5 Popular Strategic Planning Models That You Should Know About
Strategic planning is a part of project management and is vital for the long-term success of a business. It gives a sense of direction to where your business is planning to head onto, thus helping in taking decisions based in line with that. It’s like a road map that helps an organization to reach where it wants to go.
We all are acquainted with strategic planning though we might not use this specific term, in our lives. Say we want to achieve a goal in our lives like going to another city, or lose some weight, and for that, we plan, organize, gather resources, and finally draw a map. Like that, when we do that in businesses, it is termed as strategic planning. And no one plan is suited to all businesses. It’s up to the organizations to decide on and select the specific model and even alter it to address issues and achieve goals to reach where it wants to.
Strategic planning is in the curriculum of all project management courses in Oman and if you want to build your career as a project manager you should have a thorough knowledge of it. Keeping that in mind, we have prepared this brief guide about five strategic planning models that you should know about.
1. Basic Model
Basic or simple strategic model is often preferred by new organizations or by them who do not have much time to spend on the strategic planning process. As the name suggests, this is the most basic strategic planning model preferred by small businesses.
Basic strategic planning model first creates a mission statement that describes why the organization exists. Next, the intermediary goals are outlined. These goals are in line with the mission statement and organized as per what is needed to be achieved first to meet the mission. Identifying strategies and creating action plans to achieve those goals come as the final step of this model.
2. Issue or Goal-Based Model
Issue-based model is an enhancement of the basic model and usually, companies that want to go deeper with their strategic planning make use of this model. This is the most commonly used strategic planning model and extends over the years, i.e. all the steps need not be completed each year.
Following this model, planning typically starts with a SWOT (strengths, weaknesses, opportunities, and threats) analysis of a business. Next, the stakeholders identify the major goals and issues that the business needs to address to better prioritize its objectives. Next, the mission, vision, and values of the company are reviewed and action plans (typically yearly) are developed. The budget is established next and finally, the plan is executed and monitored.
3. Scenario Model
The scenario strategic planning model is more of a technique than a full-fledged plan model. It is generally used along with other models and can be highly effective in identifying goals and issues. In the scenario model, businesses discuss various scenarios that could happen due to external forces like demographic changes and get prepared for them.
It begins by identifying the factors that could affect the business. For each possible change, several possible scenarios are discussed, including the best and worst-case scenario. Next, businesses design responses to deal with those situations, i.e. what the business should do to combat those scenarios. This model helps prepare businesses for several types of issues beforehand.
4. Alignment Model
The alignment model focuses to create an alignment between the company’s mission and its resources. It can be useful to companies who want to find out why their goals are not being met or fine-tune their objectives.
This model consists of first outlining the company’s mission, resources, and actions. Next comes pointing out what is working in achieving the goals and what needs change. Next comes figuring out how the changes will take place and then finally comes adding the changes to the existing strategic planning model.
5. Organic Model
The organic model differs from the other models that follow are a linear or more methodical approach. This model focuses on shared values, consistent communication, and dialogue among the stakeholders and unfolds more naturally than the other planning models.
Organic model clarifies the company’s cultural values and then the vision of the company is put in words. Next comes talking about the planning needed to arrive at that vision. This model focuses more on learning and reflection and establishing a culture inside the company.
Strategic planning, as mentioned, is a vital part of any business model and is included in all project management courses in Oman. However, it is just the first step. It is how you put your planning into action that makes all the difference. In most cases, a combination of two or more models is used to achieve business goals more conveniently.