in the hyper-competitive environment, it is difficult for business houses to survive, grow and expand in the long-run if they do not have strategic planning. strategic planning is not exactly same as strategic management, which implies a stream of decisions and actions taken by the top level managers to achieve organizational goals. many think that the two terms denote one and the same thing, but there is a difference between strategic planning and strategic management which explains the article hereunder, take a read. in simple terms, strategic planning can be defined as an official consideration of the future course of action of the enterprise. strategic management is a top management function which is employed to set priorities, concentrate and channelize resources, reinforce operations, ensuring that the employees are aligned towards the achievement of the goals of the organization and position the organization with respect to the changing environment.
strategic management aims at gaining sustained competitive advantage, so as to supersede competitors and attain a dominating position in the entire market. further, it assesses, guide and adjusts the enterprise, according to the changes in the business environment. it is a dynamic process of designing, implementing, analyzing and controlling strategies, to ascertain the strategic intent of the company. strategic planning is an activity performed by the top management of the organization, that helps to relate the organization with the business environment. i concur with the conclusion in that strategic planning is one of the components of strategic management, an important and an essential one at that.
both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. according to a 2009 harvard business review article “four fatal flaws of strategic planning,” 88 percent of companies engage in strategic planning, yet few adequately manage their strategies, and even fewer see their goals completely met. that’s the key to long-term success. strategic planning usually consists of a vision and a mission statement, a financial or operational objective, an estimate of the resources required, and a summary of how the initiative fits in with the company’s overall mission. the most important aspect of strategic planning is the financial and operational objective. a financial objective should be something specific, like achieving a certain cash flow, the number of sales, or return on investments. set a clear dollar amount, that way you’ll know whether you’ve met your objective or not. strategic management is the annual cycle of strategic planning and plan implementation memorialized into an organization’s culture. if your company is having success, wouldn’t it be nice to identify exactly why you’re having success?
strategic management can help. setting lots of short-term goals is the only way to gather enough data to stay on top of your strategic planning and see whether or not it’s working. a bat uses echolocation to determine where it is. it sends out noise and it measures how long the echo from that noise takes to get back. it would be flying blind, right? there is one other piece to strategic management that is critical, and that is leadership and accountability. we’ve all heard the three legs of the stool of leadership – authority, responsibility, and accountability. to be successful, we must hold our leaders accountable for the plan’s execution. the change leader offers change management services that build high-performing institutions and cultures. to dive deeper into strategic planning and management for higher ed institutions check out our webinar on the subject and our podcasts and blogs with expert insights into strategic planning and management.
strategic planning involves the identification of actions to be taken. conversely, strategic management involves identification actions to be a strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a, strategic management and strategic planning similarities, what is strategic planning process, what is strategic planning process, what is strategic management pdf, strategic planning examples.
strategic planning is the approach used in forming an organization’s direction (e.g., its vision, mission and priorities). on the other hand, strategic management is the overall process of achieving that direction, from planning to executing. strategic management is the ongoing planning, monitoring, analysis and assessment of all necessities an organization needs to meet its goals and objectives. strategic planning is a process in which organizational leaders determine their vision for the future as well as identify their goals and objectives for the strategic management is the annual cycle of strategic planning and plan implementation memorialized into an organization’s culture. now that you’ve got a, strategic planning in marketing, benefits of strategic planning, types of strategic planning, importance of strategic management. what is the strategic planning process? what is the relationship between planning and strategy? why is strategic management and strategic planning important? what are the 5 stages of strategic management?
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