Financial Stability Season 1 || Strategic Planning || Done By @hisgeneral || 100% Power-Up
A very good day to everyone one of you, it is with a grateful heart that I bring your attentions to my blog. I must commend the Financial Security and the people piloting and pioneering the the progress of the community. Also, I want to use this medium to welcome and invite all steemians to be a part of this trending community.
This is Season 1 of Financial Stability and topic of discussion is Strategic Planning. Once again, you are welcome. Lets get started.....
Strategic planning is referred to as the systematic application of knowledge in making explicit or definite business strategies, putting them into practice, and assessing or drawing conclusions from examining the results of executing the plan, in regard to an individual, organization or company’s overall long-term objectives, goals or desires. Strategic Planning is also a notion that concentrates on integrating different subdivisions likes finance and and accounting, marketing, and human resources; within an organisation or a company for the purpose of accomplishing its strategic goals. The term strategic planning is characteristically equipollent to strategic management.
The process of strategic planning demands significant thought and planning on the part of an individual, organisation or company's management. Prior to settling on a plan of action and then ascertaining definitely how to strategically put it into practice, one may reflect on many possible options. Ultimately, one will, in a hopeful manner, settle on a strategy that is probable to yield positive results and that may be put into effect in a cost-efficient manner alongside a high probability of success, while keeping away from undue financial risk.
The development process and putting strategic planning into practice are pictured in a typical manner as comprising of being carried out in three extremely important steps:
1- Formulation of Strategy:
During the process of strategy formulation a, one will have to will first estimate or evaluate its current situation by carrying out both an external and internal audit. The objective of this is to assist identify a person's, company or organization’s strengths and weaknesses, as well as chances for advancement, profit or progress and threats, this is referred to as SWOT Analysis. Consequently to the analysis, one decides on which plans should focused on or abandon, how to best make allocation of resources, and whether or not to take actions like operation expansion via a merger or joint venture.
Business strategies hold long-term effects on a person's, organization or company's financial success. In an organization or company, the authorization to designate resources required for their implementation is exclusive to upper management executives.
2- Implementation of Strategy:
After formulating strategy, it is necessary to establish explicit or definite goals or targets that are related to implementing strategy. The success of the stage of putting into practice is often ascertain definitely by managerial competency in regard to clearly communicating the selected strategy.
Effective implementation of strategy includes developing a solid framework, or structure, for putting the strategy into practice, increasing to the highest degree the utilization of pertinent resources, line with the goals and objectives of strategy.
3- Strategy Evaluation
It is well known to every savvy business person knows that tomorrow's is not guaranteed by the success of today. As such, it is imperative for managers to carry out evaluation on the performance of a selected strategy after the phase of implementation. Three crucial activities are involved in strategy evaluation which are: measuring performance, reviewing the external and internal factors affecting the strategy implementation, and taking corrective steps to make the strategy more effective. For example, after a strategy has been put into practice to enhance customer service, a company may notice that it needs to take up a new customer relationship management (CRM) software program for the purpose of attaining the desired improvements in customer relations.
The three steps in strategic planning takes place within three hierarchical levels which are: the upper management level, the middle management level, and the operational levels. Consequently, it is important to foster communication and interaction among employees and managers at every levels, so as to assist the firm to operate as a more effective and functional team.
Does strategic planning come with benefit? YES
The volatile nature of the business environment is the reason many firms prefer to adopt reactive strategies to proactive ones. Nevertheless, reactive strategies are exclusively possible for the short-term, despite they may demand spending a reasonable amount of resources and time to be put into effect. Strategic planning assists organizations, company or firms even individuals to prepare anticipatorily and address issues having a more long-term view. They also help to initiate influence rather than just responding to situations.
The following are among the numerous basic benefits obtained from strategic planning:
- Helps in formulating better strategies with use of a logical, systematic approach
This is most times the most important benefit. It has been proved or displayed by some researches that the strategic planning process itself makes a relative thrifty contribution to making a company’s overall performance better irrespective of the success of a specific strategy.
- Enhanced communication between employers and employees
Communication is a key factor to the success of the process of strategic planning. It is brought into play via involvement and dialogue amidst the managers and employees, which displays their commitment to accomplishing organizational objectives or goals.
Strategic planning also assists managers and employees display commitment to the organization’s targets or goals. This is because they aware of what the company's activities and the reasons behind it. Strategic planning also makes the objectives and goals of the organizational real, and employees can more readily comprehend the connection between their performance, the success of the company, and compensation. Thus, both managers employees probable to become more creative and innovative, which nurtures further growth of the company,
- Empowers individuals working in the organization
The increased dialogue and communication to all stages of the process makes strong employees’ sense of effectiveness and significance in the company’s all-encompassing success. Thus, it is imperative for companies to decentralize the strategic planning process by getting lower-level managers and employees involved throughout the organization. A typical example of this is that of the Walt Disney Co., that had its separate strategic planning department dissolved, in favour of designate the planning function to self-standing Disney business divisions.
An increasing number of companies are making use of strategic planning to formulate and put into practice effective decisions. While a reasonably large amount of time, effort, and money may be a requisite for planning, a well-thought-out strategic plan in an efficient manner nurtures the growth of the company, its goal achievement, and the satisfaction of employee.
Written by:
@hisgeneral
A big thanks to you @xkool24, @kinkyamiee and @kelvincole for being so supportive, it will only get better! I love you all and from me to you is, have a blissful day!!!
Hello @hisgeneral, you have done a master piece here, strategic planning is one of the many practices that makes a individual or a business successful and the benefits you mentioned just says it all. Thank you very much for sharing.
Thanks for sharing this wonderful piece of information. Yes, the benefits of strategic planning is one everyone needs to imbibe for a successful throughput.