Strategic planning is the process by which an organization envisions its future and develops the necessary procedures and operations to achieve that future. The basic steps of the strategic planning process include preplanning research, SWOT analysis, strategic assumptions, identification of key issues facing the organization, and the development of mission and vision statements, long-range strategies, strategic actions and operational objectives. Overall:
- Defining how you will differentiate your organization in its service area.
- Determining the direction in which your organization should be headed.
- Building change activities into the organization’s daily work activities.
The primary motive for organizations to do strategic planning is to make decisions based on preplanning research and purposeful thinking. There are many specific reasons for an organization to initiate a strategic planning process, including the following:
- provide a structure for management
- give the organization better control over external forces
- serve as a tool for decision making and resource allocation
- develop a strategy for innovation so the organization can compete effectively
- bring everyone together in the organization so that they are on the same wavelength
- raise management/employee awareness of current issues and operations
- reawaken and motivate key people within the organization
- position the organization for a merger or joint venture
- create a document suitable for fundraising and/or public relations
- increase morale within an organization and develop a sense of trust and cohesion
- set the stage for the organization to make a "quantum leap" to a new level of product/service development or functioning
Annual planning has an operational focus and is concerned primarily with concrete goal setting and the scheduling of specific tasks to meet these goals. It does not usually concern itself with an analysis of the external environment or the fit between the organization and the environment. Strategic planning gives explicit recognition to the organization’s outside environment and places an emphasis on the organization’s strategic advantage in meeting the contingencies in this environment. Although strategic planning also involves goal setting, it is broader in scope and much more comprehensive than operational planning.
4) How long does it take an organization to complete a strategic plan?
The amount of time it takes an organization to complete a strategic plan varies greatly depending on a number of factors, including; the size and complexity of the organization, past experience with strategic planning, accessibility of planning data, and time and availability of planning participants. In general, it will take an organization about two to three months to complete a strategic planning process.
5) When should an organization do strategic planning?
While there is no “right” time to do strategic planning, it is usually inadvisable to initiate a strategic planning process if the management team is extremely weak, if there are serious internal conflicts, or if top leadership has recently left the organization. There are advantages to doing strategic planning when the organization is in a relatively strong position, as management may feel more confident about undertaking a serious, in-depth examination of products and services. If things are going well, however, people may feel no real need to change. On the other hand, if the organization is in a state of transition and introspection, there may be more openness to a process of renewal and to consideration of a new direction for the organization.
6) How often does an organization have to redo their strategic plan?
It is a good practice to review and update the strategic plan on an annual basis. For most organizations, adjustments are made at the level of strategies and perhaps goals. Most of the time, changes would not be made on an annual basis to the language of the mission and vision statements unless there have been dramatic changes and shifts in the organization's external environment during the past year.
7) Who should staff the strategic planning activity?
There is no one right answer to this question that would apply to a broad range of organizations. It is typically a mixture of management and staff members. However, it is important for one person to be responsible for guiding and monitoring the process. Even if the group uses an outside consultant, it is still important that there be a staff person on the inside who works closely with the consultant and the strategic planning committee. Typically, this staff person is the president.
8) How much do you mix management and staff in planning?
In general, the planning process will be more productive if it includes participation of management and key staff members. In preparing to plan, one of the important steps is the establishment of the strategic planning committee. All members of the planning committee need to receive an orientation to the planning process so that they understand what strategic planning is, the steps involved, as well as the time commitment required. Beyond the strategic planning committee, other stakeholders can be involved in various information gathering activities including completion of surveys, participation in focus groups, and attendance at periodic review sessions.
9) When implementing the strategic plan, what factors most significantly enhance or inhibit that part of the process?
What is always most critical is the level of involvement that people have while developing the strategic plan. In general, if people are involved in the process in meaningful ways, they will be ready to do their part in implementing the plan that results from the process. The opposite is also true - if people whose involvement is critical to the successful implementation of the plan have not been involved in meaningful ways, they will not be excited about the plan nor will they be very motivated to take some responsibility for implementation.
10) How does an organization stay focused on its vision when there is a major change in the organization's management? Does the organization have to start all over?
If the strategic planning process and the development of organizational vision involved a wide circle of management and staff, it is less likely that a change in leadership will cause the organization to lose focus. You don't have to start over in most cases. In fact, having a strategic plan in place should help in recruiting the new leadership.
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