THE FORMAL

STRATEGIC MODEL
PLANNING AND IMPLEMENTATION
STRATEGIC PLANNING
- Is an organization management activity that is u
sed to set priorities, focus energy and resources, s
trengthen operations, ensure that employees and
other stakeholders are working toward common go
als, establish agreement around intended outcome
s/results, and assess and adjust the organization’s
direction in response to a changing environment.
STRATEGIC PLANNING
- It is a disciplined effort that produces fundamenta
l decisions and action that shape and guide what a
n organization is, who it serves, what it does, and
why it does it, with a focus in the future. Effective s
trategic planning articulates not only where an org
anization is going and the actions needed to make
progress, but also how it will know f it is successful
.
CATEGORIES OF STRATEGY
There are three types of strategic planning t
hat are essential to every organization:
• Corporate
• Business
• Functional
CORPORATE STRATEGY
- Deals with the overall firm. This kind of strategy i
s concerned with market definition: what business
and markets do we want to be in? A strategic initiat
ive might be launched to answer that question, or
more likely to realize the strategic intent of a new c
hosen business or market.
BUSINESS STRATEGY
- This kind of strategy is concerned with succeeding in chosen mar
kets, focuses on competitive positioning (where to compete and
how) in order to create an advantage over competitors.

- Business managers should run the business in a way that is in ali

gnment with overall corporate strategy. The framework for buildin
g a business strategy includes developing the mission of the busi
ness, once again conducting an environmental scan and examini
ng the key activities of the value chain. The action plan that result
s directs the business strategy, programs and budget.
FUNCTIONAL STRATEGY
- This kind of strategy is concerned with making improvements t
o business functions that support business and corporate strat
egy. Functional strategy include IT strategy, marketing strateg
y, human resources strategy and operations. Typically, docum
ents portraying functional strategy will list estimates and plans
for operating expenses, headcount, and continuous improvem
ent.

- It carries out the objectives and mission set at the corporate a

nd business levels. This is achieved by creating action plans a
nd setting budgets.
 FOUR STAGES OF
STRATEGIC PLANNING
1. PREPARE
Three critical steps must be accomplished prior to developing a strateg
ic plan:
• Visioning
• Assessment, and
• The development and implementation of planning process.

In each of these areas, you will need to review and build on what is alr
eady in place – vision and mission statements, agency – and/or state-
wide assessments, and input from ongoing groups of internal and exter
nal stakeholders already engaged in planning.
2. PLAN
To develop the plan, you must establish priorities by consid
ering the needs, strengths, and resources of your organizat
ion. Three key questions must be answered:
• What do we want to accomplish?
• What will we do to get there?
• How ill we know if we are making progress?
Once you have a draft document, circulate it for input, revis
e and finalize
3. IMPLEMENT
The following steps ensure that plans are us
ed to guide the work of the organization:
• Communicating or marketing the plan,
• Managing the implementation of the plan,
• Supervising the actual work, and
• Monitoring and reporting progress on the p
lan
4. REVIEW/REVISE
This stage starts the cycle over again, allowing the plan to be continuo
usly updated. This will keep it current and meaningful to the organizatio
n. On an organization basis the organization should:
• Conduct assessments of its performance by gathering and analyzin
g information;
• Convene the planning group to review performance and reassess g
oals, outcomes, strategies and action steps and to make recommen
dations for changes; and
• Revise the plan.
To the extent that the plan is updated, it will stray current and meaningf
ul to the organization.
PURPOSES OF
PLANNING
PURPOSES OF PLANNING
• The protective purpose of planning is to minimize risk by
reducing the undertainties surrounding business conditio
ns and clarifying the consequences of related manageme
nt actions.
• The affirmative purpose is to increase the degree of orga
nizational success.
• The fundamental purpose of planning, however is to help
organization reach its objectives
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