The Strategic Planning is a practice that emerged in the 1970s Prior to that, in the 50s and 60s, entrepreneurs planning to operational mode. That is, with a focus on routine tasks and short-term results.
However, this way of thinking began to change in the 1970s. The oil crisis, high unemployment rates and high inflation made entrepreneurs start to plan strategically.
This means that organizations have started to analyze their processes from different angles.
Thus, Strategic Planning is adopted with the objective of generating profit and growth and improving the company’s management . And this starts to be done through systematic actions.
Strategic Planning is a continuous process that takes into account a lot of information related to the company. In this modality, all decisions are made thinking about the short, medium and long term.
Today you will discover 5 tips on how to do Strategic Planning and why it is so important for companies that want to achieve success.
Strategic Planning: why is it important?
To plan strategically is to know how to manage the available resources to reach previously established objectives; it is to develop actions focused on what one aims to achieve .
Regardless of the size of the company, Strategic Planning is important to propel it in the right direction. It will serve as a guide so that the company does not get lost along the way.
In addition to establishing goals and objectives that dialogue with the reality of the organization, the EP enables greater integration between all those involved: executives, managers, employees, customers, etc. This ensures more agility in the decision-making processes.
PE is also a competitive advantage. Without it, the company will hardly survive in the market, as it will not have its weaknesses and threats well defined and will not be able to develop actions to correct such flaws.
How to do Strategic Planning?
Many companies, especially small ones that are still consolidating in the market, do not know how to do Strategic Planning. So, here are 5 tips for creating an efficient PE. Check out:
1 – Identify the company’s stakeholders
The stakeholders are the people and institutions involved and interested in the activities of the company. Examples: executives, managers, employees, suppliers, customers, government agencies, civil society organizations, the community, etc.
It is part of the strategic planning to understand the needs and expectations of the stakeholders so that one can think about integrated actions.
2 – Define the organizational identity of the company
The second tip on how to do Strategic Planning is of fundamental importance.
Organizational identity is nothing more than the classic triad: Mission, Vision and Values. These three pillars are what determine the company’s differential, making it unique in the market.
- Mission : why the company exists
- Vision: where the company wants to go in the long term
- Values: non-negotiable principles
These components of organizational identity must always be clear to all members of the company.
3. Perform a SWOT analysis
SWOT is an acronym in English and it stands for Strengths, Weaknesses, Opportunities and Threats. It is an analysis of the company’s internal and external environments.
- Strengths: motivated and engaged employees
- Weaknesses: disqualified professionals, outdated technological apparatus
- Opportunities: invest in specific niche markets
- Threats: political and economic crises, creation of new laws
4 – Set goals and objectives
The objectives are long-term results. They represent where the company wants to go with that planning.
The goals are achieved in the short term and can be understood as steps that will lead to the company’s goals.
They both need to be smart. That is, follow the SMART pattern :
- and with a well-defined term (Time-based).
5 – Monitor Strategic Planning
Remember that at the beginning of the text it was said that the EP is continuous? Well, it means that it is subject to change depending on the progress of things.
Thus, it is necessary to define the so-called Performance Indicators – based on the goals and objectives of the company – and to monitor the PE to make sure that everything is working according to what was planned and if there is a need to modify or correct something or another.
Now that you know how to do Strategic Planning, design one for your company and always count on it to guide your business towards success!