The Strategic Planning Process
Explain the basic steps in the planning process
According to Cristiana and Anca (2013), the planning process refers to the steps a company takes to design budgets that guide future activities. Some of the documents developed at the end of the planning process include project plans, tactical plans, strategic plans, and operating plans. Although companies use different steps to achieve the planning process, the following are the basic steps in the planning process for most companies:
Establishing Goals
The initial step in the planning process involves a company identifying specific goals. At this stage, companies prepare a detailed overview of the goals including rationale for selection and the expected outcomes of the projects associated with the goals. It is important that companies identify goals and describe them in either qualitative or quantitative terms. For instance, a company can set the goal of increasing sales by 30 percent over a period of six months.
Identifying Resources
Companies need both human as well as financial resources to complete their goals. During the second step of the planning process, the company develops financial as well as human resource projections for the completion of the goals established during the first step. For instance, the management team can identify that for the company to increase sales by 30 percent within six months, it will be necessary to hire twenty salespeople and the marketing department allocated $70,000.
Establishing Tasks Oriented to the Goals
The success of every goal established by a company depends on the tasks oriented to the goals. Tasks ensure that employee focus towards achieving the goal established in the initial step of the planning process. For instance, a company that has identified the goal of increasing sales by 30 percent within six months requires that the manager identifies tasks that will facilitate its achievement. For instance, the manager may identify the task of training salespeople or hiring an external firm to conduct sales pitch for the company.
Prioritizing Goals and Tasks
At this point, the manager orders the goals and their tasks in the order of their importance to the company. Goals and tasks that are most important will receive first consideration whereas the least important ones will be completed later (Recardo, 2016). The process of prioritizing goals and tasks will also reflect the steps that the company will take to achieve a task or goals. For instance, a company aiming at increasing sales by 30 percent within six months will develop steps and list them in a chronological order.
Creating Assignments and Timelines
As a company prioritizes tasks and goals, it is important that it develops timelines for completion and identify people who will undertake the tasks. This step considers the abilities of members of staff and establishes realistic timelines for their completion.
Establishing Methods of Evaluation
It is important that the manger identifies the strategy for evaluating the company’s progress towards achieving goals within the set timeline. The manager may request department heads to submit monthly progress reports to evaluate the performance of the organization towards achieving its goal.
Identifying …
