Strategic planning what is it

Strategic planning is defined as an organizations strategy or direction by taking decisions on allocating its resources to pursue this strategy, including its capital and people. Strategic planning starts with strategic framework, which is a complete analysis of a strategy. It is a combination of various methods, tools, models, goals, steps, methodologies and objectives of strategic planning process.

Strategic Planning Models:

Every organization adopts its own strategic models. Strategic models are varies from company to company. There is no one perfect Strategic Planning Model for each organization. Some times companies modify the existing models to use the same in their own planning process.

Various strategic planning models include in Strategic Planning are:

Model 1: Basic Strategic Planning

Model 2: Issue-Based (or Goal-Based) Planning

Model 3: Alignment Model

Model 4: Scenario Planning

Model 5: Organic (or Self-Organizing) Planning

Strategic Planning Components:

Strategic Planning is a vision of an organization of how to take cautions as per the changes happen in the market a strategic plan is consists of below interrelated components:

The Vision Statement.

The Mission Statement.

The Values Statement.

The Assessment Statement.

The Goals/Objectives Statement.

The Strategy Statement.

The Outcomes Statement

Strategic Planning Methods:

There are various methods are useful to conduct strategic planning. The well known method is SWOT analysis, which analyzes the organization's Strengths and Weaknesses, as well as Opportunities and Threats. Based on the organization, different methods are applicable.

Some of the strategic planning methods are:

Method 1: Non-Profit Organizations (NPOs)

Method 2: Applied Strategic Planning

Method 3: ICMA Strategic Development

Strategic planning Tools:

Strategic Planning tools are widely used to enhance the Strategic Planning Process. There is variety of strategic planning tools available to develop an effective strategic plan. Use the strategic planning tools, which are understandable and helps to improve your company's profitability.

Some of the widely used strategic planning tools are:

SWOT Analysis

PEST Analysis

Scenario Planning

Competitive Analysis

Goals Grid Method

Supply Chain Analysis

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.7 steps of strategic planning process are:

Step 1: Review or develop Vision & Mission

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

Step 3: Develop and Select Strategic Options

Step 4: Establish Strategic Objectives

Step 5: Strategy Execution Plan

Step 6: Establish Resource Allocation

Step 7: Execution Review

Strategic Planning Implementation:

Strategic Planning implementation is the last step of strategic planning. The three major factors for the successful strategic planning and implementation are commitment, credibility, and communication. Strategic Planning will be successful, when the higher hierarchy leader implements the strategic planning process with additional care. It is compulsory to have additional commitment in implementing the strategies recommended by the strategic planning committee.

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