What is strategic planning?
Organization's strategy defines what it strives to become and the means by which it will achieve it. It provides choices, which, guide in determining the nature and direction of an organization.
It provides consistency in behavior over time. It is a continuous process of making present organizational decisions systematically and with the greatest knowledge of their futurity, systematical organizing the efforts needed to carry out these decisions and measuring the results of these decisions against expectations through systematic feedback.
What's the difference between long range planning and strategic planning?
Long range planning = extrapolating future plans based on current work.
Strategic Planning = Develop the vision for future, plan for near term, and address the future needs as envisioned.
Baldrige Performance Excellence Program describes strategic planning as the process that addresses strategic and business planning and deployment of plans with strong focus on customers and operational performance requirements.
End result of the strategic planning process is a strategic plan which communicates the organizational priorities throughout the enterprise. A road map on how to get to specific targets. It is affected by various internal and external forces. Alignment and integration of individual departmental strategies is important aspect of strategic planning.
Traditional Strategic Planning Process:
It has three stages: Strategic (or formulation) , Tactical and Operational (combined as operational). Deployment is a typical shortfall of this type of process.
Hoshin Planning:
Starts with vision and mission statement. Some organizations use guiding principles which are values which help establish and define the organizational culture. Goals are established after the environmental analysis. It uses a matrix involving Means (i.e. tasks or how one would achieve the stated objective), multi year objectives, responsibility, resources, measures and timeline. Results from the first year feeds into the next cycle of hoshin planning. Involvement of entire organization remains the single most troublesome area when it comes to Hoshin deployment.
Scenario Planning
The helps compensate for the usual errors in decision making such as over confidence and tunnel vision.
Overall when priorities and strategies are unclear, people do not know what to aim for or what to do.
10 most common pitfalls of planning are:
Organization's strategy defines what it strives to become and the means by which it will achieve it. It provides choices, which, guide in determining the nature and direction of an organization.
It provides consistency in behavior over time. It is a continuous process of making present organizational decisions systematically and with the greatest knowledge of their futurity, systematical organizing the efforts needed to carry out these decisions and measuring the results of these decisions against expectations through systematic feedback.
What's the difference between long range planning and strategic planning?
Long range planning = extrapolating future plans based on current work.
Strategic Planning = Develop the vision for future, plan for near term, and address the future needs as envisioned.
Baldrige Performance Excellence Program describes strategic planning as the process that addresses strategic and business planning and deployment of plans with strong focus on customers and operational performance requirements.
End result of the strategic planning process is a strategic plan which communicates the organizational priorities throughout the enterprise. A road map on how to get to specific targets. It is affected by various internal and external forces. Alignment and integration of individual departmental strategies is important aspect of strategic planning.
Traditional Strategic Planning Process:
It has three stages: Strategic (or formulation) , Tactical and Operational (combined as operational). Deployment is a typical shortfall of this type of process.
Hoshin Planning:
Starts with vision and mission statement. Some organizations use guiding principles which are values which help establish and define the organizational culture. Goals are established after the environmental analysis. It uses a matrix involving Means (i.e. tasks or how one would achieve the stated objective), multi year objectives, responsibility, resources, measures and timeline. Results from the first year feeds into the next cycle of hoshin planning. Involvement of entire organization remains the single most troublesome area when it comes to Hoshin deployment.
Scenario Planning
The helps compensate for the usual errors in decision making such as over confidence and tunnel vision.
Overall when priorities and strategies are unclear, people do not know what to aim for or what to do.
10 most common pitfalls of planning are:
- Delegation of planning function by top management.
- Current problems take over management's time and attention away from long range planning.
- Failure to plan properly
- Failure to involve everyone
- Failure to manage performance against the plan
- Failure to create supportive environment for the success of the plan
- Siloing
- To make process to formal
- Failure to review
- Failure to follow the plan
