SP is a management tool that defines business objectives and goals for a certain period, in addition to guiding the allocation of financial resources and identifying the main internal and external challenges that may influence the results.
In this way, the PE serves not only to define the best path to follow-for example, to gain market share in the first years of operation-but also what to avoid.
This way, those responsible for management can list the main factors that impact the business and draw up a clear plan, making strategic choices, that is, those that have a greater chance of success.
The process is laborious and requires commitment from company leaders to demystify the essentially bureaucratic view of the strategic plan.
Strategic planning content should be disseminated in an interesting and creative way, showing how each sector plays a role in achieving objectives and goals. This is essential to consolidate the organizational culture and engage employees in their work.
Strategic planning works like a compass, as its objective is to guide the business during a year, working with short-term objectives, but also establishing medium and long-term goals monitored annually so that, in three or five years, for example, the business achieves important growth markers .
Thus, the company documents the path it planned to take, considering all the strengths and opportunities of the business and recording all the definitions and responsibilities of each area.
To achieve this goal, use good writing practices, creating a fluid, coherent and objective text so that everyone can understand what the company is looking for.
If after the first planning, your company has not established new short-term goals, leaving only long-term ones to work on, don't worry!
You can resume work and organize new discussions with the team to assess how the company is doing so far, what short-term needs need to be met and how to connect them to the long-term goals already established.
In the process, significant changes and adjustments may occur, but the goal is to end the review with realistic and achievable goals that will motivate the team and contribute to the sustainable development of the business.
When the PE is revised, it is essential to update the text of the document and make a new review to include all collaborators in the action.
Being aware of the business's objectives and goals contributes to a sense of belonging and maintains a positive organizational climate.
Creating a strategic plan involves five stages in which definitions are made that will guide the direction of the business. Check out what they are and what is established in each one below:
The company's purpose is the first step in strategic planning, based on the three pillars: mission, vision and values . As these terms can be confusing, here's what each one means:
The definition process can be richer with a broad and open debate, in which each person on the team can add their opinion during the brainstorm.
Mission Sphere
“ Impacting the largest number of people by selling the best energy in a simple, agile and transparent way .”
Sphere Values
Customer satisfaction;
Focus on results;
Innovative vision;
Diversity
Protagonism.
Many companies create boards with their mission, vision and values and place them in a prominent location at headquarters so that they are permanently visible to everyone.
This is really the purpose, as these definitions consolidate the organizational culture , which is fundamental for attracting and retaining talent in the company.
The second stage is the study of the internal and external environment . A company is part of a market niche that is inserted in a macroeconomic context.
Therefore, good performance is influenced both by the way the company is managed internally and by market fluctuations that impact sales performance, acquisition of inputs and raw materials, profits, etc.
Well, it seems like a complex analysis and, in fact, it is, but there are tools to guide the process. In this case, the one that best meets the objective of the analysis is the SWOT Matrix.
The acronym that gives the tool its name comes from the initials of the English words:
The SWOT matrix proposes to divide the analysis of the internal and external environment. In this way, the strengths and weaknesses are listed based on the internal context (legal aspects in the labor and consumer spheres, suitability to technology, etc.).
Opportunities and threats are related to external factors (political, economic and social contexts). The idea is to create lists for each item, as they will serve to guide the next step.
The third step of strategic planning is determining objectives and goals to take advantage of opportunities and strengths and overcome weaknesses and threats to growth.
The tool that guides the creation of the process is the SMART methodology, that is, the proposal is to create smart objectives.
The acronym comes from English and each letter refers to a characteristic that the meta must have:
For instance, a target may be written like this: "Improve energy efficiency by reducing costs with the purchase of electricity by 30% in the next 12 months," rather than something like "Improve the company's energy efficiency."
This makes it easy to identify the SMART aspects and understand the scope and relevance parameters of the objective.
Each strategic planning objective is broken down into goals that will be achieved by creating action plans , dividing the work into stages and facilitating team organization.
Strategic planning includes all areas and, within each sector, tasks need a clear division of who does what, what the delivery deadline is, resources needed, among other details to put the planning into practice.
The tool that guides the organization of each action plan is 5W2H. Each definition is made based on the answer to seven questions:
By following the checklist, action plans are better structured, avoiding doubts or deviations from the objective. In addition, it is easier to find and carry out tasks efficiently.
The last stage of strategic planning is actually an ongoing process. After all, monitoring and calculating indicators will occur periodically and will be maintained to monitor the evolution of performance over the years.
The major purpose is to determine if the planned course is being followed as intended and whether any modifications to the goals, objectives, and action plans are required.
One of the tools that can be used for monitoring is the Balanced Scorecard (BSC) , developed by professors at Harvard Business School. The methodology bases the analysis on performance indicators in four areas:
Each area has its own performance indicators to facilitate the monitoring of quantitative, i.e. measurable, performance. Sectors can share indicators in the same area, reinforcing the importance of integrated work.
This way, managers can monitor the evolution of indicators, take action when an objective is evolving more slowly than it should, and modify some point to drive improvements.
We appreciate you contacting us. Our support will get back in touch with you soon!
Have a great day!
Please note that your query will be processed only if we find it relevant. Rest all requests will be ignored. If you need help with the website, please login to your dashboard and connect to support
