Strategic process is a planning process of setting business goals and creating an action plan to implement the strategies. By having a clear and well-defined strategic plan, a business increases its chances of achieving its goals and staying competitive in the marketplace.
In this article, we will discuss the strategic planning process in detail, including the steps involved, the benefits of strategic planning, and how to implement a strategic plan effectively.
What is Strategic Process?
The strategic process is a planning method used by businesses to set long-term goals and objectives, develop strategies to enable them to achieve those goals, and create a clear plan of action to implement the strategies.
It is a systematic approach to determining the direction of the organization and aligning resources to achieve its objectives.
The process typically involves analysing the organization’s internal and external environment, setting goals, developing strategies, creating a plan of action, implementing the plan, and continuously reviewing and updating the plan as needed.
The strategic process is designed to help businesses proactively address challenges and opportunities rather than reacting to them. By having a clear and well-defined strategic plan, an organization can increase its chances of achieving its goals and staying competitive in the marketplace.
History of Strategic Process
The origins of the strategic process or strategic planning process can be traced back to the military strategy used even in ancient civilizations. However, the modern concept of strategic planning as a business management tool was developed in the 1950s and 1960s.
The first use of the term “strategic planning” in a business context is credited to a number of contributors. These are documented as Peter Drucker, Alfred Chandler, Harry Igor Ansoff, Philip Selznick, and Bruce Henderson.
Peter Drucker, an Austrian-born American management consultant, educator, and author, is considered the “father of modern management” and the Theory of Management. He wrote extensively on the topic of strategic planning and management in his book “The Practice of Management” (1954). Drucker’s work on strategic planning laid the foundation for the modern strategic planning process, and his ideas continue to be widely used in business today.
Igor Ansoff is a Russian American applied mathematician and one of the fathers of strategic management. His book, Corporate Strategy, was published in 1965, and he then became worldwide acclaimed for his research into real-time strategic management. He invented the Ansoff Matrix, designed to plot generic strategies for business growth, for both existing and newly developed products, also in existing or new emerging markets.
Strategic Process Checklist
The strategic process for planning typically involves the following steps:
Strategic Process Checklist
Conduct a thorough analysis and research into the business’s internal and external environment.
The analysis is a crucial stage because this information will shape the next stages of the process.
Identifying routes that will help the business grow, strengths and weaknesses, potential wrong directions or key opportunities
External Factors: Identifying and monitoring any factors that may impact the long-term plans. For example, potential new regulations.
Internal factors: Conduct a thorough analysis of the business’s internal environment, including a SWOT analysis. Assessing strengths, weaknesses, opportunities, and threats (SWOT).
Objectives and Goals Setting:
Develop strategies and tactics to achieve the goals and objectives. Define the organization’s mission, vision, and values.
This involves setting strategic goals and objectives, developing strategies to achieve those goals, and creating a plan of action.
Definition: Define short and long-term objectives for the business.
Process: Identity what process you will use to accomplish your goals and objective.
Mission Statement: Produce a mission statement explaining the aims to everyone in the business.
Determine resources currently available that are required to achieve the objectives and goals.
Metrics and Data:
Create a plan of action, including specific tasks, timelines, and resources required. Gather as much data and business information relevant to your visionTrack progress
This involves putting the plan into action and ensuring that all people are involved in its implementation.
Everyone must understand their responsibilities and role in the success of the plan and how it fits into the business goals and objectives. Implement the plan and monitor progress.
Evaluation and control:
This involves monitoring the progress of the plan and making adjustments as necessary. It also involves evaluating the effectiveness of the plan and making changes to improve its outcome.
Evaluate the effectiveness of the plan and make adjustments as necessary.
This involves continuously reviewing and updating the plan as needed to ensure that it remains relevant and effective in achieving the organization’s goals.
These phases are not always sequential and can sometimes overlap or be repeated as needed. The strategic management process is dynamic and ongoing, as the business internal and external environments are constantly changing.
It is important to continuously review and update the plan to ensure that the organization remains competitive and relevant in a rapidly changing marketplace.
What is a strategic management process?
A strategic management process, also referred to as SMP for short, is a continuous process of appraising what works in business today, adapting and changing to be competitive in your niche.
It sounds simple, but it’s a complex process that includes formulating your business’s overall vision for the present and future.
To formulate your business’s overall vision, consider what you want your company to achieve in the future.
Why is Strategic Management Process Important?
The SMP (Strategic management process) is a valuable concept to help organizations become better at adapting and expanding as they face new opportunities, and challenges and ensure staying at a competitive advantage in the market space.
Strategic management is a process that helps a business achieve this by identifying its business objectives, analyzing them against business constraints to determine which actions are required to fulfil these objectives, selecting strategies that will enable those actions, monitoring and measuring progress against these strategies, and reviewing and re-evaluating.
When well-conceived and properly executed, strategic management creates value for the organization by focusing on and assessing opportunities and threats, leveraging the organization’s strengths and weaknesses to help it survive, grow, and expand.