Every business strategy is based on making difficult decisions and choices. These are the key to achieving results and realizing goals. However, this does not mean accepting every risk and overly ambitious plans. They must still be realistic, objective, and above all, measurable. To make difficult decisions, you need to be aware. Aware of your own weaknesses, strengths, and challenges. Strategic planning will be key in this case. What questions should you ask yourself? We answer.
What is strategic planning?
Strategic planning is a complex process that involves a company determining the position it wants to occupy in the future. It is based on the creation of long-term tactics, usually covering a period of more than 5 years. Strategic planning focuses on defining and implementing the goals that the company wants to achieve.
This process forces you to answer questions that are crucial for the organization. Some of them may be difficult, but there is no other set of questions in this game. You have to face both simple and complex issues. However, you should not skip any of them.
What questions should you ask?
Strategic planning allows you to identify the fundamental issues that form the foundation of your company.
- What does my organization do? What should my organization do in the future?
- Who do we want to be in 5, 10, 15 years? How will we know that we have achieved our goals? How will we measure progress?
- Who are my current customers? What kind of customers do I want to have in the future?
- When do we want to achieve our goals?
This process creates the basis for tactical and operational planning, which enables daily decisions to be made in line with the strategy and focus on key areas.
- What course of action is consistent with the strategy?
- Will my decision bring me closer to implementing the strategy and closer to the vision?
- Do the tasks I perform bring me closer to my business goals?
Strategic planning is based on cooperation. Every team member should be involved, believe in the implementation of the strategy, and develop their skills.
- Does your company have sufficient skills to carry out its tasks and achieve its goals?
- What do I need to achieve my goals?
- Are all team members committed to achieving the goals?
- Do I have leaders with the right skills?
- Does management supervise the team’s activities and implement the strategy?
These are just some of the questions you need to be prepared for during strategic planning. However, it is worth paying attention to the stages of the process leading to the expected results.
Preliminary (framework) planning
Preliminary planning, also known as framework planning, is a key stage in the strategic planning process. During this stage, the organization’s management teams make fundamental decisions about the direction and goals of the company.
When preliminary planning, it is crucial to establish criteria. These may include market trend analysis, competitor assessment, SWOT analysis (strengths, weaknesses, opportunities, threats), as well as consideration of the company’s mission, vision, and values.
Constraints such as data gaps, market uncertainty, and resource limitations must also be taken into account. Therefore, decisions made at this stage must be flexible and subject to further analysis and adjustment as new information becomes available.
Key question: What is the right set of questions?
Answer: This question draws attention to key areas that need to be considered during the planning process, such as strategic objectives, target group identification, competition analysis, and opportunities for growth and innovation.
Diagnosis of the current situation
This stage primarily involves gaining a deep understanding of the starting point, where and how we create value, and what it means to us.
We analyze internal factors such as organizational structure, operational processes, human capabilities and resources, as well as financial resources. It is equally important to identify the company’s strengths and weaknesses in order to capitalize on its achievements to date and minimize potential risks.
We then focus on external factors such as the market environment, competition, industry trends, and regulatory changes. Analyzing these factors allows us to understand the external conditions in which the company operates and to identify opportunities and threats for the future.
Key question: What is the value/function of the goal for us and how/why do we create it?
Key answer: This question allows us to identify the direction the company should take and the strategic goals it should set for itself.
Defining the vision and mission
At this stage, we focus on building a vision of the potential future in which the company will operate. It should be inspiring, ambitious, and at the same time realistic, providing guidance for the entire organization on where it is going and what role it wants to play in the business world.
It is equally important to define the company’s mission, i.e., the fundamental purpose of the organization and the values that guide it. The mission reflects why the company exists and what goal it is trying to achieve. It should be clear, understandable to all employees, and form the basis for decisions and actions.
Key question: What versions of the future should we prepare for?
Key answer: Identify possible development scenarios that take into account market changes, technological innovations, consumer trends, and other external and internal factors that may affect the company’s future.
Choosing a strategic direction
This involves selecting and combining various possible strategic choices into a single coherent and effective strategy.
During this process, we analyze the available strategic options, taking into account the company’s goals, mission, values, and diagnosis of the current situation. It is important that the choice of strategy is consistent with the company’s previously defined vision and mission, and that it responds to identified needs or market opportunities.
A valuable integrated strategy should take into account various areas of the company’s operations, such as marketing, sales, operations, innovation, human resources, and finance, and ensure consistency and harmony between them.
Choosing a strategic direction sometimes requires the courage to take risks and the flexibility to respond to changes and new market circumstances.
Key question: What is our integrated strategy?
Key answer: Seeking a coherent set of actions and initiatives that will enable the company to achieve its goals and fulfill its mission in an effective and efficient manner.
Developing an operational plan
At this stage, we focus on preparing a detailed action plan that will implement the strategy’s assumptions and achieve the set goals.
The plan includes a schedule of activities, responsibilities for their implementation, and performance indicators that will allow us to monitor progress and evaluate the effectiveness of our actions.
Communication of the operational plan is also a key element of this stage. All employees must be clear about the goals and actions to be taken. Open communication allows them to understand the importance of change and motivates them to get involved in its implementation.
Securing the appropriate resources, whether financial, human, or technological, is essential for the effective implementation of the strategy. Ensuring adequate resources and support is critical to the success of the operational plan.
Key question: How do we manage change?
Strategy implementation and monitoring
It is crucial to regularly monitor progress and evaluate the effectiveness of actions taken as part of the strategy.
Monitoring the strategy allows us to identify areas where we are successful and those that need adjustment. This enables us to respond quickly to changing market conditions, customer needs, and competition. Strategy implementation is not a static process.
At this stage, the organization also learns from its own experiences on an ongoing basis. Analyzing results and the effectiveness of actions taken allows us to identify best practices and learn from mistakes. The organization’s learning process is key to long-term success and the ability to adapt to changing conditions.
Key question: How do we adapt and learn as an organization?
If you need support in implementing this process, our experts are at your disposal.
