The pre planning stage is the first step towards developing a strategic profile. During this phase an organization is gathering information from its main stakeholders. Information obtained during this phase entails overview of the company history, past sales figures and what products and services are viewed in the market.
From this information an organization can then compose its vision, mission and values. These are key components of a strategic profile that can be used to develop an organization’s goals, objectives or purpose which are vital during the strategic planning process.
After an organization has clearly defined its goals or objectives, the next step involves carrying out an environmental scan which is the process of analyzing the internal and external environment of the organization (Bryson, 2011). This is done by conducting a SWOT analysis.
A good strategic profile can be used by an organization as a filtering mechanism while conducting a SWOT analysis (Herbert, Rowley, & Armandi, 2007). Analysis of the external environment involves assessing the opportunities and threats that an organization faces.
These threats and opportunities are beyond the organization’s control. They may arise due to political, economic, social and technological trends and events.
Analysis of the internal environment involves assessing an organization’s strengths and weaknesses. An organization’s strength is in terms of its capabilities. This may include its ability to create unique products, provide high level customer service or its personnel (Bradford, Duncan, & Tracy, 2000).
An organization’s strengths enable it to have a competitive advantage. This involves assessing all aspects of the internal environment that includes internal processes, leadership, structure and culture.
Internal processes are the steps and procedures followed by an organization in the production of goods and services in order to increase efficiency in its day to day operations.
Therefore, to successfully implement a strategic plan, the organization should review the existing policies and procedures and make any changes necessary to facilitate the changes resulting from the strategic plans. This is done to avoid impediment of strategy planning and implementation.
Leadership is simply the ability to influence others to achieve goals. Therefore an organization’s leaders are very essential during the planning of strategies since they can use their influence to coach the employees through the change process.
They can also use their influence to reset the tone of the organization to reflect the importance of the strategic plans.
Organizational structure is the formal systems of task allocation, coordination and reporting relationships that motivate organizational members towards the achievement of its objectives.
An organizational structure is very important as it ensures an efficient functioning of the organisation and it clearly defines the roles played by the employees. A good organizational structure ensures that there is proper communication and involvement of all employees during the planning process.
Engaging all employees will ensure that they feel part of the process hence they will provide support for the success of the strategies.
Organizational cultures are the core values that define how organizations conduct their operations. For the strategic planning process to be successful, an organization should be flexible to review or formalize its values and operating principles to synchronize with the developed strategic plans.
References
Bradford, R. W., Duncan, P. & Tracy, B. (2000). Simplified Strategic Planning: A No-Nonsense Guide for Busy People Who Want Results Fast! (1st ed.). United States of America: Chandler House Press.
Bryson J. M. (2011). Strategic planning for public and non-profit organizations: A guide to strengthening and sustaining organizational achievement (4th ed.). San Francisco: Jossey-Bass.
Herbert, Sh. Rowley, D. J. & Armandi, B. R. (2007). Developing a strategic Profile: the pre-planning phase of strategic management. Business Strategy Series, 8(3), pp.162-171.