Strategic planning is a method where the company’s top leaders determine their future vision and establish the goals and objectives of their organization, Dr Jay Feldman says. This process involves the process of determining the order that will allow those goals to be achieved in order for the organization to achieve its goals.
According to Dr Jay Feldman, Strategic planning is typically a representation of goals that are mid- or long-term and that last for 3 to 5 years however, it is possible to go further. This is distinct from the business plan, which usually concentrates on tactical, short-term goals, like how a budget is broken into. The duration of the business plan could range between a few months and several years.
The following four elements of the development of a strategy are worthy of paying attention to:
Strategic planning begins with a goal that provides an organization with a sense of the purpose of its existence and suggests a direction. The mission statement for the company explains the purpose of the organization, who it is, what it does, and the direction it intends to take. The mission statement is usually broad, however, they are actionable. For example, a company within the education sector might try to become a pioneer in the field of virtual education instruments and other services.
The majority of planning utilizes SMART targets – which are specific goals that are measurable, feasible, realistic, and time-bound other goals that are objectively quantifiable. According to Dr Jay Feldman, Measurable objectives are essential because they help business owners to assess how their business is meeting its goals and overall objective. The goal-setting process for the fictional educational enterprise could mean the launch of the first version of an online classroom in two years or increasing the revenues of the existing software by 30% over the following year.
The alignment with short-term goals.
Strategic planning directly relates to tactical, short-term business planning and may assist business leaders to make decisions that are more in line with the business’s strategy. For the fictional educational company, the leaders could decide to invest strategically in collaboration and communication technologies like online classrooms and services, but not want to build physical classrooms.
Review and evaluation.
Strategic planning allows business leaders to constantly assess the progress they have made in implementing the plan, and then make adjustments or changes in response to changes in the environment. For instance, a company might want to establish a global presence however, there are laws and regulations that could arise that hinder the ability of a business to operate within certain geographical regions. In the end, business executives could have to revise their strategic plan to define objectives or modify performance indicators.
According to Dr Jay Feldman there are many strategies for strategic planning, based on the nature of the company and the degree of detail needed. The majority of strategies can be summed up into the following steps:
The process of strategic planning begins by determining the current position of a company’s strategic plan. It is the time for stakeholders to make use of the strategic plan they have that includes the mission statement and the long-term strategic objectives — to conduct assessments of the company and its surroundings.
Then, strategic planners establish objectives and goals that line with the objectives and mission and help the company achieve its objectives. According to Dr Jay Feldman there could be a myriad of possible goals, therefore planning prioritizes the most significant, important, and urgent goals.
This is the principal goal of strategic planning where parties collaborate to develop the actions or strategies needed to achieve a specific strategic goal. It could mean drafting a variety of short-term business plans for tactical planning which are a part of the overall strategy. Dr Jay Feldman says, the process of creating the plan could require a trade-off between cost and opportunity which reflects the business’s priorities. The developers may not approve of certain initiatives in the event that they do not agree with the long-term plan.
After the strategic plan has been established, it’s now time to set it in motion. It requires clear communication across the company in order to establish expectations, establish priorities to improve processes and policies as well as establish measurements and reporting. Implementation usually involves strategic management, which is followed by regular strategic reviews to make sure that the plans are in line with it.
The strategic plan is regularly updated and reviewed to change priorities and revise goals when business conditions change and new opportunities arise. Rapid reviews of metrics may occur every quarter, and changes to the strategic plan could be carried out each year. Stakeholders could utilize balanced scorecards or other instruments to measure the performance of their teams against their targets.