Characteristics of strategic planning They are the characteristics and advantages that make strategic planning an important tool in the hands of company managers and entrepreneurs. It is used in the management of financial, human and other resources, and every business manager knows the importance of this tool and its ability to develop his work.
Strategic Planning Not new. However, it is more necessary than ever for companies to use strategic planning to develop a roadmap for how they will manage the waves of change and uncertainty.
Transformation everywhere, be it digital, economic, organizational or agile, is driving changes in operating models that inevitably impact strategic planning and execution. Without a strategic plan, daily work goes on, but there is a lack of a shared sense of purpose or priorities.
Strategic planning is visionary and realistic, looking at where you are now, where you want to be in the future, and how you plan to get there. Rather than big milestones, it’s better in these uncertain times to set iterative incremental goals: a series of smaller milestones that together keep the business focused on the right initiatives to consistently deliver value to the customer. When steps are small and manageable, it is easier to change course to accommodate changing priorities, initiatives, and customer requirements.
The purpose of strategic planning is to understand and prioritize strategic goals , and then determine the direction to follow to achieve them. The resulting strategic plan is the beacon that guides the entire organization.
Strategic planning is not a fixed list of objectives and tasks set by management and which no one cares about. It is not based on certainty or on elements completely within the control of the Company. Harvard Business Review, for example, says companies cannot control consumer spending (revenue), but they can focus on how they attract and retain customers, and how well they respond to change (fixed strategy vs. adaptive strategy).
If the strategic planning is visionary, then the strategic plan is not vague or unattainable. When there is ambiguity about strategic goals and priorities, the result is unrealistic or incomplete plans. For strategic planning to be beneficial, companies must adopt an intentional, clear, and actionable approach.
Effective strategic planning offers many benefits to organizations of all sizes and maturity levels. A shareable and adaptable roadmap for transformation instills a sense of clarity, confidence, and a mechanism for continuous improvement company-wide. Through strategic planning built on cross-functional engagement, employees throughout the company are motivated with a greater sense of ownership, responsibility, and productivity.
Strategic planning consistently focuses resources on key business priorities rather than dull to-do lists and projects, urgent tasks, and routine projects that are not aligned with business objectives and do not generate value. When teams understand what those priorities are and how they contribute to achieving them in their specific role, collaboration and innovation thrive.
Regardless of whether your business is a small startup or one of the largest players in the market, you’ve likely heard stories of how other organizations achieve success through well-thought-out strategic planning.
Effective strategic management can bring many benefits to any business – here are just four examples.
Here are the most important characteristics of strategic planning:
No business can hope to succeed by not having a plan and simply hoping to stumble upon success.
A strategic plan works like a roadmap, clearly defining the best path for your organization to take in the coming years. Whether it covers one, three, or five years into the future, a strategic plan can help guide your organization to meet the challenges that lie ahead.
Because a strategic plan sets a direction for your business, it will help it sharpen its focus in order to get there.
So strategic planning can help your organization develop the right goals and objectives and help everyone focus their efforts on achieving them.
Taking the time to develop a comprehensive strategic plan means that your business has a better awareness of its strengths, weaknesses and place in the market, both individually and in relation to competitors.
Strategic planning is not only beneficial to those at the highest level in the management hierarchy – it gives everyone in the organization a sense of purpose.
With a defined mission and clear goals and objectives to work towards, your employees will know their efforts are counting towards something and will be motivated to do their work.
Do you often feel like you’re shooting a dart at a target when making decisions for your team? you’re not the only one. According to a McKinsey study, only 20% of respondents said their organization excels at decision making.
The strategic plan will help you understand the direction of your business. Understanding your entire business direction helps you make informed decisions that serve your ultimate goal.
Strategic planning also ensures that the outcome of each project is clear and measurable. This way you can show how specific projects contribute to the overall plan.
Imagine all the wire crossing and confusion in this scenario: You have been given instructions to help a co-worker complete Financial Statements Quarterly. However, he thought he was learning to memorize the check numbers for the current month.
This is a huge waste of time. Unfortunately, this happens more often than necessary at work. More than 80% of employees report that communication problems occur frequently or frequently at work.
Fortunately, when people better understand the big picture (ahem, ahem, what they can do when you review your strategic plan), the message becomes clearer. They already have the background and background information they need to understand directions, give instructions, and move projects forward with confidence.
Understanding your entire business direction helps you make informed decisions that serve your end goal.
Here’s a disturbing statistic: Up to 95% of company employees admit that they do not know or understand the company’s strategy. Excuse me.
Employees resent being in the dark or not knowing how their daily lives affect business growth. through strategic plan Everyone on your team (from management to new hires) knows what they’re planning. Make sure your strategic plan is documented and made accessible so that everyone can refer to it for clarification.
Another good reason to use strategic planning: It is usually a collaborative process. An open discussion allows all parties to be on the same page from the start.
So we have seen the main stages of the strategic planning process. Every strategic decision must be examined by three prisms.
first of all, mind perspective: That is, we plan the strategy, implement it and control it. Then the experience perspective: That is, the strategy is determined empirically through successive and careful developments, according to the past experience of the company’s values and culture. Finally, and who Complexity Perspective: Strategy appears everywhere in a company and does not emerge from a single actor. Therefore, it is necessary to promote and encourage diversity and confrontation of ideas in order to come up with a global strategy.
Strategic planning is the process generally undertaken by company leaders to determine its direction. It is about setting priorities and deciding how to allocate resources to support this overarching vision.
It’s easy to confuse strategic planning with project planning, but the two are very different. Project planning is important for the specific tasks or assignments your team is doing (how you will move this project forward from idea to completion).
broader strategic planning. Helps to integrate all individual projects into a cohesive strategy that supports the overall business objective.
Therefore, if your strategic plan includes a vision statement stating that your company aims to “be seen as the most trusted expert in human resource management,” then every project your company undertakes must have some connection to that vision.
In short, consider strategic planning as the compass for all decisions made by the company and its leaders. It paints the big picture, so that you don’t get lost in the day-to-day details.
The role of the monitor is to ask you the right questions. You need to ask yourself how successful your organization is in achieving the expected results of your business plan.
The rigor with which you will conduct your follow-up will determine your chances of success. Monitoring should be done using the indicators of success that you identified during planning. Monitoring these indicators will allow you to compare the data collected during the implementation of your action plan. Thus, you will be able to anticipate corrective measures in the event of a significant gap between the goals you have set and the results obtained.
For the smooth running of operations, it is important to appoint a person responsible for monitoring the strategic planning. It is usually the General Manager who has this responsibility and will be responsible for coordinating meetings to ensure that the people responsible for the various projects have everything they need to move forward.
Planning requires a significant investment of time and energy. So it should be beneficial to your organization and lead to concrete actions. Planners must learn from successes and failures and adapt their future plans accordingly.
Even if everything does not go as planned, which is often the case, the time you invest in your strategic planning will not be in vain, because, as we saw earlier, it allows you to ask yourself and think about the right questions. the future of your business.
The strategic plan evolves over time, so constant monitoring is essential. We recommend organizing follow-up meetings on a regular basis. At the beginning of the planning process, it is recommended to organize one meeting per month. Executing your action plans will require your special attention during the first six months. When the process finds its cruising speed, one meeting per quarter will suffice.
At the end of the annual cycle, an in-depth review of the goals for the year allows you to measure the progress or lag in your organization against the goals you set and identify adjustments needed for the next period. Be sure to list each follow-up so you can compare results in subsequent years.
The most important characteristics of strategic planning are:
Integration between the elements of the company: Where strategic planning aims to achieve integration between all elements of the organization.
Predicting the financial and administrative future of the company: aims to Forecasting Pay attention to what might happen in the future.
AdaptationWhere plans and directions can change; According to changes in the environment surrounding the institution.
continuityWhere strategic planning depends on continuity and attention to feedback.
inclusivityStrategic planning is concerned with the elements of the internal and external environments, and takes care of them at their different administrative levels.
CompatibilityIt is considered a difficult process that requires concerted efforts, agreement and the presence of appropriate capabilities.
Reliance on information: Strategic planning is concerned with the necessary information and data in an integrated manner.