IMPORTANCE OF STRATEGIC PLANNING

It helps in an ongoing organizational process of using available knowledge to prioritize efforts, effectively
allocate resources, align shareholders, and employees on organization’s goals. Since its an ongoing
process when we run into unanticipated opportunities and threats, we have to respond. Strategies
develop and adjust through this process. It requires time, effort, and continual reassessment.

DEFINITION OF STRATEGIC PLANNING

PURPOSE OF STRATEGIC PLANNING

BENEFITS OF STRATEGIC PLANNING

1. Creates a vision for business

A strategic plan helps to define the direction in which an organization must travel and aids in
establishing realistic objectives that are in line with the vision chartered out.

2. Draw attention to strengths and weaknesses

Taking part in this process forces one to examine and explain why you’re making each decision each
backed up data, projections, or case studies.

3. Increases operational efficiency

A strategic plan provides management a roadmap to align the business’ functional activities to achieve
the goals set. It improves decision making in better allocation of resources: budget requirements. Thus
improving efficiency

4. Be proactive

A strategic plan allows organizations to foresee and to prepare accordingly. With this, companies can
predict certain unanticipated scenarios before they happen rather than react to them as they arise

MODELS OF STRATEGIC PLANNING

1. Basic strategic planning process model

This is best suited for new businesses that never did the project before, small or busy organizations.

2. Issue based strategy 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 involves SWOT analysis, stakeholder analysis.

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 refine their goals.
 4. Scenario strategic planning model

Best used with other models to ensure that the strategic planning and thinking is incorporated into the
process. It includes brainstorming, discussing the possible outcomes.

5. Organic strategic planning model

This strategic model differs from the others since it unfolds more naturally than the previous ones which
follow a more linear and structured approach. It uses through the continual focus on shared values,
consistent communication and dialogue among stakeholders.

DIFF BTWN STRATEGIC PLANNING AND STRATEGIC MANAGEMENT