Many companies spend a significant amount of time recognizing the value of strategic planning. However, there are still executives who think that this is a waste of time and resources.
After all, what is the current thinking about the value of strategic planning?
Continue reading to reflect on the subject!
What it is and what it serves, after all, a strategic planning
The practice originated in the decade of 1960 as an attempt to combine short and long-term planning. The process usually involves a central group of planners performing the following steps:
- Establish mission or vision. What does the organization want to achieve?
- Set goals. What should be achieved for the Organization to achieve its vision?
- Goals. Transforming goals into measurable goals?? Specific requirements that can be monitored.
- Identify internal strengths and weaknesses evaluate the external environment to
- Evaluate and select strategic options.
- Actions and tasks. Identify the steps that individuals and teams should use when executing the strategy.
- Control. Establish a system to compare actual performance with planned and, if necessary, correct it.
In short, the basic goal of strategic planning is to link daily organizational decisions with a vision of where the organization wants to be in a few years.
How technology has increased the value of strategic planning
In the decade of 1980, many management specialists questioned whether the traditional model of strategic planning was inadequate in an environment forced to cope with what seemed to be a new paradigm of constant change with the arrival of what appeared to be a Endless flow of new technologies.
The revised attitude towards strategic management was more or less the following:
- It’s impossible to predict the future. The change is discontinuous and unpredictable and planning should reflect this.
- Planning now involves the identification of new ideas and trends as they occur and to quickly mobilize the resources needed to capitalize on them.
- O papel dos gerentes é apoiar e desenvolver as ideias de líderes intermediários e funcionários da linha de frente porque apenas eles estão em posição de saber o que o cliente quer e prever as últimas tendências do mercado em um ambiente em rápida mudança.
- As the Unexpected events are now the norm , organizations should learn to respond promptly, display flexibility, spontaneity and creativity by reacting to customer demands and changing market circumstances.
The accelerated pace of the modern world has increased the value of strategic planning
There is a lot of evidence demonstrating that strategic planning is a worthwhile process.
There have been a number of studies that advocate a positive effect of strategic planning on the performance of a company. There are also countless researchers who point to a clear relationship between strategic planning and financial performance.
In this movement, it is good to keep in mind that the true value of strategic planning is to ensure that leading decision makers have a solid understanding of key issues around the business.
This serves as a solid foundation on which good strategic decisions can be made despite a constantly changing environment.
What is the value of strategic planning in your company? What did you think of the reflection we brought in this text? Leave your comment!