Planning: Vision, Mission, Strategy

___________________________

A Written Report Paper

Presented to

Mr. Raymond Chris P. Maribojoc, MPM, MBA

Faculty of the Graduate School of Business

Masters in Business Administration (MBA)

St. Vincent’s College Incorporated

Dipolog City, Philippines

___________________________

In Partial Fulfillment

of the Requirements for the Course

MBA 302: Management Theories and Legal Issues

___________________________

By:

Maria Monique A. Morgia

September 2021
 CONTENTS

Page

1. Introduction ………………………………………………………………….... 4

1.1 Definition of Management ………………………………………………… 4

1.2 Purpose of Management ………………………………………………….. 6

2. Planning ……………………………………………………………………….. 6

2.1 Definition and Purpose of Planning …………………………………….... 7

2.2 The Importance of Planning …………………………………………….... 8

2.3 Characteristics of Planning ………………………………………………. 10

2.4 Steps in Planning Process …………………………………………………. 11

3. Vision …………………………………………………………………………… 12

3.1 Definition of Vision ………………………………………………………… 12

3.2 Characteristics of Vision ………………………………………………….. 13

3.3 Examples ………………………………………………………………….... 14

4. Mission …………………………………………………………………………. 15

4.1 Definition of Mission ………………………………………………………. 15

4.2 Characteristics of Mission ……………………………………………….... 16

4.3 Components of Mission ……………………………………………………. 17

4.4 Benefits of Mission …………………………………………………………. 17

4.5 Examples ……………………………………………………………………. 18

5. The Roles of Vision and Mission ……………………………………………… 20

5.1 The Importance of Vision and Mission ………………………………….... 21

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 5.2 The Difference of Vision and Mission …………………………………….. 22

6. Strategy …………………………………………………………………………. 25

6.1 Definition of Strategy ………………………………………………………. 25

6.2 The Strategic Planning Process ……………………………………………. 29

7. Sources …………………………………………………………………………… 31

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 INTRODUCTION

Management is an important component of man’s economic existence, as it is a

coordinated group activity. A commercial organization cannot function without a central

directing and controlling agency. The management’s organizing talent, administrative

competence, and enterprising initiative are entrusted with the productive resources- material,

labor, money and so on. As a result, management provides direction to a company. Without

capable managers and effective managerial leadership, production resources remain just like that:

never becoming production. The quality and performance of managers influence both survival

and success of any commercial enterprise in today’s competitive economy and ever-changing

environment. Management has become so significant in the modern world that it has a massive

effect on people’s well-being and the country’s future.

Definition of Management

Management is a term that can be defined in a variety of ways. The term “management”

has been defined by a number of notable authors on the subject. Some of these definitions are

reproduced below:

According to Lawrence A. Appley, “Management is the development of people and not the

direction of things”.

According to Joseph Massie, “Management is defined as the process by which co-operative

groups direct action towards the common goals.”

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As per George R Terry, “Management is a distinct process consisting of planning, organizing,

actuating and controlling performed to determine and accomplish the objectives by the use of

people and resources”.

According to James L Lundy, “Management is principally the task of planning, co- ordinating,

motivating and controlling the efforts of others towards a specific objective”.

As per Ordway Ted, “Management is the process and the agency which directs and guides the

operations of an organization in realizing of established aims.”

According to Newman, Summer and Warren, “The job of management is to make cooperative

endeavor to function properly. A manager is one who gets things done by working with people

and other resources”.

Management is the executive function that is in charge of carrying out the administrative

policies that have been established by administration. Management manages the enterprise’s

active operations and combines employees’ efforts with available capital equipment and supplies

to generate a satisfactory result. Management also markets the product of service in accordance

with the administration’s wide policies. Management is a universal notion. The nature of

management has evolved dramatically as a result of the continual and rapid growth of

management concepts and practices in businesses. Because of the complexity of the management

process, management is becoming disconnected from ownership.

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Purpose of Management

As stated by Bhalla (n.d. p.7), the purpose of management can be understood as

following:

1. Reducing ambiguity in methods of working

2. Keeping cost down, and motivating others to do the same

3. Taking calculated risks

4. Managing prospective risk

5. Exercise good judgment

PLANNING

Planning, Organizing, Staffing, Leading and Controlling are classified as functions of

Management. All of these functions are very important to achieve the organization’s objectives.

There is nothing to organize, direct, or control unless the objectives are established. As a result,

each organization is obligated to state its objectives. This component is linked to planning.

Figure 1: Definition of Planning

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Definition and Features of Planning

Planning can be defined as a process that involves determining a future path of action,

such as why, what, how, and when to take the action. Terry has described planning as a path of

action that will be taken in the future. He states that:

“Planning is the selection of the related facts and making and using of assumptions regarding the

future in the visualization and formulization of proposed activities believed necessary to achieve

desired result.”

Given that businesses need to continue operating, surviving, and progressing in a highly

competitive economy where change is the rule, not the exception, appropriate planning becomes

imperative. The change could be abrupt and large-scale, or it could be gradual and nearly

unnoticeable. Important driving forces of change include: changes in technology, changes in

population and income distribution, changes in the tastes of consumers, changes in competition,

changes in government policies etc. Oftentimes, these changes cause countless problems and

challenges. Managers are often on the front lines of the receiving end of these changes thus, they

are forced to adjust their activities in order to fully benefit from the advantages of the new

developments or to minimize the negative impact brought about by the change. Successful

managers try to anticipate any possible issues before they become too complicated. As quoted,

“Successful managers deal with foreseen problems, and unsuccessful managers struggle with

unforeseen problems. The difference lies in planning.”. Managers who are tasked to achieve

specific goals do not wait for the uncertain future. They shape the future by adjusting with the

current difficulties, expecting possible obstacles, changing the objective to better fit with the

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internal and external changes, experiment with creative ideas and take the initiative, and create a

more desirable environment. 

A plan is a projection of future achievements. It is a fixed pathway to achieve such

accomplishments. It is the present’s forecast for future activities. To state it simply, to plan is to

devise a course of action for future activities, to achieve the desired end goal at a specified cost,

in a specified period of time. Management thinkers have defined the term, basically, in two ways:

1. Based on futurity: “Planning is a trap laid down to capture the future” (Allen). “Planning is

deciding in advance what is to be done in future” (Koontz). “Planning is informed anticipation of

the future” (Haimann). “Planning is ‘anticipatory’ decision-making” (R.L. Ackoff). 2. As a

thinking function: “Planning is a thinking process, an organised foresight, a vision based on fact

and experience that is required for intelligent action” (Alford and Beatty) “Planning is deciding

in advance what to do, how to do it, when to do it and who is to do it.” – Koontz and O’Donnell.

Planning is deciding in the present, what is to be done in future. It is the process of

contemplating before acting.  A plan is a set, recorded scheme which includes a goal and a plan

of action. The goal is the desired outcome, while the plant of action represents the means to that

outcome. In other words, goals give management targets to shoot at, while the plan of action

provides the arrows for hitting the targets. Thoroughly thought-out plan gives instructions on

what, where, and how things are to be done.

The Importance of Planning

Planning has become very important in all types of organizations, whether they are for

profit or not, private or public, small or huge, in rich or developing countries. When compared to

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one who does not, the organization that thinks about the future is more likely to prosper.

According to by Joshi (n.d. p.52), the importance of planning are as follow:

1. Preliminary Planning

All other managerial functions come after planning. Of organizing, staffing,

directing, and controlling, planning precedes the execution of all managerial

functions.

2. To Offset Uncertainty and Change

The environment is constantly changing, and the organization must try to keep up

with it. This transformation can be seen in both concrete and intangible ways.

3. Planning is concerned with the organization's goal and the actions that will be taken to

achieve the goals.

4. Despite the fact that all managerial functions lead to organizational coordination, the

actual start is made at the planning stage. Overall plans that are well-thought-out bring

together interdepartmental operations and, as a result, limit the scope of exclusively

department plans.

5. Control is comparing event outcomes to plans and correcting variations in order to ensure

that plans’ objectives are met. Control is used in the context of planning action as a set of

benchmarks against which actual results can be measured.

6. In a variety of ways, planning guarantees organizational effectiveness. The concept of

effectiveness refers to an organization’s ability to fulfill its goal within the constraint of

its resources.

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Characteristic of Planning

According to by Bhalla (n.d. p.55), the following are the characteristics of Planning:

1. Planning is a goal- oriented

All plans are based on goals. The essential parameters for planning activities are

provided by objectives. Planning is meaningless unless it contributes to the

attainment of planned objectives in some way.

2. Planning is a primary function

Planning is the foundation of management. It serves as an introduction to business

activities.

3. Planning is all pervasive

All managers are responsible for planning. It is required and practiced at all

managerial levels. Everything that the manager does is based on planning.

4. Planning is a mental exercise

Planning is a mental process that requires creativity, forethought and good

judgment. Managers must forsake guessing and wishful thinking while planning.

5. Planning is a continuous process

Planning is continuous. It is a never-ending process. Once plans for a specified

period are prepaid, they are put into action.

6. Planning involves choice

Planning involves choices among other alternative courses of action.

7. Planning is forward looking

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 Planning means looking beforehand and preparing for the future. It entails looking

into what will come, analyzing it and making plans to deal with it.

8. Planning is flexible

The basis for planning is a forecast of future events. Because the future is

unknown, the plan should be adaptable.

9. Planning is an integrated process

Plans are organized in a logical manner, with each lower-level plan serving as a

conduit for achieving higher-level goals. They are highly connected and mutually

supportive.

10. Planning includes efficiency and effectiveness dimensions

The goal of plans is to deploy resources in a cost-effective and efficient manner. They

also endeavor to achieve what has been set as a goal.

Steps in Planning Process

Planning is a crucial managerial function. It requires a lot of mental effort. Planners must

devote a significant amount of time and effort to this task. They must use a systematic strategy to

avoid dangers, faults, and costly mistakes that could disrupt the entire organization in the future.

Such a systematic approach may consist of the following steps according to by Bhalla (n.d. p.

53-54),:

1. Establish objectives: The first step in the planning process is to determine the

organization’s objectives. Before creating objectives, the organization’s internal and

external situations must be thoroughly assessed.

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 2. Developing premises: Following the establishment of objectives, the planning premises

must be defined. Premises are assumptions about the circumstances under which plans

are developed or implemented.

3. Evaluating, alternative and selection: alternative courses of action must be examined

when the objectives and planning premises have been established.

4. Formulating derivative plans: after choosing the appropriate course of action,

management must develop secondary plans to supplement the primary plan.

5. Securing cooperation and participation: To a considerable measure, the successful

implementation of a strategy depends on the employees’ genuine cooperation. As a result,

management should include operations personnel in the planning process. Operating

personnel’s suggestions, complaints, and criticism assist management in correcting plan

flaws and putting things right from the start.

6. Providing for follow up: Plans must be reviewed on a regular basis to ensure that they

remain relevant and effective. Without such a regular follow up, plans may be out-of-date

and useless. Furthermore, taking this step guarantees that the implementation plans are on

track. Management can identify flaws early on and take the appropriate corrective action.

Continuous plan evaluation also aids in the development of effective plans in the future,

eliminating mistakes made while implementing prior plans.

VISION

A vision statement tells people:

● Where we want to go

● What we want to become

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 ● What we want to accomplish

● Why it is important

According to Jack Welch, a former CEO of General Electric “Good business leaders

create a vision, articulate the vision, passionately own the vision and relentlessly drive it to

completion.”

Effective strategic leaders such as Howard Schultz, have a variety of skills and qualities that set

them apart from mediocre strategic leaders. One of them is the capacity to motivate employees to

work harder in order to improve the performance of their company. Effective strategic leaders

can persuade staff to adopt aspirational goals and propel the company ahead. Poor strategic

leaders, on the other hand, have a difficult time rallying their group and channeling their

aggregate energy in a constructive, focused direction. As the quote of Jack Welch proposed, a

vision is one important element to executives to motivate the people in the business. The vision

of an organization determines what it aspires to be in the future. The goals of an organization are

clearly articulated in well-crafted visions.

Characteristics of Vision

A vision is a statement about where an organization wants to be in the future. It

contributes to the formation of a shared sense of purpose and identity. According to Moharana

(n.d. p.2), a good vision is one which fosters risk taking and experimentation. It also answers the

question: ‘What will success look like?’. She also stated that the vision of an organization should

have the following characteristics:

1. It is made by consensus.

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 2. It forms a company’s future mental image.

3. It forms the basis for formulating the mission statement.

She furthermore added that a good vision owns the following features:

1. It should be inspiring.

2. It should foster long term thinking.

3. It should be original and unique.

4. It should be competitive.

5. It should be realistic.

Examples:

TABLE 1:

Company Vision

Google To provide access to the world’s

information in one click.

Apple Inc’s To make the best products on earth and to

leave the world better than we found it.

Amazon To be Earth’s most customer-centric

company, where customers can find and

discover anything they might want to buy

online.

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 PAL Holdings Inc. To be the airline of choice in all markets

we serve.

To be the source of pride for Pilipinos

everywhere.

Gardenia To be the premier company in the baking

and food industry that provides best

quality products enjoyed, valued and

loved by consumers.

SM Group To become Asia’s most popular mall chain

through constant innovation and

partnership with the world’s best retails.

MISSION

Mission is referred to as the purpose of an organization. It explains the organization’s

current situation as well as its fundamental goals and objectives. It is important for an

organization because it identifies the company’s business, products or services and customers as

well as the principal goal. It establishes a link between the organization and society. An

organization’s mission should aim high while still being realistic. It should give the organization

a strategic direction.

According to Mohammadian (2017, p37), a mission expresses:

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 a. Purpose- the needs we exist to address

b. Business- what are we doing to address these

c. Values- what principles or beliefs guide our work

Characteristics of Mission

As stated by Moharana (n.d.,p3), a mission statement should have the following

characteristics in order to be effective:

1. A mission statement should be realistic and achievable. Impossible statements do not

motivate people.

2. It should neither be too broad nor be too narrow. If it is broad, it will become

meaningless.

A narrower mission statement restricts the activities of organization. The mission

statement should be precise.

3. A mission statement should not be ambiguous. It must be clear for action. Highly

philosophical statements do not give clarity.

4. A mission statement should be distinct. If it is not distinct, it will not have any impact.

Copied mission statements do not create any impression.

5. It should have societal linkage. Linking the organization to society will build

long term perspective in a better way.

6. It should not be static. To cope up with ever changing environment, dynamic

aspects should be considered.

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 7. It should be motivating for members of the organization and of society. The employees of

the organization may enthuse themselves with a mission statement.

8. The mission statement should indicate the process of accomplishing objectives. The clues

to achieve the mission will be the motivating factor.

Components of Mission

The length, content, manner, and specificity of a mission statement can all vary. Because

a mission statement is often the most visible and public portion of the strategic management

process, most practitioners of strategic management believe that an effective statement should

compromise nine components. The following are the nine essential components of Mission

Statement according to Mohamadian (2017, p58,59)

1. Customers

2. Products or Services

3. Markets

4. Technology

5. Concern for survival, Growth and Profitability

6. Philosophy

7. Self-concept

8. Concern for Public Image

9. Concern for Employees

The Benefits of Mission Statement

1. To ensure that the organization’s goals are alive.

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 2. To establish a foundation or set of guidelines for allocating organizational resources.

3. To generate a basic tone or environment within an organization.

4. To serve as a basis for people to identify with the organization’s mission and

direction, and to discourage those who are unable to participate in the organization’s

operations from doing so.

5. To make it easier to translate objective into a work structure that includes assigning

task to responsible members of the organization

6. To specify organizational goals and then transform these goals into objectives that can

be measured and controlled in terms of cost, time and performance.

Examples:

Table 2:

Company Mission

Google To organize the world’s information and

make it universally accessible and useful.

Apple Inc’s To bring the best personal computing

products and support to students, educators,

designers, scientists, engineers,

businesspersons and consumers in over 140

countries around the world.

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Amazon To offer customers the lowest possible

prices, the best available selection, and the

utmost convenience.

PAL Holding Inc. To deliver a safe, reliable, efficient, and

pleasant travel experience exceeding

passenger expectations.

To provide a satisfying career to our

employees and adequate returns to

stockholders.

To represent the best of the Philippines, the

Best of the Filipino to the world.

SM Group To serve the ever-changing needs and

aspirations of our customers, provide

opportunities for the professional growth of

our employees, foster social responsibility

in the communities we serve, enhance

shareholder value for our investors and

ensure that everything we do safeguards a

healthy environment for future generations.

Gardenia To provide an assortment of best quality,

great tasting, nutritious, and enjoyable

bakery and food products that are within

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 sight, reach and within the hearts of

consumers; produces using world class

manufacturing facilities and processes

utilizing quality and safe ingredients,

thereby creating values beneficial to

stakeholders, including employees,

suppliers, trade, partners, financial

institutions, investors and the community.

THE ROLES OF VISION AND MISSION

Figure 2: Vision and Mission

A company without finance can borrow, a company with a bad location can move, a

company without mission and vision can only fail. (Mohammadian, 2017)

The development of vision and mission of a company is very important for strategic direction. It

aids the employees in understanding the organization’s purpose and basic values. It is an

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important aspect of a company’s strategy since it assists in setting priorities, allocating resources

and ensuring that everyone is working toward the same goals and objectives, therefore giving a

roadmap for the future.

A lot of a company's success is determined by its vision and mission statements. They have some

key features that propel a company to the heights it aspires to. They serve as a guide for

establishing objectives, goals, and giving a road map for everyone to follow.

The Importance of Vision and Mission

The organization’s vision and mission statements are equally significant. Here’s a

description of these responsibilities.

1. The vision and mission statements describe the organization’s purpose and provide

employees a sense of belonging and identity. This encourages them to put in more effort

in order to succeed.

2. The mission statement gives direction that is to be followed by the organization, whereas

the vision statement gives the goal or the destination to be achieved by following the

direction.

3. The vision and mission statements aid in aligning an organization’s resources in order to

achieve a successful future.

4. The mission statement serves as a clear and effective guide for an organization in making

decisions, while the vision statement guarantees that all actions are in line with the

organization’s goal.

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 5. The vision and mission statements serve as a focal point for bringing everyone with the

organization and ensuring that everyone is working toward the same goal. This improves

the organization’s efficiency and productivity.

6. The vision and mission statements are significant strategic planning tools that serve to

create the strategy that an organization will adopt to reach its desired future.

7. The mission and vision statements are significant, and they can best be regarded as the

organization’s compass and destination, respectively.

The Difference between a Mission Statement and a Vision Statement

(Mohammadian, 2017)

Mission Statement Vision Statement

About ▪ A mission statement ▪ A vision statement

discusses about describes where you

HOW you will get wish to be in the

to where you want future.

to be. ▪ Expresses the

▪ Specifies the company’s

purpose and main objectives as well as

objectives in relation its values.

to the needs of your

customers and the

values of your team.

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Answer ▪ It answers the ▪ It answers the

question, “What do question, ‘Where do

we do? What makes we aim to be?”

us different?”

Time ▪ It describes the ▪ It is a statement

present and how it about where the

will lead to the company wants to

future. go in the future.

Function ▪ It contains a list of ▪ It is a list of where

the organization’s you envision

broad objectives. Its yourself in a few

primary function is years. It motivates

to define the core you to do your best.

measure or metrics It influences your

of the organization’s perception of why

success on an you are working in

internal level, with the company.

the level, with the

leadership, team,

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 and stockholder as

its primary audience.

Change ▪ It may change over It may change overtime but

time but it should it should still look back to

always return to the why you started in the first

basic principles, place.

customer needs and

vision.

Developing a statement ▪ It answers the ▪ It answers the

questions “For question, “Where do

whom do we do it? we want to be going

What is the forward? When do

benefit?”. we want to reach

that stage? How do

we want to do it?”.

Features of an effective ▪ It focuses on the ▪ It should describe a

statement purpose and values bright future,

of the organization: expression that is

Who are the memorable and

organization’s entertaining,

primary customers? feasible objectives,

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 What are the and compatibility

responsibilities of with the

the organization organization’s

towards the beliefs and culture.

customers?

STRATEGY

What distinguishes a successful strategy? If you ask a group of management experts,

you'll get a wide range of responses. Some people believe that you must have a vision. Others

stress the importance of focusing on your core strengths. Others will argue that you should

reinvent your business model, and so on. There is also a disagreement on who should develop

strategy. While some feel it should be a managerial function, others say it should come from the

bottom up. It is frequently created by high-priced strategy consultants. The goal of strategy is to

ensure that your organization gets to where you want it to be at a certain point in time. However,

in contrast to a view of strategy as planning, Mintzberg (1994:458) defines strategy as "a pattern

in a stream of decisions," while McKeown (2011) claims that "strategy is about molding the

future" and is the human endeavour to achieve "preferred ends with available means." According

to Kvint (2009), strategy is "a system of locating, constructing, and developing a philosophy that,

if properly implemented, will ensure long-term success." When there is uncertainty in the

organization, strategy acts as a compass, leading us in the right direction while taking into

account where we are now and where we've been. The organization's strategy is a crystal ball

around which all of the company's elements can focus and rally.

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"Strategy is the direction and scope of an organization over the long term: which achieves

advantage for the organization through its configuration of resources within a challenging

environment, to meet the needs of markets and to fulfill stakeholder expectations," according to

Johnson and Scholes (2002).

A strategy is a course of action taken by management to achieve one or more of the

organization's objectives. “A general direction set for the organization and its many components

to achieve a desired condition in the future,” according to another definition. “Strategy is the

culmination of a thorough strategic planning process.”

A strategy entails combining organizational activities as well as utilizing and distributing scarce

resources within the organization's environment in order to achieve current goals. When

developing a strategy, keep in mind that decisions are not made in a vacuum, and that any action

done by the organization is likely to elicit a response from those who are affected, such as

competitors, customers, employees, or suppliers.

As a manager, you must grasp what constitutes an excellent strategy and how it may be used to

shape the future of your team or organization. When developing a strategy, the organization is

imagining a future that could be three, five, or even ten years away. It's not only the plan that's

valuable, but all of the thought that goes into it, the questions that organizations should ask

themselves, and the answers that emerge as strategy. Strategy is a high-level plan for achieving

one or more goals in the face of uncertainty.

According to an article in "The Economist" titled "Why a Strategy Isn't a Plan," strategies fail all

too often because they are expected to offer more than they can. In his book Strategy: A History,

Freedman (2013) attempts to define strategy and demonstrate how it has evolved and been

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utilized in combat, politics, and business. Above all, he contends, it is about making the best use

of whatever resources are available to obtain the best result in dynamic and contentious

situations: “It's all about getting more out of a situation than the initial power balance suggests.

It's the skill of wielding authority.”

A Chinese general named Sun Tzu created “The Art of War,” a book that argues that the best

way to win is to always do the opposite of what your opponent anticipates. Sun Tzu established a

long tradition of thinking that avoiding the catastrophic unpredictability of pitched conflict was

frequently the best way to achieve strategic aims. Sun Tzu believed that using "stratagem and

finesse" to destroy an enemy—famine being a favorite tactic of his—was preferable than risking

"the chance of arms." Today, his ideas are still taught in business institutions and military

academies.

Niccol Machiavelli, who is still studied, is more linked with deception and psychological

manipulation than anybody else. Machiavelli felt that his prince required both the fox's cunning

and the lion's might to maintain power. Things would have gone terribly for David if his

slingshot had missed the gap in Goliath's helmet, which it very well could have done without

God's help.

However, it was not until the late 18th century, partly as a result of the Enlightenment and partly

as a result of the Napoleonic wars' impact on military and political thinking, that the concept of

strategy as we know it today made its first appearance. It was viewed as a means of combining

military operational art with political goals. “War is not only an act of policy, but a true political

instrument, a continuation of political intercourse carried out with other means,” said Carl von

Clausewitz, a brilliant Prussian strategist. Lawrence (2013) concludes that strategy should be

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viewed as a type of screenplay, albeit one that includes the possibility of random events, seeks to

predict the interactions of many players over a long period of time, and is open-ended.

It should be highlighted that strategic management is required for all types of organizations to

succeed. However, depending on the sector in which your organization operates, whether

commercial, public, or non-profit, the way strategy is interpreted and used varies.

There are many distinct frameworks and approaches for strategic planning and management;

nevertheless, it is important to remember that while there are no hard and fast rules for choosing

the proper framework, most of them follow a similar pattern and have comparable

characteristics. Many frameworks go through some form of the following stages:

• An understanding of the existing internal and external contexts is established

through analysis or assessment.

• The process of developing a high-level strategy and documenting a fundamental

organizational strategic plan is known as strategy formulation.

• Execution of the strategy, which entails translating the high-level plan into more

detailed operational planning and action items, and

• The assessment or sustainment / management phase is when performance, culture,

communications, data reporting, and other strategic management issues are continually

refined and evaluated.

The Strategic Planning Process

One of the most critical roles of an organization's senior management is strategic

planning. It is the vehicle that senior management should use to establish the organization's

vision, determine the strategies required to achieve that vision, make resource allocation

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decisions to achieve the selected strategies, and ensure that all levels of the organization are

aligned with the vision and strategic direction.

Strategic planning is, unfortunately, one of the most misunderstood and underutilized

instruments in many organizations. Strategic plans are frequently big documents with specific

strategies that have been laboriously produced over months of effort, only to collect dust and

languish after being formally acknowledged and then filed away.

There are various reasons why strategic plans aren't adequately established or implemented. The

following are a few of the most common:

• To complete this responsibility, senior management does not follow a specified

method. As a result, months of work are wasted producing reams of paper that have little

strategic value.

• The procedure is assigned to a planning committee or outsourced to several

functional leaders to fulfill for their respective domains. The strategy may work for

individual departments if completed in separate functional areas, but it is likely to

under-optimize the entire organization. When a planning group is formed, the outcome is

frequently not fully embraced and endorsed by top management.

• Senior management does not set out time to create the strategy plan as a

collaborative team effort.

• The organization has a misunderstanding of what a strategic plan is supposed to

accomplish. As a result, the strategic plan is a tactical business plan with extrapolations

over numerous years. It contains relatively little information on genuine strategic

direction.

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 • Senior management must adhere to a specified process or methodology in order to

produce a strategic plan that is timely, efficient, and comprehensive.

• Although the strategy has been produced, there is no procedure in place to convey

it throughout the organization and ensure that everyone is on board with its

implementation.

• There are no implementation guidelines included in the plan. It is just partially

implemented at best. In the worst-case scenario, it goes unfunded and unnoticed.

This does not have to be the situation. Strategic plans can be established in a

timely and efficient manner if an organization's senior management team is dedicated to

meeting and working collaboratively over several months to build them.

The broad scope of work is a series of one-day focused sessions with the senior management

team once a month for the next three months. Depending on the complexity of the organization

and changes in the business environment, the number of work sessions may vary. Once every

two weeks, the process can also be done in a series of half-day sessions. In either instance, once

the process has begun, the senior leadership must apply it consistently and diligently, as a team.

Furthermore, members of the senior team should be prepared to devote an amount of time

equivalent to the length of each session to follow-up work. Members of their respective

organizations may also be requested to contribute some employee input.

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SOURCES:

Janice Edwards (2014), Mastering Strategic Management (1st Canadian Edition). Accessed

from: https://opentextbc.ca/strategicmanagement/

Ashi Joshi (n.d.), National Institute of Business Management (MBA) Principles and Practices of

Management. Accessed from: https://bit.ly/3CtkqIh

Navleen Kaur and Richa Khunteta (2012), Biyani’s Think Tank Concept Based Notes

Principles and Practices of Management. Accessed from: https://bit.ly/2VZgQGq

Dr. Pretty Bhalla (n.d.), Lovely Professional University; Principles and Practices of

Management. Accessed from: https://bit.ly/3zp4mFM

Steven Maleka (2015), Strategy Management and Strategic Planning Process. Accessed from:

https://bit.ly/2Xz1Bo4

Dr. Susanta K. Moharana (n.d.), School of Business and Management Odisha State, Unit I:

Vision, Mission, Objective and Goal. Accessed from: https://bit.ly/3Clf1TI

Dr. Hamid Doost Mohammadian (2017), Principles of Strategic Planning. Accessed from:

https://bit.ly/2XLkV1D

Bridget Miller (2014), HR Daily Advisor Article, Strategy, Mission and Vision: How They Fit

Together? Accessed from: https://bit.ly/3hLx0KX

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