Strategic Planning: Meaning, And Concepts

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STRATEGIC PLANNING: MEANING, AND CONCEPTS

Strategic planning, allows the creation of a company’s conception to be clear so that it will be easier to formulate goals and other plans and can direct organizational resources effectively. So it can be said that strategic planning can determine the success of an organization or company.

Meaning Strategic Planning

Strategic planning is an organizational function used to prioritize, focus on resources and resources, strengthen performance.

Strategic planning also ensures that employees and other stakeholders work towards shared goals and establish agreements on desired outcomes, and adjust the direction of the organization when changes occur. This is a disciplined effort that results in fundamental decisions and actions to shape the organization knowing who the organization serves, what the organization does, and why it should do so.

Effective strategic planning describes not only where the organization is going and what actions are needed to improve, but also how it will know if it will continue to be successful.

There Are Three Reasons That Show Strategic Planning

First, strategic planning provides a basic framework in which all other forms of planning must be taken.

Second, understanding this will make it easier to understand other forms of planning. Third, strategic planning is often a starting point for understanding and evaluating the activities of managers and organizations.

Strategic Planning Concepts

Strategic planning related to the future. A planning process will inevitably involve varying degrees of failure. Some parts of the organization need planning for years to come, but for other divisions it requires planning for only a short time.

It can also be defined as the process of determining organizational goals and resources that will be used to handle organizational goals, regulate the acquisition, utilization, and disposition of resources.

Examples of strategic planning in organizations are: business diversification into new lines. Growth rates need to be planned for sales, types of new products to be offered, and so on. Strategic planning covers all functional areas of business and is influenced in a long-term framework that may relate to economic, technological, social and political factors.

Strategic Planning Process

The Strategic Planning Process includes the process of selecting organizational goals; strategic determination, policy and strategic programs needed for these goals; Determination of the methods needed to ensure that strategic and wisdom have been implemented.

More concisely strategic planning is a long-term planning process that is compiled and used to determine and achieve organizational goals.

It is also an analysis of various environmental factors – specifically those related to how an organization relates to its environment. Generally, for most organizations, the period of strategic planning ranges from three to five years.

The Process of Establishing Strategic Planning

This planning process is similar to you looking for a SWOT analysis for your business or organization. But there are some differences in the setting of strategic planning. Here are the 5 steps to implementing strategic:

1. Determination of the Mission and Objectives

Strategic planning starts with defining the mission for the organization. The main objectives of the organization that have been set must be clearly defined. Strategic planning deals with the organization’s long-term relationship with its external environment. So, business mission must be careful in estimating the social and external impacts of the organization

2. Environmental Analysis

To identify opportunities and threats, an analysis of the organization’s external environment needs to be done. Note the important factors that might affect the organization’s activities going forward.

3. Self-Assessment

In the next step, the strengths and weaknesses of the organization need to be analyzed. This kind of analysis will enable the company to utilize its strengths and to minimize its weaknesses. Companies can take advantage of external opportunities by concentrating on their internal capacity. By adjusting its strengths to opportunities, companies can face competition and achieve growth.

4. Strategic Decision Making

Strategic decisions are then made and evaluated. After that, strategic decisions are made to improve operational performance. Organizations must choose the option that best suits their abilities. For example, to develop, a company must enter a new market segment or sell a new product but still in an existing market.

Strategic choices depend on the external environment, managerial perceptions, managers’ attitudes towards risk, past strategic and managerial strengths as well as efficiency.

 5. Rules

Rules are plans that are chosen from several alternatives, and must be done, or not done. Rules require specific actions to be done, or not done, depending on the situation at hand. Rules relate to procedures because rules direct actions, but do not specify timelines.

6. Strategic Implementation And Control

After the strategy is determined, the strategy must be translated into operational planning. Plans and budgets are tailored for each job. Short-term operational plans are prepared to use resources efficiently. Controls must be developed to evaluate performance as a strategic start to be used.

If there are actual results below expectations, the strategy must be reviewed or reviewed. this and adapted to changes in the external environment.

7. Program

The program is a complex network consisting of objectives, policies, procedures, rules, assignments, steps to be taken, allocation of resources and other elements that must be carried out based on the alternative actions chosen. Usually capital and budget are used to support the program.

8. Budget

A budget is a program that is priced. A budget, besides being a planning tool, is also a management tool.

Relationship Of Financial Systems With Strategic Planning

As one of strategic planning, it is also important in an organization to have a good financial recording or accounting system. Certainly, if the flow of financial records in an organization is not good then the organization or business will not last long. You can try reliable and reliable accounting software, for example Accurate online. Accurate online is a cloud-based accounting software or application that has been used by many business entities ranging from large companies to SMEs. You can of course also try using Accurate online through this link for free.

Requirements for Strategic Planning

The planning requirements are:

Have a clear purpose.

Its simple or simple.

Contains analysis of work done.

Is flexible.

Having a balance that is the alignment of responsibilities and goals of each section in the company with the company’s final goals that have been set.

Having the impression that everything is available and can be used effectively and has efficacy. 

To deepen your knowledge of the planning strategy, please read:

 

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