9.5 Planning Firm Actions to Implement Strategies
3 min read•june 25, 2024
Implementing strategies requires careful planning and execution. Managers use the to set clear, measurable goals that align with the company's mission. This process ensures objectives are realistic, relevant, and time-bound, creating accountability and motivation for employees.
The planning process involves key steps like establishing the organization's purpose, analyzing its situation, and developing . Short-term and long-term strategic plans work together to guide the company's direction. Performance measurement tools like the help track progress and drive successful outcomes.
Planning Firm Actions to Implement Strategies
SMART framework for goal-setting
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- Specific: Goals should be clear, well-defined, and focused on a particular outcome or result
- Measurable: Goals should have quantifiable metrics to track progress and determine success (KPIs, targets)
- Achievable: Goals should be realistic and attainable given available resources, skills, and constraints
- Relevant: Goals should align with the organization's mission, vision, and values and contribute to overall objectives
- Time-bound: Goals should have a specific deadline or time frame for completion to create urgency and accountability
- Managers use the SMART framework to ensure goals are well-defined, establish clear metrics for measuring progress, allocate resources effectively, align goals with strategic direction, and create accountability and motivation for employees
Key steps of planning process
- Establish organizational mission, vision, and values
- Mission: The organization's purpose and reason for existence (provide innovative technology solutions)
- Vision: The desired future state of the organization (become the market leader in our industry)
- Values: The guiding principles that shape the organization's culture and decision-making (integrity, customer focus)
- Conduct a
- Assess the organization's internal strengths and weaknesses (strong brand reputation, outdated IT infrastructure)
- Analyze the external environment for opportunities and threats () (emerging markets, new competitors)
- Perform to understand the needs and expectations of key stakeholders
- Set strategic goals and objectives using the SMART framework to develop specific, measurable goals that align with the organization's mission, vision, and values
- Develop strategies to achieve goals by identifying and evaluating alternative strategies and selecting the most appropriate ones based on feasibility and potential impact
- Consider to prepare for potential risks and uncertainties
- Create action plans and allocate resources
- Break down strategies into specific tasks and activities
- Assign responsibilities and deadlines for each task
- Allocate necessary resources (financial, human, technological) to support implementation
- Implement strategies and monitor progress by executing action plans, regularly assessing progress using established metrics, and making adjustments as needed
- Ensure between all levels of the organization
- Evaluate and adapt by conducting a , identifying lessons learned and best practices, and adapting goals, strategies, and action plans based on evaluation results
- Use to compare performance against industry standards and best practices
Short-term vs long-term strategic plans
- Short-term strategic plans focus on immediate goals and objectives (usually 1 year or less) and align with tactical and operational levels of firm activity
- Tactical level focuses on specific functions or departments within the organization (marketing campaign)
- Operational level deals with day-to-day activities and processes (production schedule)
- Long-term strategic plans focus on the organization's future direction and goals (usually 3-5 years or more) and align with the strategic level of firm activity
- Strategic level focuses on the overall direction and goals of the organization (market expansion, new product development)
- Short-term plans should support and contribute to the achievement of long-term goals, while long-term plans should provide a framework and direction for short-term decision-making
- All levels of firm activity (strategic, tactical, and operational) should be aligned and integrated to ensure consistency and effectiveness in achieving organizational goals
Performance Measurement and Management
- Balanced Scorecard: A strategic planning and management system that aligns business activities with the vision and strategy of the organization
- : The process of guiding organizational change to foster acceptance and drive successful outcomes
- : The process of distributing and utilizing available resources effectively to support strategic initiatives and achieve organizational goals
Key Terms to Review (12)
Action Plans: Action plans are detailed outlines that specify the concrete steps and resources needed to achieve a particular goal or implement a chosen strategy. They serve as a roadmap to guide the execution of plans and ensure effective implementation.
Balanced Scorecard: The balanced scorecard is a strategic performance management framework that helps organizations measure and track progress towards their goals and objectives. It provides a comprehensive view of an organization's performance by considering financial, customer, internal business processes, and learning and growth perspectives.
Benchmarking: Benchmarking is the process of comparing a company's performance, practices, or products to those of industry leaders or competitors in order to identify areas for improvement and drive organizational excellence. It is a strategic tool used to measure and evaluate an organization's processes and performance against best-in-class standards.
Change Management: Change management is the process of planning, implementing, and monitoring organizational changes to minimize disruption and maximize the benefits of the transformation. It involves strategies and techniques to guide individuals, teams, and the entire organization through significant shifts in policies, procedures, technologies, or structures.
Contingency Planning: Contingency planning is the process of developing alternative plans or strategies to be implemented in the event that the primary plan or strategy cannot be executed. It involves identifying potential risks, uncertainties, and alternative courses of action to ensure an organization is prepared to respond effectively to unexpected situations.
Post-Implementation Review: A post-implementation review is an evaluation conducted after a strategy or project has been implemented to assess its effectiveness, identify lessons learned, and determine if the desired outcomes were achieved. It is a crucial step in the strategic management process that provides valuable insights for future decision-making and continuous improvement.
Resource Allocation: Resource allocation is the process of distributing and managing an organization's resources, such as financial, human, and physical assets, in an efficient and effective manner to achieve its strategic objectives. It involves making decisions about how to best utilize limited resources to optimize performance and maximize value creation.
Situational Analysis: Situational analysis is the process of thoroughly examining and evaluating the internal and external factors that influence an organization's current position and future prospects. It is a critical step in strategic planning and decision-making, as it provides a comprehensive understanding of the organization's strengths, weaknesses, opportunities, and threats.
SMART Framework: The SMART framework is a goal-setting methodology that helps individuals and organizations create and achieve specific, measurable, achievable, relevant, and time-bound objectives. It provides a structured approach to ensure that goals are clearly defined and actionable.
Stakeholder Analysis: Stakeholder analysis is the process of identifying and assessing the importance of key people, groups, or organizations that can influence or be influenced by an organization's actions, objectives, and policies. It is a crucial tool used in strategic management, planning, and change management to understand the diverse interests and potential impacts of various stakeholders on a firm's operations and decision-making.
Strategic Alignment: Strategic alignment refers to the process of ensuring that an organization's business strategies, objectives, and actions are all coherently and consistently focused on achieving its overarching goals. It involves aligning the various elements of a business, such as its operations, resources, and decision-making, to support the implementation and realization of its strategic vision.
SWOT Analysis: SWOT analysis is a strategic planning framework used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization or a project. It provides a structured approach to assess the internal and external factors that can impact an entity's performance and guide decision-making.