Strategic planning is the process of identifying organizations mission, goals and objectives and developing action plans of how to achieve them. In strategic planning organizations identify what they want to achieve, how to achieve them and when to achieve them.
Defining mission / purpose
The mission statement serves to define for management the intent of the organization i.e. purpose of the organization and guides them in setting appropriate goals and objectives
Setting organizational goals / objectives
Goal setting is an essential component of strategic planning process in that it specifies performance targets for managers at all levels of the organization
Formulating the strategic plan
This involves the development of strategies / action plans to achieve goals. SWOT analysis must be carried out to assess the current internal and external situations so as to determine the best strategies for the organization
Implementing the strategic plan
Implementing strategies involves converting strategic plans into action. To implement the strategic plan successfully, managers must effectively communicate the plan, assign appropriate authority and responsibility for activities within the firm, develop the methodology for measuring the results of activities and develop the procedure for taking corrective action if the results are not positive.
Evaluation of outcomes of strategies implemented is a critical activity for management. They must continually monitor and take any corrective action necessary to ensure that organizational goals are achieved.
