Strategic planning: the strategy development process

In business strategy, the strategic plan is an essential tool for any organisation wishing to grow and prosper. It serves as a compass, guiding the company towards its long-term goals.

This article will provide you with a comprehensive overview of the strategic plan, from its definition to its implementation, including common mistakes to avoid and the importance of strategic alignment.

The objectives of strategic planning

Strategic planning is the process that enables an organisation to develop its strategic plan and make decisions about allocating its resources to pursue this strategy. It can also extend to managing the resources necessary to implement the business strategy. Strategic planning is the formal process for defining the future direction of the organisation. 

The importance of strategic planning

The steps of strategic planning

There are many models and examples of strategic plans Here, we present the strategic planning approach. It is a multi-step process that allows a company to define and implement its strategy.

Here are the key steps in this process:

1. Defining goals or purposes: this step involves defining the company’s raison d’être and its long-term aspirations. The values and aspirations of the management team and stakeholders guide the company’s development.

2. External environment analysis: this step involves analysing external factors that may affect the organisation. This can include factors such as competition, market, technology, laws and regulations, etc.

3. Internal Environment analysis: this step involves analysing the organisation’s strengths and weaknesses. This can include factors such as resources, skills, processes, etc.

4. Situation diagnosis: this involves assessing the company’s internal and external situation to identify its strengths, weaknesses, opportunities, and threats in its environment. Tools such as SWOT analysis can be used at this stage.

5. Determining strategic objectives: based on the diagnosis, the company defines its strategic objectives, which must be in line with its goals and purposes.

6. Strategic choices and orientations: this step involves defining the company’s major orientations to achieve its objectives. This can involve choices of internal or external development, diversification, specialisation, etc.

7. Strategy implementation: the company deploys the necessary actions to implement its strategy, coordinating the various functions of the company. This can involve implementing specific projects or detailed action plans.

8. Results control: finally, the company must regularly evaluate its strategic plan. It must monitor its performance against its strategic objectives and adjust its overall strategy accordingly. This step is crucial to ensure that the company is on the right track to achieve its goals.

Pitfalls to avoid when developing a strategic plan

Developing a strategic plan can be a complex process, and it is easy to make mistakes. Here are some common mistakes to avoid:

• Not involving all stakeholders: for a strategic plan to be effective, it must be supported by all stakeholders of the company, including the team.
• Not considering the external environment: a strategic plan must be based on a thorough analysis of the company’s external environment, including market trends, competition, regulations, etc.
• Not reviewing the strategic plan: a strategic plan is not a static document. It must be reviewed and adjusted regularly to account for changes in the company’s environment.

The importance of strategic alignment

Strategic alignment is the process that ensures all the company’s actions and decisions are in line with its overall strategy. Effective strategic alignment can improve the company’s performance, increase operational efficiency, and foster innovation.

Strategic planning vs operational planning

Strategic planning is an essential process for any organisation wishing to achieve its long-term goals. It provides a sense of direction, helps make informed decisions, and enables effective resource allocation. By following the steps of strategic planning, an organisation can formulate and implement an effective strategy that will help it achieve its goals.

4 main points of the strategic plan

1. Definition and importance of the strategic plan
   A strategic plan is a document that guides a company’s decisions and actions towards a common goal. It is essential for anticipating changes, managing risks, exploiting opportunities, and ensuring sustainable growth.
2. The steps of the strategic approach
   The strategic planning process includes defining goals, diagnosing the situation, determining strategic objectives, choosing strategic orientations, implementing the strategy, and controlling results.
3. Mistakes to avoid when developing a strategic plan
   Common mistakes to avoid include lack of stakeholder involvement, omitting consideration of the external environment, and lack of review of the strategic plan.
4. The importance of strategic alignment
   Strategic alignment ensures that all the company’s actions and decisions are in line with its overall strategy. It can improve the company’s performance, increase operational efficiency, and foster innovation.