Strategic Planning Process Explain the Basic Steps

Strategic Planning Process

Explain the basic steps in the planning process

The steps included in designing a strategic plan are portrayed underneath. Although the process may appear rational and systematic, it is regularly iterative and evolves considerably over time. Furthermore, it is subject to political pressure and will be changed likewise. Some key planning efforts may not include all the steps depicted. The components and process depicted in the following segment must be altered depending on the context.

In a strategic planning process, the first step is to address the aspects relating to current organizational situation and the factors required for the success of the next steps. This includes the examination of the project's history and evolving contexts (both external and internal). Responses to the organizational priorities include attention to strengths and shortcomings and determine how to benefit from strengths (Sinofsky & Iansiti, 2010).

The next phase in the process is to identify the destiny of the organization. Since the identified vision is tied to the organizational values, it is fundamental for this step to maximize the efforts of the persons involved in the attaining the vision. For organizations and projects, the vision is later transformed into a vision statement: an expansive, far-reaching proclamation of the purpose behind the organization or program. Organizations may not have mission statements because they are likely to have various intentions. Assuming that organizations cannot design their mission statements to encompass different objectives, the organizers may articulate different mission statements reflecting the distinct objectives (Covello & Hazelgren, 2009).

The next step is the expression of objectives. The desired well-being of the community, organization, or program, objectives will be used to demonstrate the future direction of the organization or program. An illustration of the stated objective is that all households must be healthy by the year 2020.

After determining goals and articulating the vision, organizers should address method of arriving at their objectives. This step includes articulating strategies for accomplishing results. Methodologies might as well reflect the strengths and shortcomings of the element engaged in planning. For instance, an extremely small organization must know that its size is likely to be both a shortcoming and strength. The size might constrain it to approaches that do not require extensive human resource commitments, but permit it to utilize methodologies demanding quick spread of data all around the association. Recognizing the relative strengths and shortcomings is helpful in recognizing promising techniques (Sinofsky & Iansiti, 2010).

The development of organizational system should incorporate attention of strategies for measuring goals. Some strategic planning processes may include this phase while others leave it to be addressed in a different procedure. Tending to goal measurement includes articulation of targets, pointers, and benchmarks. Targets are the transient conditions required to attain desired conditions of organizational success. Pointers are quantifiable measures of advancement; they give numeric appraisal of the intended well-being conditions. Benchmarks refer to performance level targets communicated in measurable timelines and terms against which genuine achievement is measured.

Steps in the decision-making process

Most managers and small business owners make decisions daily, tending to everything from regular operational issues to long-range strategic planning. The decision-making procedure of a director could be broken down into six notable steps. Although every step might be examined at length, administrators regularly go through all the steps rapidly when making decisions. Comprehension of the decision making process can improve the effectiveness of decision-making (Sinofsky & Iansiti, 2010).

Identifying Problems

In this process, the first step is to realize that there is a decision to be made. They cannot be made arbitrarily since they result from efforts to address specified problems, opportunities, or needs. A manager in a regular shop might realize that there are too many employees on the floor compared with the daily current sales volume, for instance, this will require the manager to make strategic decisions to ensure the costs under control (Covello & Hazelgren, 2009).

Seeking Information

Managers must seek information to clarify their options after identifying that an issue requires a decision. Managers aim to establish the possible cause of a problem, the processes and people involved in the issues and limitations affecting the decision making process.

Brainstorming Solutions

Managers must have a complete understanding of the issues at hand to make a list of potential solutions. This step involves anything ranging from few seconds to months of collaborative planning, based on the nature of the decision (Covello & Hazelgren, 2009).

Choosing Alternatives

Managers must weigh the advantages and disadvantages of each possible solution, inquires for extra information if there is a need, and choose the best and less costly option. Managers can seek external advice if they need a second opinion or a new perspective on the potential solutions or problems.

Implement the Plan

The decision must be put into action. All employees must be encouraged to implement the decisions with confidence after committing to identified solutions. This does not imply that the decision cannot be changed after being put in action. Perceptive managers erect monitoring systems to assess the results of their decisions (Leleur, 2012).

Evaluate Outcomes

Even the best and most experienced managers and business owners learn from mistakes. Business owners must always monitor the outcomes of their strategic decisions and be ready to adapt their business plans as necessary (Sinofsky & Iansiti, 2010).

Environmental factors that influence decision making

Uncertainty

Uncertainty, regardless of different elements as munificence and complexity pushes often affect the strategic decision making process. Evidently, uncertainty is adversely linked with the degree of rationality in the decision making process. With the identified components, the industry's structure is a significant determinant of the productivity. It serves as a compelling factor on strategic decision-making process while industry's structure does not the strategic decision-making process (Leleur, 2012).

Environmental Hostility

Environmental hostility relates to the operational situation of a firm. It relates with production, price, and distribution competition, extreme regulatory limitations, unfavorable market demand, and lack of resources. Environmental hostility is identified with the degree of evaluation in strategic decision-making. The findings of an alternate study demonstrated that there is a positive association between rationality in the decision-making and environmental hostility. However, it has negative association with politicization and decentralization of the strategic decision-making (Covello & Hazelgren, 2009).