When we think of strategic planning, what comes to mind first is how it is utilised in business. You picture a room with a team of professionals planning their business strategies. But whether we are aware of it or not, strategic planning is something that we are already familiar with. We use it every day in business, or out. What it is, is coming up with a roadmap for the future. It can be as simple as to how to go about your day or as complex as deciding which areas in your business you need to put more focus on. Planning is the most basic thing that we do in our lives. We always want more out of our lives and planning is something that will greatly help us get the things that we want. Without planning and the willpower to execute those plans, goals are just pipe dreams.
As mentioned before, planning is the first step in achieving our goals. It ranges from the very basic to complex depending on the situation. There is no one plan that fits all. For this article, we are going to talk about some of the different strategic planning models that you should know.
Basic Strategic Planning Process Model
As the name states, it is the most basic of its kind. It is usually utilised by new companies or organisations. This is most effective for businesses that have none or minimal strategic planning experience or have a limited time to spend on the planning process. The plan is usually composed of the company’s mission and purpose. It involves identifying which goals to aim for to meet the company mission and which actions to take to reach the goals.
Issue-Based Strategic Planning Model
This is an improved version of the basic model. This is used by companies that want to delve deeper into their strategic planning. This involves SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, reviewing the company’s mission, developing annual action plans and establishing the budget.
If you have been in the business for some time, then you will be able to review and identify areas that you need to work on, and device a plan according to that.
Alignment Strategic Model
This model focuses on the alignment of the company’s mission and its resources and determining which areas of the business need adjustment to become even more efficient.
As a business owner, especially for a new business, it is okay to dream big, but always consider if your current resources can sustain that dream. You need to be efficient – you do not want to overshoot your budget. You need to develop strategies that will maximise the resources at hand.