Process of Defining Its Strategy, Research Paper Example

A strategy is better described as a “broad program” which involves an organization’s intentionsand activities in a wider scope, in which it is widely believed to be the solution to all tasks problems. In contrast to planning that concerns with setting goals, choosing tactics, and establishing schedules. An outline on how the plan meets its goals, challenges, and needs are the essentials of strategic planning. Metaphorically, some companies have said that, strategic planning istermed as a ‘football game plan’ defining a strategy involving alternative strategies as the options to get to the touchdown of the field goal.

One of Mintzberg’s modes of strategic decision-making is the planning mode, in which it referred to the systematic gathering of information for situational analysis. This planning mode includes both the proactive search for new opportunities and the reactive solution of existing problems. The precedence of strategic feasible alternativesfor meet the objectives and goals, and incorporate rational selection(s) of the most appropriate strategy- The most desirable decision-making framework (Hunger, et. al., 2007).

Strategic Planning Benefits

Dialogue is the essential ingredient throughout the involvement in the process, all members of the strategic planning project(s) are committed to support the organization. Communication is the key to successful strategic planning. A collaboration with CEO, executives, managers, employees, and stakeholders involved in the plan to bring the optimalization on strategic choices, using rational and logical approaches. It allows to initiate and influence the shape of organization’s future and to exert the control over its destiny on the needed changes.

A benefit for all of the strategic planning participants is the empowerment, ownership, and leadership. Each member is enriched with tactic styles proactively, of which it enables effectiveness of an activity to a good result. That is, when members share the line of the task project, for example, a resource is needed to mend the process, outsourcing is an option to obtain a scarce resource to solve the task procedure, and members fended a particular resource (top-notch machinery from London) in the process on time.

It is better than CEO do the strategic planning by himself/herself and delegate the plan to the lower management to execute the plan. Hence, it is not always the case, it can be dysfunctional if conducted haphazardly. In addition, most companies in today’s business trends are using decentralized delegation methods to keep themselves on-the- top of the line competitiveness and to keep the financial portfolio stable and opportuntious for advancement. An advantage for everyone to gain their personal and professional growth to share the same vision and integrity for the organization they considered as a second home.

Strategic Planning Pitfalls

It is difficult for participants involving complex strategic planning because there is no established framework on addressed problems. Any new needed solution to the new problem is very critical to the decision-making and judgments. A new problem undertakes many questions and addressing questions to bring alternative solutions as to what resources to obtain, and how the resource is is obtained, and who will obtain the resource of interest and when the resource will be delivered and how long the resource will complete the project.  Sometimes the questions does not have do anything with the resources but the access, cost, and quality of the resources may be question of concern.

Author Fred David (2007) explicated the most common pitfalls seen across corporations are: Using strategic planning to gain control over decisions and resources; Doing strategic planning only to satisfy accreditation or regulatory requirements; Too hastily moving from mission development to strategy formulation; Failing to communicate the plan to employees, who continue working in the dark; Top managers making many intuitive decisions that conflict with the formal plan or not actively supporting the strategic-planning process; Failing to use plans as a standard for measuring performance; Delegating planning to a “planner” rather than involving all managers; Failing to involve key employees in all phases of planning; and Failing to create a collaborative climate supportive to change (David, 2007).

The two most legitimate problems with companies not adopting the strategic planning framework are the Content with Success- Especially when the company is successful, the company do not have intention to make any changes and because the operation is at the rate of flow regularly and smoothly. But success today does not guarantee success tomorrow. Another legitimate problem is the perception of a situation, a honest difference of opinion on the viewpoint of a plan. People come from different backgrounds, work ethic, and aspirations to a subject viewed the plan as a wrong plan for the organization (David, 2007).

A strategic planning framework is a complex process because there are a variety of personal dispositions that affects their physiological abilities to function properly in the workplace. For instance, some people or employees have the fear of failure by not taking an action because of the risks involved in the plan or persons have had a bad previous strategic planning experience with planning that are long, cumbersome, impractical, and inflexible.  Sometimes strategic planning can go bad than it was anticipated to formulate a plan.

References

David, F. (2007) Strategic Management: Concepts and Cases, 11^th Ed. Pp. 16-19. Upper Saddle River, NJ: Pearson Education, Inc.

Hunger, D. (2007) Essentials of Strategic Management, 4^th ed., p. 12. Upper Saddle River, NJ: Pearson Education, Inc.

Ebert, R. & Griffin, R. (2005) Business Essentials. Understanding the Business of Managing, Pp.139-140. Upper Saddle River, NJ: Pearson Education, Inc.