Strategic planning is one of the decision-making processes through which organizations develop their business objectives, direction, strategies and day-to-day operating plans. A variety of approaches, techniques and processes are utilized to assure connection and linkage between vision, mission, values and overall strategic direction and day-to-day operations.
The PARTNERSHIP has had the privilege of successfully working with several organizations on projects, which have aligned strategy with business planning. While the organizations have been obviously different from one another based on business needs, markets served, competitive pressures, technology innovations, economic conditions, etc., a common theme among and between the various planning approaches has been the logical and rational determination of the following critical components:
- Where they are currently
- How they got there
- Where they want to be
- How and when they will get there
Following are examples of some of the projects and the planning approach utilized:
Organization…North American-based manufacturer of commercial and residential major appliances
Approach…Traditional Strategic Planning (SWOT Analysis)
- Situational Analysis
- Re-definition of Mission
- Set Objectives
- Formulate Strategies
- Action Planning
- Follow Up Measurement
Organization…European-based agriculture equipment maker
Approach…Modified SWOT Analysis
- Determine Current State of US-based operations
- Review Company Expectations
- Re-examine Vision/Mission
- Identify Key Functional Areas Requiring Attention
- Develop Specific Actions (immediate, short-term and long-term)
- Follow Up measurement
Organization…North American-based global aerospace system and component supplier
Approach…Strategic Value Creation Proposition
- Identify Unique ‘Value Creation’ Abilities
- Determine Dangers, Opportunities and Strengths
- Draft ‘Value Creation’ Proposition
- Develop Action Plans
Organization…North American-based producer of industrial products and tools
Approach…Policy Deployment
- Determine Vision
- Develop Overall Performance Goals and Metrics
- Develop Strategic Objectives
- Determine Functional/Departmental Goals
- Action Plans
Organization…European-based global automotive system and component supplier
Approach…Generic Strategy Management Concept
- Re-examine Mission (Strategic Vision)
- Strategic Analysis (Portfolio Analysis)
- Strategic Scenario Writing
- Success Factor Analyses
- Strategic Program and Functional Strategy Development
Organization…North American-based public utility
Approach…Business Life Cycle Management System Assessment
- Re-examine Mission (Strategic Vision)
- Assessment of Business Life Cycle Management System Components
- Identify Key Components Requiring Attention
- Develop Specific Actions
Experience suggests the particular process and/or system utilized are not necessarily the keys to successful strategic planning. Rather, the differentiator between the so-called ‘better’ performers from the others is the commitment, involvement and discipline of the leaders of the organization to the desired outcomes of the process. This seems to be accomplished by assuring that there are controls established for the process and adherence to timelines and deadlines. In addition, those responsible for making planning happen within their areas of responsibility appear to be empowered to actually make things happen. It is important to point out that throughout the process, unit objectives and strategies should be aligned with and supportive of overarching goals, objectives and strategies.
More on Leadership
To be really effective, the senior executive should take on the role of Chief Planning Officer. This will cause commitment, instill involvement, enhance planning quality and develop people. A portion of the chief planning role is the empowerment of other leaders in the fulfillment of their personal roles in the planning process. Collectively, they should:
- Become intimately familiar with the process and support it
- Become ‘drum majors/majorettes’ for planning with everyone they influence
- Direct the planning process among those they manage. Insist upon adherence to deadlines. Resist postponements or risk letting the process ‘slip away’.
- Drive planning down through all levels within their oversight. As a leader, they can enable planning to take place within their units. They should be diligent, as well as creative in exercising their power.
- Align unit objectives and strategies with overall objectives and strategies.
- Provide support for and encouragement of the overall vision
