This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. This article seeks to provide a framework for strategic human resource planning in academia. Defining strategic management, planning outline l why strategic management. Initiate the strategic planning process within their organization. An advantage of systematic strategic planning, as opposed to a more piecemeal approach, is the balance struck among the different steps. According to david, 1 strategic planning is sometimes confused with strategy formulation, because strategic plan is constructed in this stage. Strategic planning edinburgh business school v using the course package it is widely accepted that strategic planning is extremely difficult to teach effectively. The elements involved in the planning phase of strategic management. Strategic planning process requires a wellstructured plan for how to optimally allocate time, human capital and financial resources. Other strategic plans may need to be developed outside the. Jagdish sheth, a respected authority on marketing and strategic planning, provides.
The guiding principles in any strategic management process, whether in the public or private. First, create a mission statement that describes the central purpose of the organization and its goals and a vision statement that focuses on the future direction of the company. I am grateful to all involved, including the department staff who oversaw and encouraged this collaborative effort and the feedback received from consumers, licensees, advisory committee members, and cfb staff. For our purposes, we will define planning as the activity of preparing a plan and we will define a plan as. Humphrey school of public affairs at the university of minnesota. Download the strategic management process ebook for free so you can access it whenever you need. What is strategic management, and why is it important. The second major process of strategic management is implementation, which involves decisions regarding how the organizations resources i. Field guide to nonprofit strategic planning and facilitation by carter mcnamara, published by authenticity consulting, llc. In some instances, an organization is already aware of the critical issues that the strategic planning process must help it address. Strategic management is more than a planning, implementation and control process. A handbook for implementation lil foreword strategic management for senior leaders. Value added in any particular stage in a planning process may influence activities and decisions in other phases. Review your organizations strengths and weaknesses.
Strategic planning process the international library of. The process by which leaders of an organization determine what it. The strategic development process is defined here to embrace the management processes that inform, shape and support the strategic decisions confronting an organisation. Strategic planning and strategic management are both important for the organization as they help in formulating the goals to be achieved and help in a more concentrated approach towards the fulfillment of that goal. Strategic planning serves as a road map to help an organization or business discover how to get where it wants to go. Strategic management forces you to be forward thinking, proactive, and focused on where you are going and how you will get there. The difference is that the latter one is more used in the business world while the former is used in the academic environment.
It is not possible to do a thorough strategic planning process in fewer than three days. A handbook for implementation has been developed as a companion volume to a handbook for strategic planning department of the navy total quality leadership office publication no. What is strategic management process steps, stages and. A roadmap to launch and grow your organization process as important as product perhaps more. Systematic strategic planning, by its very nature, emphasizes the connection or interrelatedness of the steps in the process. And, if the planning process itself is weak, the resulting plan may be weak and not satisfactory to the organization. There is a very important relationship between strategic planning andperformance. Strategic management process academic and business research. Strategic planning involves the identification of actions to be taken. There are many components of the process which are spread throughout strategic planning stages. The key of the planning session is that it forces all the participants to focus on what will have a real strategic impact on the movement.
They have some specific mission towards which all efforts are directed. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. It includes evaluating the firms internal and external situation, defining the business and developing a mission, translating the mission into strategic goals, and drafting the strategy or the. Reflect on the community and broader environment in which your organization operates to identify the opportunities and threats that it faces. Strategic retail planning process retail strategic management. Strategic planning is a part of the firms strategic management process. Strategic planning is an essential process in preparing to carry. Implementation results in how the organizations resources are structured such as by product or service or geography.
Remember that strategic planning is a dynamic process that continually takes into account new information from our environment and what god might be doing. Therefore, it must be realized that each component interacts with the other components. It might comprise from 7 to nearly 30 steps 4 and tends to be more formal in wellestablished organizations the ways that strategies are created and realized differ. Strategic retail planning process free download as powerpoint presentation. Below are 16 of the most popular and effective strategic planning models out there. Designing the strategic planning process template the frsc shall use this template to develop a work plan for its strategic planning process. The key steps for and timing of the biennial budgeting process are found in the. The balanced scorecard is a strategy management framework created by drs. The following is the second in a series of ten articles describing one, proven and tested process for effective strategic planning. Difference between strategic planning and strategic management.
Stepbystep guidelines to customize and facilitate planners to implement the best strategic planning process to suit the particular nature and needs of their nonprofit. Strategic management process strategic management process dr i. Strategic planning process the international library of management lorange, peter on. Many typea personalities, who may be involved with the association at any level, will want to solve the communitys issues quickly and efficiently. In fact, strategic management and strategic planning at school is not an accident, but can also be viewed as an effort or process, and this management require strategic planning into a. Thus, there are many different models of the process. Strategic planning practices that may be applied by the south african national planning commission page 6 development planning division working paper series no. George steiner in his strategic planning see sources of information lists 50 major common pitfalls in starting, doing, and using strategic planning.
They will certainly learn that marketing is more than advertising and will be delighted even surprised to see you have a system, method, timing, and budget to evaluate your efforts. Strategic thinking and subsequent management must result in action. The below 8 steps give you an overall view of the general actions that should be followed when putting together any strategic plan. The 2015 2020 strategic management plan is the result of a comprehensive process. Strategic management process ebook cascade strategy. In particular, there is a lack of empirical research that examining the relationship between strategic planning and crisis management in the hotel industry in general and in egyptian. Strategic planning includes the first four strategic management tasks. On the contrary, strategic management is an actionoriented activity. For a strategic planning checklist to be effective, it should contain all the details that can supply the requirements and demands of developing a strategic plan for a business. He works in the areas of leadership, strategic management, and the design of organizational and community change processes. This helps to identify the necessary processes and resource allocation to achieve those goals. An important advantage of the strategic planning process is that it involves all stakeholders, is highly visual and it can be done quickly.
These strategic goals define the destination, changes the current organizational direction and the mind set of the personnel. Sometimes, too, expertise to prepare, write, or monitor the plan is lacking. We are continually solving problems and taking advantage. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that. Caltrans strategic management plan 3 continuous improvement. Remember that the strategic plan will only be as good as the process that got us there. A roadmap to launch and grow your organization process as important as product perhaps more important aligns stakeholders around strategic priorities communicates your goals, strategies and programs engages, motivates, and retains external and internal audiences e.
Strategic management process meaning, its steps and. Strategic planning process map that divides the process of creating the. Strategic planning activity uses management by plans, whereas strategic management process uses management by results. Planning is an important aspect of strategic thinking and management. Strategic plan guidelines that provides a structure for mapping a clear path from present conditions to a vision for the future into a plan document. Planning has been defined in various ways, ranging from thinking about the future to specifying in advance who is to do what when. Oct 28, 2015 the strategic planning process in a company is the development of a direction, the taking of decisions and allocating resources necessary to achieve the final goal. The major steps for the strategic planning process as outlined in this guide. Introduction of strategic management assignment point. Most often, the strategic planning process has 4 common phases.
The next steps are to complete the planning work, publish, deploy, implement, measure, and evaluate the plan. The 10 step strategic planning process there are many different models and action steps for strategic planning. The goal of the strategic planning committee is to ensure the integration of our overall strategic planning efforts with annual action planning, capital request processes and assessment. This study investigates strategic planning by intercollegiate athletic departments competing in division ia, the football bowl subdivision. Strategic planning defined strategic planning is a process of looking into the future and identifying trends and issues against which to align organizational priorities of the department or office. This has been a guide that strategic planning vs strategic management is a retrospective planning process. Strategic planning in universities is frequently positioned as vital for clarifying future directions. If you can identify with one of these scenarios, this article is for you. This is because, at the mba level, it is not sufficient to know about the subject it is necessary to be able to apply ideas in order to carry out strategic analysis of real problems. The strategic planning is an analytical activity because it is related to the thinking. Strategic thinking and strategic management strategic planning is only useful if it supports strategic thinking and leads to strategic management and, even more importantly, execution. In addition, the annual action planning process ensures we advance institutional effectiveness in alignment with the colleges strategic aims and objectives. Strategic management process and its different stages.
It concludes by presenting ten planning components modified to fit th e context of a commodity subsector that need to be considered by those involved in the strategic planning process. The ebook covers the entire strategic management process including. Presidential professor of planning and public affairs in the hubert h. A management philosophy that uses the strategic planning process and the resulting strategic plan as its foundation. Strategic planning vs strategic management which one is. It assumes a cooperative effort between management and staff, perhaps with a special strategic planning committee taking responsibility for the effort. Pdf strategic management and strategic planning process.
Strategic planning process the planning phase of the strategic management plan process consists of establishing a set of general but clear strategic goals, that when attained through the follow on plan, achieve our mission. Organizations create a vision by developing longterm strategies. Pdf this chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and. In most situations, the planning process participants discern critical strategic issues as they work on the external, market and internal assessments. The last step of the strategic planning process is that of evaluating and refining everything from direction to releasing resources. Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. By following a strategic planning process, organizations can improve outcomes for their business and avoid taking on unexpected risks due to lack of foresight and futuristic approach. Strategic management for farm businesses ag decision maker. Both strategic management and strategic planning terms mean the same.
How do we explain some consistent growth and profitability of some businesses. A strategic plan is so fundamental to effective management that it is one of three. A comprehensive and detailed strategic planning checklist can provide a lot of benefits to the company and its management. The impact of strategic planning on crisis management. After addressing the overview of what planning is, the guidelines provide a framework to help an agency to develop its own strategic plan and to define performance measures that emphasize meaningful results. Present businesses that have already created a strategic management plan will revert to these steps as per the situations requirement, so as to make essential changes. Creating an inclusive process is sometimes interpreted as the need to close down the organization entirely during the process or to ask inappropriate. The strategic management process is a management technique used to plan for the future. The social web and the political process of strategy making 33 2 thinking and acting strategically 43 case study scenariothe ikea way 44 the distinction between strategic thinking, strategic management and strategic planning 45 strategy in actionquick strategic thinking in unfavourable circumstances45. Before talking about the stages of strategic management process, it is important to know what is strategic management process. Mba strategic management lecture notes pdf download mba. By working on a strategic plan together a team can. Strategic planning in an educational development centre.
Strategic planning is a disciplined process for making key decisions and agreeing on actions that will shape and guide what an organisation is, what it does, and why it does it. The process of strategic management lists what steps the managers should take to create a complete strategy and how to implement that strategy successfully in the company. For our purposes, we will define planning as the activity of preparing a plan and we will define a plan. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. The elements involved in the management phase of strategic management. You can create a strategic plan in three fairly simple steps. Could it be that there are strategists whose business executives are following and which have a significant impact on their performance relative to their competitors. Strategic planning is the first phase of the strategic management process.