Formal strategic planning can benefit your organization On the face of it formal strategic planning seems valuable for strategic decision making because so much money is spent on it by so many organizations! The value of formal strategic planning Some top managers of organizations that use formal corporate strategic planning seem to believe that it helps improve the long term performance of their organizations. However among many academic researchers opinion seems divided.
If you have a clear idea of where you are and where you want to go, business-wise, you can develop a realistic, achievable plan to get there. The management planning process helps formal business planning process company through the steps of defining a desired outcome and developing a strategy to achieve it.
Setting this planning process in motion helps you move forward with clarity, and saves you wasted time, energy and capital.
Assess Your Situation To know where you want to go, you must first understand where you are. Gather data about your company's present situation, including sales figures and customer feedback.
Identify the company's strengths and weaknesses, soliciting both the internal voices of your staff and the external voices of your clients. Set Priorities Determine the values and outcomes you want your company to achieve, and state them clearly.
Craft a vision statement by articulating the central ideas and values that keep your business on track, such as stellar customer service or a commitment to protecting the environment.
Work with your management team to clarify this vision, and make sure there is consensus around adopting it as a guiding principle for your company. Set Goals Use the vision you have crafted to create measurable goals.
For example, if you value customer service, you may work toward the goal of responding to every piece of customer feedback; if you're committed to environmental values, you may set the goal of having a carbon-neutral workplace in three years.
Be as clear and specific as possible when creating your goals, using numbers to measure progress and success, and charting timelines for achieving your objectives. Create Accountability Systems Develop systems for evaluating progress as you work toward achieving the goals you have set.
Put different managers and staff members in charge of domains, such as tracking sales figures or carbon emissions. Create a chain of accountability showing who is ultimately responsible for different outcomes. Have backup plans so you can shift gears and dedicate additional resources if the process isn't going according to plan.
Evaluate and Review Create formal protocols for assessing your progress. Bring as many voices as possible into this evaluation process, and encourage honesty and objectivity. Assess how well you are progressing toward your goals, but also be open to reassessing the goals themselves, as long as you do so in ways that are still consistent with your long-term vision.
Technologies and circumstances may change, making your goals less achievable or relevant. But if you do revisit your goals, do so with your vision in mind so you can find other ways of expressing it in your work.
In she transformed her most recent venture, a farmers market concession and catering company, into a worker-owned cooperative. She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills.Oct 03, · While every business owner should have an ongoing planning process to help them run their business, not every business owner needs a complete, formal business plan suitable for submitting to a potential investor, or bank, or /5().
A written business plan was rarely referred to after preparation, and there was little causality between business plan creation and business success.
This view is supported by the earlier work of Bracker and Pearson () in that the unstructured nature of planning was a process rather than a written document. Some companies alternate the business units that undergo the complete strategic-planning process (as opposed to abbreviated annual updates of the existing plan).
One media company, for example, requires individual business units to undertake strategic planning only every two or three years.
The Planning Cycle brings together all aspects of planning into a coherent, unified process. By planning within this structure, you will help to ensure that your plans are fully considered, well focused, resilient, practical and cost-effective.
Princ of Mgmt: Chapter 4 Strategic Planning. Bates, 2nd Edition. Management. STUDY. PLAY. List the six steps in the Formal Planning Process A A E S I M. 1. Analyze the situation 2. Alternative goals and plans 3.
Goal and plan evaluation 4. Goal and plan selection 5. Implementation HOW you do business. Formal strategic planning calls for an explicit written process for determining the firm's long-range objectives, the generation of alternative strategies for achieving these objectives, the evaluation of these strategies, and a .