Strategic Management Planning

Recently, I received a question regarding the definition and best process of completing a strategic management plan.  Below is the requested define and brief explanation of the elements of a strategic management plan.

Picture source: https://nacmnet.org/CCCG/strategic-planning.html

Strategic Management Definition: The overall comprehensive management of the formulation, implementation, and continuous monitoring of major goals, objectives, and vision of an organization. The process includes strategic planning and thinking.

Why it is important: Like Succession Planning and Management, Strategic Management is designed to identify the long-term needs and overall strategic direction need for the organization to remain successful.

Strategic planning is a major component of strategic management. To identify the long-term needs and strategic direction of an organization, small departmental specific plans need to be developed. The smaller plan’s development is known as strategic planning.  

Strategic Planning is an organization’s guide tool that identifies the specific goals of the organization and the purposed direction, activities, resources, and decisions made to obtain the goal. If this definition seems similar to the strategic management, well it is. But here is the difference:

Strategic planning is the process of identifying the goals/objectives and synthesizing it to actual resources for short-term wins that fit into the long-term goals of the organization. On the other hand, strategic management ensures long-term goals/objectives are met by appropriately formulating, allocating, and implementing activities and resources. Formulating, allocating, and implementing activities and resources increases the chances of an organization making great strategy choices.

Steps in Strategic Management and Planning:'

Project Management Phase: Initiation/Planning/Monitoring and Control

Strategy Formation: The process of choosing the appropriate course of action needed for the organization to realize its vision through reaching goals and objectives. . (Please note: This is where monitoring and control begins.)

1.      Mission Statement: Mission statement tells internal/external clients where organization is currently and what it aspires to be. For example, the Conversation with Kay mission statement is:

Improving organizations by improving the performance of its people at all levels within the organization. It is not an easy task but through the use of articles, presentations, videos, and continuous motivation, it can be done. 

2. Analysis (Strategic Thinking): Identify the current and future needs of the organization to better understand the vision for the strategic direction and ensure that it aligns with the mission and values of the organization. This is where I like to ask the sponsor(s), “What would you like to accomplish with this project?”

Note: In most strategic management post you will probably see analysis are the identification of goal setting, however, I feel analysis should be split into two sections, before and after goals/objectives. 

3. Goals/Objectives: Based on the strategic direction, specific measurable targets both long- (management) and short-term (planning) goals and/or objectives can be identified.

4. Analysis (Strategic Thinking): Identify whether the goals/objectives align with the overall mission/values of the organization. Identify key resources both financially and contractually and an analysis the internal/external position of the organization needs to be completed. By analysis the internal and external strengths and opportunities as well as threats and weakness, a change agents can identify potential opportunity and issues which can affect the strategic process.

Possible Analysis Tools: SWOT Analysis, SMART Goals, Porter Five Forces Analysis, Growth-share Matrix, Strategy Map, and more. Note: I like to use a combination of SWOT Analysis and SMART Goals in the analysis and goal/objective stages. 

Successful Project Tip: Look for several key things including: drives people within the organization, what are the tough issues the organization internal/external faces during change, and why, what is missing, how the goals/objectives will be measured, and what has or has not worked in the past. Also update your monitor and control plan to ensure the project stays on track. 

Deliverable Examples: Communication Plan, Organizational Goals/Objectives Targets, Organization Analysis, Strategic Plan(s), Performance Analysis Plan, and Strategy Choice/Framework

Project Management Phase: Launch/Execution/Monitoring and Control
5. Strategy Implementation: Simply put, this is where the plan is put into action. The implementation of the plan begins with answers who, what, when, where, how the identified goals will be completed by assigning (people or contracts) and/or allocating (money) the appropriate resource to complete the goals/objectives. Monitoring and controls will be used to measure: completion of task vs timeline, maintaining alignment with goals/objectives to vision, and performance of the overall project.

Deliverable Examples: Performance Measurement Tools, Finalized Strategic Plan, Updated Communications and Monitor/Control Plan as needed

Project Management Phase: Monitoring and Control/Close 

6. Evaluation, Control, and Close: Evaluation and close does not mean the project is ending, however, it is merely the signally of the transition over to the next phase in the cycle. Strategic management is an every evolving process that will continue throughout the organization’s life time. Evaluation, control, and close portion of the project will determine the overall success of the project based on whether or not it has met the organization’s goal and objectives. Based on the results, the organization will make appropriate corrective actions or move on to the next phase of the strategic process i.e. close.

In short, all strategic management plans contains the same information, however, the method of completion is completely different based on an organization’s: industry, size, future goals, and more. Some organizations have layers and layers of approval before a plan can be generated, while others have none.

I hope this helps J

Kay Lackey

Organizational Development Consultant