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    Strategic planning is a process that involves describing an organization's goals, assessing barriers to achieving those goals, and selecting approaches to overcome those barriers. The strategic plan serves as a blueprint that defines how an organization will allocate resources to pursue its goals. Key elements of strategic planning include conducting an environmental analysis, creating an organizational mission and vision, setting goals, and developing strategies. The strategic plan then cascades down to guide unit-level plans, job descriptions, and performance management.

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    Strategic planning is a process that involves describing an organization's goals, assessing barriers to achieving those goals, and selecting approaches to overcome those barriers. The strategic plan serves as a blueprint that defines how an organization will allocate resources to pursue its goals. Key elements of strategic planning include conducting an environmental analysis, creating an organizational mission and vision, setting goals, and developing strategies. The strategic plan then cascades down to guide unit-level plans, job descriptions, and performance management.

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    60 views3 pages

    Chapter 3 Performance Management and Strategic Planning

    Uploaded by

    Deviane Calabria
    Strategic planning is a process that involves describing an organization's goals, assessing barriers to achieving those goals, and selecting approaches to overcome those barriers. The strategic plan serves as a blueprint that defines how an organization will allocate resources to pursue its goals. Key elements of strategic planning include conducting an environmental analysis, creating an organizational mission and vision, setting goals, and developing strategies. The strategic plan then cascades down to guide unit-level plans, job descriptions, and performance management.

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    CHAPTER 3 Performance Management Systems and Strategic Planning

    STRATEGIC PLANNING
    -is a process of that involves:
     describing the organization’s destination,
     assessing barriers that stand in the way of that destination, and
     selecting approaches for moving forward.
    “The main goal of strategic planning is to allocate resources in a way that provides organizations with a
    competitive advantage.”

    Strategic Plan
    - serves as a blueprint that defines how the organization will allocate its resources in pursuit of its goals.

    Strategic Plan: Purposes:


    1. Helps define the organization’s identity. Link Among Organization and Unit
    2. Helps organizations prepare the future. Strategic Plans, Job Descriptions, and
    3. Enhances ability to adapt to environmental changes. Individual and Team Performance
    4. Provides focus and allows better allocation of resources.
    5. Produces an organizational culture of cooperation.
    6. Allows for the consideration of new options and opportunities.
    7. Provides employees with information to direct daily activities.

    Steps in creating Strategic Plan


    1. Conduct of an environment analysis.
    2. Creation of an organizational mission.
    3. Creation of an organizational vision.
    4. Setting goals.
    5. Creation of strategies that will allow organization to fulfil its mission
    and
    vision to achieve its goals.

    I. Environmental Analysis
    - identifies external and internal parameters with the purpose of
    understanding broad issues related to the industry where the
    organization operates so that decisions can be made against the
    backdrop of a broader context.

    INTERNAL EXTERNAL
     Organizational structure  Economic
     Organizational culture  Political/Legal
     Politics  Social
     Processes  Technological
     Size  Competitors
     Customers
     Suppliers
    Gap Analysis
    - analyzes the external environment in relation to the internal environment.

     Opportunity + Strength = Leverage


     Opportunity + Weakness = Constraint
     Threat + Strength = Vulnerability
     Threat + Weakness = Problem

    II. MISSION
    - the organization’s most important reason for its existence.
    Mission statements include the following
    components:
    Answers the following question:
    • Basic product or service to be offered
     Why does the organization exist?
    (does what?)
     What is the scope of the organization’s activities?
    • Primary markets or customer groups to
     Who are the customers served?
    be served (to whom?)
     What are the products or services offered? • Unique benefits and advantages of
    products or services (with what benefits?)
    Mission statements include the following components: • Technology to be used in production or
    • Basic product or service to be offered (does what?) delivery
    • Primary markets or customer groups to be served (to whom?) • Fundamental concern for survival
    • Unique benefits and advantages of products or services through growth and profitability
    (with what benefits?)
    • Technology to be used in production or delivery
    • Fundamental concern for survival through growth and profitability

    Organization’s values and beliefs


    • Managerial philosophy of the organization
    • Public image sought by the organization
    • Self-concept of business adopted by employees and stockholders

    III. VISION
    - the organization’s future aspirations.

    Includes two (2) components:


     Core ideology – the mission. The core purpose and core values of an organization.
     Envisioned future - which is referred to as the vision per se. Specifies long-term objectives and a picture of
    what the organization aspires to.

    Characteristics of a Good Vision Statement


     Brief • Understandable
     Verifiable • Inspiring
     Bound by a timeline • A stretch
     Current
     Focused
    IV. GOALS
     provide more specific information regarding how the mission will be implemented.
     provide a good basis for making decisions by keeping desired outcomes in mind.
     goals provide the basis for performance measurement because they allow for a comparison of what
    needs to be achieved versus what each unit, group, and individual is achieving

    V. STRATEGIES
    - are descriptions of game plans or how-to procedures to reach the stated objectives. The strategies could
    address issues of growth, survival, turnaround, stability, innovation, and leadership, among others.

    Strategic Plan at Unit Level


     The organization’s strategic plan, including the mission, vision, goals, and strategies, cascades down to
    all organizational levels.
     Thus, each division or unit also creates its own strategic plan, which should be consistent with the
    organization’s overall plan.
     The most effective sequence for doing so is for the units to first agree on common strategies and then
    specify unit-level goals.

    Strategic Consensus
    - occurs when the various organizational units agree on a common set of strategic priorities.

    Job Descriptions
    - need to be congruent with the organization and unit mission, vision, goals, and strategies. Should include
    activities that, if executed well, will help execute the mission and vision.

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