Strategic planning theory and practice by william dow. Planning theory is generally called procedural because it generally concerns itself with the process through which planning occurs and whether or not that process is valid. Strategic planning is also a preventative measure designed to assist you in achieving maximum effectiveness and equity before a program or department reaches crisis level. The strategic planning reference and resource book has been designed to familiarize you and help you through the strategic planning process in a stepbystep approach. It covers planning to do strategic planning, covering the background issues that need to inform. This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. Look for broad concepts on this topic in this reading.
A simplified view of the strategic planning process is shown by the following diagram. Many planners might have a different interpretation of a particular term, especially if they primary use one model of strategic planning. Efforts to develop a coherent theory emerged in the 1950s and 60s need to rationalize the interests and activities of planning under conditions of social foment the social sciences as a more broadly based interpretive lens role of history and theory in understanding planning 1. Whats the difference between strategic thinking and.
Strategic planning helps determine the direction and scope of an organisation over the long term, matching its resources to its changing environment and, in particular, its markets, customers and clients, so as to meet stakeholder expectations. It can be general, sweeping and vague, but at least it tells you that you the strategic planning process 1. For some purposes it may be a useful theoretical aggregation to consider a. Strategic planning is the cornerstone of every commoninterest community. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It provides an outline for you to plan, organize and conduct your conference, document and execute your plan, and to monitor and adjust your strategic plan, as needed. Strategic planning strategic planning toolkit by janet shapiro email. The example of the supermarket industry is interesting. Strategic planning is a team process that sets up how your company will accomplish its goals. The research concludes that the application of strategic planning does not produce automatic results, at least in the shortrun, and effective strategic planning requires transformation of mental models from rulebased to goalbased. Strategic planning approaches and concepts agecon search.
The first step of the strategic planning process is to clearly articulate our direction. To learn more about the basics of strategic planning, read this article. Recent management bestsellers and the business press are vocal in criticizing. A turning point for planning theory overcoming dividing. Introduction planning is one of the fundamentals of modern life. Instead, he used one presented in an unpublished paper by harvard colleague kenneth r. The notion of why a firm exists will color the theory as to what strategy will achieve the competitive advantage the firm needs to survive. The significance of theories of activity for operations management by robert bruce johnston b. Th e practice has become widespread for many reasons, but the chief one is the evidence that strategic planning typically works, and often works extremely well. Strategic planning initiatives will vary from organization to. Critical aspects in the strategic management theory core. The theory and practice of strategy in business organizations.
Competence theory is actually the most concrete and plausible alternative to the dominant strategic model of industrial organization. The most important requirement around the use of strategic. For example, if a firm exists because it lowers the transaction cost amongst the members of the firm below what they would otherwise be, such as in an open market, then strategy recognizing this purpose of. Strategic planning edinburgh business school v using the course package it is widely accepted that strategic planning is extremely difficult to teach effectively. In most cases, small businesses find themselves competing with much larger companies ones that know the benefits of strategic planning and practice it.
Strategic planning tended to focus on the hard aspects of the external environment, and was concerned with markets and the products to supply them. 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. As one of the developers of mystrategicplan, erica has stripped strategic planning of its fate as a static document. Lane 2005 traces the intellectual history through its different procedural approaches, especially as they relate to public participation. This is because, at the mba level, it is not sufficient to know about the subject it is necessary to be able to apply ideas in order to carry out strategic analysis of real problems. A glimmer of light for prospects of integrated planning to combat complex urban realities theoretical and empirical researches in urban manag ement number 211 may 2009 to that end, there is an increasingly perceived need for a multidisciplinary integrated planning approach. Pdf strategic management and strategic planning process. Or, in management terms, strategic planning is proactive, instead of reactive.
In our personal lives we plan holidays, careers, the acquisition of assets e. Strategy tool is a generic name for any method, model, technique, tool, technology, framework, methodology or approach used to facilitate strategy work stenfors, syrjanen, seppala. With her online strategic planning system, any organization, regardless of size and budget, can build a plan in a matter of weeks or even days. Additionally, the secondary goal is to evaluate the implications for strategic information technology management. Phases of theory development th e development of a theory of change for a local system of care can be divided into a threephase process that includes preplanning, th eory of change. Pdf this chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and.
What is present and usable from the strategic analysis and strategic planning theory. Sen, hakan 2016 strategic planning in the public sector. Strategic management theories by richard scroggins capella university, united states. It was about the formulation of strategy rather than its implementation. She hosts workshops and has spoken at conferences nationwide. Strategic planning frameworks and models smartsheet. Semantics aside, strategic planning translates into good, common sense. Subsector, or industry strategic planning is a potentially useful tool that can be. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track. Anthony, author of planning and control systems 1965, one of the books that laid the foundation for strategic planning, didnt give his own definition of strategy. Strategic planning theory pdf and so planning specific ontheground strategies to meet those goals is difficult.
During the highlevel strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding. Anthony 1985 defines strategic planning with five key elements. What is swot analysis purpose in strategic planning. The retailing industry is often given as an example of how it has become critical to operations. Comparative analysis of two paradigmatic approaches to. This writer views strategic planning as a method for creating improved organizational payoffs and consequences in the face of competition, obstacles or adversity. Glossary of strategic planning terms the following list includes many of the most common terms used in strategic planning. An important concept of strategic planning is an understanding that in order for the community to flourish, everyone needs to work to ensure the teams. Strategic planning and strategy creation strategic planning is not to create a strategy but to programme a strategy already created strategic planning is essentially analytical in nature, based on decomposition, while strategy creation is a process of synthesis henry mintzberg. This paper is intended to provide a major contribution to the study of strategic planning theory and practice through the detailed analysis of current theoretical. Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. This paper is intended to provide a major contribution to the study of strategic planning theory and practice through the detailed analysis of current theoretical strategic planning processes coupled with an extensive survey of the practice of strategic planning in major u. Initiatives to be specific about the theories of change guiding their work and.
In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organizations top managers on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management journal, for example, as one of the leading outlets for strategic plan ning research, we counted 32 articles. That said, training and cultivating an organizational culture to think strategically is a vital tool throughout the strategic planning process. Philippine planning experiences public administration pa from the western concept was introduced in the philippines through national economic council and international cooperation agency ica signing of moa of the quirino foster agreement in nov. The components of direction are purpose, values, mission and vision. Local government management guide strategic planning. Appropriate strategic planning model with qspm matrix solution. The second is a transactive planning point of view as demonstrated by a representative u. Without strategic planning, the community will never know where it is goingmuch less know if it ever got there. Eftpos technology ie electronic funds transfer at point of sales is the scanning. It has become fashionable to attack formal strategic planning as a source of corporate americas competitive ills. A thesis submitted to monash university for the degree of doctor of philosophy school of business systems monash university september 1998. What critiques can be brought to the strategic management theory and.
Apr, 2017 swot analysis is a tool used in strategic planning that outlines strengths, weaknesses, opportunities and threats for a corporation or a particular function within the organization. The rational model was a major preoccupation of planning theory from the 1960s, and by the 1980s it had become deeply integrated into planning education. Kaufman 1991 describes strategic planning as planning in the face of obstacles or competition. Even board members, who are supposed to be keeping managers honest about strategy, fall into it. When you deploy it correctly, strategic planning highlights problems, helps find solutions, and monitors progress. The purpose of this article is to provide an introduction to strategic planning in. Strategic planning is an organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Second planning workshop after the planning workshop information has been gathered into a workbook, another workshop should be planned.
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