Strategic planning steps

The Strategic planning process involves certain topics and action steps. However, the process does not always be in one flow of direction. If any issues occurs in the middle one step may require to go back to the first step of the process .You can change the order of the steps to suit the particular needs of the planning team. The implementation phase also does not end the planning process.  It is better reviewing the strategic directions for an effective implementation of strategic plan to reach the expectations. Various companies adopt various strategic planning processes for effective execution and results.

The key steps of typical Strategic Planning Process are lined up into 7 steps. Below are the details of each step;

Step 1: Review or develop Vision & Mission

Reviewing the available resources is the first step in the strategic planning like various stakeholders ,Shareholders, customers, employee, suppliers communities etc.Also present the company's Vision and Mission with changing trends of an business environment and ensure with the stakeholders about the business changes and new challenges.

Step 2: Business and operation analysis (SWOT Analysis etc)

To understand the company internal and external resources is an important consideration in strategic planning. Internal factors include strengths and Weaknesses at the same time external factors includes Threats and Opportunities. SWOT analysis is useful for the evaluating the above factors. In the process, you will get an idea from these strategies and policies. You can also use other strategic planning tools like PEST analysis, GRID analysis etc.

Step 3: Develop and Select Strategic Options

Developing the selected strategic options is the third step in the strategic planning. The strategic options are developed from the inputs of above explained stakeholders (step 1) and Business and Operation analysis (step 2).

Step 4: Establish Strategic Objectives

Establishing strategic objectives is the fourth step in the strategic planning. Through this step, you will be able to analyses the overall presentation of the organization and able to select some strategic options as per the organization need. The strategic objectives will be measured by the top management in the SMART method. Which is Specific (S), Measurable (M), Achievable (A), Realistic (R) and Time-bound (T) When the strategic options are SMART, it will help to ease the communication toward the lower level of the organizational hierarchy for implementation.

Step 5: Strategy Execution Plan

Nowadays most of the organizations failed to identify its potential of its strategies due to weak implementation. The step 5 develops an effective implementation strategic plan.

Step 6: Establish Resource Allocation

Now employees of the organization need to locate the key resources identified in the above steps.

Step 7: Execution Review

This is the final step and it includes execution of the strategic planning and constant review of its progress and decision making to plan. This is the important step in the whole process to decide what to review and with who the review is done.

The above 7 steps strategic planning steps execution, resource allocation d and Execution Review considered to complete cycle for new or existing Strategic Planning initiatives.

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