STRATEGIC PLANNING

STRATEGIC PLANNING

Strategic Planning

Monito
ring

Action
Planning

(C) Arocom IT Solutions Pvt Ltd, 2014

 Process to establish priorities on what you will accomplish in

the future

Forces you to make choices on what you will do and what you
will not do
Pulls the entire organization together around a single game
plan for execution
Broad outline on where resources will get allocated

(C) Arocom IT Solutions Pvt Ltd, 2014

STRATEGIC PLANNING

What is Strategic Planning?

 If you fail to plan, then you plan to fail be proactive about

the future
Strategic planning improves performance
Counter excessive inward and short-term thinking
Solve major issues at a macro level
Communicate to everyone what is most important

(C) Arocom IT Solutions Pvt Ltd, 2014

STRATEGIC PLANNING

Why Strategic Planning?

 Where are we now? (Assessment)

Where do we need to be? (Gap / Future End State)
How will we close the gap (Strategic Plan)
How will we monitor our progress

(C) Arocom IT Solutions Pvt Ltd, 2014

STRATEGIC PLANNING

How to carry out Strategic Planning?

STRATEGIC PLANNING

How?
Get the Right Team
Get the Right Information

Plan
Delegate
Execute
Review
Learn

(C) Arocom IT Solutions Pvt Ltd, 2014

Strategic planning is the process of deciding on the programs

that the organizations will undertake and on the approximate

amount of resources that will be allocated to each program

over the next several years.
Strategy formulation is the process of deciding new strategy
while strategic planning is the process of deciding how to
implement the strategies
Strategy formulation is unsystematic and judgmental
whereas strategic planning is systematic.
(C) Arocom IT Solutions Pvt Ltd, 2014

STRATEGIC PLANNING

Nature of Strategic Planning

STRATEGIC PLANNING

Benefits of Strategic Planning

It gives organization
Framework for developing the annual budget
A management development tool

A mechanism to force managers to think long term

A means of aligning managers with the long term strategies

of the company
(C) Arocom IT Solutions Pvt Ltd, 2014

Planning can end up becoming a Form Filling, bureaucratic

exercise, no strategic thinking at all
Organization may create a large strategic planning
department and delegate the preparation of the strategic
plan to that staff department
Time consuming and expensive

Top Management must be convinced that strategic planning is

important
Organization must be relatively large and complex
Considerable uncertainty about the future exist.

(C) Arocom IT Solutions Pvt Ltd, 2014

STRATEGIC PLANNING

Limitation of Strategic Planning

1. Address critical performance issues

2. Create the right balance between what the organization is
capable of doing vs. what the organization would like to do
3. Cover a sufficient time period to close the performance
gap
4. Visionary convey a desired future end state
5. Flexible allow and accommodate change
6. Guide decision making at lower levels operational,
tactical, individual

(C) Arocom IT Solutions Pvt Ltd, 2014

10

STRATEGIC PLANNING

Good Strategic Plan must