2. Definition
• Strategic planning sets the long-term direction of the organisation in
which it wants to proceed in future
• The process of deciding on objectives of the organisation, on changes
on these objective, on the resource used to attain these objectives that
are to govern the acquisition, use and disposition of these resources.
present
Strategic
planning
Vision
of
future
3. Seven steps to strategic planning
1. Identification of customer needs
2. Determination of customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Align the plan with the mission and vision
7. Implementation of the plan
Customer
needs
Customer
positioning
Predict the
future
Gap analysis
Closing gap
Alignment
Implementation
Reevaluate and
review
4. Difference between goals, objectives, and
plans
• Goals:
goals are attempts to improve organisation’s performance by making
mission statements concrete.
• The goals could be,
• Improving customer satisfaction target
• Cost reduction targets in a year
• Improving shareholder’s value
• Improving market share
Objectives
Objectives represent the operational definition of goals
Plans:
Typically describe specific tactics, assign responsibilities, identify how
sources can be allotted, schedule activities and efforts and specify vision targets
5. Strategic planning Vs traditional planning
Strategic planning
traditional planning
Focus on customers Focus is not defined or spread among many
considerations
Focus on process Focus on products
Improvement activities are focused on activities
critical to success
Improvement activities lack focus
Goals and objectives are process or results
oriented
Goals and objectives are results oriented
Leaders determine critical success factors Leaders lack understanding of factors critical to
success