What is Strategic Planning?
Strategic planning is an organizational management activity used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, while focusing on the future. Effective strategic planning articulates not only where an organization is going and the actions needed to make progress, but also how it will know if it is a success.
What is a Strategic Plan?
A strategic plan is a document used to communicate to an organization the goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise.
What is Strategic Management?
Strategic management is the comprehensive collection of ongoing activities and processes used by organizations to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as its requirements and other circumstances change.
What Are the Steps in Strategic Planning & Management?
There are many different frameworks and methodologies for strategic planning and management. While there are no absolute rules regarding the right framework, most follow a similar pattern and have common attributes. Many frameworks cycle through some variation on some very basic phases:
- analysis or assessment, where an understanding of the current internal and external environments is developed
- strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented
- strategy execution, where the high level plan is translated into more operational planning and action items
- evaluation or sustainable / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other issues related to strategic management occur
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