Strategic plan can be defined as the part of the overall organizational plan which lays out
- Organizational goals
- The course of action needed to achieve the set goals
Similarly, strategic planning can be defined as a part of organizational management which
- Set Priorities
- Strengthen Operations
- Directs Resources and Energy
- Ensures that all stakeholders and employees are working towards the common goal
- Respond to the Changing Environment by means of adjusting the organization’s direction
Strategic planning is undertaken by taking due consideration of certain key areas along with a focus on both the present and future. Some of the key areas which are considered in strategic planning include
- What the organization business is about
- Customers/Clients the organization is serving
- The internal and external factors that affect the organization
- The strategies, instruments, channels and policies that the organization employs to achieve its objectives.
It also takes a look into the direction the organization is heading to and accordingly determines the course of action that is needed to make further progress.
The Five crucial Steps to Consider While Developing a Strategic Plan
· Your current standing
Determining your current standing is the first step towards the determination of your organizational strategic plan. Make sure you exclude your wishes and your pre-conceived notions to know the ground realities of where you are actually standing
· Identify what is Important for you
Once you have accurately found out your current standing the next step is to determine where you would like to see your organization in the future. Once you identify your future direction the next step is to develop your vision and mission accordingly.
· Define what you should achieve
Since you have identified your current standing and chalk out the future standing of your organization as well it is time to state in tangible terms what your organization needs to achieve to travel from your current to future standing.
· Fix Accountability
Now that you have determined it all your future course of action and your goals/objectives in tangible terms it is time to determine the allocation of the resources and duties which in turn means that you clearly fix responsibility and accountability.
· Keep it Flexible and open to Amendments
Environments are ever changing. Therefore, you never know when the internal or external environment may change forcing you to review your plan. Therefore, keep it flexible and go over it to identify whether you need to change/modify/adjust something in view of the changed circumstances.
Significance of Strategic Planning
· Provides Direction to the Organization
An outstanding feature of the strategic planning is that it helps provide direction to the organization.
· Chalks out the Future Course of Action
It also helps chalk out the future course of action keeping in view the internal and external environments, factors and changes that may arise during the course of time.
· Helps Determine Targets/Objectives
It also helps determine the objectives and targets of the organization and identifies the best course of action to achieve it.