Is traditional strategic planning gone forever? There is a viewpoint that claims that strategic planning is more useless method than a functional approach. In light of the rapid advancement of technology and an increasingly unstable and unpredictable external environment, organizations are trying to adopt more agile management modes to achieve their goals and objectives. But does strategic planning still have a place?
In this article, we will discuss the role of strategic planning in the modern business environment, the steps to be taken to conduct this approach, and its application in a strategic management context.
🔝 Top-6 Traditional Strategic Planning Essay Examples
- Strategic Planning: Traditional and Contemporary Approaches
- Strategic Management and Planning Literature Critique
- Managing Human Resources: Through Strategic Partnership
- Strategic Elements Used in Gaining a Competitive Advantage in Medical Tourism
- Social Responsibility and Strategic Planning
- Strategy in Action and Contemporary Issues in Strategic Management
💼 Traditional Approach to Planning in Management
Strategic management consists of 3 main parts: strategy formulation, strategic planning, and strategic deployment.
|💭 Strategy Formulation||The overarching strategy formulation is about selling the desired future state and clearly stating why a change is necessary for the organization.|
|🗒️ Strategic Planning||Strategic planning is the most crucial part of overall strategic management since it helps to turn strategies into actions. The process includes the following:|
Depending on the size of the strategic goal and the type of business, strategy plans typically have a time frame of 3 to 5 years to give enough time to produce the desired results.
|⚙️ Strategic Deployment||The last part of strategic management is strategic deployment. It is the establishment of a high-level plan for organizational improvement and the intentional use of that plan by employees to achieve one or more goals.|
Traditional strategic planning is not dead. It is still of great importance in strategic management, aiding in establishing a clear course for the firm’s future towards the target state and ensuring improved flexibility to changing circumstances.
📊 Traditional Strategic Planning – The 6 Steps
There are 6 practical steps of traditional strategic planning that can assist the company in creating a tactical position and competitive advantages in the marketplace.
Step 1: Analyzing Industry, Customers, and Competitors
The first stage in any strategic planning process is to examine the entire market in which the company operates. The firm cannot create a successful plan unless it genuinely comprehends what it is against regarding industry and competition. Understanding external factors that impact the business may require answers to such questions:
- What is the size of the industry?
- Who are the main rivals?
- What are the current pricing trends?
Step 2: Conducting a SWOT Analysis
In the second stage, the company has a chance to evaluate its internal environment with the help of a SWOT analysis. The approach can help the organization assess the company’s strengths, weaknesses, opportunities, and threats to minimize the risk and seize new chances before the rivals.
Step 3: Defining Mission and Vision
Once the external and internal evaluations are completed, the organization can develop its high-level mission and vision statements. The mission must provide the organization with clear reasons for existence, while the vision must indicate the company’s direction.
Step 4: Establishing Corporate Business Objectives
The fourth part of the process requires developing particular company goals that will help the firm to attain the defined vision. The goals must be specific and measurable to create a clear understanding of what the company wants to achieve. For example, the objectives can be connected with financial resources, operational efficiency, marketing strategic plans, or adjustments to the product offering.
Step 5: Drilling Down to Department-Level Goals
It is crucial to decide what precise goals and initiatives the organization needs must be implemented to accomplish each of its business goals. This step is often conducted department by department within the company creating a unique objective for each team to work forward.
Step 6: Evaluating Staffing, Budgeting, and Financing Requirements
At the last stage of the traditional approach to planning, the organization can combine all of the departmental needs into a single centralized corporate plan with organizational structure and set budget. Suppose the firm lacks the financial resources needed to carry out the plan. In that case, it can lower targets to an affordable level or raise the capital necessary to achieve the desired outcome.
We hope our explanations helped you better understand the concept and role of traditional strategic planning. Don’t forget to share the article with your friends to assist them with their studies.