IMPORTANCE OF STRATEGIC PLANNING Strategic planning is a major asset and it plays a very important role in the strategic management . It is an overview or framework for a manager to make the activities of management in an organisation ( Mumtaz Began , Norasiken , Norhayati , 2002 ) . Planning also helps a manager to make judgments and decisions related to the future direction of the organisation. There is some interest in the organisation 's strategic planning that can be produced here include: 1. Better Management With strategic planning, managers will be able to establish a clear and comprehensive concept for an organisation.
STRATEGIC PLANNING Strategic planning is a comprehensive process which includes everything which a business should become and how best it can achieve that goal. Basically it links the business objectives to the actions and resources required to achieve them. While doing this it offers a systematic procedure to ask and answer the most critical questions faced by the management team. DEFINITION George Steiner defines strategic planning as “the formulation of basic organizational mission, purpose and objectives; policies and programmes to achieve them, and the methods needed to achieve organizational ends. WHY DO COMPANIES USE STRATEGIC PLANNING PROCESS?
Planning prepares organization for future situations by assessing what to accomplish and how it will be achieved. However, it is imperative to note that planning is an ongoing step that can be highly specialized based on organizational goals or even team goals and it is the duty of the manager to realize what goals needs to be planned within their area. A management plan takes into consideration short
It has helped in establishing goals and arranging them in logical order. Filling the job with the right people that are qualified for it; being a good role model for junior to follow, it has improved ensuring patients welfare, representing employees and staff management, planning, organising, directing, delegating, coordinating staff and supervising the delivery of healthcare. 8. PLANNING The concept of planning gives meaning to work and brings about realization to change in my nursing work. It provides basis for control and it is needed for effective control.
Importance of Strategic Management and Planning Strategic management is essential for the progress, prosperity and development of an organization as it aligns the mission, vision, outcomes and objectives with operations. A well-planned strategic management is crucial and can bring various benefits and perks to the organization in present as well as in the future. A well established management strategy takes into consideration the destiny and fate of the business and provides a way to anticipate future problems and opportunities. It allows for identification, prioritization, and exploitation of
Strategic plan affects organization long-run performance and provides direction by defining its strategic approach to business. The steps in the strategic management process are assessing the mission of an organization, SWOT analysis, strategy formulation, strategy implementation to focus on execution, evaluation and control to achieve effectiveness and efficiency. For example, Apple Company uses the strategic planning model as their managerial planning. A strategic plan has set out to develop the organisation 's strategy. According to some studies conducted by Rob Grant, the process of strategic planning is done which is as follows: (“A Strategic Planning,” 2015) 1.
The planning process begins with a formal vision and mission that defines the current or the desired position of the company directly linked to all employees and especially directed to the external public. Vision is the basis for strategic (company level) level of goals and plans, in which the tactical form (at the upper sectors and functions) and the operational level (the level of departments, divisions) of goals and plans,are being created both named as Mission. Top managers are usually responsible for setting strategic goals and
The very step is based on assessing the discrepancies in the organization, and evaluating the strengths and weaknesses as well. This activity develops the base for the strategic planning. Strategic planning is an extended phase of strategic management process. In the initial stages of this phase, the mission, vision, and the core values are developed. If these are already developed, then a GAP analysis is conducted to review the disconformities (Hitt, Ireland, & Hoskisson, 2012).
How has modern strategic planning changed since the 1970s? Modern strategic planning has changed since the 1970s in several ways. While in the 70s, strategic planning in an organization was not as much organized or coordinated as a unit that involves and incorporated every department, rather managers representing each department were responsible for planning and reporting to the general manager and the department. In order words, managers of each department serve as a middleman between senior management and departmental members. However, modern strategic planning now revolves around teamwork where everyone’s idea is taking into account and effectively used as a tool for maximum productivity.