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The Long-Term vs. the Short-Term View
A process is a structured workflow that ensures
progression and results. For a strategic planning process to be followed in an organization,
consideration needs to be given to both the long-term view and the short-term requirements. For
example, if an organization has one major client that it is servicing, focus needs to be on
delivering the best service possible to that client, while at the same time seeing if cross-selling
of other products or services into the client can be realized. However, there would also need to be
effort made to increase the overall client base. This would entail multiple focus streams for the
plan; more work for sure, but definitely a strategic necessity. Similarly, if a strategy is to
transform the organization, then a shorter-term strategic transitioning plan may be necessary, as
well as the long-term strategic plan.
Analyzing the Environment
As with any process, the systemic influences need
to be addressed. When creating a strategic plan, this would involve analyzing the external
environment and predicting what impact this environment could have on the organization over the
next few years. Political, regulatory, economic, social, “green” environment and technological
changes need to be assessed for their potential as opportunities for, or threats to, the
organization. As with the macro-environment, the market environment that includes competitors,
customers, consumers, the incumbent industry landscape, suppliers and vendors also needs to be
analyzed to determine how changes in it could impact the organization.
In this arena it would not only entail viewing
the potential impact, but also determining how the organization can strategically influence or
manage the variables at this level. It could be by virtue of a new or revised product offering and
marketing efforts, a new price point, or even new supplier contracts. The internal environment
forms an important part of the system as well and needs to be focused on so as to ascertain the
weaknesses and strengths that exist with regard systems, processes, expertise, leadership, culture,
communications, structure, facilities and equipment, amongst others. Current operating challenges
need to be highlighted to ensure that they are adequately addressed as the organization forges
forward.
Because everything we do occurs within a larger
system, stakeholders (anyone affected by what we do or who can affect what we do) need to be
identified and their needs and expectations considered when devising a strategic plan. Through the
plan, opportunities need to be harnessed, threats managed, strengths optimized and weaknesses
eliminated.
Creating Direction
Analysis of the environment will help to inform
all the choices made for the strategy. However, it is the common focus that will provide the
direction. A short, simple, inspiring vision created by the leader establishes the stretch for the
organization in the direction of where it wants to go. The mission statement defines the purpose of
the organization and provides the reason for its existence. Once goals are established, it becomes
clear what needs to be achieved in key focus areas in order to realize the vision. As goals are
often large in scope, they need to be broken down into objectives. These specific targets or
end-results form the basis for an action plan. This will ensure that the strategy is made into a
working document; one that can inform sections of the organization on what needs to be done and
against which progress can be measured.
Who Should Participate?
Participation in strategic planning is key to the
plan being successfully translated into action. Everyone in the organization should, at some point,
be involved in the strategic plan. People tend to own what they help create. It also allows for
different perspectives and information to be utilized. Of course, not all the participants in the
strategic planning process will be strategic thinkers. However, all the inputs could have value,
even if it comes to working out the tactics. At the same time, it allows everyone to have exposure
to the bigger picture, the strategic thinking process, and the vocabulary. This will, in turn,
increase awareness and understanding, thereby hopefully empowering the participants to challenge
and improve on what is being done whilst moving forward. It also works to create a common culture
throughout the organization and reinforces the need to get behind the organization’s future
direction.
Why Should You Embark on Strategic
Planning?
As Joel Barker so aptly puts it in his video, The
Power of Vision, “Having a vision without action is daydreaming. Having action without a vision is
just passing time”. It truly requires a vision to know what you are aiming for, together with a
plan of action to know what to do in order to achieve your vision. The best possibility thinking in
the world will not ensure your success. It will ensure the opportunities can be in your reach if
you figure out the means to capture them. Gone are the days when an organization can be a success
despite itself. It takes concerted effort to establish the direction you need to go in, position it
as a common focus for everyone in the organization, and have a structured plan of action that
everyone can execute. The risk of not having a strategic plan could be
• not being prepared to deal with changes in the environment that the organization is
confronted with
• sections or individuals in the organization following their own agendas
• incongruent communications transmitted to stakeholders
• inefficiencies and ineffectiveness throughout the operation.
You could choose to do business as usual, with the hope that the environment does not change around
you. Alternatively, you can make a concerted effort to remain ahead of the curve by ensuring that
the organization’s position in the marketplace is secure and that its processes and resources are
optimized and agile enough to change as the need requires.
What Strategic Planning Skills are
Required?
Adding on from the competencies delineated for
strategic thinking, you will also need to be able to:
• identify patterns or trends in the environment
• extract relevant opportunities and threats present for the organization
• envision an organization’s future
• create a vision statement
• define an organization’s purpose
• set goals
• construct a practical strategic plan
• establish measures
• see what parts of the overall system will be impacted by the strategy and plan for
it.
What is the Strategic Planning
Process?
Throughout the lifespan of a strategic plan, its continued relevance should be assessed. Changes need to
be made to it as, and when, required. The plan should be the driving force behind all the
actions taken in the organization and the progress made and results achieved need to be
constantly measured and communicated internally.
We offer our clients an extensive range of
Strategic Planning Services.
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