What is strategic management process steps, stages and phases. Key elements of strategic management mba knowledge base. Organizations are supposed to select the directions in which it will move towards. Most managers can benefit from having a strategic plan. Strategic planning is a process of looking into the future and identifying trends and issues against. What are the key elements of the strategic management process. Most often, the strategic planning process has 4 common phases. Local government management guide strategic planning. Strategic planning is a disciplined process for making key decisions and agreeing on actions that will shape and guide what an organisation is, what it does, and why it does it. There are many components of the process which are spread throughout strategic planning stages. Planning is a complex process that can take many forms.
This enables the businessman to concentrate upon those matters which are actually relevant and vital to business success. It should be done prior to, during the creation of the strategic plan, continue on through the implementation, and in the monitoring process of the strategic plan. Thus, this research investigates the current state of the practice of strategic planning and management in u. These state agency planning elements are in additi on to the strategic planning requirements for state agencies set forth in the texas government code, chapter 2056. Increase the innovation quotient of you management team. The process of strategic management involves considering how resources such as money, personnel and time impact the environment in which the organization operates. Eight elements of strategic planning from success to. Kaufman and steven walleck, strategic management has four basic elements. It includes evaluating the firms internal and external situation, defining the business and developing a mission, translating the mission into strategic goals, and drafting the strategy or the. The components of direction are purpose, values, mission and vision.
Second in a twopart series elements of a strategic plan. The process of gathering data in strategic planning. It spells out the logical steps you will take to lead you from the start to the finish of your endeavor. The edison, new jersey, pipeline explosion revisited planning and strategic thinking attracting a market for tickle me elmo attracting an audience of potential breast cancer victims responding to a public concerned about ridley turtles planning. If you are interested in learning more, here are suggested resources on our site library articles. There are four key elements of the strategic management process. This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. Elements of a successful strategic planning process. The basics types of objectives program management documents budgets.
Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. Four basic elements of strategic management bizfluent. A practical guide to strategic planning in higher education. Eight elements of strategic planning from success to succession.
Strategic management is itself the fourth and culminating element. Present businesses that have already created a strategic management plan will revert to these steps as per the situations requirement, so as to make essential changes. Gluck and his mckinsey consulting firm colleagues stephen p. The basics of project planning introduction before commencement of any project, the first thing that we need to do is project planning. A practical guide to strategic planning in higher education 5 about this book undergoing a strategic planning process can be a monumental task, especially for higher education. But without the right input and preparation, an organization can end up with just another expensive binder of good ideas gathering dust on the shelf. Components of an effective strategic planning system. The process by which leaders of an organization determine what it. Gathering of input from staff, committees, and constituents. Elements of strategic planning and management in municipal government 47 unless they drive it through their budgeting, measurement, and performance management processes. Strategic management is extremely critical in the survival of the organization. Strategic planning defined strategic planning is a process of looking into the future and identifying trends and issues against which to align organizational priorities of the department or office. About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations. Pdf this chapter on the strategic management and strategic planning process.
Overview of planning toolkit on overview of planning by janet shapiro email. The process of planning generates the purposeful and orderly setting up of activities to be carried on. Data can be secondary or primary data and gathered. Center for simplified strategic planning has prepared a new book about how to handle the issues of innovation. Planning nature, elements, process, approach, importance planning is the conscious, systematic process of making decisions about goals and activities that an organization will pursue in the future. Strategic planning includes the first four strategic management tasks. A solid strategic plan should become both a key management tool for the staff and a performance contract between the board and management.
By working on a strategic plan together a team can. Planning nature, elements, process, approach, importance. The process of gathering data in strategic planning abstract a major part in strategic planning is the process of gathering data. Strategic planning is a part of the firms strategic management process. This is why the process should engage the successor in the continuation of the company, which is to say the process should take into consideration the past, the. On the next few pages is a brief example of the strategic planning process that illus trates which key elements are needed for implementation and offers you a guide to follow in your own locality. Strategic management has three major elements, which include strategic analysis, strategic choice, and strategy implementation. The word strategy originated on the literal battlefield. Review your organizations strengths and weaknesses.
Preparation steps to get the most out of the strategic planning process a solid strategic plan can provide a road map for the organizations future. Describe the strategic planning process and swot analysis. Planning is an important aspect of strategic thinking and management. A thorough strategic planning exercise outlines the companys main direction while at the same time defining its needs in terms of leadership quality and in terms of financing. Strategic management process meaning, its steps and components.
Whether this exercise is performed by the ownermanager, the successor, the board of directors, or a management committee, the exercise comprises eight elements. Elements of a successful strategic planning process five ingredients are essential for an effective strategic planning process the right people, good data, preparation, a structured process, and adequate resources of time and dollars. There are different kinds of planning and different ways of planning. The figure is intended not as a prescription of what strategic management should be, but as a framework which readers can use to think through strategic problems. Reflect on the community and broader environment in which your organization operates to identify the opportunities and threats that it faces. The first step of the strategic planning process is to clearly articulate our direction. Strategic planning tools and strategic planning template or blog posts focused on strategic planning. Examination of the external and internal environments of the nonprofit. It can be general, sweeping and vague, but at least it tells you that you the strategic planning process 1. Each member should represent a key function andor interest group to ensure the plan has. The annual planning cycle section provide a space to enter assessment measures for each priority outcome plus related targets, findings and use of findings for a given year. Understand grand strategies for domestic and international operations define corporatelevel strategies and explain the. The influences on, and elements of, strategic management discussed above are summarised in the figure above. Any reasonable project manager certainly understands importance of planning a project well.
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