Walking without a destination or preparation can even bring some good surprises, but this is not always the case: we are much more subject to the dangers and scares that may arise. It’s no different with a company. Therefore, we ask the question: do you know what strategic planning is?
By defining a plan for the business, the chances of accurate and secure growth increase. Good planning mitigates the risks to which the company is exposed, in addition to minimizing management errors.
Therefore, we want to show you the benefits of strategic planning for your company. Continue reading and make the most of this practice!
What is strategic planning?
Before understanding the definition of strategic planning, in fact, it is necessary to know that there are basically three types: strategic, tactical and operational.
Although they have different applications, these modalities complement each other and it is extremely important that a company defines them. After all, there must be harmony between them for the objectives to be achieved. Below, check out the particularities of each one.
Operational planning
The core of operational planning lies in guiding the daily tasks of an enterprise, according to the objectives and goals established in the strategic plan (which we will talk about later). This type is usually led by team leaders, supervisors, and foremen.
Therefore, operational planning is focused on short-term actions, in addition to being more detailed than strategic and tactical plans. In general, it focuses on criteria such as resources, schedules, definition of tasks and their respective responsible, costs or materials.
Tactical planning
Unlike operational planning, tactical planning is focused on medium-term action. Its mission is to detail and outline the work of the different sectors or units of the company, so that the objectives defined in the strategic planning are achieved.
This plan is generally led by managers, who need to articulate and engage departments around the results of the company’s central purposes. It develops marketing, financial, production plans, etc.
Strategic Planning
Finally, in strategic planning, long-term goals are defined by an institution. Through it, issues such as where the company stands and where it intends to go are considered.
The survival of the business in the midst of a continuously moving market depends on the plans outlined for its future—otherwise, there is a risk that the company will stagnate or even cease to exist. It is in this scenario that strategic planning appears, conducted by the top leaders of the company, with a timeframe ranging from five to ten years.
Determining the strategic plan helps to outline goals and objectives in tactical and operational planning. Additionally, it serves as a driving force for engagement for all employees.
Why is strategic planning important for the company?
At the beginning of the article, we used the example of someone walking without a specific destination. Now, imagine a group of people in the same situation. Questions may arise such as:
- Will they all arrive together?
- How can we be sure that none of them will get lost?
- What are the motivations for the group to walk together?
- How will they decide which path to take?
For this reason, strategic planning is so important. A company that does not have a clear plan pays the price for its growth by not having a plan to guide it. Without a strategy, employees:
- may not commit to the company and its goals;
- do not know which actions to take;
- do not understand how and when to take actions that positively impact the business.
The strategic plan also has the role of making the environment more harmonious, as well as encouraging proactive attitudes, increasing productivity, and reducing costs.
How to implement strategic planning?
Having understood the importance of developing a strategy for the company, the big question becomes: how do I implement it in my business? That’s what we intend to answer next. In the elaboration of the plan, there are some questions that need to be answered, such as:
- What does the company represent?
- How is it positioned in the market?
- How far do you intend to go?
- How to reach the proposed destination?
- What results do you aspire to achieve?
After answering these questions, through tools and methodologies, it will be possible to develop a plan that maps out the business development. The result, if everything is done correctly, is meeting the demands that arose in response to the previous questions.
Speaking of tools and methodologies, there are some that stand out in preparing the plan. One well-known one is the SWOT analysis, whose name is an acronym in English for:
- Strengths: strong points;
- Weaknesses: weak points;
- Opportunities: market opportunities;
- Threats: threats to the business.
It basically involves evaluating these factors in the company in order to build a solution that values the strengths, eliminates the weak points, takes advantage of market opportunities, and mitigates threats to the business.
Another option for developing the strategic plan is to use the mission, vision, and values. Although well-known, this method is generally underutilized by the company, and can be summarized as follows:
- Mission: company’s purpose;
- Vision: enterprise’s larger goal;
- Values: qualities necessary to fulfill the intention and achieve the larger goal. Naturally, there are ways to develop a strategic plan beyond those presented above. The main idea is to develop a map that will guide the company for the next few years.
How to use strategic planning in the business?
Returning to the example of a group of people on a trip, imagine that now they have a map in hand, with the destination marked and the path drawn, already knowing which obstacles they will face.
In this sense, individuals will work together, each in their respective roles. If they are in a car, for example, one will drive, another will help with the map, the next will worry about obtaining the supplies for the journey, and so on.
With strategic planning (the company’s map), each unit, sector, team, and employee will be aware of what needs to be done to achieve the company’s goals. This is because they will be guided by tactical and operational planning, fueled by the company’s strategy.
Furthermore, the sense of belonging and organizational harmony will be strengthened. Thus, employees will remain proactive and increase productivity, as they will be committed to the company’s ideals.
A company with a properly defined strategic plan has a greater chance of success. Therefore, investing in its creation corresponds to stimulating the growth and strengthening of the business.
Now that you know what strategic planning is, it’s time to understand how to make your projects successful. See why failures happen and how to overcome them!
