Planning is an important activity, performed by the management, keeping in view, the vision, mission, goals and objectives of the enterprise. It implies thinking in advance, what we need to do in future and creates a rough draft, so as to fulfill the business objectives. Planning occurring at the corporate level is termed as strategic planning , while the planning process taking place at the functional level is called operational planning. Strategic Planning is concentrated towards attaining the long-term objectives of business. On the other hand, operational planning is done to achieve short-term objectives of the company. These are used to set priorities and align the resources, in such a way that leads to the accomplishment of business goals.
Let's define Strategic, Tactical and Operational planning. - Riskope
Definition : Strategic Planning can be understood as a systematic long-range planning activity, that an organization uses to fix priorities, strengthen operations, ascertain objectives and focus on the resources required and are to be allocated in order to pursue the strategy and attain the objectives. Strategic Planning ascertains what an organization is, to whom it serves, where is it going and what are the paths, which are to be followed to follow its vision. It includes strategic decision making, strategic intent , strategic management model and strategy formulation. Strategic Planning is a logical effort, that envisions the desired future, by producing various alternative actions and decisions, to formulate an effective strategy, that brings success to the organisation.
Strategic Plan Vs. Implementation Plan
In this conception, strategy is manifested as a long list of initiatives with timeframes associated and resources assigned. But how does a strategic plan of this sort differ from a budget? Many people with whom I work find it hard to distinguish between the two and wonder why a company needs to have both.
Strategic planning is an organization 's process of defining its strategy , or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the s and remains an important aspect of strategic management.