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What Are The 7 Elements Of Strategic Planning

Strategic planning is an essential tool for businesses of all sizes and industries. It provides a business with a roadmap to achieving their objectives by planning and prioritizing activities, setting goals, managing resources, and monitoring progress.

The 7 elements of strategic planning can help businesses create a successful plan that will drive growth and help them achieve their goals.

1. Strategic Vision

The first element of strategic planning is the strategic vision. This is a statement that reflects the desired future state of the business.

It should be clear, measurable, and provide short, medium and long-term goals for the organization. The vision should be widely shared and communicated throughout the business as it serves as a rallying point for both the internal teams and external stakeholders. As such, the strategic vision should be evaluated regularly to ensure that it is still relevant and achievable.

2. Mission Statement

The second element of strategic planning is the mission statement. The mission statement is the purpose of the business and provides the foundation for all future decision making. The mission statement should be concise and focus on the core values of the organization.

It should also identify the key areas of focus, such as products/services, customers, markets, and differentiators. Knowing the mission statement will help organizations prioritize and make informed decisions that are in line with the mission.

3. Goals and Objectives

The third element of strategic planning is goals and objectives. Goals are the end results that the organization is hoping to achieve, while objectives are the targets that must be met in order to achieve the goal. Goals should be specific, measurable, achievable, relevant, and timely.

Objectives should also be SMART, as well as aligned with the mission statement of the organization. Goals and objectives should be set for short, medium and long-term horizons.

4. SWOT Analysis

The fourth element of strategic planning is a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

A SWOT analysis is an analysis of the internal and external environment that allows an organization to identify a strategy for moving forward. Strengths and weaknesses are internal factors that the organization has control over, while opportunities and threats are external factors that the organization may not be able to control. Knowing the SWOT of the organization can help inform strategic decisions.

5. Strategies and Tactics

The fifth element of strategic planning is strategies and tactics. Strategies are broad plans that outline how to achieve the set goals and objectives. Tactics, on the other hand, are the specific actions that need to be taken in order to implement the strategies.

Tactics should be aligned with the stated goals and objectives, as well as the SWOT of the organization. Strategies and tactics should be reviewed regularly to ensure that they are still relevant and effective.

6. Plans and Budgets

The sixth element of strategic planning is plans and budgets. Plans are documents that outline the timeline of tasks and resources needed for achieving a certain goal or objective.

Budgets are financial documents that outline the estimated costs of a certain project or goal. Plans and budgets should be updated regularly to ensure that resources are allocated appropriately and the timeline is updated.

7. Monitoring and Control

The seventh and last element of strategic planning is monitoring and control. This includes tracking progress, reviewing performance indicators, and making changes as necessary.

Regular evaluation of activities and performance is essential in order to ensure that the organization is on track to meet its goals. Monitoring and control should also include a feedback loop so that any changes made can be reflected in the strategic plan.

Conclusion

In conclusion, the 7 elements of strategic planning are a vital part of any organization. By having a clear vision, mission, goals, objectives, SWOT analysis, strategies and tactics, plans, budgets, and monitoring and control, organizations can create and implement effective strategies that will help them meet their goals.

Strategic planning is an ongoing process that requires regular review and evaluation, but if done properly, it can help organizations achieve their desired outcomes.

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