Francis Albert S.

Ramos
BSM BA 3A

STRATEGIC PLANNING
- comprehensive process for determining what a business should become and how it can best
achieve that goal. It appraises the full potential of a business and explicitly links the business's
objectives to the actions and resources required to achieve them. Strategic Planning offers a
systematic process to ask and answer the most critical questions confronting a management
teamespecially large, irrevocable resource commitment decisions.
- determines where an organization is going over the next year or more, how it's going to get
there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire
organization, while the focus of a business plan is usually on a particular product, service or
program.
There are a variety of perspectives, models and approaches used in strategic planning. The
way that a strategic plan is developed depends on the nature of the organization's leadership,
culture of the organization, complexity of the organization's environment, size of the
organization, expertise of planners, etc. For example, there are a variety of strategic planning
models, including goals-based, issues-based, organic, scenario (some would assert that
scenario planning is more of a technique than model), etc.
1) Goals-based planning is probably the most common and starts with focus on the
organization's mission (and vision and/or values), goals to work toward the mission, strategies
to achieve the goals, and action planning (who will do what and by when).
2) Issues-based strategic planning often starts by examining issues facing the organization,
strategies to address those issues and action plans.
3) Organic strategic planning might start by articulating the organization's vision and values, and
then action plans to achieve the vision while adhering to those values. Some planners prefer a
particular approach to planning, eg, appreciative inquiry.
Benefits of Strategic Planning
Strategic planning serves a variety of purposes in organizations, including to:
1. Clearly define the purpose of the organization and to establish realistic goals and objectives
consistent with that mission in a defined time frame within the organizations capacity for
implementation.
2. Communicate those goals and objectives to the organizations constituents.
3. Develop a sense of ownership of the plan.
4. Ensure the most effective use is made of the organizations resources by focusing the
resources on the key priorities.
5. Provide a base from which progress can be measured and establish a mechanism for
informed change when needed.
6. Listen to everyones opinions in order to build consensus about where the organization is
going.
Other reasons include that strategic planning:
7. Provides clearer focus for the organization, thereby producing more efficiency and
effectiveness.
8. Bridges staff/employees and the board of directors (in the case of corporations).
9. Builds strong teams in the board and in the staff/employees (in the case of corporations).
10. Provides the glue that keeps the board members together (in the case of corporations).
11.Produces great satisfaction and meaning among planners, especially around a common
vision.
12. Increases productivity from increased efficiency and effectiveness.
13. Solves major problems in the organization.
Strategic Planning for Competitive Advantage
Mapping out a plan that will really work?
A strategic plan is not just a rundown of tasks or a wish list of what we want to happen. It is the
blueprint of your organizations success. Learn the basics of planning. Determine and analyze
current direction and plan for the future.
With Strategic Planning for Competitive Advantage, you will:
Steer business drivers to gain competitive edge
Increase market share by offering value-driven products and services
Generate additional revenues by tapping new markets
Project growth by managing business portfolio
Improve your firms top and bottom line
Understand the scope, elements and steps in strategic planning
Acquire insights and simulated experience on the strategic planning process
Maximize benefits from opportunities and minimize the effects of threats in the changing
business environment
Confidently chart the future of the organization
Formulate the strategies that will ensure your organizations long-term survival and
growth
Draw up initial action plans to support corporate direction



Setting Business Goals: Determine Your Long-Term Aims

Start by distinguishing your long-term goals from your short-term ones. Your long-term goals
should have a timeline of about three to five years. They should articulate your company's
mission statement, reflecting the reason your company was founded.
Service - Goals related to improving customer service satisfaction or customer retention.
Social - Goals that focus on giving back to the community, through philanthropy or volunteer
organizations, for example.
Profit - Goals set to increase profits by a certain percentage.
Growth - Goals related to the expansion of the company, through new employees, for
instance.
Marshall likens each type of goal to a vacation destination, and the related short-term goals and
objectives you establish afterward as the road map for getting there.
Setting Business Goals: Create Short-Term Objectives
Now that you've figured out what you want in the long term, you need to figure out how to get
there.
Specific. In order to work, objectives need to be concrete (not as abstract as your long-term
aims) and highly detailed.

Measurable. Put a figure or value, such as a dollar amount or percentage, to the objective.

Action-oriented. Lay out which actions need to be taken by which people, and when.

Realistic. Make goals challenging, but consider your resources so that you can actually
achieve them reasonably.

Time specific. Set a deadline to keep things on track.
Break down specific actions to be taken by specific people, assigning someone in each
department involved to be accountableand to help motivate employees.

Perhaps the most important component of these short-term goals is tying them into the long-
term ones. Because you've already identified those long-term goals, it's easier to see how
focusing on seemingly small details can be a step toward achieving a broader long-term aim.



Setting Business Goals: Solicit Employee Input

You may have a clear vision of where you want your company to go, but it's also crucial to
motivate employees so they're looking in the same direction you are. So, instead of issuing a
top-down initiative, try co-creating goals with employees.
Setting Business Goals: Stay Organized and Focused

The reality is, a growing business will have more than just a few goals. That's when a vigilant
focus and a commitment to organization comes into play.
Setting Business Goals: Be Consistent
Another problem that can arise with having many distinct goals for your business is the
possibility they will conflict with each other.
Also look out for a situation where you're unwittingly preventing employees from accomplishing
a goal.