About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations board experience on boards and advisory boards. It may also extend to control mechanisms for guiding the implementation of the strategy. By working on a strategic plan together a team can. Simply put, strategic planning is clarifying the overall purpose and desired results of an organization, and how those results will be achieved. Strategic planning is the channeling of business insights into an action plan to achieve goals and objectives. Yet, steiner does not bother to define strategy except in the notes at the end of his book. The strategic procurement planning approach described in this note follows three main steps. Strategic planning can be understood as a systematic longrange planning activity, that an organization uses to fix priorities, strengthen operations, ascertain objectives and focus on the resources required and are to be allocated in order to pursue the strategy and attain the objectives. This uses the data gathered to develop and screen potential strategic procurement options for their suitability, acceptability, and. Vision describes what an organization would like to achieve o core ethos o aspirational, longterm future. Strategic planning basics balanced scorecard institute. Most agree that it is a way to identify longterm goals and to direct your company toward fulfilling those goals.
This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. Overview of planning toolkit on overview of planning by janet shapiro email. Strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. Strategic planning is a fundamental component of organizational management and decision making in public, private, and nonprofit organizations. Strategic planning brings focus among competing priorities and aligns organizations. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic planning organizational management britannica. Organizations generally look three to five years ahead when engaged in strategic planning. University, took the entire strategic planning establishment to task in his book, the rise and fall of strategic planning. Using a handbook for strategic planning, the senior leadership team can complete most of the. A definition of strategic planning strategic planning is a tool for organizing the present on the basis of the projections of the desired future. Strategic planning meaning in the cambridge english. A key distinction between strategic thinking and strategic planning is that the former occurs on a regular basis, as part of our daily.
The strategic planning process results in a strategic plan, a document that articulates both the decisions made about the organizations goals and the ways in which the organization will achieve those goals. Mintzber 1994 the fall and rise of strategic planning. Articulates organizational priorities and stakeholder values. This involves data gathering around the operating environment, supply markets, and key risks.
Most strategic and operational plans ignore the definition of strategic objectives. Strategic planning is an organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. The what, why and how of strategic planning myogsm. Strategic planning is a disciplined process for making key decisions and agreeing on actions that will shape and guide what an organisation is, what it does, and why it does it. Strategic planning edinburgh business school v using the course package it is widely accepted that strategic planning is extremely difficult to teach effectively. Someone compiles these lists, puts them into a threering binder, and attempts to update them on a monthly or quarterly basis. This is because, at the mba level, it is not sufficient to know about the subject it is necessary to be able to apply ideas in order to carry out strategic analysis of real problems.
Strategic planning is an organizational management activity that is 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 outcomesresults, and assess and adjust the organizations direction in response to a. It is a structured approach to establishing an organizations. The definition of strategic planning is a process of decisions made by an organization to set goals and to outline a course of action to achieve those goals, to grow the business and to help the business be profitable. It is therefore arrogant and unrealistic to say, this is how to do strategic planning in every situation. Strategic planning will help you to achieve the following objectives. What is strategic management, and why is it important.
It was not until the 1950s that formal approaches became popular. However, the principles of strategic planning for international development tend to be. Strategic planning definition of terms vision describes what an organization would like to achieve o core ethos o aspirational, longterm future mission is a statement of the purpose of a company or organization o its reason for existing and how it will accomplish its vision. Pdf strategic management and strategic planning process. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic. Strategic planning and forecasting fundamentals abstract individuals and organizations have operated for hundreds of years by planning and forecasting in an intuitive manner. Successful strategic planning provides the following advantages. In contrast to longterm planning which begins with the current status and lays down a path to meet estimated future needs, strategic planning begins with the. Pdf this chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and. There are different ways to do that planning, depending on the purposes of the planning, the life cycle or stage of development of the organization, the culture of people in the organization, types. Strategic planning is a process of looking into the future and identifying trends and. How to define strategic objectives examples of strategic. Strategic planning, disciplined effort to produce decisions and actions that shape and guide an organizations purpose and activities, particularly with regard to the future.
Since then, such approaches have been used by business, government, and nonprofit organizations. Planning is an important aspect of strategic thinking and management. Trbs airport cooperative research program acrp report 20. The strategic planning framework includes the following key elements.
It brings people together to discuss and wrestle with what and how to prioritize, allows for the opportunity to consider solutions to business issues and creates a unified vision for the company to communicate and share. Strategic planning is a complex activity and before attempting a definition it is useful. A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them. His book, strategic planning 2, is close to being a bible on the subject.
That is, a strategic plan is a road map to lead an organization from where it is now to where it would like to be in five or ten years. It is necessary to have a strategic plan for your chapter or. Philip kotlers contributions to the field of marketing philip kotlers status as a major thought leader in marketing is widely. Quality leadership tql coordinators, and strategic planning facilitators in leading the strategic management process.
Many planners might have a different interpretation of a particular term, especially if they primary use one model of strategic planning. Strategic planning dictionary definition strategic. The most important requirement around the use of strategic. Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. Ask ten people for a definition of strategic planning and you will probably receive ten different answers. Strategic planning defined strategic planning is a process of looking into the future and identifying trends and issues against which to align organizational priorities of the department or office. Strategic planning is a management tool for several key purposes.
Read chapter part 1 introduction and definition of strategic planning. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Glossary of strategic planning terms the following list includes many of the most common terms used in strategic planning. Part 1 introduction and definition of strategic planning strategic. He indicated that strategy is a plan, a pattern, a position, a perspective and, in a footnote, he indi. Part 1 introduction and definition of strategic planning. How to do strategic planning every organisation is different. I have been involved in strategic planning processes that have lasted between three hours to others that have taken more than 12 months. In effect, mintzberg declared strategy did indeed have several meanings, all of which were useful.612 804 904 492 690 507 1197 1592 858 1004 79 1460 849 58 746 582 781 1422 645 397 1056 611 919 393 707 78 786 628 757 1101