What is strategic planning?
The content in this blog has been designed to provide you with an understanding of what strategic planning is. We would like to preface that this content is introductory in nature and aims to support the development of a foundational understanding of strategic planning.
First and foremost, let’s begin by defining what strategic planning actually means.
Strategic planning is a process that involves collaboratively setting an objective, deciding the actions required to meet the objective, and mapping those actions against the necessary resources needed to execute the objective.
If you want to get technical, however….
“Strategic planning is a systematic process through which an organisation agrees on - and builds commitment among key stakeholders to - priorities that are essential to its mission and are responsive to the environment. Strategic planning guides the acquisition and allocation of resources to achieve these priorities.”
(Source: Allison, M., & Kaye, J. (2nd ed, 2005). Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook. John Wiley & Sons, Inc.. Retrieved from: https://www.google.com.au/books/edition/_/ZUQcTr-cQMoC?hl =en&gbpv=1&pg=PT12&dq=strategic+planning+nonprofits.)
Key concepts
There are several key concepts in this definition that are worth highlighting from the above definition:
Strategic: Intentionally responds to the current environment, including competition
Systematic: A process of gathering new information to make decisions
Sets priorities: Makes decisions about directions and goals
Builds commitment: Engages appropriate stakeholders and fosters collaboration
Guides resources: Takes into account and makes decisions about resourcing
In short, strategic planning is making choices. It is a process designed to support leaders in being intentional about their goals and methods. Simply stated, strategic planning is a management tool, and like any management tool, it is used for one purpose only - to help an organisation do a better job.
What strategic planning isn’t…
Now we have an understanding of what strategic planning is, we can take a look at what strategic planning isn’t in order to better understand what the process and impact of strategic planning realistically looks like.
Strategic planning:
Does not predict the future
Is not a substitute for the judgement of leadership
Is rarely a smooth and linear process
“No one should be surprised if the process feels less like a comfortable trip on a commuter train and more like a ride on a roller coaster, but remember that even roller coaster cars arrive at their destination, as long as they stay on track!”
Adapted from: Allison, M., & Kaye, J. (2nd ed, 2005). Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook. John Wiley & Sons, Inc.. Retrieved from: https://www.google.com.au/books/edition/_/ZUQcTr-cQMoC?hl =en&gbpv=1&pg=PT12&dq=strategic+planning+nonprofits.
Why do it? What is the purpose of strategic planning?
Strategic planning is intended to enhance an organisation’s ability to think, act and learn strategically, the potential benefits from undertaking a comprehensive strategic planning process are numerous, although there is no guarantee they will be realised in practice.
Some of the benefits include:
Increased effectiveness and efficiency
Improved understanding and better learning
Better decision making
Enhanced organisational capabilities
Improved communications and public relations
Increased political support
So now you know, what it is, what it isn’t and why you should undertake a strategic planning process.
Next, we’ll look at the different parts of a strategic plan, what they include and what the purpose of each component is.
