What is Strategic Planning?
Updated: Nov 6, 2021
Strategic planning means that the company determines its strategy and aligns its resources accordingly. Often, many entrepreneurs or business managers are so busy with urgent business that they miss the alignment with the overall strategy.
Therefore, a written strategy is very important for the internal control of the company. The strategic plan provides a framework for decision making. Set the standard. Monitoring performance is important. It is necessary to explain the strategy to others. Strategic plans are different from business plans. The strategic plan is short and clear and provides a basis for the business plan.
Due to the virus epidemic experienced today, we are in a difficult process in the sector. Because of these events, most companies are focused on drawing a new roadmap for themselves to overcome the process easily. The best way to see what might happen in the future and what they are like now is to make a strategic plan.
If we make a general definition, strategic planning; It is a plan made for the future and structural changes of the institution, by determining its mission and all its goals, considering the situation in its environment and operating environment, by choosing one of the alternatives that are applicable for the institution and putting it into practice.
7 Processes of Strategic Planning
For an effective strategic planning, you need to determine the following processes.
1. Situation Analysis - Situation analysis, as the first step of strategic planning, is done to find an answer to the organization's "where are we" question. Situation analysis requires the top management initiative to find a strategic fit between external opportunities and internal forces by studying external threats and internal weaknesses.
2. Mission and Principles - Mission is a guide to strategists and employees in businesses. In the initial phase of strategic management, strategy should be considered within the boundaries of the mission's definition.
3. Vision – The vision is the answer to the question of what the organization want to be. It is an expression of the state they wish to be in the future.
4. Strategic Objectives and Objectives – Strategic objectives allow the vision and mission to be expressed as solid and measurable objectives. Strategic objectives form the framework for the details of the strategic plan.
5. Activities and Projects - Activities and projects, the strategic plan process “how do we get to (there)?” forms part. Activities and projects: a detailed description of the strategies and steps used to implement the strategic plan.
6. Monitoring - Monitoring is whether the assigned tasks are carried out as intended; It is the process of reviewing the transactions and activities renewed by the management to monitor whether the desired results have been achieved both quantitatively and qualitatively.
7. Evaluation and Performance Measurement - In general terms, it is the comparative analysis of the results of the implementation and the strategic goals and targets determined beforehand.
10 Analysis Methods Used in Strategic Planning
· SWOT Analysis
· PEST Analysis
· BCG Analysis
· Scenario Analysis
· Problem Analysis
· Risk Analysis and Management
· Business and Process Analysis
· Training Needs Analysis
· Future Analysis
· Market Analysis