calendar display of tasks. There is a diverse set of tools for planning for a day, week, year, and other periods.
We have considered the topic of strategic planning and have seen how important this tool is for the development and prosperity of companies in today’s business environment. With its help, the company can determine its profitable niche in the market and gain an advantage among competitors. A competent strategic plan gives an objective understanding of the current situation for successful planning of the future. In times of rapid change, strategic thinking and vision is a powerful success factor for any manager.