Initiating Strategic Planning (How)

Strategic planning is a structured process guided through four larger steps. These four steps are:

• Step 1: Business Environmental Scanning
• Step 2: Scenario Planning
• Step 3: Creating a Strategy
• Step 4: Implementing the Strategy through the design of a specific Business Model

The strategic planning process consists of a first step, which is to scan this external, internal, and competitive environment. Based on the data and information gathered from this scanning exercise, the next phase of the strategic planning process is scenario planning.

A scenario is a possible future.

So, we look at historic trends, we look at current trends and then an organisation forecasts longevity or movement of these trends.

The third phase is that of strategy selection. Based on the scanned and gathered information, the organisation takes a reflective view of its internal capability to judge the strengths and weaknesses of its resources and what it can and should be doing to compete in an environment. The fourth phase of strategic planning is the implementation of the strategy.

---

Further Explanations:

Business Model Video

---

Read the Article about: Business Model Design Article

---

Creating a Strategy (Step 3 of the Strategic Planning Process):

To create a strategy, you can follow the five Strategic Decisions illustrated in the framework below.

---

The Five Steps

---

Example:

The Brothers – A company based in Europe,  decides that one of its top priorities is to extend its brand presence globally. The company’s strategy therefore focuses on developing a unique way to expand its business in the United States and Asia over the next three to five years.

---

The Expert Says:

Streamlining Your Company’s Strategy

Curt Nickisch, Felix Oberholzer-Gee Felix Oberholzer-Gee, professor at Harvard Business School, says many organisations spend so much energy on strategy that it overwhelms with conflicting priorities. Instead, he argues companies should simplify and focus on two value drivers: customer satisfaction and employee satisfaction. By aligning strategic initiatives on these alone, leaders make their workers’ jobs less complicated and also improve customer experiences. Oberholzer-Gee is the author of the HBR article “Eliminate Strategic Overload” as well as the new book “Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance.”