Strategic planning in business management
Certificationoverviewbalanced scorecard certificationkpi professional certificationpump® certificationother coursescourse schedule & registrationpolicies & termssoftwarebalanced scorecard softwarequickscore bsc softwarebsc basicsabout the balanced scorecardarticles & videosexamples & success storiesaward for excellencekpi basicsstrategic planning basicsblogaboutabout bsibsi associatespress releasesgsa schedulecontact usstrategic partnersglobal partnersbsi locationsbsi africabsi middle eastbsi europebsi australia/se day , november 15 , basics > strategic planning the balanced scorecardarticles & videosexamples & success storiesaward for excellencekpi basicsstrategic planning is strategic planning? Planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. Effective strategic planning articulates not only where an organization is going and the actions needed to make progress, but also how it will know if it is is a strategic plan? Strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning is strategic management? Management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change. Strategy execution is basically synonymous with strategy management and amounts to the systematic implementation of a are the steps in strategic planning & management? Many frameworks cycle through some variation on some very basic phases: 1) analysis or assessment, where an understanding of the current internal and external environments is developed, 2) strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented 3) strategy execution, where the high level plan is translated into more operational planning and action items, and 4) evaluation or sustainment / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues are the attributes of a good planning framework? Based, non-profit professional association dedicated to advancing thought and practice in strategy development and deployment, has developed a lead-think-plan-act rubric and accompanying body of knowledge to capture and disseminate best practice in the field of strategic planning and management.
Strategic business management and planning
Asp has also developed criteria for assessing strategic planning and management frameworks against the body of are numerous strategic planning and management frameworks that meet these criteria, such as the balanced scorecard institute's nine steps to success. For more information about the criteria, please visit the asp more information about strategic planning and management in general or for about how balanced scorecard institute can help you, please consider our certification or consulting services, or contact us about balanced scorecard based strategic planning and do you stand against other high performing organizations in terms of strategy management? The strategic management maturity model™ to assess your certified by the association for strategic gic thinking versus strategic 5 most important factors to successfully implement strategy in your strategic plan? Post-retreat strategic planning ate t the entire bain and company the entire bain and company & south aires rio de o san city washington, , middle east & esburg ace, defense & government es & products, paper & rial goods & tructure, construction & building and & public ies & develop insights our clients act on—strategic decisions and practical actions, tailored to their er strategy & ation s & mance are known for our holistic perspective. We cross boundaries with our clients to create holiday firm of the rial goods & ies & mance er strategy & s & ation and alliance care for our clients' business as our own; they know we're in this consulting ation iew 're consistently voted as the best place to insights homemanagement holiday firm of the rial goods & ies & mance er strategy & s & ation and holiday firm of the rial goods & ies & mance er strategy & s & ation gic planning is a comprehensive process for determining what a business should become and how it can best achieve that goal. It appraises the full potential of a business and explicitly links the business’s objectives to the actions and resources required to achieve them. Strategic planning offers a systematic process to ask and answer the most critical questions confronting a management team—especially large, irrevocable resource commitment strategic planning works:A successful strategic planning process should:Describe the organization’s mission, vision and fundamental potential business arenas and explore each market for emerging threats and tand the current and future priorities of targeted customer e the company’s strengths and weaknesses relative to competitors and determine which elements of the value chain the company should make vs. Fy and evaluate alternative p an advantageous business model that will profitably differentiate the company from its stakeholder expectations and establish clear and compelling objectives for the e programs, policies and plans to implement the ish supportive organizational structures, decision processes, information and control systems, and hiring and training te resources to develop critical for and respond to contingencies or environmental n and vision io and contingency ies use strategic planning to:Change the direction and performance of a age fact-based discussions of politically sensitive a common framework for decision making in the a proper context for budget decisions and performance managers to develop better information to make better se confidence in the business’s , daniel j. Harvard business review press, management ment tools identifies and explains the most important concepts and tactics used in business today, based on bain & company ment tools & trends executives’ top priority in 2015 is growth—followed by improving profitability and tackling excessive ss process management er journey er relationship er satisfaction er l ee engagement s and n and vision zational time optimization io and contingency chain quality insights, deliveredsign up for our monthly bain insights ibe far is your company on its digital journey?
This short survey to gauge your business's progress toward digital the front line should lead a major the toughest changes, don’t rely on a program office to make them you picking the right wallet? S critical to understand each customer’s total potential spending by the relevant product t management in the age of companies looking to win market share are giving product managers new powers over every aspect of the customer wikipedia, the free to: navigation, to be confused with strategic gy • strategic ry strategy • strategic gic planning • game l porter • rita gunther henderson • gary e a. Paine • adrian oster • chris mintzberg • clay itive advantage • experience chain • portfolio competency • generic analysis • growth–share gic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes. Strategy can be planned (intended) or can be observed as a pattern of activity (emergent) as the organization adapts to its environment or gy includes processes of formulation and implementation; strategic planning helps coordinate both. Strategic plan gic management processes and gic planning is a process and thus has inputs, activities, outputs and outcomes. 3] these elements are considered throughout the strategic planning is gathered from a variety of sources, such as interviews with key executives, review of publicly available documents on the competition or market, primary research (e. Other inputs include an understanding of the values of key stakeholders, such as the board, shareholders, and senior management.
These values may be captured in an organization's vision and mission essence of formulating competitive strategy is relating a company to its gic planning activities include meetings and other communication among the organization's leaders and personnel to develop a common understanding regarding the competitive environment and what the organization's response to that environment (its strategy) should be. A variety of strategic planning tools (described in the section below) may be completed as part of strategic planning organization's leaders may have a series of questions they want answered in formulating the strategy and gathering inputs, such as:What is the organization's business or interest? Output of strategic planning includes documentation and communication describing the organization's strategy and how it should be implemented, sometimes referred to as the strategic plan. 2] a strategic plan may cover multiple years and be updated organization may use a variety of methods of measuring and monitoring progress towards the objectives and measures established, such as a balanced scorecard or strategy map. Balance sheets, income statements, and cash flows) for several years when developing their strategic plan, as part of the goal setting activity. Capital budgets very often form the backbone of a strategic plan, especially as it increasingly relates to information and communications technology (ict). The planning process produces outputs, as described above, strategy implementation or execution of the strategic plan produces outcomes. How close they are to the strategic goals and vision will determine the success or failure of the strategic plan. 1] these were developed by companies and management consulting firms to help provide a framework for strategic planning.
Planning, which was originally used in the military and recently used by large corporations to analyze future scenarios;. Share matrix, which involves portfolio decisions about which businesses to retain or divest; ed scorecards and strategy maps, which creates a systematic framework for measuring and controlling sive evaluation, which uses a constructivist evaluation approach to identify the outcomes of objectives, which then supports future strategic planning gic planning vs. Extending financial statement projections into the future without consideration of the competitive environment is a form of financial planning or budgeting, not strategic planning. In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods. The financial plans accompanying a strategic plan may include 3–5 years of projected ey & company developed a capability maturity model in the 1970s to describe the sophistication of planning processes, with strategic management ranked the highest. The four stages include:Financial planning, which is primarily about annual budgets and a functional focus, with limited regard for the environment;. Based planning, which includes multi-year financial plans and more robust capital allocation across business units;. Management, where widespread strategic thinking occurs and a well-defined strategic framework is ries 3 and 4 are strategic planning, while the first two categories are non-strategic or essentially financial planning. Planning has been criticized for attempting to systematize strategic thinking and strategy formation, which henry mintzberg argues are inherently creative activities involving synthesis or "connecting the dots" which cannot be systematized.
Mintzberg argues that strategic planning can help coordinate planning efforts and measure progress on strategic goals, but that it occurs "around" the strategy formation process rather than within it. Further, strategic planning functions remote from the "front lines" or contact with the competitive environment (i. In business, facing the customer where the effect of competition is most clearly evident) may not be effective at supporting strategy efforts. Strategy strategy on making rise planning ated business ry strategy and the art of war for the gic planning gy markup language (stratml). Abcs of strategic management : an executive briefing and plan-to-plan day on strategic management in the 21st century. Gic planning 's five forces ries: strategic managementbusiness planningbusiness termsstrategyhidden categories: articles containing video logged intalkcontributionscreate accountlog pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia out wikipediacommunity portalrecent changescontact links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this a bookdownload as pdfprintable version. 3 free articles big lie of strategic the january–february 2014 y–february 2014 gy making forces executives to confront a future they can only guess at. If you are entirely comfortable, you’re probably stuck in one or more of the following ng arguably makes for more thorough budgets, but it must not be confused with lend themselves wonderfully to planning, because the company controls them. Planning can’t make revenue magically -referential strategy managers who avoid the first two traps may end up using a framework that leads them to design a strategy entirely around what the company controls.
Company can avoid those traps by focusing on customers, recognizing that strategy is about making bets, and articulating the logic behind strategic executives know that strategy is important. If executives adopt this definition, then maybe, just maybe, they can keep strategy where it should be: outside the comfort t trap 1: strategic lly every time the word “strategy” is used, it is paired with some form of the word “plan,” as in the process of “strategic planning” or the resulting “strategic plan. The subtle slide from strategy to planning occurs because planning is a thoroughly doable and comfortable your energy on the key choices that influence revenue decision makers—that is, gic plans all tend to look pretty much the same. This part of the strategic plan tends to be very organized but also very long. Strategic plans become the budget’s descriptive front end, often projecting five years of financials in order to appear “strategic. But management typically commits only to year one; in the context of years two through five, “strategic” actually means “impressionistic. Planning typically isn’t explicit about what the organization chooses not to do and why. And its dominant logic is affordability; the plan consists of whichever initiatives fit the company’s ing planning for strategy is a common trap. They are, after all, primarily current or former managers, who find it safer to supervise planning than to encourage strategic choice.
Analysts pore over plans in order to assess whether companies can meet their quarterly t trap 2: cost-based focus on planning leads seamlessly to cost-based thinking. Costs lend themselves wonderfully to planning, because by and large they are under the control of the company. The trouble is that planning-oriented managers tend to apply familiar, comfortable cost-side approaches to the revenue side as well, treating revenue planning as virtually identical to cost planning and as an equal component of the overall plan and budget. S a simple reason why revenue planning doesn’t have the same desired result as cost planning. Companies may fool themselves into thinking that revenue is under their control, but because it is neither knowable nor controllable, planning, budgeting, and forecasting it is an impressionistic course, shorter-term revenue planning is much easier for companies that have long-term contracts with customers. For example, for business information provider thomson reuters, the bulk of its revenue each year comes from multiyear subscriptions. Planning can’t and won’t make revenue magically appear, and the effort you spend creating revenue plans is a distraction from the strategist’s much harder job: finding ways to acquire and keep t trap 3: self-referential strategy trap is perhaps the most insidious, because it can snare even managers who, having successfully avoided the planning and cost traps, are trying to build a real strategy. Unfortunately, two of the most popular ones can lead the unwary user to design a strategy entirely around what the company can 1978 henry mintzberg published an influential article in management science that introduced emergent strategy, a concept he later popularized for the wider nonacademic business audience in his successful 1994 book, the rise and fall of strategic planning. If the future is too unpredictable and volatile to make strategic choices, what would lead a manager to believe that it will become significantly less so?
Your company can , the concept of emergent strategy has simply become a handy excuse for avoiding difficult strategic choices, for replicating as a “fast follower” the choices that appear to be succeeding for others, and for deflecting any criticism for not setting out in a bold direction. This concept became extraordinarily appealing to executives, because it seemed to suggest that strategy was the identification and building of “core competencies,” or “strategic capabilities. Discussion in management and board meetings tends to focus on how to squeeze more profit out of existing revenue rather than how to generate new revenue. You have a large corporate strategic planning ly not: if you have a corporate strategy group, it is ly: in addition to profit, your most important performance metrics are cost- and ly not: in addition to profit, your most important performance metrics are customer satisfaction and market ly: strategy is presented to the board by your strategic planning ly not: strategy is presented to the board primarily by line ly: board members insist on proof that the strategy will succeed before approving ly not: board members ask for a thorough description of the risks involved in a strategy before approving can a company escape those traps? If the company does connect with that customer, the how-to-win choice will determine whether she will find the offering’s targeted value equation article also appears in:Hbr’s 10 must reads ship and managing a strategy is about just those two decisions, it won’t need to involve the production of long and tedious planning documents. Characterizing the key choices as where to play and how to win keeps the discussion grounded and makes it more likely that managers will engage with the strategic challenges the firm faces rather than retreat to their planning comfort 2: recognize that strategy is not about noted, managers unconsciously feel that strategy should achieve the accuracy and predictive power of cost planning—in other words, it should be nearly perfect. Until they accept this, they will get planning instead of strategy—and lots of excuses down the line about why the revenue didn’t show 3: make the logic only sure way to improve the hit rate of your strategic choices is to test the logic of your thinking: for your choices to make sense, what do you need to believe about customers, about the evolution of your industry, about competition, about your capabilities? It is critical to write down the answers to those questions, because the human mind naturally rewrites history and will declare the world to have unfolded largely as was planned rather than recall how strategic bets were actually made and why. In addition, by observing with some level of rigor what works and what doesn’t, managers will be able to improve their strategy decision managers apply these rules, their fear of making strategic choices will diminish.
Have argued that planning, cost management, and focusing on capabilities are dangerous traps for the strategy maker. For if it’s strategy that compels customers to give the company its revenue, planning, cost control, and capabilities determine whether the revenue can be obtained at a price that is profitable for the company. Human nature being what it is, though, planning and the other activities will always dominate strategy rather than serve it—unless a conscious effort is made to prevent that. Martin is the director of the martin prosperity institute and a former dean of the rotman school of management at the university of toronto. He is a coauthor of creating great choices: a leader’s guide to integrative article is about strategic planning.