The Strategic Planning Process - Assignment Example

Module The Strategic Planning Process INTRODUCTION To a business entity, strategic planning is a tool or map which defines theroutes, that when adopted by a business entity will result to a higher probability of getting from where it is to where its stakeholders or owners want it to go. Just like in a road rally, the strategic plans also encounter numerous obstacles and tours which call for adjustments and adaptation as the plan becomes implemented. In essence, strategic plan is actually a process that is known to bring to life an enterprise’s vision and mission. A good strategic plan that is of value and which is well crafted is normally driven or implemented from the top down in the organization and it gives consideration to both the external and internal environments around the organization. At most times, a strategic plan is the managers’ work and therefore it is usually communicated to all the relevant stakeholders of the business or organizations that can either be inside or outside the firm (Plunkett, et al 6). The need for strategic planning will normally become greater as an organization grows and the as its business environment becomes more complex. Companies or organizations who consistently apply a strategic planning method or approach which is disciplined are better positioned to evolve as the market sector changes and as the different segments of the market call for different needs for the services and products of the organization or company. A good strategic planning process will lead to enhanced communication in the organization since it facilitates for a better decision making thus leading to easy achievement of the stakeholders’ objectives and goals. However, there are various required steps and principles that are known to optimize the values associated with strategic planning (Ellis 42). The Basic steps in Strategic Planning Process It will be prudent to note that despite the fact that the process involved in the strategic planning process may appear to be rational and systematic, it is normally iterative and as a result, it substantially evolves over time. In an addition to that, it is also subject to political pressure and will with time be modified accordingly. Where are we? This is the first step in strategic planning and participants should assess the organization’s current positions through examining its internal and external history and its changing contexts. In addition to that, it is that this stage that the participants have to ascertain what they have to work with through the consideration of both the strengths and weaknesses. Where do we want to be? The second step in strategic planning is to answer the question of “where do we want to be”. It is vital that during this step, all people who have a stake in the achievement of the vision are involved. The vision is then translated by the managers into a mission statement that comprises of both a broad and comprehensive statement regarding the organization’s purposes. Articulation of goals The next step of the strategic planning process is the “articulation of goals”. This will involve the articulation of long range conditions that are desired for the community, state, program or agency and the goals for the organization’s future direction are indicated. Means of reaching the goals During this stage, planners must be ready to address the means through which the goals must be reached. This stage will therefore involve the articulation of numerous strategies aimed at achieving tangible results. Such strategies should actually reflect both the strengths and weakness of an entity that is involved in the planning. The recognition of an organization’s relative weaknesses and strengths is quite helpful in the identification of promising strategies (Gordon 20). Steps in the Decision making process Both managers and small business owners are known to make vital decisions day in day out addressing issues ranging from the daily operational issues to even long range strategic planning. A manager’s process of decision making can be broken down into 7 distinct steps namely: Identification of an opportunity or a problem-This involves recognizing the problem and ascertaining whether it is worthwhile to resolve it or realize the opportunity. Gathering Information-This entails ascertaining what is and what is not relevant towards the decision. Analyzing the situation-This is done in order to ascertain any different interpretation of available data and any other alternative course of action. Developing options-This involves generation of numerous possible options and how one will like the situation to be. Evaluation of Alternatives This will entail ascertaining the criteria which will be used in evaluation and the desirability, feasibility and acceptability. Selection of a Preferred Alternative - This will involve the exploration of a provisional “preferred alternative” for any future potential adverse consequences. It will also involve getting to know the problems that such an alternative can create and the risks associated with making the decisions. Acting on the Decision - This will involve putting in place a plan to implement the decision and ascertaining whether it is supported or accepted by colleagues. How a Manager’s Personal Attributes can influence Decision Making The personal attribute of a Manager is capable of influencing decision making in an organization because regardless of the model which is favoured by the Manager, comprehending the personal tendencies of such a manager and moving ahead towards model which is more rational should be the ultimate goal of every manager. A Manager’s decision making is also capable of influencing the process of decision making in the organization because most of the managerial decisions will normally depend on the personal attributes which will include the ability of setting priorities and making decisions at the right time and correctly (Poister 40). How the Strategic Planning Process and Environmental factors have an influence on the decision making process and the Quality-Productivity-Profitability link The strategic planning process and other environmental factors have a great influence on the decision making and the quality, productivity and profitability of an organization. This is because these processes normally utilize numerous analytical models which present a realistic picture or not only the employees but also of the organization as a whole. The quality, productivity and profitability of an organization is also highly dependent on the process of strategic planning and environmental factors. Works Cited Ellis, John. Strategic Planning in Student Affairs…New York: John Wiley & Sons, 2011. Print. Gordon, Gerald. Strategic Planning for Local Government. New York: ICMA Publishing, 2013. Print. Plunkett, W. R., Allen, G. S., & Attner, R.F). Management: Meeting and Exceeding Customer Expectations (10th ed.). Mason, OH : South-Western Cengage Learning, 2013. Print. Poister, Theodore. Strategic Planning and Decision Making in State Departments of Transportation. New York: Transportation Research Board, 2004. Print. Read More