Strategic planning is something we are all familiar with, whether we are aware of it or not.
We use to get from where we are to where we want to be.
It can be a physical destination, like another city, or a goal in life, like getting a master degree. We plan, organize our time and life, gather resources, and finally draw a map.
The strategic planning process in a company is the development of a direction, the taking of decisions and allocating resources necessary to achieve the final goal.
Strategic planning serves as a road map to help an organization or business discover how to get where it wants to go.
The process includes examining strengths, weaknesses, opportunities, and threats, and then planning future operations in a prioritized and realistic manner.
See also: why you should invest in business process analysis.
How to develop a strategic planning process model?
The first thing to do is to start with an end in mind.
It’s important since if we do not know where to go, we will surely get lost. Determine who is going, what the destination is and what it will take to get there.
The strategic planning process model should also include a situational analysis.
Study the current situation before heading to the next one. Analyze where the company is, why is it there, what are the problems and improvement points. Only after that, you can start to think about solutions and paths to follow.
A good strategic planning process must think of:
- Setting objectives for a long-term
- Analyzing the factors internal to the organization that cause the most important issues that the strategic plan has to address
- Generating strategic options for addressing the most important issues, prioritizing
- Deciding among the options
- Monitoring the results of implementing the strategies.
Models of strategic planning process
There are 5 models that you can choose when applying strategic planning to your company. They are all efficient, and you must select the one that fits better your organization.
1 – Basic strategic planning process model
This strategic planning model is best suited for new organizations that never did the project before, small or busy organizations. The steps are:
- Identify the purpose
- Identify specific approaches and strategies
- Identify actions plans to achieve the strategy
- Monitor and update plan
2 – Issue-based strategic planning model
It is an enhancement of the basic plan, and it is used by companies that want to go deeper into the strategic planning. It has these steps:
- SWOT analysis – Strengths, Weaknesses, Opportunities, and Threats
- The stakeholders identify the major issues and goals
- Review the mission, vision, and values of the company
- Develop action plans (yearly if possible)
- Establish budget
- Execute and monitor. Read more about business process automation.
3 – Alignment strategic model
The focus of this model is to assure alignment between the company’s mission and its resources. It can be useful to business that wants to learn why their goals are not achieving the result expected, or want to fine-tune their objectives.
- Outline mission, resources, and actions
- Identify what it is working and what needs change
- Determine how the changes will occur
- Add the changes to the strategic planning process model
4 – Scenario strategic planning
Best used with other models to ensure that the strategic planning and thinking is incorporated into the process.
- Stakeholder project different scenarios that could occur and have an influence on the organization
- For each scenario, they discuss three possibilities: the worst, the best and the reasonable case
- Brainstorm of how would the organization respond to each one, in the best way
- Add it to strategic plan
5 – Organic strategic planning model
This strategic model differs from the other ones. It unfolds more naturally than the previous, which follow a more linear and structured approach.
It uses through the continual focus on shared values, consistent communication, and dialogue among stakeholders.
- Clarify the company’s cultural values
- Articulate the vision
- Talk about what processes are needed to arrive at vision and what will be done now to the organization’s processes
- Establish a culture that reminds that this type of strategic planning process model is never finished, and updated always
- Focus on learning and reflection. Read more about business process improvement.
Now that you know all the strategic planning process models study your company and see which one will serve you better! Also read about Lean Business Process Improvement, and turn your business into the best version of itself.