Strategy planning, at its core, is the process of defining a direction for a company and making decisions that pull the company in that direction. The decisions made once a strategic plan is mapped out are done so in line with the agreed upon strategy. Each decision is made with the strategy and the goal of the strategy in mind.
With that being said it is first important to have a firm understanding of several key components of the company in question before a strategy is mapped out. The mission statement and the morals and values of the company in question are the most important piece of the puzzle. These values and the mission will help guide the type of strategy chosen. It is also important to understand previous strategic planning, if any. Knowing what has or has not worked in the past is also an important stepping stone in planning a strategy for the future of the company.
There are several ways in which a strategic planning process can be mapped out but commonly businesses employ the “situation-target-proposal” approach to strategy planning. In this approach the planner or planners evaluate the situation. This includes gaining an understanding of the company’s current state and how it got there. Once that is done the planners employ the “target” phase. The target phase is used to define the objectives of the company. In short the target phase asks planners to envision the ideal state of the company. The proposal stage allows the planner to map out different paths that could, potentially, lead the company towards the “target” or the goals previously set up.
Once this process is completed most companies will evaluate each plan and its pros and cons. The most beneficial path is generally used and then instituted as the strategy for the company moving forward. The strategy is watched, analyzed and evaluated for effectiveness over a period of time. If the path is ineffective at bringing the company closer to the target the plan may be reevaluated and changed.
Strategy planning is not an exact science, nor is the paths always correct, however accurate analysis of the company and the objectives can help to ensure the most beneficial strategic plan is mapped out. Different businesses will, obviously, vary in their approach to strategic planning and the strategies that are chosen.
With that being said it is first important to have a firm understanding of several key components of the company in question before a strategy is mapped out. The mission statement and the morals and values of the company in question are the most important piece of the puzzle. These values and the mission will help guide the type of strategy chosen. It is also important to understand previous strategic planning, if any. Knowing what has or has not worked in the past is also an important stepping stone in planning a strategy for the future of the company.
There are several ways in which a strategic planning process can be mapped out but commonly businesses employ the “situation-target-proposal” approach to strategy planning. In this approach the planner or planners evaluate the situation. This includes gaining an understanding of the company’s current state and how it got there. Once that is done the planners employ the “target” phase. The target phase is used to define the objectives of the company. In short the target phase asks planners to envision the ideal state of the company. The proposal stage allows the planner to map out different paths that could, potentially, lead the company towards the “target” or the goals previously set up.
Once this process is completed most companies will evaluate each plan and its pros and cons. The most beneficial path is generally used and then instituted as the strategy for the company moving forward. The strategy is watched, analyzed and evaluated for effectiveness over a period of time. If the path is ineffective at bringing the company closer to the target the plan may be reevaluated and changed.
Strategy planning is not an exact science, nor is the paths always correct, however accurate analysis of the company and the objectives can help to ensure the most beneficial strategic plan is mapped out. Different businesses will, obviously, vary in their approach to strategic planning and the strategies that are chosen.
