Strategic planning and implementation
are keys to success in the business
world. Big-picture thinking and intelligent execution can distinguish you from
your competitors and ensure that your
business enjoys continuous growth. And
while strategic planning is an important
first step, according to recent studies,
between 70 percent and 90 percent of
organizations fail to correctly implement
strategies, says Elden Monday, state vice
president for University of Phoenix’s three
local campuses in Pennsylvania.
Smart Business spoke with Monday
about insightful ways businesses can
develop and implement cohesive and sensible strategic plans.
What is strategic planning and how does it
differ from business planning?
Strategic planning involves taking a
long-term, big-picture vision and determining how to remain lucrative and competitive over time. Businesses employ this
process of gathering information, organizing it so that it’s concise, and creating a
plan that covers a certain time period.
This effort involves mapping out the
strategies and objectives that are expected to keep the organization focused, unified and successful.
Many businesses use a model to guide
them when creating their strategic plan.
The basic strategic planning model is a
flowchart outlining the step-by-step
process that a business should take to create a sustainable future. First, a company
needs to establish its purpose and create a
mission statement that reflects the purpose. The company then should identify
goals and objectives that achieve the organization’s mission statement and focus on
any major issues. The next step is to formulate the strategies. Implementation follows where the strategies are transformed
into clearly defined policies for areas such
as human resources and production.
Finally, business managers should monitor
and update a strategic plan ensuring the
policies are consistently executed and any
aspects that are not working well are
adjusted.
Confusion often exists between the functions of business plans and strategic plans.
Strategic plans are developed as an
overview of steps to ensure a company’s
future and are an internal document, while
business plans are an overview of the company that can be shared with individuals
outside of the company.
How can a sound strategic plan benefit a
company?
Creating a solid strategic plan offers an
organizational framework and direction
while establishing a uniform ideal and aim
that is shared among all company members. A strategic plan also improves the
level of commitment by employees to company goals. Improved customer service
can often be a result of a strategic plan that
rallies employees as it helps set priorities
and instills a sense of purpose and pride.
How can a person become a better strategist?
A good strategist is an individual who has
a vision for the future; one that not only
focuses on the company’s overall goals and
objectives but also includes specific directives for each department within an organization. His or her critical thinking and
problem-solving skills are sharp, with sufficient knowledge of workplace models so
adjustable plans can be quickly and concisely analyzed to deal with potential
issues and data that can change the way
the business operates.
Continuing education can sharpen these
important skills. An institution that focuses
on refining problem-solving skills, information utilization and critical thinking skills is
essential. For instance, University of
Phoenix employs problem-based learning,
a system where students create and defend
solutions to problems such as crisis management, profitable growth opportunities
and changes in leadership.
What is the importance of strategic implementation?
Implementation is the final crucial step in
strategic planning. A Fortune magazine
study showed that 7 out of 10 CEOs who
fail do so because of poor strategic execution. A study of Time’s 1000 companies
showed that 80 percent of directors feel
they have a solid strategic plan, but only 14
percent feel they execute them well.
For implementation to be successful, it is
essential for business managers to be motivational leaders, vigilant in adopting the
plan’s strategies, and consistent in giving
performance reviews based on the goals
and objectives set forth.
ELDEN MONDAY is the state vice president for the
Pennsylvania campuses of University of Phoenix, a national
leader in higher education for working adults, offering both
campus-based and online programs. Reach Monday at
[email protected] or by phone at (610) 989-0880, ext.
1131. Additional information is also available at
www.phoenix.edu/philadephia.