Strategic planning

From Wikipedia, the free encyclopedia - View original article

 
  (Redirected from Vision statement)
Jump to: navigation, search

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

In order to determine the future direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue particular courses of action. Generally, strategic planning deals with at least one of three key questions:[1]

  1. "What do we do?"
  2. "For whom do we do it?"
  3. "How do we excel?"

George Friedman in The Next 100 Years summarises "the fundamental principle of strategic planning: hope for the best, plan for the worst".[2]

Key components[edit]

Video explaining the strategic plan of the Wikimedia Foundation

The key components of strategic planning include an understanding of an entity's vision, mission, values and strategies. In the commercial world a vision statement or a mission statement may encapsulate the vision and mission.

Organizations sometimes summarize goals and objectives into a mission statement or a vision statement. Others begin with a vision and mission and use them to formulate goals and objectives. A newly emerging approach is to use a visual strategic plan such as is used within planning approaches based on outcomes theory. When using this approach, the first step is to build a visual outcomes model of the high-level outcomes being sought and all of the steps which it is believed are needed to get to them. The vision and mission are then just the top layers of the visual model.

Tools and approaches[edit]

Tools include:

Situational analysis[edit]

There are several factors to assess in the external situation analysis:

  1. Markets (customers)
  2. Competition
  3. Technology
  4. Supplier markets
  5. Labor markets
  6. The economy
  7. The regulatory environment

It is rare to find all seven of these factors having critical importance. It is also uncommon to find that the first two - markets and competition - are not of critical importance.[4]

With regard to market planning specifically, researchers have recommended a series of action steps or guidelines in accordance to which market planners should plan.[5]

See also[edit]

References[edit]

  1. ^ J. Scott Armstrong (1986). "The Value of Formal Planning for Strategic Decisions: A Reply". Strategic Management Journal 7: 183–185. 
  2. ^ Friedman, George (2010) [2009]. The Next 100 Years: A Forecast for the 21st Century. Black Inc. p. 69. ISBN 9781921825545. Retrieved 2013-08-03. "[...] the Chinese must use their growing economic strength to develop military options against the United States. They will simply be acting in accordance with the fundamental principle of strategic planning: hope for the best, plan for the worst." 
  3. ^ Renger, R., & Titcomb, A. (2002). A Three Step Approach to Teaching Logic Models. American Journal of Evaluation, 23(4), 493-503.
  4. ^ (Bradford "External Situation - What to Consider")
  5. ^ J. Scott Armstrong (1985). "Evidence on the Value of Strategic Planning in Marketing: How Much Planning Should a Marketing Planner Plan?". Strategic Marketing and Management: 73–87. 

Further reading[edit]