Strategic planning means planning in a way that maximizes outcomes. Too many companies reach success once but then end up floundering. The reason is that these companies did not plan with any strategy in mind.
Anup N. Amatya & Associates, professional Financial Consultants and Business & Management Consultants ensures that all of its clients have their strategic & tactical planning at the ready that outlines the company’s vision and a road map to achieve that vision.
According to Johnson, Scholes & Whittington, Strategic Planning Process or Strategy Development consists of three main stages:
- External Analysis to identify opportunities and threats
- Internal Analysis to identify strengths and weaknesses
- Stakeholder Analysis to identify key objectives and to assess the power and interest of different groups
- Gap Analysis to identify the difference between desired and expected performance.
- Strategies that are required to close the gap
- Competitive Strategy – for each business unit
- Directions for growth – which markets/products should be invested in
- Whether expansion should be achieved by organic growth, acquisition or some other form of ‘joint arrangement’.
- Formulation of detailed plans and budgets
- Target setting for KPIs
- Monitoring and control.
Alternative Approaches to Strategy Development
According to Mintzberg, in reality, an emergent approach to strategy development occurs, whereby strategy tends to evolve rather than result from a logical, formal process.
An emergent approach is evolving, continuous and incremental. A strategy may be tried and developed as it is implemented. If it fails, a different approach will be taken. It is likely to be more short term than the traditional process outlined above.
Characteristics Of a Good Organisational Strategy
Organisational strategy needs to be:
- flexible – adaptable to change, but in line with corporate mission and vision
- responsive – taking account of market, economic and environmental conditions
- creative – to inspire commitment and ensure the organisation stands out from the crowd
- challenging – so that it acts as a source of inspiration and motivation
- realistic – so that it can be seen to be achievable and people can get to grips with it
- focused – clear, defined and understandable to all stakeholders, especially employees and customers
- engaging – in line with organisational culture and values.
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Founder & Senior Consultant: Anup Narsingh Amatya
Additional reading: https://www.managers.org.uk/knowledge-bank/developing-strategy