Strategic planning has increasingly become important because of the role it plays in steering the organization towards success. There are various important aspects of strategic planning, but for the sake of this article, strategic planning framework, its significance and role of leadership in the process of strategic planning will be discussed. The major components of a strategic planning framework mission and vision, strategic objectives, core strategies, SWOT analysis, and action plans.
The mission is the overall, long-term formulation that provides rationale for the existence of the company. It needs to incorporate the objectives that the company seeks to achieve and an outline of the way you seek to fulfil them. A strategic planning framework should have a clear purpose, and the reason for existence (Bryson, 2018). The vision statement is an important component and should be brief and concise, but clearly paint an image of the business in the long-term. On the other hand, the strategic objectives’ component refers to the goals that should be achieved by the organization within a particular period (Bryson, 2018). Regarding the strategic framework, strategic objectives should include elements that have already been established and those that have not yet been accomplished. Each element in the strategic objective should align with the broader vision and mission statements.
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Strategies refer to the laid out plans for achieving objectives and goals. Whereas the strategic planning groups usually express varying ideas on how to attain outcomes targeted, free discussion and brainstorming normally lead to agreement on business strategies that are functional (Bryson, 2018). Even within the smaller companies, CEOs need to try to engage the highest number of people. The SWOT analysis is also a critical component of the current situation from the four major perspectives. It is representation of the pathways open to a company and the challenges that it could encounter. In addition, it can also point out the assets that the company can use for planning and gaining a competitive edge. Finally, each objective needs to be accompanied by a plan that provides information on the way the objective will be attained (Baumgartner, 2014). The amount of information is determined by the nature of the objective. The strategic term should begin at the highest level and then become more short-term and specific.
The strategic planning framework is beneficial for providing the basis for determining the success of a company as well as its programs. It is instrumental for verifying that the company is on the right track and putting in place mechanisms necessary for achieving its long-term success and sustaining competitive edge (Bryson, 2018). For example, the mission can enable the company to adhere to its primary purpose and act as a touchstone for making decisions during difficult times, including when there is conflict in the company (Wheelen et al., 2017). After the establishment of the strategic planning framework, it becomes quite easy to fill in the strategies, objectives and tactics since the company knows its journey and destination. Furthermore, the framework enables the organization to become proactive instead of reactive. A strategic plan enables organizations to predict their future and prepare well (Wheelen et al., 2017). Through it, organizations could prepare for certain unfavorable scenarios before they take place and take the appropriate precautions for avoiding them. With a robust strategic plan, companies may be proactive instead of just reacting to situations whenever they arise. The other benefits are setting up a sense of direction, increasing operational efficiency, increasing profitability and market share, and making businesses more durable.
Finally, leadership plays a critical role in the strategic planning process. Leaders particularly play a crucial role in determining the mission and vision of the company. Furthermore, it enables the company to execute effective strategies for achieving the vision. More importantly, leadership links the body and soul of a company. For an organization to successfully implement strategies, leaders need to be strong, kind, humble, proud and humorous (Jabbar & Hussein, 2017). These are attributes associated with ethical leadership that is critical for the development of an ethical organizational culture. Unethical leadership is associated with vices such as arrogance, and folly. Therefore, leadership acts as the organization’s nucleus in the strategy planning process. Ethical leadership is critical for the development and implementation of a code of ethics that guides the company in addressing various issues that it may encounter (Wheelen et al., 2017). They act as role models in the company by behaving in an ethical way and instilling the same values among the employees and stakeholders.
Overall, the major components of a strategic planning framework are mission, vision, objectives, core strategies, values, SWOT analysis, and action plans. These components are critical for providing a sense of direction and purpose to the company, thus enabling it to orient its activities to achieve the vision and mission. They are also critical for sustained competitive edge and long-term success as they enable the company to provide unique products and services to its clients. Leadership plays a crucial role in the strategic planning process by setting the mission, vision, culture and implementing the strategies. Ethical leadership is beneficial for enabling the company to develop positive values and traits among employees to enable them focus on the organization’s vision and mission. Consequently, there is need for organizations to develop strategic planning frameworks for their long-term success and superior competitive advantage.
References
Baumgartner, R. J. (2014). Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management , 21 (5), 258-271.
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement . John Wiley & Sons.
Jabbar, A., & Hussein, A. (2017). The role of leadership in strategic management. International Journal of Research-Granthaalayah , 5 (5), 99-106.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy . pearson.
