Strategic planning is broadly devised by public and private organizations worldwide. This management approach is significant due to its positive consequences on organizational performance. It is now suggested that strategic planning should be applied to the organizational, managerial approach. Strategic planning is a continuous process in an organization to analyze the available knowledge and to devise future plans and strategies. Strategic planning is ranked among the top five managerial approaches adopted by organizations globally.
According to Bryson, the elements involved in strategic planning are numerous. It analyses organizational core values, preferences, and goal setting. It analyzes the internal as well as the external working environment of the organization. Identification of strategic issues and development of effective plan to handle the issues. Moreover, strategic planning incorporates synoptic planning theory and goal-setting theory. Strategic Planning successfully incorporates procedures and tools to apply these theories into the planning process. The following three steps are critically involved in the strategic planning process.
Strategy Formulation
This process involved the analysis of the organization’s current position. This can be done by performing internal and external audits. This will lead to a comprehensive view of the company’s strengths, weaknesses, opportunities, and threats. It enables the managers to focus on a particular plan and enables them to abandon those which didn’t work in the past. Moreover, managers can decide the allocation of resources in an effective way. Strategy formulation bears long-term effects; therefore, the upper executive allocates resources and devises plans.
Strategy Implementation
After formulation, the company is required to set it into motion. This process is strategy implementation. This is a crucial step as it translates words into action and requires delicate attention. At this level, the organization is required to set goals and tasks and allocate resources for its execution. The success of this process depends on the leader and how effectively he introduces the planned policy throughout the company’s employees so that he can get the required results.
Strategy Evaluation
The contemporary age is fully dynamic and developing at a fast pace. Therefore, managers are required to evaluate their policies and results continuously. Strategy evaluation further involves three crucial steps. Firstly, the manager should review the internal and external factors that are affecting the implementation process. Secondly, he needs to measure performance, and finally, he must give reformed steps to make strategy implementation effective. Moreover, it is important to mention the importance of effective communication and interaction among the team.
The benefits of strategic planning are numerous. A sense of awareness is felt by the whole team and creates a single focused vision for all. Strategic planning uses a logical and systematic approach which helps in the formulation of better strategies. It aids in performance checks while tracking progress and achieving goals. Furthermore, biases and flaws in the planning and decision process are identified by it. Employees’ motivation, work, and effectiveness are realized in the complete process of strategic planning.
+447462439809