Strategic planning is the process of identifying goals for an organization and determining actions that will help achieve those goals within a specified span of time. It can involve a wide range of topics, including business models and industry analysis. Strategic planning is often a collaborative process, involving leadership from the top of an organization as well as employees and external stakeholders. The process also involves analyzing data, prioritizing goals and setting objectives.
The first step in strategic planning is gathering information about an organization’s current situation and future options. This requires a shift in focus from day-to-day operations to a broad view of the company’s position and competitive landscape. This research should include the company’s strengths and weaknesses as well as potential opportunities for new revenue streams. Employees and customers should be surveyed to provide feedback and an accurate perspective of the organization’s current standing.
Once a broad overview has been developed, a committee of leadership should meet to formulate an action plan for the company. Many methodologies and frameworks exist for facilitating this process, and the committee will usually choose a small set of key priorities to address. These priorities will often involve attracting a particular type of customer, enhancing the company’s ability to develop products and services, or securing new sources of finance.
While the priorities are important, it is vital that the company not become overly ambitious in its goals and objectives. The strategy must be realistically achievable and should include a timeframe for implementation as well as measurable criteria to monitor progress. It may also include a list of resource requirements, such as the amount of capital needed to implement the strategy and the amount of staff required.
It is also crucial to determine how the company will measure its success and identify a group of people responsible for overseeing the strategic planning process. These individuals should be able to balance the visionary perspectives of the executives with the practicalities of the company’s financial and logistical capacity.
Once the priority goals have been determined, the strategic planners will often begin to create operational plans that will provide the structured steps the company needs to take to attain its long-term strategic objectives. This will typically require the leaders of each department to create goals and tactics that support the broader strategies established by the leadership team. This is a process that will often involve a trade-off of resources in the form of opportunity cost, for example reducing investment in customer support to put more money into creating an intuitive user experience on the company website.
It is important that the strategic planning process be a collaborative and transparent one. This will ensure that employees and external stakeholders understand and support the direction of the company and will be more likely to align their own efforts with the organization’s goals. It will also allow them to contribute ideas that can potentially enhance the overall success of the plan.