Introduction
Strategic planning (SP) is a crucial aspect of organizational success. SP refers to defining actions intended to help the company achieve its objectives, typically in the long term. For example, SP in for-profit enterprises is generally concerned with competitive efforts in the marketplace (Daft, 2022). An effective strategic plan depends on the participation of relevant stakeholders and executives and consideration of such SP elements as mission, vision, values, and goals.
Participants of Strategic Planning
Several individuals should be involved in SP for it to be efficacious. First, Luciano et al. (2020) indicate the significance of entangling the board of directors and top management team since they belong to the apex of the organizational structure and account for strategic leadership. While such groups of executives may have distinct concerns, reframing the differences to ensure business survival or obtain competitive advantage is likely beneficial (Luciano et al., 2020).
Second, Elliott-Engel et al. (2021) suggest inviting diverse stakeholders from both inside and outside the company since SP can be understood as a social activity during which people negotiate various interests. For instance, while those within the firm are likely to be affected by SP, individuals not yet directly affiliated with the organization may offer feedback on how to engage them in the business’s future (Elliott-Engel et al., 2021). Consequentially, SP should involve both executives and different stakeholders to determine critical areas for prospective development.
Components of Strategic Planning
Furthermore, an effective strategic plan encompasses a variety of elements. Hinton (2022) states that SP components are planning tools that should be mutually corroborative and include mission, values, vision, and goals. The former refers to a statement of purpose explaining why the firm exists and how it differs from others on the market. The mission provides a foundation for SP, and the remaining parts should be aligned with the assertion (Hinton, 2022; Nábrádi et al., 2021). Notably, Nábrádi et al. (2021) recommend that this segment consider many factors, including products or services, employees, customers, technology, and markets. Accordingly, the mission is considered to be the primary fragment of SP.
The following SP components are the vision maintained by, values promoted within, and objectives pursued by the firm. The former concept describes what the organization intends to become within a specific period (Hinton, 2022; Nábrádi et al., 2021). This aspect is needed within the context of SP to communicate direction for those implementing the strategy (Hinton, 2022). Values are regarded as supporting SP fragments and refer to what the company stands for and how it intends to conduct its operations. Finally, goals are also considered to sustain SP, reflecting the organization’s pursuits (Hinton, 2022). Overall, SP aspects are interconnected and guide the enterprise’s development together.
Conclusion
To summarize, a strategic plan should involve executives and stakeholders and address several corresponding elements to be effective. On the one hand, SP should consider the interests of the board of directors, top management, and individuals outside and inside the business to determine the most optimal direction toward advancement. On the other hand, SP should regard the organization’s mission, vision, goals, and values to specify where, how, why, and when the company should move. Therefore, SP is intricate yet influential for the success of the firm.
References
Daft, R. L. (2022). Management. Cengage Learning.
Elliott-Engel, J., Westfall-Rudd, D., & Corkins, C. (2021). Engaging stakeholders in extension strategic planning. The Journal of Extension, 59(4), 1-8. Web.
Hinton, K. E. (2022). Components of a strategic plan: Align institutional mission, vision, and values through the strategic planning process. Planning for Higher Education, 50(4), 30-33.
Luciano, M. M., Nahrgang, J. D., & Shropshire, C. (2020). Strategic leadership systems: Viewing top management teams and boards of directors from a multiteam systems perspective. Academy of Management Review, 45(3), 675-701. Web.
Nábrádi, A., Forest, D., Bittner, B., Kovács, T. Z., Madai, H., & Nagy, A. (2021). Latest trends and new tools being used in strategic management. International Journal of Engineering and Management Sciences, 6(1), 73-85. Web.
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