Question

How would you describe each step, in order, in the strategic planning process?

How would you describe each step, in order, in the operational planning

How would you imagine organizations that do not engage in meaningful strategic planning would look?

Who is responsible for evaluating the progress of the strategic plan and the operational plan?

Answer 1

Answer:- Steps in strategic planning process:-

Validate mission and strategic interpretations: The executive management team validates the organizations mission. The mission is a broad statement of organizational purpose that can be easily communicated throughout both the organization and the community. Mission statements should survive to the ending of the planning horizon. Mission statements have common characteristics, such as: target customers and markets, indicate the principle services delivered by the organization, specify the geographic area in which the organization intends to operate, identify the organizations philosophy, confirm the organizations self-image and express the organizations desired public image.

Assess external environment: Includes factors that might have an impact on future performance. A governing body or outside consultants are responsible for assessing both external and internal environments; the first part of the assessment should include a determination on the direction of the industry as a whole by investigating national trends. Some current national trends include: decreasing reimbursement from federal and state health programs as the government tries to slow rising healthcare costs, increasing popularity of managed care programs, increasing consolidation as a result of competition, among many other national trends. The second part of the external assessment should determine the direction of the local market. Any major differences between the first part of the assessment and the second part of the assessment should be thoroughly analyzed to determine the reasons for the differences.

Assess internal environment: The governing body or outside consultants need to assess internal environment, which includes factors that might have an effect on performance either now or in the future. The first part of assessment should determine the directions of the organization by investigating organizational trends. Some organizations use SWOT to analyze the internal environment.

Formulate vision: Executive managers formulate a vision, which is a view of the future that they think will give the organization the best chance at accomplishing its mission. This vision is based on the information obtained from assessing external and internal environments.

Establish strategic thrusts: also known as goals, which are broad statements of important results that the organization wants to achieve related to the vision.

Identify critical success factors: This is the 6^th step, which involves identifying important success factors that can measure progress towards achieving the plan. The assessment of the environment should include both strategic thrusts and critical success factors (they are organization specific).

Develop primary, or core objectives: These objectives should support the organizations goals. Primary objectives should encompass the entire organization; organizations have several primary objectives and its important to keep them properly balanced.

Develop strategic financial plan: This plan is the link between the strategic plan (looks 3-10 years out) and the operating plan (looks one year out). The strategic financial plan is the quantification of a series of strategic planning policy decisions that will answer whether the organization can make progress towards achieving its strategic plan over the next 10 years.

Answer:- Steps in operational planning process:- Develop secondary, or department, objectives: This is the 9^th step in the corporate planning process and the 1^st step in the operational planning process. These objectives support the strategic plan of the organization. Department objective setting should be participative; department objective should be rigorous but attainable (this helps with the departments progress); and the department objectives should be verifiable and measurable to ensure progress and reward those responsible for the progress.

Develop policies: 10^th step in the planning process but the 2^nd step in operational planning. These policies must provide subordinates with general guidelines for decision-making. Policies are the most common type of plan at the department level.

Develop procedures: 11^th step in the planning process but the 3^rd step in operational planning. Developed procedures are guides to action; procedures are a derivative of policies but they are considerable more specific. Procedures identify in a step-by step approach on how to accomplish the policy.

Develop methods: 12^th step in the planning process and the 4^th step in operational planning. The managers and supervisors develop methods that help with accomplishing procedures. Methods are detailed, uniform actions with specific instructions and predictable outcomes.

Develop rules: 13^th step in the planning process is the 5^th step in operational planning. This step of developing rules includes statements that either require or forbid an action or inaction. Managers have some flexibility in the application of policies, procedures, and methods but not rules

Answer:- The worth of strategic planning lies in a methodical approach to dealing with an unsure future. Many organizations become disappointed with strategic planning when their plans are not satisfied. These plans often have too narrow of a focus, the more narrow the focus the less likely the organization is going to achieve the plan. Strategic planning that focuses mainly on the organizations overall direction without attempting to be specific has advantages such as, integrating mission, vision, strategic thrusts, and primary objectives with the secondary objectives, policies, procedures, methods and rules of operating plan; it provides a process and time frame for making strategic decisions; and it provides a framework for the operating plan, budget and capital budget.

Answer:- The governing body of the organization should review the strategic plan on a yearly basis and evaluate the CEO based on progress in reaching primary objectives. Executives should also review the operating plan on a monthly or quarterly basis; in addition to evaluating department managers on a regular basis.