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History of Strategic Planning
History of Strategic Planning
strategic
History of strategic planning
• It emerged in the 1950s from two currents of thought:
• Development of program and budget planning in the wake of World War II.
Many companies adopted the budget as a tool to improve control of their
operations. Annual budgets soon became five-year plans due to recognition
of the long-term financial consequences of many business decisions.
• The second current originated at the Harvard Business School, where the
importance of having a global corporate strategy was emphasized. Until
then, business management theory had focused on the separate study of
functions such as production, finance, marketing, logistics, etc. However, as
companies grew and became more complex, they needed a systematic
method to establish their strategies.
• Strategic planning emerged as the response to these problems and began
to be applied in private North American companies in the late 1950s 1. After
being applied extensively in the 60s and 70s in private companies, in the
early 80s it was adapted to solve the problems of urban areas and regions.
GENERAL NOTIONS
• Strategic planning is defined as a process that allows the
leaders of an organization to make decisions about its
major directions, from its mission to its plans, taking into
account, among other aspects:
• Changes in the environment
• The capabilities of the organization.
• The values of the leaders.
• Strategic planning aims to establish or update the
mission and general objectives - - - - - - - - . - - -
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-of the organization. Helps managers develop new
skills and procedures to face the road
• It allows the organization to carry out an internal
reflection process that contributes to:
• Anticipate changes in the environment
• Identify future problems
• Find possible answers from the organization
• Provide a framework for management
• Define the orientations of the organization
• Define priorities and optimal actions
• Coordinate the policies and actions of the different
sectors
• Promote consultation and involvement - • Promote
information and understanding.
Planning concept
strategic
• In this context, strategic planning can be defined as a systematic
way of managing change and creating the best possible future for a
given organization, entity, company or territory. It is a creative
process to identify and carry out the most important actions, taking
into account strengths and weaknesses, and future challenges and
opportunities.
• Strategic planning can help local governments and public and
private organizations successfully manage the rapid changes they
have experienced in recent years.