A distinct strategic plan is a necessary condition for businesses to improve profits, affirm their name in the current industry and market.
Strategic planning is a very important job for corporate governance. To develop business and production in the right direction, it is necessary to know how to plan the correct strategy. Navigos Search experts will help you better understand the concept as well as the steps for effective strategic planning through the information below.
1. What is strategic planning?
Strategic planning is the process of researching and analyzing environmental factors, opportunities, goals and competitors in the market. Through that, the manager sets strategic goals and gives the best direction to accomplish the goals.
The strategic planning process usually includes goals and action plans that guide the growth of the business. In the process of operation, enterprises are always influenced by external and internal factors. Having an effective strategy will help businesses be flexible, proactively adapt to any changes that occur and continue to realize the goal of improving their position in the market.
On the other hand, a good strategy also helps businesses seize opportunities and detect potential threats early. Managers also exploit and rationally use available resources to promote the strength of the business. An effective strategy also creates a good connection between employees, between employees and the leadership to work together towards the goal of business development.
So, as a leader, you need to master strategic planning skills. Even if you do not directly implement the plan, it still takes practice to evaluate the feasibility of the strategy.
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Strategic planning is very important
2. What does a perfect strategic plan include?
Regardless of the field or industry, the strategic plan should fully ensure the following elements:
- Address customer needs, employee interests and business interests to ensure the sustainability of the plan.
- The construction process is carried out by many people to ensure diversity and uniqueness and managers must make the most objective final decision.
- Agreed decisions must have a feedback and interaction mechanism so that the implementers can quickly receive and handle the problem.
- The given strategy must have a long-term vision to ensure the operation of the business in the long run.
- The strategic plan needs to ensure that it has updated the latest technology trends, changed the way of working, business methods, accurately identified customer needs, ...
3. 5 unique and different strategic planning steps
Business leaders can refer to the following steps to build the most complete strategy:
Define vision and mission
A vision is an image, a picture of the future of the business, which is clearly and convincingly conveyed. Vision will be associated with all activities of the business. The mission is a statement, the official announcement of the business. The main mission is to determine why the business exists, grows and what the business is aiming for.
The main vision and mission is seen as the guiding light for the business to go in the right direction on that path. Therefore, managers need to clearly define the vision and mission of the organization in order to make appropriate decisions later.
Study the environment both inside and outside
For strategic planning to be highly effective, the head needs to study the internal environment (internal enterprise) and also the external environment (current market). Internal analysis of the enterprise to determine the viability and effective development of the enterprise against external influences. As for the market research to determine the business is in the industry, where the position is and accurately capture the competition as well as more knowledgeable about the field in which it is operating.
Research the conditions affecting the business
Set annual goals
Annual goals are milestones that a business must achieve in order to reach its long-term goals. The set goals must be based on the actual situation, must be measurable, quantifiable and suitable for the business. Leaders need to take this goal as a basis to convey to each department and member to understand.
The annual goals are considered as a guide for action to determine the profitability, growth targets of each department in the organization. At the same time, they are standards, a resource that promotes accountability and homogenizes all employees.
Selecting a strategy and allocating human resources to deploy
At this step, you must choose a business strategy, production strategy, marketing strategy or human resource strategy to allocate resources for deployment. Identify and allocate human resources that are most suitable to their abilities and powers to achieve the highest efficiency. In addition, it is also advisable to redistribute responsibilities and powers to managers and department heads.
Monitor and evaluate strategic results
During strategy implementation, leaders must closely monitor both internal and external environments to promptly identify strengths, weaknesses, and possible threats.
In the event that problems arise, management must promptly take corrective or corrective action. However, the strategy should only be revised after it has been carefully evaluated, considered and determined that the new strategy will bring more benefits than the current strategy. Finally, you will measure the effectiveness of your strategy to compare actual results with previous estimates to assess the most accurate strategy results.
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Effective strategic planning process
Strategic planning always plays a key role to help businesses easily develop their business activities. With the knowledge Navigos Search shared above, you will create a different strategy and bring high results and benefits to your business.
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