The ultimate goal of a business is to remain profitable despite challenges in the business environment. The entrepreneur is interested in methodologies and actual activities that will assist them to recover the invested capital and sustain the business in the future. What is the role of the Manager in the Strategic Planning Process?
Strategic planning is the management process of developing the course(s) of action to take to achieve organizational objectives and goals. This proposal is compiled into a formal document known as a strategic plan for execution by leaders and employees. Let’s review this process and identify the role of managers in it.
Elements of Strategic Planning
Vision
This is the desired future status of the organization. It is the utopian wish of the leaders concerning the status of affairs and their position in society. For instance, to be a world-class leader in the provision of…
Mission
This is actualizing organizational objectives and goals. It is the overall activity the organization is currently undertaking to meet needs within a target population or entire society. For instance, to provide unique customer experiences…
Values
This summarizes the ethical or belief system within the organization that influences its culture. For instance, Integrity, Compassion, Diversity…
Objectives/Goals
Objectives are actionable and measurable steps taken to realize goals. Goals are the long-term expectations of the organization. These are the major achievements that need to be realized within a specified time frame. For instance, Sustainable Development, Quality Assurance, Community Service…
Actions
These are activities done to achieve a given purpose. To have an impact, there is a pre-determined thought before implementing these activities. For instance, Restructuring, Expansion, Investing…
Importance of Strategic Planning
Forecasting
This involves predicting the future of the organization. There is some level of anticipation to establish the unforeseen circumstances which will affect the organization positively and/or negatively. The organization tries to determine its own reaction if a certain set of circumstances develop in the future within the business environment. It also involves some level of benchmarking with competitors in the same industry to establish the level of preparedness. This allows them to prepare in advance any contingency plans for self-preservation and competitive advantage.
Directing
This involves guiding the organization on the right path that will optimize its success on a continuous basis. It involves overseeing operational activities and supervising employees as they carry them out. It is the actual implementation of the plans that have been developed to achieve organizational goals and objectives. The idea is to integrate the employees so that they are motivated to undertake their duties and responsibilities which form the strategic plan.
Longevity
Planning improves the survival chances and opportunities of the organization. It helps them overcome negative forces in the business environment. This nurtures a resilient character and culture with employees and leaders. Longevity is the continued existence of an organization for a prolonged period of time or even indefinitely. In accounting, it is referred to as the going concern. To achieve this, a high level of discipline is required and proper management of available resources. The organization also needs to be extremely adaptive to the changing demands of the business environment and always maintain a contingency plan during emergencies. The organization is required to select growth opportunities carefully and manage them well to avoid wasting valuable resources in bogus ventures.
Profitability
This refers to the increase in revenue from the business transactions and a return on its investments. With proper utilization of resources and properly executed activities, the organization’s success improves significantly. This requires a meticulous balance of generated income and utilized expenditure in the organization. Being profitable is the ultimate goal of any business undertaking, without profit operations are challenged. The organization in turn will not be able to meet its expectations in the business environment and industry. Profits facilitate payments, investments, and even the expansion of the organization.
Efficiency
The quality of products and services improves with proper planning and methods of operations. The turnaround time is also reduced which translates to an increase in units produced and services given. Efficiency involves the proper use of resources, tools, equipment, and materials by avoiding wastages and damages that will necessitate replacements. These would lead to additional costs which are a liability to the organization. When employees and operations are efficient, operational costs are reduced and savings are made which can be diverted to other important strategic needs.
Participation
This refers to employee engagement levels in the organization. When employees understand the strategy about their roles, they give better support to the leadership. Their performance levels also increase since they have a sense of responsibility and they want to make an impact in the organization. Employee engagement increases commitment levels and motivates them to undertake their duties well. It improves their loyalty and reduces staff turnover or absenteeism levels in the organization. It also improves the reputation of the organization in society and makes it more popular by attracting clients.
The Role of the Manager in the Strategic Planning Process
Manage Strategic Plan
The manager is expected to understand and shape the organization’s strategy. This involves developing actions to materialize the strategy. It also requires the analysis of business proposals to identify which ones are most lucrative and ought to be pursued.
Allocation and Utilization of Resources
Allocation refers to assigning resources while utilization refers to the use of the same resources. The manager is expected to align processes that will facilitate the distribution and use of relevant resources in specific operations of the organization.
Risk Management
This refers to the identification and control of challenges that have presented themselves or are affecting the organization at a particular time. The manager is expected to develop both contingency and operational plans that will resolve these situations when and if they occur. This is facilitated by the risk assessment process that evaluates possible risks and their potential of occurring in the organization.
Compliance Management
This refers to the process of monitoring and evaluation of existing organizational systems, operations, and policies to ensure that they abide by conventional and legal standards. This involves identifying, reviewing, and amending them where applicable to suit the required standards. Planning requires strict adherence to standards in order to avoid litigation and insurance claims while conducting business affairs.
Performance Management
The manager is required to make a periodic assessment of the organization’s operational and strategic performance. This is to ensure that employees are meeting organizational expectations by undertaking their duties and producing the desired results that will influence positive change.
Networking
This refers to building teams and professional relationships that will have a positive impact on the organization and its strategy. The manager will accomplish this by creating functional relationships with both the internal and external stakeholders. This will assist in gaining their support and favor with current and future corporate activities geared towards profitability and popularity in the industry.
Research and Development
This refers to adopting technological inventions and/or innovations for the purpose of introducing new products and services in the market. The manager is expected to investigate competition in the industry, identify threats and opportunities that can assist in organizational development and profitability. This can be achieved through constructive forecasts and analytical models. The manager will monitor and analyze changes and trends in their business environment to take advantage of them for the good of the organization.
Learning and Development
These are training efforts meant to impart additional skills and knowledge to the employees and leaders. The manager is required to educate senior executives in making effective decisions related to the corporate strategy and operations. This encourages the professional and personal development of the leaders and employees. The idea is to improve the effectiveness and efficiency of the organization while conducting business activities. Learning and development also improve employee engagement and bring positive change to the organization.
Policy Development and Review
The manager is expected to generate ideas that will assist in coming up with new policies and procedures in line with the corporate strategy. These policies will aid in the realization of the corporate strategy in the organization. The manager is also expected to examine and evaluate the existing policies and procedures to identify gaps or improvement areas. Thereafter, the approved changes will be made and communicated for adoption by relevant departments and leaders.
Advisory Services
This refers to the consultative and guiding efforts that the manager will initiate to assist the organization meets its goals and objectives. The manager is expected to provide support and insight into significant organizational changes that will give them a competitive advantage in the industry.
Conclusion
Strategic planning is concerned with giving organizations a competitive advantage in their industry. Once a corporate strategy is developed, teams and leaders are required to implement it to influence the success levels of the organization. The most important employee in this process is the corporate strategy manager who is placed in charge. They oversee the entire process and guide the organization on decisions and actions to take in the realization of the corporate strategy.
Frequently Asked Questions
- What are the steps required during strategic planning?
The steps in strategic planning include Analysis, Formulation, Implementation, and Evaluation
- What are the different types of corporate strategies?
These strategies include Grand Level Strategies, Business Level Strategies, and Functional Level Strategies
