It refers to the process of defining the vision or future expectations by the leaders of the company. Strategic planning crucially aligns with the long-term and short-term goals of the company. It is a process that uses a systematic sequence to reach goals which will eventually lead to a targeted vision. It is creating a specified plan or way of working to achieve goals and objectives. It generally represents mid or long-term goals with a duration of about three to five years. It represents the things to practice from the start to end. Activities of strategic planning give a higher focus on three major aspects: Business, corporate and functional.
Evaluating the performance of strategies helps the companies in identifying the area that needs improvement and makes the planning accordingly. This eventually leads to better success and assures its long-term benefits to the company. Strategic planning gives a wide range of benefits to the company. Implementation of strategic goals plays a very crucial role in achieving the primary goals of the company. With the help of making potential use of given resources and working in an efficient team, strategic planning fosters the speed to reach success.
Steps of Strategic Planning
Identification: the cycle of strategic planning starts with the identification of the current position of the company and where the stakeholders are expected to reach. It crucially includes long-term goals and a SWOT analysis to identify the current position.
Prioritising: the planner now sets an objective that is aligned with the vision of the company. It is very important to prioritise relevant and urgent goals at an initial stage.
Development: In this step, the stakeholders of the company collaboratively formulate the essential steps to attain specific objectives.
Implementation: it is a time to put the developed plan into action, which requires investment, adjusting policies, establishing reports and managing processes.
Updates: the regular review and feedback on the process will help in navigating its route and make sure that the process is working as expected. If the planner identifies any flows, then they have to revise the stage or the specific area in the strategic planning process.
