Friday, September 28, 2012

The Top Components of Strategic Planning

If you already know what is strategic planning, then the next thing you'd have to be familiar with before learning the process of strategic planning is its key components.

Number one on the list is vision. This summarizes what the organization desires to be, or how it wants the world in which it operates to be. It is a long-term view and focuses on the future. It should be one that should inspire and motivate the members of the organization.

Second is the mission statement. The mission statement is an predominant, endless statement of your purpose and goal. It also tells what your organization wants to accomplish and in what ways you plan to accomplish them. It's a pronouncement of the reason for your company's existence.

Next values are then specified. Values are the organization's basic beliefs about the way you would run the company or organization. It provides an idea to the management and staff on what behaviours is acceptable and what are not. Most of the time values is connected with the culture of the organization.

What follows is the setting of the goals, objectives and tasks. Goals are defined as a list of wide-range strategies and tactics that have to be done so that the company can reach its mission. Objectives on the other hand, are SMART (specific, measurable, action oriented, realistic and time bound) strategies or activities that are need to reach the company's goals and vision. Then, tasks are precise activities and actions members, employees have to carry out day by day. They, too, should be specific, measurable and time bound.

Then, there's the strategy. It is a blend of the results the company or organization want to achieve and the ways by which it is seeking to get there. Another name for strategy is roadmap because it tells the company what path to take so that the goal or vision can be achieved.

It is at this point that strengths, weaknesses, opportunities and threats are pointed out. These four are simply represented by four letters - SWOT.

Also, there are the action items or plans. These are definite statements that point out the ways in which a goal will be accomplished. An example of which is stating that the company would have to use quality management software to evaluate quality of products or performance.

Second to the last is the scorecard. It is used to easily record the information of the key performance indicators and is also used to measure performance against the monthly targets.

Last but not the least is the financial assessment. Data gathered here are dependent on historical record and future predictions. This is used to plan and forecast the future, assisting you to have much better control over your organization's financial performance.

Strategic planning is important for any company that is poising itself for growth. As companies in various industries are working to provide their consumers with better, more targeted products and services, knowing how to work on quality management software which has become a rising imperative even for small businesses.

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