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Put simply, strategic planning identifies where the organization will be going over the next (typically) one to three years and how it's going to get there. The "strategic" part of this planning procedure is the constant attention to current changes in the organization and its atmosphere, and how this effects the forseeable future of the organization. Skills in strategic planning are crucial to the long term success of your enterprise. This form of planning includes:
a) Taking a wide look around at what's going on outside the organization and how it might effect the organization (an environmental scan)
b) Taking a long hard look at what's going on inside the organization, including its strengths, weaknesses, chances and threats (a SWOT analysis)
c) Establishing statements of values, vision and mission
d) Establishing goals to accomplish over the next (usually) three years or so, as a result of what's going on inside and outside the organization
e) Figuring out how those goals will be reached (strategies, objectives, responsibilities and timelines)
The scheduling for the strategic planning procedure depends greatly the needs and nature of the organization and the its immediate external environment. As an example, planning might be carried out frequently in an organization whose products and services are in an industry that is constant flux . In this example, planning might be carried out once or even two times a year and done in a very extensive and detailed fashion (that is, with attention to mission, vision, values, environmental scan, issues, goals, strategies, objectives, responsibilities, time lines, budgets, etc). Conversely, if the organization has been around for years and is in a fairly stable marketplace, then planning might be carried out once a year and only certain parts of the planning procedure, for example, action planning (objectives, responsibilities, time lines, budgets, etc) are updated each year. Consider the following guidelines:
1. Strategic planning should definitely be done when an organization is just starting out
. (The strategic plan is usually part of an overall business plan, along with a marketing plan, financial plan and operational/management plan.)
2. Strategic planning should also be done in preparation for all new major ventures, for example, managing a new department, division, major new product or line of products, etc.
3. Strategic planning should also be conducted at the very least once a year in order to be ready for the coming fiscal year (the financial management of an organization is usually based on a year-to-year, or fiscal year, basis). In this case, strategic planning might be conducted in time to identify the organizational goals to be reachd at the very least over the coming fiscal year, resources needed to reach those goals, and funded needed to obtain the resources. These funds are included in budget planning for the coming fiscal year. , not all phases of strategic planning need be fully completed each year. The full strategic planning procedure might be conducted at the very least once every three years. As noted above, these activities might be conducted every year if the organization is experiencing tremendous change.
4. Each year, action plans might be updated.
5. Note that, during implementation of the plan, the progress of the implementation might be reviewed at the very least on a quarterly basis by the board. Again, the frequency of review depends greatly the extent of the rate of change in and around the organization.
Key differences in how organizations carry out the various stages and associated activities in the strategic planning procedure are more of a matter of the size of the organization -- than its for-profit/nonprofit status. Small nonprofits and small for profits often conduct somewhat similar planning activities that are different from those conducted in large organizations. Conversely, large nonprofits and large for profits often conduct somewhat similar planning activities that are different from those conducted in small organizations. (The focus of the planning activities is often different between for profits and nonprofits. Nonprofits often focus more on matters of board development, fundraising and volunteer management. For-profits often focus more on activities to maximize profit.)