strategic planning framework
Take the guesswork out of alignment by creating a company-wide framework for implementing the new strategy and keeping everyone’s work aligned. The map shows how different items interact with each other in various ways, including a cause-and-effect relationship. The strategic planning frameworks above are all meant, in different ways, to help you organize your objectives, measures, and projects. People need to be involved.”. This strategic planning framework viewed an organization from four perspectives and recommended developing objectives, measures (KPIs), goals and initiatives in regard to each perspective: Financial or Stewardship Customer & Stakeholder Internal Process Organizational Capacity or Learning and Growth The strategic planning process is a continuous cycle, involving plan design, implementation, and evaluation, as well as stakeholder engagement, the maintenance of strategic planning mechanisms, and alignment with the budgeting process. Market penetration focuses on selling even more of a current product or service to the same people. A strategy map is a visual tool designed to clearly communicate a strategic plan and … Balanced Scorecard (BSC): The balanced scorecard system strives to connect big-picture elements with operational elements. It involves looking at both the internal and external environments of multinational organizations. Gap Planning: A strategy gap is the distance between how a company is currently performing and its desired goal. Sometimes called the product-market matrix, the Ansoff matrix looks at market penetration and potential future growth. The cornerstone of Agile is being able to respond quickly to change, which seems like the antithesis of strategic planning. ©2020. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. Below are some possible examples of these factors: Political: Changes in tax laws, trading relationships, grant changes, Economic: Interest rate changes, inflation, consumer demand, Social: Changing lifestyle trends, demographic shifts, Technological: Competing technologies, productivity changes, Legal: Changes in regulations, employment laws, Environmental: Changes in customer expectations or regulations. For example, governmental organizations or companies that receive grant funding might need to produce a strategic plan that fits into a formula the government dictates. Imitability: Can anyone else do what you do? It incorporates SWOT or other types of assessments to determine goals, mission statements, action plans, and other steps. Place objectives within those perspectives. The only way to get ahead is to outperform rivals to claim a bigger share of the market. Clearly see the direction your organization is headed. Without a strong mission statement, our strategic planning framework would be ineffective. Establish your competitive advantage and your vision. The volume and demographics of patients will change. “There is a ton of value in changing frameworks and using multiple frameworks at the same time [to view things differently],” he says. Though strategic planning has changed over the years, the need remains for organizations to have some kind of vision and mission, as well as an outline about how to achieve them. It’s a reference point, the logic does not go step by step from one to 10,” Bryson says. When you deploy it correctly, strategic planning highlights problems, helps find solutions, and monitors progress. Set your strategic objectives, goals, and action items and how you’ll execute your plan. 4. Even with the ever-changing healthcare industry, strategic plans will continue to help organizations stay focused on their goals and objectives. To learn how to write a strategic plan, read this article. This document sets out a framework to align strategic and annual performance planning with emphasis on the outcomes oriented monitoring and evaluation approach led by the Presidency. Customers’ Bargaining Power: Can customers pressure you to react to their demands? Organizations can add groups as necessary since the model is very flexible. The focus is more on learning and less about the method of strategic planning. Robert Kaplan and David Norton created the balanced scorecard in the 1990s, it changed the way many companies do their strategic planning because it focused on more than one performance metric. Rarity: Is there a lot of competition in your market, or do a few entities control most of the market? In the plan, you outline the mission, resources, programs, and support your organization needs to ensure it fulfills its vision. “A poor plan well executed is worth more than a great plan that never gets off the ground. In this section, you’ll learn the specifics of the different strategic planning models and frameworks. The organic model relies on everyone having a shared vision and being willing to openly discuss how to get there using common values. You've seen how the four quadrants of a SWOT analysis work. Use self-service reports and dashboards in Smartsheet to provide real-time visibility into resources, status, and performance, so you can rapidly align operations with strategy. So it’s critical that these elements are well thought-out and defined. The alignment model works well for organizations that are trying to figure out what is and isn’t working well, along with what needs adjusting. Gap planning allows you to compare an organization’s current position to its goal, then identify ways to bridge that gap. This model is especially effective when your external surroundings are generally calm. Constantly, people undervalue the role of buy-in with strategic planning. By thinking of how different perspectives relate to each other, you can come up with your objectives. It functions as both a strategic planning and management system, and it helps connect a company’s plan to the operational elements that make it happen. Real-Time Model: This a fluid process that works best for companies that operate in a rapidly changing environment. Investigate what has been missed and what should be incorporated into the revised strategic plan. Most people know what they need to do; it’s getting the traction and about democratizing the process. Global Model: As the name implies, global strategic planning includes what is necessary to compete in an international marketplace. Though Wright encourages using different frameworks, he echoes Jackson’s warning to not use different models at the same time. The IT plan should also include a SWOT analysis, goals, and objectives. It is therefore important that institutions focus on the achievement of outcomes oriented planning and report the results in a simple and clear manner. Included on this page, you'll find different types of models and frameworks, tools to help you decide which models and frameworks to use, and details on how to use strategic planning models. It helps articulate an organization’s mission and, sometimes, its vision and values. A strategic planis a framework for describing the organization's key processes, people, and technologies at a specific time in the future (typically 3–5 years) and how the organization can reach that future, given its current processes, people, and technologies. Create a framework for teams to align their work with company strategy. Because employees move on or retire, a company needs to have a plan in place to assume new and important roles. Strategic planning is a team process that sets up how your company will accomplish its goals. Most frameworks cover the basics of strategic planning (mission, vision, goals), but include additional sections and have more specific focus areas. These do not stand alone and often go along with a SWOT analysis and other frameworks. New technologies will continue to emerge. If you are looking for a set plan outlining steps to follow, the organic model is not for you. Organization: Are you organized enough as a company to adequately exploit your product or service? John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement, created the Bryson model. The terms strategic planning framework and strategic framing models are often used interchangeably, but some say they are different. Our world-class consulting team is here to help your organization realize the lasting advantage of Smartsheet. They are the beliefs you have that will … Value Migration: This model helps companies plan ahead of the competition. It isn’t the same for frameworks, according to Wright. Like models, strategic planning frameworks help an organization through the strategic planning process. Strategic planning is an organization’s process for defining their strategy so that they can accomplish specific goals and objectives. This approach focuses on the five forces that can impact the profitability of an organization: The Threat of Entry: Can new companies enter the market? There will be a change in the labor supply, especially in the number of primary care physicians available. Show cause-and-effect impacts between objectives and across perspectives. The Bryson Model or Strategy Change Cycle, How to Decide Which Strategic Planning Model or Framework to Use, Improve Strategic Planning with Real-Time Work Management in Smartsheet, tools to help you decide which models and frameworks to use, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement. Three areas of focus are operational excellence, customer intimacy, and product leadership.Image credit: CASCADE. There is no right or wrong way to decide which model or framework to use for your strategic planning process. OK, let's get this out of the way first - we hands-down think … It helps companies that want to try to grow sales volumes or have it as a major focus area. Leaders encourage participants to brainstorm exciting and far-reaching goals, then capture the details using powerful and poignant wording. However, some critics of this model say it functions more like an internal development plan than a strategic plan. 111-352). The balanced scorecard takes more than financial profits into account when measuring success. This model focuses on the impact an organization can have on society and clients. DNTP’s strategic planning framework highlights research in four strategic areas of focus. Value Disciplines: This flexible framework focuses on what an organization is already good at and builds on it. The IT plan must align with the company’s overall mission and vision statements, but it has a secondary mission statement that states how the IT strategy relates to the overall plans for the organization. The scenario model works well for businesses that need help planning for several potential situations. Strategy mapping can help an organization reach its goals by providing a visual tool to communicate a strategic plan. Fast-growing and startup organizations might find McKinsey’s framework helpful. Over 78,000 brands and millions of information workers trust Smartsheet to help them accelerate business execution and address the volume and velocity of today's collaborative work. To learn more about the basics of strategic planning, read this article. Write sets of linked objectives across different perspectives (these are called strategic themes). Existing revenue is placed here, so goals mostly deal with improving margins and processes, as well as maintaining incoming cash flow. Introduction This manual offers a framework for strategic planning with suggestions developed specifi- Learn about our premium resource and portfolio management platform, 10,000ft by Smartsheet. Smartsheet is an enterprise work execution platform that is fundamentally changing the way businesses and teams work. The inspirational model works well for organizations looking to lift the spirits of a staff or to quickly produce a plan. Gap planning is sometimes known as gap analysis, needs assessment, or a strategic planning gap. There are 10 standard steps in the cycle, but Bryson stresses they are not sequential and often happen simultaneously. Figure 1 shows the major components … The planning process can help companies identify specific hiring needs. Because the graphic is visual and simple, it is an easy way to show how one objective impacts others. Even though you should not use a strategic plan solely because a similar company does, it might help to look at their preferred framework to pick the one that is right for you. Many sections include examples, as well. BSC is well-known and works for companies of varying sizes. Try Smartsheet to discover why millions of professionals around the world use it to move from idea to impact fast. Just as there are many approaches to presenting a strategic plan, you have several ways to frame or model your plan. Value: Using a particular resource, can you exploit an opportunity or get rid of a threat? Initiate and agree on a strategic planning process, Clarify organizational mission and values, Assess the external and internal environment to identify strengths, weaknesses, opportunities, and threats (SWOT), Identify the issues facing the organization, Formulate strategies to manage the issues, Review and adopt the strategies or strategic plan, Establish an effective organizational vision, Develop an effective implementation process, Reassess the strategies and the strategic planning process, Using this cycle, changes to the norm often happen. The first horizon deals mostly with core activities in which a company is already engaged. Suppliers’ Bargaining Power: Can suppliers apply pressure to your company? The organic model works well for organizations where traditional methods feel static and obsolete. Strategic Planning Kit For Dummies Cheat Sheet, Part of Strategic Planning Kit For Dummies Cheat Sheet. There are several variations based on the idea, including PESTEL or PESTLE (when you also consider environmental and legal factors) or STEEPLED, where you consider sociocultural, technological, economic, environmental, political, legal, education, and demographic information. The Threat of Other Substitute Products or Services: Is there a competitor on the market that your customers could use instead of your product or service? Next, list the specific activities you must implement and who will participate in those activities. A company creates demand for a product or service instead of fighting over it, so there is plenty of opportunity for everyone. As the name implies, the organic model of strategic planning is more of a free-spirited conversation, rather than a set process. Companies that use the balanced scorecard try to look at themselves using four unique perspectives to get a better understanding of their planning: Stakeholders and customers the company is serving, An internal review of how the company is operating, Learning and growth (including capacity, infrastructure, technology, and culture). You will undoubtedly find that your organization becomes more … (There are many models for strategic planning -- this framework is for conducting a goals-based plan.) Join us for a re-imagined, innovative virtual experience to get inspired, get connected, and see what's possible. McKinsey’s Strategic Horizons. The familiar Smartsheet interface that is designed for how people actually work leads to rapid and broad adoption across your organization. Wright says this framework helps companies think deeply about how they will achieve growth instead of merely saying they want to grow. Here’s how objectives, measures, and projects interact: You have a … Strategy maps are often set up in the following manner: List the four perspectives (financial, customer, process and learning, and growth) horizontally. The competition can be bloody, which leads to the term red ocean. A simple but effective approach is to create goals and projects based on the strategic plan. The idea is to pursue differentiation, thereby creating market share instead of trying to beat competitors. In this section, we’ll explain the basics of how some departments typically approach strategic planning. This strategic area of focus aligns with DNTP’s intent to solve contemporary public health problems related to environmental exposures and includes the following program areas: Each section includes directions. By having a structured planning process, rather than following models that are more organic and reactionary, healthcare entities can survive and succeed. Porter’s Five Forces approach helps companies assess the competitiveness of the market. These frameworks look at an industry or business environment and see what factors could impact an organization’s overall health and well-being. Strategic planning may be utilized on a large scale, such as planning for business growth over several years or to help a nonprofit or … Gap planning is the analysis and evaluation of that difference. The Public Action Plan provides a high-level outline of the goals set Whether you are creating a framework for … NOTE: The framework depicts a useful format, but should be duplicated into an editable version, for example, into … Strategic planning. VRIO (value, rarity, imitability, and organization) is a framework that deals primarily with the vision statement, rather than the entire strategy for a company. Then pick the most likely scenario and discuss strategies to address it. “If you have a cultural challenge in your organization about getting excited about planning, the model you pick is important. “We try to let the mission and goals emerge from the conversations rather than starting there.”. Look at the health of your organization and its developmental stage. Not to oversimplify the strategic planning process, but by placing all the parts of a plan into the following three areas, you can clearly see how the pieces of your plan fit together: Where are we now? 103-62) and the GPRA Modernization Act of 2010 (P.L. The steps vary. The five themes listed below emerged during this planning process and WSU's Strategic Planning and Strategic Directions for 2015-2020 is laid out below. The issue-based model requires organizations to identify their most important current issues, suggest action plans to address those issues, and include that information in the strategic plan. What is Strategic Planning? Instead of operating as a typical circus, it found and expanded on a niche. When Drs. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. The next step is to come up with goals you must achieve to live up to your mission and make it a reality, then outline what must happen to achieve those goals. The FEMA 2018-2022 Strategic Plan provides a framework for supporting the United States before, during, and . Learn how the flexible, extensible Smartsheet platform can help your organization achieve more. Assess Industry, Competitor & Customer Trends. The key to the blue ocean strategy is to make the competition irrelevant because you are doing something the others are not. It also works for companies that are new to strategic planning. Strategic planning models and frameworks can help guide you through the strategic planning process. He recommends adapting a model or framework to meet your needs, rather than attempting to stick to hard and fast rules that might come from a book or a similar source. Review your current strategic position and clarify your mission, vision, and values. Jackson advises simplifying some frameworks and adapting them, but he has some cautionary advice about trying to combine parts of different frameworks. Blue Ocean Strategy: This framework emphasizes new markets and uncontested space. PEST Model: The PEST (political, economic, social, and technological) approach looks at elements of the external environment, including the forces in its name. Use this template to help you organize your thoughts visually. The real-time method of strategic planning is even more fluid than the organic model. Strategic planning has a basic overall framework. The Basic Model: Sometimes called a simple strategic planning model, the basic model involves creating a mission statement, goals, and strategies. If your organization is in trouble, you might want to focus on a framework or model that addresses immediate issues rather than tackles the longer term. How will we get there? Issue-Based or Goal-Based Model: A step up from the basic model, this model is better for more established businesses. When done well, a strategic plan can help you prioritize your company’s functions and stay in line with your mission and vision. The key is to look at the amount of pressure each force applies to a company in order to determine that company’s future. Companies can use the VRIO framework to evaluate its resources and capabilities as part of the overall strategic planning process. Industries in that space define and accept the boundaries that exist, and they play by the rules. Diversification is all about new products and services and new markets; this carries the most risk, but potentially offers large gains. Gap planning can also help you identify internal deficiencies. Note that available human resources can be both strengths and weaknesses. “One mistake is not picking one framework. The process works by gathering people to talk about a highly inspirational vision for the company. It makes sense to build the rest of your plan from these statements. One of the more popular strategic planning frameworks is the balanced scorecard. Some of the most critical steps are listed below, aside from the creation of the strategic plan documentation. A GUIDE TO SAMHSA’S STRATEGIC PREVENTION FRAMEWORK 4 Prevention planners are pressed to put in place solutions to urgent substance misuse problems facing their communities. Discover why over 78,000 brands trust Smartsheet to get work done. SWOT Analysis or SWOT Matrix: SWOT (strengths, weaknesses, opportunities, and threats) offers a way to examine both internal and external forces impacting your company. The key is to figure out which one best applies to your company and its needs — for example, VRIO can help you create a vision statement, and BSC can help keep plans on track. With this, you can begin to map out the plan for your company’s priorities, mission, and vision. Where are we going? Download HR Strategic Planning Template - Excel. It functions as both a strategic planning and management system, and it helps connect a company’s plan to the operational elements that make it happen. Strategic planning helps firms prepare beforehand; it lets the company initiate influence instead of just responding to situations. In a strategic business framework for organizational planning and success, your strategies, goals, and action plans intertwine and build upon each other to create the appropriate steps to accomplish your mission and vision. Soon to be by Smartsheet. This less systematic model requires patience since it involves constant dialogue and is never really finished. Sometimes, models can serve as a visual guide. Get up and running fast with streamlined implementation and solution building to address your immediate business needs. There are different ways to present a strategic plan — for example, it can be a written document, a spreadsheet, or an animated presentation. [A model is] a template: You use it at the beginning of the planning process. The following framework will guide you through completion of your basic strategic plan document. Strategic Planning and Alignment Definition: A system that ensures agency human capital programs are aligned with agency mission, goals, and objectives through analysis, planning, investment, and … VRIO Framework: This approach looks at the questions of value, rarity, imitability, and organization concerning the competitive potential of a company. Strategy mapping helps you identify key goals and unify those goals into strategies. The balanced scorecard takes more than financial profits into account when measuring success. Maturity Model: The maturity model assesses how strategic management is working within an organization and how it stands up to other organizations. The Agile approach to strategic planning involves reviewing and adapting your strategic plan at regular intervals and whenever conditions warrant it. – Align with business objectives, not existing initiatives. See who is excited about the planning process. It emphasizes the journey over the destination. The idea behind a model is to tease out the ideas,” says Tom Wright, CEO and Co-Founder of Cascade Strategy, a software company based in Sydney, Australia, with offices all over the world. Strengths and weaknesses are internal characteristics, while opportunities and threats are external. Even managers who avoid the first two traps may end up using a framework that leads them to design a strategy entirely around what the company controls. To be clear, the strategic framework is not a repeat of a project plan or a business case. Elevator Pitch. The vision statement identifies your company’s purpose on a higher level, and the mission statement outlines what happens within the organization to achieve that vision. “The perfect plan is the one that actually gets done,” says Wright. Wright recommends a 70/20/10 split between the three horizons. In this article, seasoned industry experts explain the models and frameworks to help you identify which is best for you. Storyboarding techniques and open dialogue are often a part of the organic model, and everyone is encouraged to participate openly. A strategic plan for the IT department details how technology will help a company succeed in reaching its goals and objectives. Organic Model: As the name implies, this model does not necessarily follow a set plan, instead evolving and changing as conditions warrant. In addition, sections includes links to related, additional information to help the reader fill out that section of the framework. The Strategic Planning Framework. Its creator, Adrian Slywotzky, defines value migration as the shifting of forces that create value, and that shift goes from an outdated business model to a better-designed model that satisfies customers. Product development focuses on developing new products for current customers. Strategy mapping often falls under the umbrella of a BSC, but strategy maps can also stand alone. Some organizations might not get to choose the framework they use. Wellness and prevention will gain importance. Resist the urge to pick a year ending in a 0 or 5 to start your strategic planning process. The basic model works well for companies that are small, do not have much time to plan, don’t need to address many serious issues, or operate in stable external environments. For a more detailed look at gap planning, read this article. If your company wants to stay away from strict and formal strategic planning, the organic model might be a good fit. Instead of trying to increase profits, turn your efforts toward growing your business. An agency strategic plan is one of three main elements required by the Government Performance and Results Act (GPRA) of 1993 (P.L. Below is a list of some of the most common frameworks and models: Alignment Model: This model helps align your mission statement with available resources. “It’s a framework, not a recipe. You can’t be so flexible that you’re implementing multiple frameworks together. There are many strategic planning models and frameworks — some are tried and true, others are newer and more adaptive, and planners and managers may be more familiar with some methods than others. Exposure-based Research Programs. However, reactive strategies are short-term, causing firms to spend a significant amount of resources and time. But be careful; customizing models or frameworks too much might confuse people who are familiar with a particular planning process. Use the template below to draft a strong, comprehensive IT strategic plan. Review your current strategic position and clarify your mission, vision, and values. The plan will help make sure you purchase the right assets and work with existing technology effectively. Initiate the strategic planning process within their organization. “Frameworks are like a lens to help you see different perspectives, whereas the model is a process you would use from the beginning. after disasters and improving the Agency’s execution of its fundamental mission of helping people. Many companies perform a SWOT analysis at the beginning of the strategic planning process, as it offers them a look at what they are doing well and where they can improve. 3. General Electric Model: Also known as the McKinsey Matrix, this model looks at the industry externally versus the internal forces. In certain cases, strategic planning is not an immediate need — for instance, when a company is failing financially or is autocratic, or when a major upheaval is occurring. People can refer back to it in order to stick to the overall plan when working on tasks or making decisions. Strategic planning has a basic overall framework. Far too often, business owners chase profits, believing this to be the best method for increasing the value of their business’.
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