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Strategic Planning as a management tool

Strategic Planning is a comprehensive process for determining what a business should become and how it can best achieve that goal. It appraises the full potential of a business and explicitly links the business's objectives to the actions and resources required to achieve them. Strategic Planning offers a systematic process to ask and answer the most critical questions confronting a management team—especially large, irrevocable resource commitment decisions.

 

How Strategic Planning works:

A successful Strategic Planning process should:

  • Describe the organization's mission, vision and fundamental values
  • Target potential business arenas and explore each market for emerging threats and opportunities
  • Understand the current and future priorities of targeted customer segments
  • Analyze the company's strengths and weaknesses relative to competitors and determine which elements of the value chain the company should make versus buy
  • Identify and evaluate alternative strategies
  • Develop an advantageous business model that will profitably differentiate the company from its competitors
  • Define stakeholder expectations and establish clear and compelling objectives for the business
  • Prepare programs, policies, and plans to implement the strategy
  • Establish supportive organizational structures, decision processes, information and control systems, and hiring and training systems
  • Allocate resources to develop critical capabilities
  • Plan for and respond to contingencies or environmental changes
  • Monitor performance

Companies use Strategic Planning:

  • Change the direction and performance of a business
  • Encourage fact-based discussions of politically sensitive issues
  • Create a common framework for decision making in the organization
  • Set a proper context for budget decisions and performance evaluations
  • Train managers to develop better information to make better decisions
  • Increase confidence in the business's direction

 

Source: http://www.bain.com/publications/articles/management-tools-strategic-planning.aspx

For more information on Strategy Consulting of OCD, please refer to http://en.ocd.vn/services/strategy-consulting.html

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