Strategic Planning

 What is Strategic Planning ?

   

      A strategic plan is an overall defined course of organizational action for a set period of time that guides day-to-day decision-making and activity.

•    The plan examines and reflects an organization's values, current status, and environment—and it relates those factors to the organization's desired future state, usually expressed in five- to ten-year time periods.

•      Defines how resources will be used given timelines and handles (which are means by which an organization can leverage resources or realities).

•      It is based on both the organization’s internal environment and the external action field in which the organization operates.

•       The plan is both a reaction to, and a tool for adapting to, environmental changes     and creating an organization's future within its changing environments.

•        Aimed to achieve specific goals and objectives.

•        Evaluated by whether or not it achieves specific events or milestones.

•       The purpose of the plan is to help the organization capitalize on its strengths while minimizing its weaknesses, and to take advantage of opportunities and defend against threats.

     To ensure that they select and execute the right activities, companies must give priority to strategic planning in three key areas: managing a company's businesses as an investment portfolio, assessing each business's strength by considering the market's growth rate and the company's position and fit in that market, and establishing a strategy. For each business, the company must develop a game plan for achieving its long-run objectives.

Let us see what KEN WONG (Award winning Marketing expert) has to say about the importance of  strategic planning  with regard to present  market situation.

A strategic plan should be accomplished by the daily plan that would help to drive the company for the short term, however the strategic plan is necessary in order empower the employee to achieve the vision and mission of the company, the best strategic plan is waste, if it is not implemented. To define the strategic plan the typical outline should consists of the following five strategic elements .

1.Vision Statement :It is something that gives you an idea where you want to go. It is an articulation of your dreams and hopes of your business.

2.Mission Statement:  It is a framework within which a company’s strategy or action is planned. It sets the guidelines for all your actions.

3.Critical Success factor : Those few factors which must go well to achieve the vision of your company within the framework of your  mission guidelines.

Some of important factors are as listed below

•       Credibility of the company in the market
•       Maintaining the quality standards
•       Resources needed for implementing the plan.
•       Establishing a proper coordination among the levels and departments
•       Striving continuously for the cost effective manufacturing and operations
•       Financial plan that ensures enough cash flow and sales revenue
•       Plans to deal with the uncertainties of the future and enhance the employees to work effectively

4.Strategies and action for objectives : To achieve the strategy we have to have a action plan however the action should have capability to adjust with the uncertainties.

5.Prioritized implementation schedule : The schedule should prioritize the various strategies, actions and activities.

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