Strategic Management Process
Strategic Planning is a process undertaken by an organization to develop a plan for achievement of its overall long-term organizational goals.
Strategic Planning process should include Situational Analysis. This consist of looking at the current external and internal environment of the organization; formulating organization objectives and strategies based on the environmental assessment and developing procedures to implement and evaluate the strategic plan. Strategic plan for business organizations often covers a 3-5 year period, however, if the business is highly dynamic a shorter period may be advisable. Here are the main steps for strategic planning process”
1- Analysis of the current state
Analysis of the current state of the organization can be done through conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
2- Defining the future state
In which the organization can develop a vision and mission. The mission statement should describe the future of the organization (Where is the organization suppose to be? it’s core values and what the organization wants to do). After the vision and the mission of the organization has been set, a detailed strategy can be built based on what has been written.
3- Determination of objectives and Strategies After defining the mission and vision the organization would need to develop a set of objectives that will lead to achieving the overall strategic goal or vision. For example, an objective may be increasing the market share year-over-year by at least five percent). It is important to understand that the achieved objectives are the building blocks towards accomplishing the organization’s goal.
4- Implementation and evaluation:
The next step is to implement and evaluate the plan. Implementation in a large organization such as governmental agencies or multinational corporations is usually done by a different set of organizational members than members that created the plan. In this case, different parts of the plan are typically disturbed to various department of the organization. Moreover, the organization must consistently monitor and assess the implementation of the plan to determine if the plan is achieving the objectives that are intended to lead to the strategic goal - if not then some adjustments would be necessary.
To sum up, what has been discussed above, the strategic planning process is a process by which an organization develops a long-term vision and a plan to implement. The process requires the company to analyze both the internal and external environment of the organization. This is done through
the following typical steps: 1- Analysis of the current state. 2- Defining the future state. 3- Determination of objectives and strategies. 4- Implementation and evaluation