Strategic planning models

From CEOpedia | Management online

Strategic planning models include various formal and informal methods and processes focusing on long-term activities aimed at identifying the organisation's mission, vision and long-term goals.

Strategic planning process

Focus on the strategic planning process. This includes individual objectives and actions, departmental objectives, annual objectives, strategies and long-term strategic objectives, mission, values and vision. Each company's strategy focuses mainly on evaluation, planning, supervision and implementation. Strategic planning is a very important part. Strategic planning is a tool for orientation of changes in the opponent. "Strategic planning is the process of formulating and implementing decisions about an organization's future decision." (Strategic planning of project management using the project management maturity model, Harold Kerzner, John Wiley & Sons, 2001)

The strategic objectives show what is important. An important domain is also the domain of action. Action programs should be functional. When planning a strategy, we should pay attention to the asset base. This is related to value monitoring, market definition and understanding of value.

First, an analysis of the company or the environment should be carried out. Then we should proceed with the formulation of the strategy. The next step is the selection of the right strategy and its implementation and control.

The strategic planning model should have a swot analysis. It is important to identify strengths and weaknesses. Also very important are Pestle and Steeple analysis. There are several basic models of strategic planning.

Examples of methods used in modeling

SWOT analysis - its name derives from the English words: strengths and weaknesses, opportunities, threats). The Swot analysis is used at the initial stage of the project. "SWOT analysis is an important analytical technique for understanding the performance and prospects of any issue under study through identifying the external and internal factors influencing it." (Hassan and Sallahuddin, 2014)

TOWS analysis - this analysis was carried out in the same way as the swot, but the main words were in a different order "Weihrich (1982) has developed TOWS as an extension of swot analysis to make it more applicable and reality grounded. It is used for analyzing external environment (threats and opportunities), along with internal environment (weaknesses and strengths) for drawing strategies and visions." (Al Salmi, M. A. A., & Hasnan, N. B. (2015). SWOT and TOWS matrix e-Government analysis review on Sultanate of Oman. International Journal of Learning and Development )

Balanced scorecard-The balanced scorecard was invented by Robert S. Kaplan and David P. Norton. It is on a new position in similar finances. This method shows what needs to be measured in the company in order to get the best results.

PESTLE analysis-This analysis is used to assess the external environment of the company. The main factors in pestle analysis are political, economic, socio-cultural and technological factors. Political factors related to the political and legal environment. Economic factors are the economic environment. Also related to administration. Socio-cultural factors show interest in culture. Technological factors are related to the use of advanced technologies.

STEEPLE analysis-This analysis is related to the Pest method, but has environmental and legal factors.

Scenarios of possible events - This helps to prepare for possible events and gives the opportunity to prepare for them. This is related to future events. We see the impact of these factors on the company. The scenario may be optimistic, pessimistic, likely or surprising.

Scenarios of states in environment

Mission and vision - mission is something that identifies the company. Vision is a plan for the future.

Strategic analysis - Strategic analysis concerns macro environment, industrial environment, internal environment, strategic review, strategic decision and strategic implementation.

Proactive strategic planning-"Planning is a proactive process whose intent is to define useful ends (or targets) and then find the best means to achieve them." (Strategic Planning Plus: An Organizational Guide Roger Kaufman SAGE Publications, 30 lip 1992-344 (1992))

Advantages of Strategic planning models

A strategic planning model can be an effective tool for organizations looking to create a successful long-term strategy. There are several advantages to using strategic planning models:

  • They provide a framework for organizations to analyze their current situation and develop a plan for the future.
  • They provide a clear process for making decisions that are consistent and measurable.
  • They help organizations to identify their strengths and weaknesses, allowing them to focus resources and energy on areas of opportunity.
  • They help organizations to anticipate changes in the external environment and to plan accordingly.
  • They help organizations to create a shared understanding of goals and objectives, allowing for better communication and collaboration among stakeholders.
  • They can be used to evaluate progress, enabling organizations to adjust their strategies as needed.

Limitations of Strategic planning models

  • Strategic planning models can be time-consuming and costly due to their complexity.
  • They can be difficult to adapt if the external environment changes and the objectives become outdated.
  • They are often limited by the availability of resources and can be difficult to implement in a timely and cost-effective manner.
  • They can be too focused on short-term goals, which may lead to a lack of long-term planning.
  • They can be too rigid, making it difficult to deal with unexpected problems.
  • They can be too focused on specific objectives, which may lead to an unbalanced approach to planning.
  • They can be too focused on the present, which may lead to overlooking potential opportunities for future growth.
  • They can be too focused on the organisational structure, which may lead to overlooking potential opportunities for process improvement.
  • They can be too reliant on theoretical models, which may lead to overlooking practical considerations in the implementation of the plans.

Other approaches related to Strategic planning models

The following are other approaches related to strategic planning models:

  • SWOT Analysis: A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization.
  • Scenario Planning: A process to develop alternative plans for the future by examining potential external changes and their implications for the organization.
  • Balanced Scorecard: A framework used to measure and monitor performance against strategic goals.
  • Strategic Audit: A systematic review of an organization's mission and objectives, strategies, and capabilities.
  • Resource Allocation: A process of prioritizing and allocating resources to the areas of the organization that need them most.

In conclusion, strategic planning models are important for any organization to evaluate their current performance and develop strategies for the future. Other approaches, such as SWOT Analysis, Scenario Planning, Balanced Scorecard, Strategic Audit, and Resource Allocation, are also important tools to help organizations achieve their long-term goals.


Strategic planning models — recommended articles
Strategic management functions — Methodology for strategy definition — Strategic planning — Strategic planning functions — Strategic control — Strategizing — Strategic importance — Organizational planning — Importance of strategic management

References

Author: Aleksandra Jasińska

           

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