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To assist you throughout your planning process, we have created a how-to guide on The Basics of Strategic Planning which will take you through the planning process step-by-step and keep you on track.
The strategic management process is about getting from Point A to Point B more effectively, efficiently, and enjoying the journey and learning from it.
Part of that journey is the strategy and part of it is execution. On average, this process can take between three and four months.
However no one organization is alike and you may decide to fast track your process or slow it down. Move at a pace that works best for you and your team and leverage this as a resource.
For more of a deep dive look into each part of the planning phase, you will see a link to the detailed How-To Guide at the top of each phase. Who is going to be on your strategic planning team?
You need to choose someone to oversee the implementation Chief Strategy Officer or Strategy Director and then you need some of the key individuals and decision makers for this team.
It should be a small group of approximately persons. Review the data collected in the last action with your strategy director and facilitator.
Conclusion: A strategic plan needs to be adaptive to survive changing or unanticipated conditions. An organization that develops and executes a strategic plan gains significantly from the experience, and starting with a working model and then building a tangible plan can be more successful for your organization than having no plan at all.
Over the life of your strategic plan, you may discover that some of the underlying assumptions of your strategy are flawed or incomplete.
When this happens, you will need to either adapt your strategy or begin the process over again. Some organizations can maintain a strategic plan for a year or longer, while others have to respond to market changes more frequently.
Whatever your situation, just be prepared to let go and switch strategies as necessary. Corrective action needs to be taken quickly to compensate for the dynamic business environment most organizations operate within.
Want More? Strategic issues are critical unknowns that are driving you to embark on a strategic planning process now. These issues can be problems, opportunities, market shifts or anything else that is keeping you awake at night and begging for a solution or decision.
Conducting an environmental scan will help you understand your operating environment. Sometimes it is helpful to also include Ecological and Legal trends as well.
All of these trends play a part in determining the overall business environment. The reason to do a competitive analysis is to assess the opportunities and threats that may occur from those organizations competing for the same business you are.
Here are a few other key ways a competitive analysis fits into strategic planning:. Learn more on how to conduct a competitive analysis here.
Step 4: Identify Opportunities and Threats Opportunities are situations that exist but must be acted on if the business is to benefit from them.
Threats refer to external conditions or barriers that may prevent a company from reaching its objectives. Weaknesses refer to any limitations a company faces in developing or implementing a strategy.
Customer segmentation defines the different groups of people or organizations a company aims to reach or serve. By creating a SWOT analysis, you can see all the important factors affecting your organization together in one place.
Take the Strengths, Weaknesses, Opportunities and Threats you developed earlier, review, prioritize and combine like terms.
Your values statement clarifies what your organization stands for, believes in and the behaviors you expect to see as a result.
A Vision Statement defines your desired future state and provides direction for where we are going as an organization. Your strategies are the general methods you intend to use to reach your vision.
To do this, match external opportunities and threats with your internal strengths and weaknesses, as illustrated in the matrix below:.
Long-Term Strategic Objectives are long-term, broad, continuous statements that holistically address all areas of your organization. What must we focus on to achieve our vision?
Firms such as Walmart and Costco excel at economically providing products to their customers. They pass along a lot of the benefits of this economy to their customers in the form of lower prices.
Not all the cost savings get passed along to the consumers, however. A significant portion of the cost savings, achieved through incredibly efficient operations, are retained by the business and, therefore, become profits.
Such cost leadership or low-cost operation is one of the three basic strategies. The key thing to note about a low-cost strategy, however, is that the firm needs to retain some of the cost savings in order to earn a higher profit level than its competitors.
Choose your language. Tell us about this example sentence:. The word in the example sentence does not match the entry word.
The sentence contains offensive content. Cancel Submit. Your feedback will be reviewed. Add a definition. The implication is that, in everyday practice, clinicians might use this basic strategy to maximize capacity to make decisions about health care interventions.
From the Cambridge English Corpus. The basic strategy is to maintain a stack of all dynamic-wind calls entered but not yet exited.
Table 1 lists the reviews, profiles the basic strategy and in bold notes the authors' description of their review activity.
Almost inevitably, the results suggest possible hybrid strategies, where one basic strategy operates well in the early stages but another does better later on.
Repeatedly pruning the choice matrix is sensible, but we can combine it with another basic strategy. A basic strategy for foreign learners should be to associate a noun with other words that unambiguously mark its gender.
Our basic strategy is the following. The basic strategy is to: sum the amount of time actually spent in unpaid household labour, find the mean of that, and subtract one standard deviation from that mean.
Split 2s and 3s vs dealer Split 4s vs dealer Split 6s vs dealer Split 7s vs dealer Split 9s vs dealer and Double hard 9 vs dealer Double hard 10 vs dealer Double hard 11 vs dealer Double soft 13 or 14 vs dealer Double soft 15 or 16 vs dealer Double soft 17 or 18 vs dealer Stand on hard 12 vs dealer Stand on hard vs dealer Stand on hard 17 or more.
Stand on soft 19 A8 or more.