The high-level business document referred to in this statement is commonly known as a “strategic plan.” It’s a formal document that outlines an organization’s long-term goals, objectives, and overall approach for achieving success.
The art of formulating business strategies, implementing them, and evaluating their impact based on organizational objectives
A strategic plan consists of
At the core of a strategic plan are an organization’s vision and mission statements. A vision statement outlines what the organization hopes to achieve in the future, while a mission statement defines the organization’s purpose, values, and overall reason for existence. Together, these statements help to guide the organization and provide a clear sense of direction for its actions and decisions.
In addition to outlining an organization’s vision and mission,it also includes specific strategies and approaches for achieving these goals. This includes identifying the key objectives that need to be accomplished during the period covered by the plan. Objectives are specific, measurable targets that the organization aims to achieve within a defined timeframe.
It typically includes an analysis of the organization’s strengths, weaknesses, opportunities, and threats (SWOT analysis) and outlines the actions the organization plans to take to address these factors. This may involve identifying new markets or opportunities, addressing weaknesses in the organization’s structure or operations, or investing in new technology or resources.
Overall, it is an important tool for any organization that wants to achieve long-term success. It provides a clear roadmap for the organization’s future, helps to align the efforts of different departments and teams, and enables the organization to adapt and respond to changes in the business environment over time.
Different Types of Strategic Plans
There are several different types, each with its own specific focus and purpose. Here are some common types of strategic plans:
- Corporate strategic plan: This focuses on the overall direction and objectives of the organization as a whole.
- Business unit strategic plan: This focuses on a specific business unit within the organization and its objectives, resources, and strategies.
- Operational strategic plan: This focuses on the day-to-day operations and activities of the organization and how they can be optimized to achieve specific goals.
- IT strategic plan: This focuses specifically on the organization’s technology infrastructure and how it can be used to support its goals and objectives.
- Marketing strategic plan: This focuses on the organization’s marketing efforts and how they can be used to promote the organization’s products or services.
- Financial strategic plan: This focuses on the organization’s financial objectives and how they can be achieved through financial management strategies.
- Human resources strategic plan: This focuses on the organization’s human resources objectives and how they can be achieved through talent management strategies.
Each of these types of strategic plans has a unique focus and purpose, but they are all designed to help organizations achieve their goals and objectives.
Strategy vs Tactics
Strategy and tactics are not the same things.
Strategy is a long-term plan that outlines how an organization will achieve its goals, while tactics are the specific actions taken to implement that plan. In other words, strategy is the big picture plan, while tactics are the smaller actions taken to achieve that plan.
This is similar to how a general would plan a strategy for winning a war, but the tactics used to win individual battles might vary based on the situation.
Strategy is not Planning
Strategy is different from planning. While planning is a process of organizing and setting tasks to be done, strategy is about thinking and deciding what needs to be done to achieve a goal. In simple terms, planning is like making a to-do list, but strategy is like deciding what to put on the list and how to accomplish it. Strategy requires thinking and making smart choices, while planning is just the process of organizing those choices into actionable steps.
Strategic Alignment and Business Management Skills
Strategic alignment involves understanding how a project fits in with the interests of the business, both internally and externally.
A project manager with strategic and business management skills, or domain knowledge, can see the big picture of the organization, industry, and products. They need a good knowledge of business functions and preferably previous industry experience. The project manager must be able to explain how the project relates to the business and work with stakeholders and sponsors to develop a delivery strategy that supports the realization of benefits. The project manager should determine the strategy for developing and delivering project results to maximize business value.
Strategic Planning – Definition, Steps, and Benefits (corporatefinanceinstitute.com)
What is Strategic Planning? Definition and Steps – TechTarget