Strategic planning is essential for managing businesses effectively. A good strategic plan helps outline a business’s goals as well as the path towards them. It can also define an organization’s mission and guiding principles.
Though many stakeholders are responsible for implementing a strategic plan in any one organization, there are a few key players that undertake the strategic planning role. These team members must be suitably prepared with understanding of what makes good strategic planning. For this, a program like the Florida Gulf Coast University (FGCU) online Master of Business Administration (MBA) program can be of great use.
What Is Strategic Planning?
At its heart, strategic planning is, “knowing the current state of your business and where you want it to go,” as defined by Investopedia. Professionals might think of a strategic plan as a kind of roadmap for the business, to help guide decisions towards a set of goals.
This is why the first part of a strategic plan is a business plan, which includes the business’s value, projected budgets, goals and mission statement. A business plan is important for getting a new business off the ground, but strategic planning also speaks to ongoing organizational decisions. Ideally, businesses undergo regular evaluation to assess which goals are being met, and which goals need to be adjusted. This also helps managers respond to real world events and changes with strategic choices that are flexible and considered.
As the Corporate Finance Institute explains, the three main steps of the strategic planning process are formulation, implementation and evaluation. In this way, strategic planning is a circular process whereby evaluation can lead to revision of the strategy and renewed implementation, as planners respond to changing goals and circumstances.
What Is Strategic Management?
Strategic management is management that acts with strategic planning in mind. In other words, this management style relies on the structure of a plan with guiding principles and goals that map out a business’s trajectory in the near and distant future.
Starting with goals and working backwards to define the steps necessary to achieve them is an effective way to develop such a roadmap. For example, by defining the amount of revenue a business needs in its first, second and third years — and so on — managers can deduce how many clients or sales are necessary to achieve this goal.
Employing a strategic management strategy also relies on making time for this kind of effort. Though managers have many different elements to consider and various tasks to juggle, they must also block off time to think about strategy on a regular basis. Managers who take this approach are more likely to have space to assess the bigger picture and to see issues that may arise down the line, rather than only being preoccupied with immediate concerns. This is useful for strategic management.
This guide from Asana explains the many benefits there are to a strategic management approach. One of its biggest benefits is a plan’s power to align an organization along a particular set of goals. The guide also emphasizes promoting “a long-term vision for your company rather than focusing primarily on short-term gains.”
Who Performs Strategic Management?
It is important to note that strategic management is a collective endeavor. In other words, though certain key roles may be responsible for developing a strategic plan for an organization, top-level managers must get other employees on board in order to execute a strategy effectively. Therefore, good communication is essential in this process. Therefore, good strategic planners and managers must also develop their communication skills. A strategic plan only yields results if employees are united in their efforts to execute it.
Managers preparing for strategic planning responsibilities may benefit greatly from taking courses on the subject. For example, FGCU’s online MBA is geared towards those looking at “executive, supervisory and management positions” across a range of industries. Students study subjects such as accounting, economics, management and data-driven decision-making.
Students also benefit from a capstone course called Business Strategy and an additional course called Strategic Leadership. These courses zero in on the topic of strategic planning in a global context, and help students understand how to create maximum value and take advantage of market opportunities, wherever their future careers bring them.
Learn more about FGCU’s online MBA program.
