Business

5 Steps of Strategic Planning: A Beginner’s Guide

5 Steps of Strategic Planning - A Beginner's Guide

Strategic planning aids in identifying what an organization’s goals are and laying out the procedures necessary to achieve them. This article will go through each of the five steps in the strategic planning process and explain them in detail.

What is the Process of Strategic Planning?

In the simplest words, the five steps of the strategic planning process are the technique through which businesses build strategies to attain overall, long-term goals.

This method differs from project planning, which is used to organize and allocate tasks for specific projects, and strategy mapping, which helps you to define your mission, vision, and goals.

The five steps of the strategic planning process are more extensive; they assist you to establish a roadmap for which strategic goals you should work toward and which projects are less beneficial to your company. Educating you on your internal and external strategies.

The strategic planning process entails the processes taken by a business to determine:

The Management of your Company (Vision)

What are you going to do and for whom are you going to do it? (Mission)

How to measure and steer your approach in the direction you want to go (Objectives)

It’s crucial to remember why we perform strategic planning in the first place:

To get your team on board and aligned with your organization’s vision, mission, and goals;

It’s about making the most of your company’s resources to prevent wasting time and money on unimportant initiatives or activities.

to gain an understanding of market trends and scenarios that may affect your company in the coming years;

Develop an action plan to keep you and your team on track, and be accountable for it.

The Strategic Planning Process in 5 Steps

In general, there are five steps involved in strategic planning:

1. Define your strategic position

This step of preparation sets the tone for the rest of the project. It would be beneficial if you decided where you wanted to go and how you were going to get there.

Get the relevant stakeholders involved from the start, taking into account both internal and external sources. To obtain a deeper understanding of the market and the role of customers, talk to the company’s managers, collect feedback from clients, and gather business and consumer data.

For your initial assessment, use a SWOT diagram as a foundation.

Related:   How to Retain Customers in Your Business

2. Set Priorities for Your Goals

After determining the existing market position, set goals that will assist you to reach your objectives. Specific goals will be set by the organization’s mission and goals.

To aid in the achievement of the strategic long-term goals and initiatives specified in step one, objectives should be identifiable and quantifiable.

SMART are acronyms for Specific, Measurable, Actionable, Relevant, and Timeliness. Setting a schedule and specifying the capital and resources that must be attained, as well as key performance indicators (KPIs) for monitoring achievement, are all things that SMART goals can help with. So that everyone in the organization is motivated to work harder to achieve their objectives.

3. Develop a Strategy

This phase entails determining the tactics needed to achieve the objectives, as well as creating a schedule and effectively communicating duties.

Strategy mapping is a fantastic technique for visualizing the overall strategy. Furthermore, functioning from top-down structural maps allows for the observation of market activities and the identification of advancement prospects. Because market and economic conditions are always changing, developing alternate options to handle each step of the plan is critical now.

4. Put it into Practice and Manage The Plan of Action

The successful implementation of the plan is critical to the company’s growth. The strategic management process is now at the action stage. If the cumulative strategy does not align with the company’s current operations, a new structure and strategy should be implemented at the start of this phase.

The larger strategy can be turned into a concrete plan by mapping the processes. Use KPI dashboards to efficiently communicate team responsibilities.

5. Strategy is Being Monitored and Evaluated

Once a year, the strategic objectives and priorities will be reviewed and amended to reflect new business changes and ensure that aims are aligned with the organization’s ever-changing environment.

Performance measurements, a constant examination of internal and external challenges, and, where necessary, remedial actions are all part of the strategic assessment and control process. The defining of the parameters to be measured is the first step in every successful strategic review.

In Conclusion

Effective strategy planning necessitates a team effort from you and your colleagues. Furthermore, external circumstances have an important role in determining the quality of a plan. Furthermore, strategic planning must be adaptable, so that as time passes, the strategy should alter as well. While your company must have goals and objectives, it must also be ready to adapt to changes.

Simply follow these five phases to establish your strategic plan: clarifying your strategic position, defining objectives, developing a strategy, implementing the plan, and assessing and measuring the plan.

The Author

Oladotun Olayemi

Dotun is a content enthusiast who specializes in first-in-class content, including finance, travel, crypto, blockchain, market, and business to educate and inform readers.