We have two ways to face the future: the result of improvisation or the result of planning.
On a personal level, every time we think of an initiative, we usually have a plan, that is, we have
created in our minds a strategy (steps and actions) and a tactic (order of resources) to achieve our
goal.
The same should happen at the business level, having a plan, strategies and tactics must be of vital
importance to organizations, as they are key mechanisms to achieving economic, human and
technological growth in an organized and sustained way over time.
The globalization of the economy or the reduction of the time between the investment of an asset
and its introduction to the market, are some of the factors that have increased the competitiveness
of companies in the market, so it is necessary a mechanism that helps to articulate this reality and the
elements of traditional administration : planning, organization, execution and control; that tool is
Strategic Planning.
Strategic Planning as a management system arises with changes in the strategic capabilities of
companies, between the 60s and 70s. Management began to require planning of the tasks to be
completed, assigning a manager who analyzed how and when to execute them.
As a management tool, Strategic Planning is a decision-making process in relation to the desired
future (vision) taking into account the recurring actions to achieve that future (mission), the current
situation of the company or organization (values and culture) and internal and external factors
(FODA analysis) that can influence the achievement of the objectives set. This decision-making
defines strategies and can generate short-, medium- or long-term plans.
Elements of Strategic Planning
- Definition of objectives and Specific steps or actions required (Planning).
- Timeline and Responsible Persons (Organization).
- Resources required for each step or action (Execution).
- Feedback mechanism to monitor each step (Control).
Mechanisms for monitoring Strategic Planning
- Quarterly follow-up meeting (T1 – T2 – T3 – T4)
- Strategy review
- Review of key strategic actions and long-term objectives
- Review of critical issues
- Agreement on the following steps
- Outline of meetings
- Set the schedule of quarterly meetings within the Strategic Planning process
- Meetings must be “mandatory assistance”
- Set and publish an agenda
- Appoint a facilitator
- Minimum duration of three hours for the quarterly meeting
- Accountability
- Status Reports:
- Brief
- Posted
- Delineated
- Structured to emphasize
- Standardized format
- Display:
- Line and bar charts
- Milestone charts
- Projections that show the likely reality.
- Highlight variances
Limitations on the implementation of Strategic Planning:
- The strategies proposed are NOT communicated to the entire organization.
- Most of the initiatives promoted by Managers are unrelated to strategic objectives.
- Teams invest little or almost nothing in the development of the strategy.
- Less than 50% of organizations relate the budget and its strategies.
- A culture of accountability needs to be promoted for follow-up and execution to flow.
Strategic Planning is an attitude, a way of life; requires dedication to systematic monitoring of plans
and determination to constantly plan as an integral part of management. In addition, it involves a
mental process, an intellectual exercise, without a series of processes, procedures, structures or
techniques instituted. To achieve better results, the organization’s managers and staff must believe in
the value of Strategic Planning and must seek to carry out their activities in line with what is planned.