Strategic planning is an essential part of moving a company forward and staying on track, but what exactly does it involve? Strategic planning involves a disciplined effort that results in important decisions and actions used to channel energy and resources, set priorities, promote a common goal among coworkers, aim toward desired results, and prepare for shifts in an industry or environment. When a business knows who it is, who it serves, how it serves, and why, the organization can readily identify opportunities, relevancy, and direction to reach new levels of success.
What is a strategic plan?
A strategic plan outlines how the organization will progress toward the desired outcome. This document communicates the steps and actions needed to move from point A to B, as well as what resources and other elements are needed to do this.
What is strategic management?
Strategic management is used to account for the present happenings and activities at work in an organization. Effective strategic management keeps track of who is doing what and works to streamline efforts, optimize resources, and align actions toward the end goal or goals outlined in the strategic plan. Such management leads to the establishment of a solid system used to progress toward the desired outcome. The system provides feedback and data which assist in making well-informed decisions and improving efforts as the plan unfolds.
What are the steps in strategic planning and strategic management?
While each plan and management style will differ according to the goals, type of organization, size of the operation, and other factors, a few key components of strategic management and planning include:
- Analysis or Assessment: In this phase, the current situation, problem, or condition is identified and understood.
- Strategy Formulation: This is the stage in which a detailed strategy is set forth and the plan outlined and documented in at least a general form.
- Strategy Execution: The plan is broken down into smaller, more detailed sections such as what specific actions will be taken and by whom.
- Evaluation/Sustainment/Management: As the plan unfolds, elements should be evaluated and refined to make the most of available time, resources, and energy. Do this with tools such as data, feedback, and forecasts of upcoming changes or obstacles for which the plan may need to be adapted.
Strategic Planning Experts
Multivariable Solutions has helped businesses in a range of industries use strategic planning to reach goals, improve internal functions, adapt to changing conditions, and more. Chuck Hunter is the Founder and CEO of Multivariable Solutions. Under his leadership, companies have grown from small local businesses to global name brands. COO Stacey McKibbin has led dozens of businesses to new levels of success as a leader, consultant, and coach. From startups to Fortune 500 companies, we use our diverse skills, knowledge and expertise to deliver results that move your business forward. Give us a call to get started bettering your business today!