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Things to Know about Strategic Planning and Management

Matswapati June 26, 2020 Strategic Planning

strategic planning and management Strategic Planning Things to Know about Strategic Planning and Management

What is actually strategic planning and management? Everything that we do basically needs a plan. Moreover, it is when the activity is related to business and company. It is impossible for a company to do a certain action without planning first. Yes, a company needs a plan to make all the actions more structured. Besides, a plan is also needed to create a concept so that the activity conducted can be done more successfully.

The Definition of Strategic Planning
In a business or company, making a plan is not enough. What people need inside is building a business strategy. So, the process is also known as strategic planning. What is actually strategic planning? Planning itself refers to a process that is arranged systematically to do a certain action in the future.

Meanwhile, strategic planning refers to guidance that is used by a company or organization to work for the next 5 or 10 years. In other words, strategic planning is closely related to the long-term plan. Many experts also share their brainstorming results regarding the definition of strategic planning. One of them is Robert N. Anthony who defines it as a process of the programs decision that will be conducted by an organization as well as the estimation of resources to allocate to each program for the following years.

Strategic planning is an essential movement in running a business. It is said that a competent leader or manager is a person in a company that spends most of his or her time to think about what to do in the future. Sure, it is although a manager must not work alone. He also hires staff members to help him with planning strategically. Well, this is how to describe the strategic planning process anyway.

Process in Strategic Planning
In strategic planning and management, it needs some steps to undergo. So, what are those steps? First of all, it is the target formulation. The target formulation is one of the most important steps in planning. How can it be? Sure, a target formulation determines how many activities to do and how long it needs to do all those activities. Target formulation will involve most of the human resources in a company. Meanwhile, the decision is still made by the leader after listening to voices from the members or employees.

Second, it is determining purposes and strategies. In this step, the leader or a company must introduce purposes and strategies that have been used before. If the company is still new, the leader needs to explore goals in detail and then deliver them to the employees. This way, preparing a strategic plan can be conducted in a more integrated way. It provides a better environment in the company for sure.

Third, the next step is environment analysis. The terms environment here refers to the external environment or the market and customers. The main purpose of this step is to determine how to enter society well by knowing and understanding their technology, social, economy, culture, and even politics. Undeniably, they are very important factors that influence the longevity of your company.

The fourth of the steps in developing a strategic plan is about the internal company. It refers to the internal elements of the company. This analysis is important to know whether the resources had by the company are enough or not to make all activities work well. Resources here include many things, not only human resources but also materials like money and properties.

Fifth, you must acknowledge threats and opportunities to do by doing the SWOT analysis. SWOT analysis is an analysis tool that helps managers determine and develop strategies in facing competitions in a company or business. Whether opportunities or threats, they can come from anywhere, internally and externally. But although you may not guess those opportunities and threats to face in the future, your company must have some preparations through strategic planning.

The last step in the strategic business planning process is determining how far the strategic change has been done or established. It is to face changes in the environment internally and externally when business activity has been conducted. It is also known as the evaluation and assessment. Sure, if the plan is not successful, there must be something wrong. Next time, you can use the same plan with some changes or completely change the plan. All of them are answers to a question; what does a strategic planner do?

Why is strategic planning important?
There are at least 3 main reasons why strategic planning is important in a company or organization. First, it gives formulation or a basic framework of what you need to do to run your business. For example, if you want to improve your market target, there must be a general concept to apply to reach the goal. Next, the general concept is generated to more detailed points. Each point is about to do or conduct so that the goal can be achieved in a certain period of time.

Second, understanding strategic planning also eases you more in understanding other plans. In a company, as it is stated in a strategic management plan template, there are so many types of plans. But all of those plans are commonly written on the same sheet of strategic planning. Those plans are even parts of strategic planning itself. Therefore, by understanding strategic planning, in general, you can simply understand other plans.

Third, strategic planning makes the conception of a company clearer. It is much easier also in formulating targets by using resources that are owned by the company. It can be concluded also that the success of strategic planning determines the success of the company. There are some reasons for this; strategic planning is the most important plan in the company, undergoing strategic planning determines the mission of the organization, and strategic planning enables managers to prepare themselves to face changes that may happen.

Although it is very important, undeniably, strategic planning is not something easy to do. Even professional managers need help from their employees. Meanwhile, it is necessary also to use software or planner to do this job. So, how to write a strategic business plan? It depends on what the company wants to achieve through strategic planning and management.

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