Matswapati June 25, 2020 Strategic Planning
Let's discuss the types of strategic planning models! In business management, strategic planning is not a strange thing. Then, do you know about it? Well, this article will inform you about the definition of strategic planning, models of strategic planning, and also the process of strategic planning. Below are the explanations:
The strategic planning definition
Strategic planning is an activity of organizational management which is used to determine or set some priorities, focus resources and energy, strengthen the performance of operational. The strategic planning also makes sure that all employees and also the other stakeholders work towards common goals and establish important agreements about the intended outcomes, and also adjust the direction of the organization when the changes are occurring. It is an effort of discipline that results in basic decisions and also actions for shaping the organization to know who is served by the organization, what the organization has done, and why the organization should do it. The effective planning of strategy articulates well where the organization exactly goes and all of the needed actions to make good progress. Besides that, it also articulates how it can really know and understand if it continues well to succeed. So, please be smart in writing a strategic plan!
The 6 strategic planning model types
Strategic Planning of Basic Model
How to strategic plan with this basic model? This strategic planning has some steps such as explained in the following, namely:
1. Identify the goals of the organization
2. Select the destination
3. Identify the specific strategies of implementation
4. Identify the plans of action to implement every strategy
5. Monitor and also update all plans
Planning of Scenario
Planning is actually not only to predict the brilliant future but, it is also about how the best decisions could be made at this time. We can not really predict well everything having relation with the future, we only try to provide the futures from the current perspective so that we can anticipate everything that might happen next time.
So, we basically need a plan of scenario and sometimes a business strategic plan template for describing the future situation in the present situation. The following are the scenario planning steps:
1. identify some important external forces and project the influences of theirs on the organization
2. discuss three future scenarios which are different for all of the changes from the forces of external, and also review clearly the scenario with the worst issue
3. suggest the best strategies which have good potential to greatly respond for changing in all scenario
4. detect general considerations in strategy or business unit strategic planning
5. and selecting much better external changes and identifying the strategies which will be much more responsive
If asking how to write a business strategy, this type of model may be perfectly used for an organization that exactly needs to perfect its own issues or strategies experienced having relation with the internal efficiencies. The aim is to align the organization's mission and resources to be more effective. In this model, an organization should do all the following steps well, they are:
1. outline the needed supports, mission, resources, and also programs
2. identify everything that is running well and what needs to be adjusted
3. identify in detail how to create all adjustments
4. and include all adjustments into the plan of strategy
Planning Bassed on Issues
Large, experienced organizations may use a much more effective and comprehensive model of planning in business management. The following steps are:
1. carry out external/internal assessments
2. design key strategies for overcoming problems and goals
3. develop or renew the values, vision, and also mission
4. establish an action plan
5. recording assessments, goals, and strategies, missions, visions, and the plan of action in the Strategic Plan document
6. develop annual operational plan documents
7. develop an annual budget plan
8. run annual programs and activities
9. monitor/review/evaluate/update the documents of the Strategic Plan
Planning of Self-Organizing
It is not the same with a process of linear like other models, the planning of Self-Organizing exactly goes with a process that is much more natural. Therefore, a good shared reflection process is very needed on systems and processes through dialogue, exploration, and storyboarding techniques.
Below are the great steps in this model, they are:
1. clarifying and articulating the cultural values of the organization
2. articulate group vision
3. conduct periodic (quarterly) dialogues about what is needed by the organization for achieving its visions and also decide carefully what will be done next
4. focusing on the process of learning more than the method of linea
5. foster patience for ongoing processes
6. decide how to describe the plan of strategy to stakeholders
This model combines the processes of models for two even more than it that produces the effects of hybrid. A great example is the Balanced Score Card (BSC) model, which greatly integrating the element of a planning process based on issues and harmony.
Robert Kaplan of Harvard Business School, and business consultant, David Norton, developed the Strategic Planning Model of the Balanced Scorecard in 1992. More than half of Fortune 500 companies in the United States and a number of government agencies at all levels used this model.
The model of BSC directs the organization's strategic focus on the key factors of organizational success. Strategic management translates performance targets and measures into action initiatives. The BSC model facilitates the development of performance improvement objectives, targets, and measures, by a framework of five perspectives, namely:
2. customer focus
3. internal process
4. learning and knowledge
5. and finance
The following are the advantages of the BSC Model in the planning of strategy, namely:
1. emphasize the processes that are most important for high performance
2. encourage organizational change by focusing on what has the biggest impact
3. linking improvements to internal business processes with specific needs of the external customers
4. aligning everyone's goals of the performance in an organization
5. manage resource allocation
6. focus on the measures of performance that turn strategies into actions
7. enable managements for clarifying all priorities
8. and also produce a path which is very clear to future visions
The planning stages with the model of BSC are:
1. scan the environment
2. carry out internal/external assessments
3. create a vision
4. identify the goals in the long term
5. identifying objectives
6. identifying performance measures
7. identifying performance targets
8. developing a plan of action
12. and create a clear report
Those are the types of strategic planning.
The process of strategic planning
This planning process is similar to you looking for a SWOT analysis for your business or organization. But there are several points of difference in establishing strategic planning. Here are 5 stages of strategic planning:
Determination of the Mission and Objectives
Strategic planning actually begins with determining a certain organization's mission. The main organization's purposes or objectives that have been perfectly set should be defined clearly. The strategic planning exactly deals with a relationship of organization in which the relationship is long term with the organization's external environments. Successful strategic planning examples are also needed. So, the business mission must be careful in estimating the social and external impacts of the organization.
To greatly identify the threats and opportunities, we need to analyze the external environments of an organization. It is important to note or consider all factors which may affect seriously the activities of the organization going forward.
In the next step, the weakness and strengths of the organization need to be analyzed. This kind of analysis will enable the company to utilize its strengths and to minimize its weaknesses. Companies can take advantage of external opportunities by concentrating on their internal capacity. By adjusting its strengths to opportunities, companies can face competition and achieve growth.
Making of the Strategic Decision
Then, the strategic decision has to be created and also well evaluated. Next, the strategic decision is actually made for improving the performance of operational. Organizations should choose carefully the option which is suitable for their own abilities. For example, to develop, a company must enter a new market segment or sell a new product but still in an existing market.
The choice of strategy depends on the external environment, managerial perceptions, managers' attitudes towards risk, past strategies and managerial strengths as well as efficiency.
Implementation and Control Strategy
Then, it is the final of the strategic planning process. After determining a strategy, it must be translated into a plan of operation. The budgets and programs are developed well for every function. The operational plans in the short term are greatly prepared to use the resources efficiently. Controls should be perfectly developed for evaluating performance as the great strategies which come into use.
If there are actual results below expectations, the strategy must be reviewed or reviewed. this and adapted to changes in the external environment.
Well, those are everything related to the types of strategic planning.
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