In today’s constantly changing market, there are many things that can go wrong in the growth of a company. In this inconsistent environment, it’s an essential and smart move to have a plan which will help you progress and also keep you prepared for any issues that might pop up. This is the function of strategic planning. Strategic planning is defined as an organizations process of defining its strategy and making sure every future decision is line with this set strategy. Companies usually indulge in strategic planning to create a clear outline of their current progress and see how they can further their future progress.
Gaining popularity in the 60s, strategic planning became an important step for a company to achieve their goals. While planning a strategy one usually has to go through 2 important steps – Formulation & Implementation. Formulation refers to the process of coming up with the plan to reach the goal, while implementation is the physical method you will take to reach the goal. A good strategic plan can only be made through effective strategic management. Strategic management focuses on the identification and description of strategies so that you can have better performance and a competitive advantage.
A comprehensive strategic management process answers 5 main questions. First is the question – Where am I? You must figure out your position in the market & determine the true competencies of your business. Second, you must answer – What is important? Here, you need to figure out where you want to take your organisation later. This helps create a clear direction for your organisation, from your short term goals to the final vision & mission of your company. Third – What do I want to achieve? Make a list of the objectives of your organization and decide which ones get priority. Fourth – Who does what? Make sure all your plans & objectives are clearly thought out and no single unit is overburdened with work. Lastly – How is it going? Always check up and see if your decisions are fruitful or not. If not, take measures to change it.
So, if you’re taking a step in the strategic planning domain make sure your strategic management process is solid and we guarantee you only success!