How Do I Choose the Best Strategic Planning Methodology?

Strategic planning refers to the planning of major, overall, basic, and future goals, guidelines, and tasks. Strategy concerns major issues of political parties, countries, social organizations, and blocs and belongs to the formulation of major political guidelines. The scope of its planning involves the general direction, general goals and main steps, major measures, etc. This requires that in the formulation of strategic planning, attention must be paid to: (1) a comprehensive strategic vision and a comprehensive grasp of the overall development Direction, general goal. Based on the overall situation, look at the future, and consider issues from a macro perspective. (2) Planning long-term goals is closely integrated with determining near-term tasks. (3) Enhance the predictability of strategic planning. ^[1]

Enterprise consulting companies believe that enterprises' strategic planning has the following purposes:

1. Anatomy

The effectiveness of strategic planning includes two aspects, one is whether the strategy is correct, and the correct strategy should be achieved.

To put it simply, the formulation of a strategic plan is the formulation of a strategic plan for development: how to achieve the set goals under current and future conditions.

(I) Basic Principles for Strategic Planning

1. The principle of coordinated development with the economy

The development of modern economy is the basis for the development of modern logistics.

1. Lack of long-term development planning, no clear development strategy and competition strategy;

2. Strategic decisions are more arbitrary and lack scientific

The content of the strategic plan consists of three elements:

(1) Direction and goal

Managers have their own values and ambitions when setting directions and goals. But he has to consider the external environment and his own strengths, so the final goal is always a compromise of these things, which is often subjective. Generally speaking, the final goal is definitely not a person's desire.

(2) Constraints and policies

This is to find the environment and opportunities with yourself

I. Seek truth from facts

How to formulate a strategic plan and how to implement it is the main content of strategic planning. These are called the operationalization of strategic planning. There are two inherent difficulties in the realization and operation of strategic planning:

(1) This kind of planning is generally a one-time decision-making process, and it cannot be experimented in advance. Models and decision support systems established with some management science theories are often not recognized by managers. They like to build heuristic models with their own experience. Due to the one-time nature, it is difficult to determine which is correct.

(2) Most of the experts participating in the planning are people in the enterprise, who are responsible for the future realization of the planning. Because strategic planning always considers external changes, internal changes are required to adapt to external changes, and such changes are often not welcomed by these enterprise personnel, so they may be opposed to the implementation of such strategic planning. attitude.

In order to implement a good strategic plan. Should do:

(1) Do a good job of ideological mobilization so that all kinds of personnel understand the significance of strategic planning, so that cadres at all levels can participate in the implementation of strategic planning. We must let senior people know the benefits of absorbing outsiders to participate in planning, and we must be good at understanding the intentions of those who formulate the plan and those who implement the plan. New ideas for strategic planning of some large enterprises should often be consistent with the form of corporate culture, New content should be promoted in the way that old businesses are used to. Once the plan is made, don't change it easily.

(2) Treat planning activities as a continuous process. In the process of planning formulation and implementation, continuous evaluation and control must be carried out, that is, continuous integration of various plans and management responsible for implementing such plans, and make adjustments. A good strategic management should include the following:

Establish operating principles;

determine the status of the enterprise;

establishment

There are five ways to formulate a strategic plan :

The first is the leadership's advice, which is formulated from top to bottom, which is used in many enterprises;

The second is from the bottom up, with the institution as the core;

The third is the establishment of a planning department by the leadership, which is formulated by the planning department;

The fourth is to entrust responsible, trustworthy, and authoritative consulting agencies to formulate. Of course, responsible, trustworthy, and authoritative as mentioned here are some necessary conditions, and there may be more conditions. If the consulting organization does not have these necessary conditions, Then it is very dangerous for the enterprise;

The fifth is the cooperation between enterprises and consulting agencies.

The first is to determine the strategic goals, then to formulate the strategic plan, and finally to evaluate and approve the formulated strategic plan text, and if necessary, modify it.

The first step is to determine the strategic goals of the company. The first step in determining strategic goals is to analyze the current situation of the enterprise. The most common is to perform a SWOT analysis.

The first step is the analysis and forecast of the strategic environment

Generally speaking, it is necessary to analyze the operating characteristics of the enterprise. In short, it is to answer a question, who are we? Many people think this question is very simple, in fact, otherwise, when you work in an environment for a long time and are accustomed to the surroundings of the company, you may not be able to answer this question very accurately. For example, for an automobile company, we can all see that the company's business characteristics are mainly manufacturing, but after we analyzed the business modules of the automobile company and its various business units, we found out that the The biggest profit source of an automobile company is not its manufacturing industry, but its financial industry. This is a surprising analysis result. How should we know such a result? Does it mean that the company can ignore its manufacturing and focus on the development of its financial industry? Of course not. If the auto company's financial industry is not based on manufacturing, it will lose its brand and

After completing the two steps of determining the strategic goals and formulating the strategic plan, the strategic planning work entered the third stage: evaluating the enterprise strategic plan. How to evaluate corporate strategic planning? Specifically, there are five steps

The first step is to assess the context of the strategic plan

The background here refers to whether sufficient background information is provided for the history of the business operation, or whether more information needs to be added;

Business strategy can be divided into three levels: corporate strategy, business strategy or business strategy, and

1. Establish a reliable planning and assessment system

Bank of America is the third largest bank in the United States. They chose Hoshin Kanri technology and Six Sigma to optimize business processes. Before reaching a consensus and formulating a unified plan, each department of the bank had its own process optimization plan, but did not realize the need to communicate and integrate with other departments. Therefore, the new planning system has ensured coordination within the banking organization. At the same time, the launch of Six Sigma has strengthened its core business and will continue to play a role in Bank of America for a long time to come.

Use strategic planning to inspire employee responsibility and cooperation

The two main goals of MEDRAD's strategic planning are to emphasize cooperation and responsibility. MEDRAD is a leading provider of medical devices and physician services that enable enhanced and image procedures. MEDRAD is a leading medical device manufacturer, providing users with equipment and services in medical imaging technology. They use a performance management system to decompose the company's strategic goals in a waterfall-like manner, that is, to correlate and link corporate performance with individual performance. This waterfall-like decomposition process drives employees to have a high degree of responsibility and cooperation. At the same time, the company allows employees to clearly recognize the opportunities that help them improve and grow. Among the 12 indicators of performance evaluation, the spirit of cooperation and the ability to coordinate and balance are marked as the highest management level.

2. Try to involve every colleague in the planning process

This is one of Palmetto GBA's most respected experiences. He is the owner of the BlueCross BlueShield subsidiary in South Carolina. Palmetto GBA firmly believes that not all employees agree with the company's strategy as early as 1998. As a result, the company began transitioning to an evaluation-managed organization, working to create a strategy that would drive the entire organization to a shared vision. They develop plans in a new way of cooperation throughout the company, and continue to add to employee performance indicators. The more employees participate in this new approach to planning, the more executable the plan becomes.

3. Get formal recognition from each business related person

The Siemens medical project team firmly believes that "consistency" is essential, which will ensure that all members of the organization reach a consensus on goals and strategies. For example, when Siemens' services division develops a business strategy, it agrees across all lines of business, from business units to functional units. After a process is in place, representatives from each region will sign a formal agreement, which will be implemented as a standard among their multinational organizations. The agreement is therefore a formal document of the company that will describe how a business is formed and the work and responsibilities necessary to achieve its intended goals.

4. Achieve 3Cs-Continuity, Communication and Clearness

(Consistency, communication, and clarity)

The U.S. Postal Service has been described by Government Executive Magazine as "one of the best agents of government", and the American Society for Quality has emphasized that it is the best service sector in all standardization industries . In response, the US Postal Service attributes this to certain key success factors for strategy development, such as continuity, communication, and clarity. This means that their success is not won by "three minutes of hot air", but the result of the continuity of strategy execution and the gradual integration into corporate culture. In other words, the execution of this strategy will not change due to the change of business leaders. The U.S. Postal Service continues to communicate with its 700,000 employees and millions of customers. Finally, they emphasize the clarity of the strategy, such as clearly expressing the ultimate goal of the company in digital form.

5. How to carry out corporate strategic management?

The original meaning of strategy is to plan and guide the overall situation of war.

Enterprise business strategy refers to the application of strategic ideas and theories to enterprise management, and refers to the overall and long-term plans formulated by enterprises in order to adapt to future changes in the environment and seek long-term survival and stable development.