Strategic planning is structured systemic thinking, organized for the company to achieve its objectives. It is the physical tool for the entrepreneur to put strategies on paper or the computer, constantly monitoring and evaluating the results.
Strategic Planning is the detailing of how the company will act to achieve the general and functional objectives, fulfilling its mission and realizing the future vision.
Strategic Planning levels
Strategic planning is prepared at three levels of the organization, namely:
- Strategic: strategic level. Strategic planning.
- Tactical: strategic management level. Marketing planning; of production; HR; finance; an action plan for middle activities.
- Operational: strategic level of operations. Elaboration of operational objectives and strategies. Specific action plan by area, end activities.
Implementation of the Strategic Planning model
The strategic planning conception phase is the phase of thinking, reflecting, elaborating the company’s purpose. When answering the questions below, the entrepreneur defines the “north” of the company, where it wants to go and where it will go.
- What is your reason for existing in the market? Thus, it defines its mission.
- How will the company be seen, recognized over some time? Your vision of the future is defined.
- What are its values, which aggregates, contribute to the development of the sector to which it is inserted?
Thus, the differentials are presented, the founders’ beliefs, which will expend efforts towards the best result for their business.
Scenario analysis phase
To trace the best trajectory, the entrepreneur must analyze the environment in which the company is inserted. It will analyze the panoramic photo of the scenery, the scenery where it is located, considering the space and the moment.
This environment will be treated in two dimensions:
Macro environment: it is external to the company, the one from which it receives the influences and impacts, however, over which it has no control – it is the political, economic, social and technological factors that dynamize the market movements. These are the opportunities and threats that the company will need to consider to proceed.
Microenvironment: one over which it has total control, its competencies, its resources, its strengths, and weaknesses.
These aspects are internal. The entrepreneur does the scenario analysis, knows the opportunities and threats along the way, their strengths and weaknesses to face the journey towards the future. That way, he will have a panoramic view from the starting point to the arrival point, he will have the market map: the current scenario.
What directions will the company take, what will its trajectory be like? What are the best ways? Are there any shortcuts? Are there obstacles?
With consistent scenario analysis, the entrepreneur will define where he will start from, what the business will be, placing the limits of his performance: neither as short nor as wide, according to his resources and potential. It is taking the position to start the walk. In which market will you operate, which customers will you serve? How will you deal with technology? What will be the geographic range?
For the company to be able to make the journey from the starting point, the entrepreneur will need to outline how the crossing will be. Taking advantage of opportunities, minimizing threats, counting on strengths and correcting weaknesses, it will outline the organization’s general strategies, what are the intended results at each stage of the crossing over a short, medium and long term. That is, the entrepreneur will elaborate on the general and functional objectives, considering all the potentialities and limitations existing at the moment.
A short view of the business: direct definition of the product and service delivered. Example: the business definition of a company that sells cosmetics: perfumes, soaps, makeup items.
Strategic business vision: strategic definition: defined by the benefits that will be delivered, in addition to the product and service. Example: business definition of a company that sells cosmetics: beauty; gifts.
Developing general objectives and strategies
They are prepared by the company’s management globally, considering all the factors analyzed in the scenario. It is decision-making, on how to act on the scene to achieve the mission and achieve the vision of the future. These are the objectives and strategies of the organization as a whole.
The objective is what the organization will do, the strategy is how it will do, the set of actions to obtain the desired results. In other words, it is the broad way in which the company operates to reach the mission with the best performance, structuring and return to the business.
For the company to be successful with strategic management, the leadership of the managers must be entrepreneurial, efficient. Thus, the role of leaders will be to disseminate in the company: mission, the vision of the future, values and operating strategies over a certain period. Strategic planning must be known by all areas of the company. Panels, spreadsheets, meetings can be used to present strategic plans.
It is important that each stage of strategic planning is systematically monitored and its results disseminated, reviewed and improved, according to the needs of each strategy.
It is essential to integrate all levels of planning: strategic, tactical and operational in the effort to fulfill each strategy, according to their level of achievement, so that in the end everyone can celebrate the achievement of the objectives and general strategies and fulfill the mission of the company.
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