Home > Articles

Strategic Management

This chapter is from the book

Strategic Planning

Strategic planning is a step-by-step process through which organizations engage in two types of activities. Specifically, the organization

  1. Identifies where it wants to be and what it wants to accomplish long-term (often 3–5 years).
  2. Begins to map out how its vision and mission for those years will be attained.

In an oversimplified sense, strategic planning is the process of looking into the future, painting a picture of where we want to be and what we want to achieve in that future, and ascertaining how we will get there. It is a type of "extreme proactivity" rather than reactivity...of planning for the future rather than simply responding to it as it unfolds.

There are a number of compelling reasons for organizations to engage in a strategic planning process, just a few of which are

  • By methodically looking towards the future, the organization creates an opportunity to proactively shape and influence its own future.
  • The organization will develop a clearer awareness of how it is positioned externally, and how it "measures up" internally.
  • It either creates or reaffirms the overall vision, mission, and values of the organization, and refocuses attention on how to bring them to life.
  • It engages individuals throughout the organization in a meaningful and effective initiative.

Strategic Planning—A Four-Phase Process

Many theorists describe and define the strategic planning process in different ways, and as containing different steps and components. The following is one way of looking at the strategic planning process.

Phase 1: Establish a Foundation for the Strategy

To be effective, the strategic planning process must be grounded in the organization’s mission, vision, and values.

  • Vision: An organization’s vision is a brief yet comprehensive descriptive and inspirational statement that articulates where the organization wants to be and what it wants to become in the future. The vision should resonate in the hearts, minds, and day-to-day endeavors of the organization’s employees. It should give those employees an awareness that they have a meaningful opportunity to be part of something bigger than themselves. It must motivate them to aspire to the legacy that the vision can create and that it ultimately can leave behind.
  • Mission: An organization’s mission statement articulates, in essence, its reason for being. It may speak to the nature of the organization’s business or purpose, its customers, and sometimes even its employees and its role in the community. A mission statement should be broad (but not overly generalized), brief, clear, unambiguous, and designed to last for "the long haul." The goals of an organization must be based on the mission, so the mission is therefore far bigger than any goal—and thus must be must be able to withstand the test of time.
  • Values: Values are the beliefs on which the organization has been built. They are the tenets that shape and guide strategic and day-to-day decision making, as well as the behaviors that are exhibited in the organization. Organizations identify values, in part, as a way to clearly guide those decisions and behaviors. Values are often represented in terms and principles such as integrity, honesty, respect, and so on.

Phase 2: Develop the Strategic Plan

Formulating a strategy on the basis of deliberately crafted statements that articulate the mission and values of the organization is critical, but it’s only the first step. The next step is to actually develop the strategic plan.

There are several key components to the development phase of the strategic plan.

SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)

A SWOT analysis is conducted to ascertain the strengths and weaknesses that are inherent to an organization, as well as the opportunities and threats that it faces from external forces. Though it sounds relatively simple and straightforward, the process of conducting a SWOT analysis can become challenging, in part because it is often difficult for organizations—as it is for people—to see themselves objectively.

When examining "strengths" and "weaknesses," it is necessary for analysis to be directed inward. This clear and objective assessment of the organization would ascertain the resources of the organization, including, but not necessarily limited to

  • Human
  • Financial
  • Technological
  • Capital
  • Brand image

Opportunities and threats, conversely, look outward at factors such as competition, economic trends, customer needs and wants, and legislative or regulatory activity. This process, known as environmental scanning, is explored more thoroughly in "Environmental Scanning—An External Perspective," later in this chapter.

Generate Strategic Objectives

Once the SWOT analysis is completed, the outputs of that analysis can and should be scrutinized and, to the degree possible, addressed. Once that process has been completed—or at least has been begun—it’s time to begin generating ideas that will eventually grow, develop, and be cultivated until they take the shape of organizational objectives.

These organizational objectives must be translated into specific strategies that enable each department, division, or other organizational unit to contribute directly to the attainment of the organization’s overall objectives. In order for this to happen, a top-down/bottom-up approach similar to that described in the performance management process must be implemented throughout the organization (see Chapter 5). To oversimplify the process, like any pyramidal structure—and even like Maslow’s hierarchy of needs (see Chapter 2)—goals at the "lower," more functional levels of the organization must be attained in support of the more overarching objectives of the organization. Keep this process building and you’ll be well on your way to bringing the vision, mission, and values of the organization to life in a highly tangible and visible manner.

Phase 3: Implement the Strategic Plan

Similar to Fayol’s "directing" stage, the implementation phase is, once again, where "the rubber meets the road." Strategies become tactics and tactics become operationalized. Management functions—from planning through controlling—are used to make the strategies a part of the day-to-day fabric and functioning of the organization. Since, at this level, we have also reached the point at which individuals will have a very real, albeit somewhat indirect, impact on whether the organization’s objectives are attained, performance management principles become critical, as well (see Chapter 5).

Three factors that are critical to successfully implementing any strategic plan are commitment, credibility, and communication.

Commitment

It is absolutely critical to secure the support and commitment of leaders at all levels of the organization—particularly the upper levels—before even entertaining the idea of creating (let alone implementing) a strategic plan. This commitment can and should encompass everything from seeing the strategic process through to its conclusion, to striving to achieve the goals and implementing the changes that are generated through this process.

In short, strategic plans that sit on a shelf are useless. Talking the talk is not enough. Walking the walk is mandatory. Without commitment, a strategic plan is not only useless—it might even do more harm than good.

Credibility

Credibility is created and sustained through representative participation from all levels of the organization, through a commitment to follow through on every step of the process (rather than "short cutting" the process), and through clear, complete, and appropriate documentation of the process.

Phase 4: Evaluate the Plan, Process, and Performance

Evaluating how well a strategic plan was envisioned, designed, and implemented is an involved process, as any evaluative process is. In Chapter 5, we provide a more in depth discussion of any evaluative process as explored through ADDIE. Revisit the "E" in ADDIE, and also seek other sources and ideas for evaluating a plan, the process for developing that plan, and the overall performance against that plan.

Perhaps most importantly, be prepared to incorporate changes, insights, and revisions. Holding on to a flawed design or an ineffective implementation process is like "spending good money after bad." In an organization, the "currency" in question may be your own reputation and credibility, so be prepared to flex.

Review Break

Strategic planning helps the organization look towards the future, and to begin to shape how it will position itself for that future.

One element of strategic planning that was mentioned in the last section was "external scanning." Let’s take a closer look at that particular component.

InformIT Promotional Mailings & Special Offers

I would like to receive exclusive offers and hear about products from InformIT and its family of brands. I can unsubscribe at any time.

Overview


Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030, (Pearson) presents this site to provide information about products and services that can be purchased through this site.

This privacy notice provides an overview of our commitment to privacy and describes how we collect, protect, use and share personal information collected through this site. Please note that other Pearson websites and online products and services have their own separate privacy policies.

Collection and Use of Information


To conduct business and deliver products and services, Pearson collects and uses personal information in several ways in connection with this site, including:

Questions and Inquiries

For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

Online Store

For orders and purchases placed through our online store on this site, we collect order details, name, institution name and address (if applicable), email address, phone number, shipping and billing addresses, credit/debit card information, shipping options and any instructions. We use this information to complete transactions, fulfill orders, communicate with individuals placing orders or visiting the online store, and for related purposes.

Surveys

Pearson may offer opportunities to provide feedback or participate in surveys, including surveys evaluating Pearson products, services or sites. Participation is voluntary. Pearson collects information requested in the survey questions and uses the information to evaluate, support, maintain and improve products, services or sites, develop new products and services, conduct educational research and for other purposes specified in the survey.

Contests and Drawings

Occasionally, we may sponsor a contest or drawing. Participation is optional. Pearson collects name, contact information and other information specified on the entry form for the contest or drawing to conduct the contest or drawing. Pearson may collect additional personal information from the winners of a contest or drawing in order to award the prize and for tax reporting purposes, as required by law.

Newsletters

If you have elected to receive email newsletters or promotional mailings and special offers but want to unsubscribe, simply email information@informit.com.

Service Announcements

On rare occasions it is necessary to send out a strictly service related announcement. For instance, if our service is temporarily suspended for maintenance we might send users an email. Generally, users may not opt-out of these communications, though they can deactivate their account information. However, these communications are not promotional in nature.

Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information


Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

Pearson may use third party web trend analytical services, including Google Analytics, to collect visitor information, such as IP addresses, browser types, referring pages, pages visited and time spent on a particular site. While these analytical services collect and report information on an anonymous basis, they may use cookies to gather web trend information. The information gathered may enable Pearson (but not the third party web trend services) to link information with application and system log data. Pearson uses this information for system administration and to identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents, appropriately scale computing resources and otherwise support and deliver this site and its services.

Cookies and Related Technologies

This site uses cookies and similar technologies to personalize content, measure traffic patterns, control security, track use and access of information on this site, and provide interest-based messages and advertising. Users can manage and block the use of cookies through their browser. Disabling or blocking certain cookies may limit the functionality of this site.

Do Not Track

This site currently does not respond to Do Not Track signals.

Security


Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.

Children


This site is not directed to children under the age of 13.

Marketing


Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information


If a user's personally identifiable information changes (such as your postal address or email address), we provide a way to correct or update that user's personal data provided to us. This can be done on the Account page. If a user no longer desires our service and desires to delete his or her account, please contact us at customer-service@informit.com and we will process the deletion of a user's account.

Choice/Opt-out


Users can always make an informed choice as to whether they should proceed with certain services offered by InformIT. If you choose to remove yourself from our mailing list(s) simply visit the following page and uncheck any communication you no longer want to receive: www.informit.com/u.aspx.

Sale of Personal Information


Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents


California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure


Pearson may disclose personal information, as follows:

  • As required by law.
  • With the consent of the individual (or their parent, if the individual is a minor)
  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
  • To protect the security and safety of individuals, data, assets and systems, consistent with applicable law
  • In connection the sale, joint venture or other transfer of some or all of its company or assets, subject to the provisions of this Privacy Notice
  • To investigate or address actual or suspected fraud or other illegal activities
  • To exercise its legal rights, including enforcement of the Terms of Use for this site or another contract
  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
  • To a school, organization, company or government agency, where Pearson collects or processes the personal information in a school setting or on behalf of such organization, company or government agency.

Links


This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact


Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice


We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020