Review the Issues Involved in Strategic Planning Essay

Every social class at around this time or a little earlier, we proceed the figure out of strategicalal pro visual modality. The annual cooking accomplish, for any told its focus on abbreviation, or template completion, fucking easily fall into the app bently comfortable tactic of merely updating the activity from last years plans. Often, however, what is really needed is a fresh start which shtup pay dividends. Approaches to planning differ, depending upon the locating and culture of the company involved, which in turn affect the relative importance given to different elements of the subroutine and the output.Some companies are heavily fiscally oriented, do the desired output more focused on numbers than the view behind those numbers. Other disposals focus heavily on the pick implications of the tactical plan, and especially sales force allocation and efficiency. Not all companies perform truly strategic (long -term) market-centred planning, solely all companie s generally aim to produce a set of fiscal auspicates. The major differences are in the way of life they communicate at that place and as a consequence the basis on which those indicates are derived.First and foremost, the organisation needs to be absolve about what issues contri alonee get in the way of developing a sound strategic plan before deciding on an appropriate approach. Clearly all planning is driven to an extent by profit and financial judges but on that point is a need to be clear what else the plan has to deliver for the organisation, the individual, and the brand the planning need otherwisewise the process used may be sub-optimal. Why does the organisation need a plan? What is it meant to deliver over and above the financial projections?Many companies are often unaware of the issues and constraints that pull up stakes affect the planning process and output , for type the local operating company situation. Are the right resources, the right experience a nd the right information useable at a local take to develop and complete the plan? Can the local markets get the right quality of information they need to drive good quality thinking? If not, then how weed this be provided to en sure the right level of thinking is achieved? It could in any case be that the chosen approach is alike sophisticated or inappropriate to deliver the required answers.For example, the process may have all the standardized elements of analysis but there is no thought given to what each element is telling them. tout ensemble companies do have a structured process but if the process does not drive the necessity thinking then the resulting plans can be limited. If the process does not challenge the planners to consider different slipway of doing things but is merely a set of agreed templates and a time line for deliverables, the resultant forecast simply becomes a straight line projection from historical sales data, and activity remains the equal as las t year no matter whether or not things are changing in the market.This is the apparently safe option but it rarely maximises return on investment and is often not safe at all. Above all the process needs to raise the right questions, stimulate pass two internally and with external stakeholders, and force conclusions to be drawn from the analysis and interpretation of information that can then form the basis for system development. And finally, senior counselling by their actions and questions often demonstrate that all they are really interested in are the numbers, with no challenge or credence given to the thinking behind those numbers.Even though a thorough process is used to arrive at a market -based forecast, senior solicitude just focus on the revenue with/without profit virtuallytimes the budget or forecast even comes before the planning/thinking in time, and at other times it is imposed so the plan reflects how to achieve it, not whether it is at all achievable. There a re three very different approaches to strategic planning in our experience The data-driven approach is based on hard data collected from a variety of sources, both primary panels and syndicated data, from which a market gravel is then built by brand from the bottom up.Issues are then identified but there seems to be no real focus on what drives success in local markets, or on what competitors will do and the impact of their actions. This approach can simply lead to more of the same, making a projection based on the previous year and no real change in approach, with the whole focus being on next years revenue. While many companies may not use such an apparently numbers-focused approach they still act in the same way, with the forecast being the cay, rather than the rationale behind it.To overcome the inevitable local variances in both resource and/or experience and to ensure a consistent base for review, many companies utilise a template-led approach . This consists of a pre-define d plan with key headings that can be amplified or contracted, but with certain key elements which must be completed. This option works halespring as it provides a structured process for analysis, with check questions at each stage. so far in some cases we have seen that such an approach can still be very financially focused. Sometimes it does not analyse the brand and company strengths and weaknesses in a significant market-centred manner, to enable a market -led SWOT analysis and often there is still not bounteous competitive focus. The next level is often seen in the marketing excellence approach, where the organisation provides an integrated planning tool comprising standard marketing planning software.In a sophisticated example this allows local on the job(p) but is linked into a central supporting database, with aspects that can be adapted and others that are fixed. The truelove of such a process is that it is transparent, allowing a clear overview of who is performing w ell, and enabling experience and successes to be shared. However when this is a relatively freshly process people tend to take time to get to grips with the process resulting in doing the process rather than really thinking about what each step is telling them. besides for this approach to be used effectively, senior management must understand the process very well so that they can interrogate the people who are developing the plan. Efforts to plan correctly often ruin due to poor alignment between personal and corporate goals people are often rewarded for achieving short-run deliverables with secure outcomes rather than longer term brand building and innovation or driving change. In summary the key issues in strategic planning are Not being clear about the planning needNot being aware of the issues and constraints that will affect the planning process and output Approach too sophisticated or not appropriate to deliver the required answers The financial forecast is all that matt ers, with the thinking behind those forecasts being ignored or not challenged/considered Process not challenge people to think or act differently Insufficient external focus environment and/or competitors Lack of real focus on (new) opportunities for harvest-feast Poor expertise at local level More tactical/operational than strategic focus So what works well in overcoming some of these inherent problems?Ensure a complete and effective structured process to develop the analysis base. make should focus on alternative scenarios and what ifs working from a base plan. Thereby, focusing on incremental growth and type of incremental drivers that need to be addressed. Build market -based forecasts by brand at field level. This requires country plans and budgets built from bottom up by brand and forecasts linked to hard data and clear market maps. Allow enough time for countries to make amendments based on sound strategic thinking and then finalise forecasts ? do not just use Excel formu las.Balance the need for a quick solution with a complete process (analysis and review). Value the process, including through management attitude, and align management with the strategy. Key imperatives are to ensure a complete and effective structured process to develop the analysis base, with structured external and internal analysis, and check questions at each stage. The process should be transparent, reviewed by management so that the output is seen by senior management during budget process. Multi-functional teams should build plans with all key stakeholders involved, but led by marketing.Recent surveys show that where companies use a good formal process, satisfaction with strategic planning is higher. Companies are looking more and more at processes that drive to different strategies and/or activities. However, there is a demand for a stronger link in pharma between action and reaction, i. e. if we do X then Y will result. Strategic planning should prepare executives to face the strategic uncertainties ahead, and serve as the focal point for creative thinking about the company or the brands vision and direction.It should also be about making choices between competing priorities, focusing on strategic as well as operational issues. This will ensure that progress against the strategic plan is monitored. There are a number of tricks of the trade that help in strategic planning. Among the best practice companies, executives who carry out strategy also make it, and plans reflect goals and challenges. It is important to use any plan to identify growth opportunities, both within and outside the core business.Monitoring progress against the strategic plan is critical and a key area for improvement. It is important also that planning meetings are true conversations. Simple tricks, such as having merely a small number of the right people in the meeting, can pay dividends. The process also takes time, so more than one meeting is required. It is also important to avoid combining strategy reviews with discussions of budgets and financial targets because when the two are considered together, short-term financial issues tend to dominate at the expense of long-term strategic ones.The ideal process leads to strategic decisions that allow the company to meet goals and challenges. It assesses risks as well as benefits, but is based on fact, focusing on strategic issues, and is therefore not merely tactical. The ideal process ensures that those who will carry out strategy are involved in developing it, builds shared understand of market dynamics, and emphasises discussion of issues not process.Planning should build prepared minds through dialogue to make sure that all decision makers involved have a solid understanding of the business, its strategy, and the assumptions behind that strategy. Then it will be possible for them to respond swiftly to challenges and opportunities as they occur during the year. No strategy process can guarantee great flas hes of creative insight, but much can be done to increase the odds that they will occur. The process can be used to challenge assumptions and open people up to new thinking.