Major Challenges of Strategic Planning in Large, Complex Organizations
Strategic planning is essential for huge, complicated firms like Apple, Wal-Mart, and Southwest Airlines. It assists them in setting goals, recognizing opportunities and difficulties, allocating resources, and creating a plan of action to reach their objectives. However, these businesses must overcome several obstacles while creating and carrying out their strategic plans.
Balancing Short- and Long-Term Goals
Keeping long-term and short-term goals in balance is one of the significant difficulties. Short-term goals ensure smooth daily operations, while long-term goals offer a vision for the organization’s future (Hill et al., 2020). It’s essential to strike a balance between these two goals. The ability to adjust to shifting market conditions is another barrier. As markets change, large organizations must be flexible and adaptable to meet new demands or seize new opportunities. Relationships with complex stakeholders present additional difficulty.
Balancing Stakeholder Interests and Resources
Customers, employees, suppliers, shareholders, and governing bodies are just a few stakeholders in large enterprises. It can be challenging to balance the interests of these different parties. Another area for improvement for big firms is resource allocation. To maximize results, they must prioritize investments across all their business segments (Hill et al., 2020). And finally, it’s critical to inform everyone about the strategic plan. It might be challenging to guarantee that the message is successfully transmitted across all organizational levels in large and complex organizations.
Improving Strategic Planning Processes in the Real Estate Field
The prosperity of D.C.’s real estate market depends on strategic planning. Making strategic planning more data-driven is one way to improve it in this industry. Making more informed selections is possible because of the quantity of data generated by the D.C. real estate market. Real estate organizations can recognize opportunities and problems and make better investment decisions by evaluating data, trends, and patterns (Linkow, 1999).
Increased stakeholder participation in strategic planning is another way to make it better. Real estate firms should communicate with various stakeholders, such as neighborhood associations, governmental bodies, and regulatory agencies. The D.C. real estate market can also gain from improved collaboration among industry participants (Linkow, 1999). Real estate companies can pool their resources, information, and know-how to create more thorough and effective strategic plans.
References
Hill, C. W. L., Jones, G. R., & Schilling, M. A. (2020). Strategic management : an integrated approach : theory et cases (13th ed.). Boston, Ma Cengage Learning.
Linkow, P. (1999). What gifted strategic thinkers do. Training & Development, 53(7), 34.