Strategic plan is a process in which an organization’s leaders define their vision for the future and identify their organization goals and objective.
Strategic planning typically represents mid to long term goals with a life span of there to five years , though it can go longer . this is different than business planning. A strategic plan may be updated and revised at that time to reflect any strategic changes.
Strategy is the direction and scope of an organization for the long term ,which helps in getting profit for the business or units through its implementation .
Strategy helps in dealing with:-
- Goals and vision of the business.
- Resource involved.
A strategic plan assesses the current environment of a business both internally and externally . it establishes future goals and targets and describes the strategies .A business plan describes a current business or a specific new project.
The best way to make your strategic plan flexible is to have a clear distinction between goals , measure and projects goals should be updated every one to five years and measure should be updated every six to 24 months. Strategic plan flexible .once strategy has executed should make sure it stays on track with a regular monitoring system , involve the right people , make contingency plan.
For example if a company’s business model is manufacturing bicycle its strategic plan may be to expand into building electric bikes.
Strategic flexibility is the process of updating key strategies in a timely manner .strategic flexibility can be used by organization as both an offense and defense mechanism depending on the nature of change and its impact on the organization. For example when a new player enters the market with a new product , it is major change in the external environment of an existing organization.
Strategic plan flexible include:
- Align programming resources and budget with strategy.
- Engage and learn from the line staff.
- Create time to think.
- Continuously gathered data.
- The amount of time available to respond to a major change.
- The focus are of the flexibility that was created.
- The range of different solution available.
Small businesses undertake strategic plan in order to determine where they have come from , their current position and projected future position .