Strategic business planning

The process through which an organization determines how to allocate its resources to achieve its business goals is commonly regarded as strategic planning. Though it's easier said than done, the chances of success increase the more the leadership understands the significance of strategic business planning. In this article I cover three topics: 1) Basis for strategic business planning 2)?Formulation of strategic plans, and 3) SMART Objectives.

1) Basis for strategic business planning

The process of developing a business strategy is not just regular planning. Through a sequence of business actions, strategic planning aims to move a company from its current state to its desired state.?

• Where is the business now? Become familiar with the company's internal factors that influence profitability. Compare that to the rivals and carefully notice the similarities and differences. Analyze where the brand stands in the marketplace.

• Where do you want to go? Answer these questions: What are the top-level goals for the future? What is the vision statement of the company? What are the organizational values? This determines the required changes and lays down the groundwork to start making adjustments.

• How can you get there? Choose the best route for putting the changes into practice, the timeline with deadlines, and the funding source. (Here, a gap analysis can be quite beneficial.)

It is the responsibility of the leadership team because it has a significant influence on the overall course of an organization. They must ensure monitoring of the required time, costs, and tasks in order to oversee the execution of a strategic business plan. This is normally done using specialized tools such as Gantt charts, kanban boards, task lists, and calendars.?

2) Formulating a strategic business plan

• Setting business objectives: These are the bullet points that the organization aims to accomplish in the short, medium, or long term. They can take many different shapes, including, but not limited to, raising sales, revenue, customer satisfaction levels, and brand positioning.

• Conducting a SWOT analysis: This is done to evaluate the company's business environment. Leveraging a company's strengths that can develop into competitive advantages and reducing the effects of its deficiencies are the two main internal variables that can affect the business. Similarly, external elements like competitors or an undeveloped market are referred to as threats and opportunities.?

• Developing the plan: Based on the internal and external analysis, the business strategy determines how to create, market, and sell the product or service.

3) SMART Objectives

Something that is the centerpiece of any strategic plan is the objective. Peter Drucker's Management by Objectives is frequently credited with the creation of SMART objectives. It's a powerful tool that gives clarity, drive, and concentration to all the stakeholders in the organization's needs to reach the objectives.

A SMART objective would read something like this: "5% more website visits in 6 months"

This goal is Specific, Measurable, Achievable, Realistic, and Time-specific.

A smart strategic business plan aligns everyone around a shared purpose. Proactively set objectives to help the organization get where it needs to go. Define long-term goals, and then set shorter-term goals to support them.

Depending on the rate of growth of the organization, the management should try to create a fresh strategic plan every three to five years. Alternatively, an organization can consider conducting fresh strategic planning as and when most or all the long-term goals are achieved. This is also recommended any time an organization is planning to enter new markets or make a significant change to its goal.

At the end of the day, the purpose of strategic business planning is to draw a roadmap of how to get from point A to point B.

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