Strategic planning is a unique approach to the implementation of the function of long-term planning in the organization. This approach is characterized by the fact that it makes it possible to maintain the long-term competitiveness and financial and economic performance of the organization in an unstable and unstable external environment. From an organizational point of view, strategic planning is a system of interrelated structural elements that ensure the implementation of the planning process.
Strategic planning acts as an integrating force that organizes and directs the process of developing strategic goals and provides a basis for allocating resources at the corporate level. In addition, strategic planning focuses on critical management issues and provides a framework for the interaction of managers and employees in developing and implementing strategic plans.
Strategic planning is the basis of both creative and abstract-thinking activities of managers and strategic leadership groups, which allows you to understand the essence of the business and understand the place of the corporation in the external environment, see the critical success factors, evaluate new market opportunities, and also stimulate innovative behavior, development, and introduction of innovations in the process of corporate governance.
Why you need strategic planning
The key answers to this question are:
- To ensure that management decisions are supported by careful analysis and development of alternative courses of action and, more importantly, corporate goals and strategy are regularly reviewed.
- To ensure that projects that require large long-term investments are carefully considered and evaluated.
- To develop an organizational process that coordinates the future activities of departments in a large diversified company and to increase the ability of top management to control these activities.
As you can see, this is an important component of corporate work.
Stages of strategic planning
Strategic planning is a diversified corporation that consists of five stages: the formation of a strategic logic, the organization of work on strategic planning, the development of a corporate strategy, strategic planning at the SCC level, and strategic control. The concept of development is an ideological and logical model of doing business. A corporation’s development strategy determines the architecture and directions of business development, and strategic plans act as a program-targeted mechanism for fulfilling corporate goals and objectives.
Who is in charge of strategic planning?
A large number of people are involved in strategic planning. First, these are the company’s managers – the board of directors makes decisions about the company’s movement vector and the development logic and takes the first key steps towards planning.
For more expressive progress in this process, you cannot do without analysts who examine your company’s data and then decide on the issues of interest to you. Analysts can be internal (company employees) or external.
In strategic planning, many companies involve consultants on various issues. This helps each participant in the process to concentrate on what is more important and understandable for him without delving into topics from which he is far away.
Suppose external investors finance the company. In that case, their opinion in strategic planning is also necessarily taken into account, so we can say they are also team members.