Strategic planning is the process of defining and implementing a long-term strategy for achieving organizational objectives or goals, based on an analysis of the current and intended future situations, the company’s environment, and existing gaps. This planning is carried out to respond to internal and external changes and keep the organization competitive in the market.
Main objectives of Strategic Planning
Here are the main objectives of strategic planning:
- Improved position in the market in the medium and long term.
- Improved economic results, through high productivity.
- Increased efficiency in investments.
- Investor remuneration guarantee.
Effective strategic goals must be measurable, purpose-driven, actionable, and must be focused on the long term.
Steps to effective strategic planning?
Define the organizational mission
Where I am? Who I am? What do I represent? What is my role in my environment? These are questions that allow reflection on the definition of a company’s mission. The mission is the company activities’ description, of its reason for being.
What is the reason for the business? Answering this question is not difficult, but it is convenient that when defining the mission, we dedicate more time to its answer, because behind that question there are several edges whose approach can help define an appropriate vision.
For this, we are going to break down that big question into a series of smaller questions that will help you define the business mission:
- What do we do?
- What is the organization’s business?
- What is the role of our company in society?
- To whom do we offer our products and services?
- What makes us different from the competition?
Answering these questions will help you reflect to answer the bigger question: Why? The why of your business. This is a fundamental input for what follows: The organizational vision.
How to define the organizational vision?
The vision is the future image of the company. Therefore, it is drawn in the long term.
We can consider the organizational vision as the dream to fulfill, therefore it must be achievable and at the same time ambitious, challenging, and of course, motivating. How to define the vision of your business? The following questions will allow you to reflect to achieve it:
- What is your company’s short, medium, and long-term goal?
- What opinion do you want society, customers, and other stakeholders to have about you?
So far, we’ve outlined the mission and vision of the organization. In other words, we are already clear about “where I am and where I am going”.
Create organizational values
Organizational values are the beliefs and concepts that the organization respects and practices that are above daily practices to seek short-term profits. To create your organizational values, you should answer these questions:
- What do we believe?
- How would we like to be seen?
How to define organizational objectives
Objective simply means that level you want to reach, a state that must be achieved.
Therefore, an organizational objective is a situation that the organization wants to obtain, something that the company tries to achieve. It considers the organization as a whole and once they are achieved, it becomes necessary to define new objectives.
Objectives are usually defined by shareholders, a group of top managers, or by a single person, usually who holds the reins of the company. The importance of organizational objectives include:
- It achieves the articulation of activities and efforts in all the employees of the company.
- They are a unit of measurement for stakeholders, by allowing the company’s productivity and success to be measured and compared, either against its competitors or over time.
- Stakeholders are the reflection of success, efficiency, and performance.
Construction of scenarios for strategic planning
Things do not remain static, they evolve. Hence, the construction of scenarios is necessary to understand through hypothetical models what the future development of today’s decisions will be like.
With scenario we refer to an imaginary representation of the future that seeks to anticipate how the conditions of the environment and organization could behave, to enable us to focus the present strategy on the desired future.
The construction of scenarios helps to create possibility, congruence, and uniqueness and helps to add value to the strategic options.
Objectives, strategies, and actions
Objectives are defined according to the relevant levels given the size of the organization and you must keep in mind that the objectives must be specific, cover all areas of the company, be challenging, inspiring and realistic, and well communicated.
Strategies define how the organization will deploy, reallocate, and adjust resources to address opportunities and meet threats.
It is usual for organizational strategies to be detailed through tactics that represent the focus of the strategy, which is then translated into action plans or projects. Although managers are generally very clear about the focus of their strategy, some strategic models interpret the thinking of top management.
This facilitates decision-making, directs the manager’s thinking toward choosing a strategy, and facilitates its communication and justification to shareholders and collaborators.
Execution of the strategic plan
Execution can be the most difficult part of strategic planning. No matter how good the design of the strategy is, if it is not executed carefully, what has been worked will be of little use. The execution of the strategy involves more people; therefore, it is more difficult.
Techniques and methodology
Strategy is the essential element of management and at Patel Solutions, our team of professionals is committed to helping you in the following areas:
- Visualize the mission, vision, and values.
- Organization and the environment analysis using SWOT analysis.
- Establish the strategic objectives resulting from the analysis.
- Define the operational and tactical goals.
- Create a strategy for achieving the goals.
The starting point of Strategic Planning is always a reflection on what we are, and what we want to be. We help in establishing an action plan oriented towards SMART objectives aligned with your strategic goals.
Planning does not mean knowing what decision you are going to make tomorrow, but what decision you must make today to get what you want tomorrow. You can connect with us and you will surely have a great experience working with us.