Which crucial piece of any strategic plan is developed during the initial research and diagnosis?
SummaryStrategic planning is vital in defining where your business is going in the next three to five years. With the right strategic planning models and frameworks, you can uncover opportunities, identify risks, and create a strategic plan to fuel your organization’s success. We list the most popular models and frameworks and explain how you can combine them to create a strategic plan that fits your business. Show
If you’re interested in creating or updating your strategic plan, you’ve come to the right place. There are numerous strategic planning models and frameworks you could apply and while it’s often smart to combine a few, you can’t (and shouldn’t) use them all. A strategic plan is a great tool to help you hit your business goals. But sometimes, this tool needs to be updated to reflect new business priorities or changing market conditions. If you decide to use a model that already exists, you can benefit from a roadmap that’s already created. The model you choose can improve your knowledge of what works best in your organization, uncover unknown strengths and weaknesses, or help you find out how you can outpace your competitors. In this article, we cover the most common strategic planning models and frameworks and explain when to use which one. Plus, get tips on how to apply them and which models and frameworks work well together. Strategic planning models vs. frameworksFirst off: This is not a one-or-nothing scenario. You can use as many or as few strategic planning models and frameworks as you like. When your organization undergoes a strategic planning phase, you should first pick a model or two that you want to apply. This will provide you with a basic outline of the steps to take during the strategic planning process. During that process, think of strategic planning frameworks as the tools in your toolbox. Many models suggest starting with a SWOT analysis or defining your vision and mission statements first. Depending on your goals, though, you may want to apply several different frameworks throughout the strategic planning process. Set and achieve goals with Asana For example, if you’re applying a scenario-based strategic plan, you could start with a SWOT and PEST(LE) analysis to get a better overview of your current standing. If one of the weaknesses you identify has to do with your manufacturing process, you could apply the theory of constraints to improve bottlenecks and mitigate risks. Now that you know the difference between the two, learn more about the seven strategic planning models, as well as the eight most commonly used frameworks that go along with them. Read: How to build a strategic plan for your nonprofit (with template)1. Basic modelThe basic strategic planning model is ideal for establishing your company’s vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise. If it’s your first strategic planning session, the basic model is the way to go. Later on, you can embellish it with other models to adjust or rewrite your business strategy as needed. Let’s take a look at what kinds of businesses can benefit from this strategic planning model and how to apply it. Best for:
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Create a strategic planning template 2. Issue-based modelAlso called goal-based planning model, this is essentially an extension of the basic strategic planning model. It’s a bit more dynamic and very popular for companies that want to create a more comprehensive plan. Best for:
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The issue-based plan can repeat on an annual basis (or less often once you resolve the issues). It’s important to update the plan every time it’s in action to ensure it’s still doing the best it can for your organization. You don’t have to repeat the full process every year—rather, focus on what’s a priority during this run. 3. Alignment modelThis model is also called strategic alignment model (SAM) and is one of the most popular strategic planning models. It helps you align your business and IT strategies with your organization’s strategic goals. You’ll have to consider four equally important, yet different perspectives when applying the alignment strategic planning model:
Ideally, your strategy will check off all the criteria above—however, it’s more likely you’ll have to find a compromise. Here’s how to create a strategic plan using the alignment model and what kinds of companies can benefit from it. Best for:
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4. Scenario modelThe scenario model works great if you combine it with other models like the basic or issue-based model. This model is particularly helpful if you need to consider external factors as well. These can be government regulations, technical, or demographic changes that may impact your business. Best for:
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5. Self-organizing modelAlso called the organic planning model, the self-organizing model is a bit different from the linear approaches of the other models. You’ll have to be very patient with this method. This strategic planning model is all about focusing on the learning and growing process rather than achieving a specific goal. Since the organic model concentrates on continuous improvement, the process is never really over. Best for:
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6. Real-time modelThis fluid model can help organizations that deal with rapid changes to their work environment. There are three levels of success in the real-time model:
Figuring out your competitive advantage can be difficult, but this is absolutely crucial to ensure success. Whether it’s a unique asset or strength your organization has or an outstanding execution of services or programs—it’s important that you can set yourself apart from others in the industry to succeed. Best for:
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7. Inspirational modelThis last strategic planning model is perfect to inspire and energize your team as they work toward your organization’s goals. It’s also a great way to introduce or reconnect your employees to your business strategy after a merger or acquisition. Read: What is change management? 6 steps to build a successful change management processBest for:
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Now, let’s dive into the most commonly used strategic frameworks. 8. SWOT analysis frameworkOne of the most popular strategic planning frameworks is the SWOT analysis. A SWOT analysis is a great first step in identifying areas of opportunity and risk—which can help you create a strategic plan that accounts for growth and prepares for threats. SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s an example: 9. OKRs frameworkA big part of strategic planning is setting goals for your company. That’s where OKRs come into play. OKRs stand for objective and key results—this goal-setting framework helps your organization set and achieve goals. It provides a somewhat holistic approach that you can use to connect your team’s work to your organization’s big-picture goals. When team members understand how their individual work contributes to the organization’s success, they tend to be more motivated and produce better results Read: How to set OKRs10. Balanced scorecard (BSC) frameworkThe balanced scorecard is a popular strategic framework for businesses that want to take a more holistic approach rather than just focus on their financial performance. It was designed by David Norton and Robert Kaplan in the 1990s, it’s used by companies around the globe to:
Your balanced scorecard will outline four main business perspectives:
With the help of a strategy map, you can visualize and communicate how your company is creating value. A strategy map is a simple graphic that shows cause-and-effect connections between strategic objectives. The balanced scorecard framework is an amazing tool to use from outlining your mission, vision, and values all the way to implementing your strategic plan. You can use an integration like Lucidchart to create strategy maps for your business in Asana. Try Lucidchart integration with Asana 11. Porter’s Five Forces frameworkIf you’re using the real-time strategic planning model, Porter’s Five Forces are a great framework to apply. You can use it to find out what your product’s or service’s competitive advantage is before entering the market. Developed by Michael E. Porter, the framework outlines five forces you have to be aware of and monitor:
Remember, industry structures aren’t static. The more dynamic your strategic plan is, the better you’ll be able to compete in a market. 12. VRIO frameworkThe VRIO framework is another strategic planning tool designed to help you evaluate your competitive advantage. VRIO stands for value, rarity, imitability, and organization. It’s a resource-based theory developed by Jay Barney. With this framework, you can study your firmed resources and find out whether or not your company can transform them into sustained competitive advantages. Firmed resources can be tangible (e.g., cash, tools, inventory, etc.) or intangible (e.g., copyrights, trademarks, organizational culture, etc.). Whether these resources will actually help your business once you enter the market depends on four qualities:
It’s important that your resources check all the boxes above so you can ensure that you have sustained competitive advantage over others in the industry. 13. Theory of Constraints (TOC) frameworkIf the reason you’re currently in a strategic planning process is because you’re trying to mitigate risks or uncover issues that could hurt your business—this framework should be in your toolkit. The theory of constraints (TOC) is a problem-solving framework that can help you identify limiting factors or bottlenecks preventing your organization from hitting OKRs or KPIs. Whether it’s a policy, market, or recourse constraint—you can apply the theory of constraints to solve potential problems, respond to issues, and empower your team to improve their work with the resources they have. 14. PEST/PESTLE analysis frameworkThe idea of the PEST analysis is similar to that of the SWOT analysis except that you’re focusing on external factors and solutions. It’s a great framework to combine with the scenario-based strategic planning model as it helps you define external factors connected to your business’s success. PEST stands for political, economic, sociological, and technological factors. Depending on your business model, you may want to expand this framework to include legal and environmental factors as well (PESTLE). These are the most common factors you can include in a PESTLE analysis:
15. Hoshin Kanri frameworkHoshin Kanri is a great tool to communicate and implement strategic goals. It’s a planning system that involves the entire organization in the strategic planning process. The term is Japanese and stands for “compass management” and is also known as policy management. This strategic planning framework is a top-down approach that starts with your leadership team defining long-term goals which are then aligned and communicated with every team member in the company. You should hold regular meetings to monitor progress and update the timeline to ensure that every teammate’s contributions are aligned with the overarching company goals. Stick to your strategic goalsWhether you’re a small business just starting out or a nonprofit organization with decades of experience, strategic planning is a crucial step in your journey to success. If you’re looking for a tool that can help you and your team define, organize, and implement your strategic goals, Asana is here to help. Our goal-setting software allows you to connect all of your team members in one place, visualize progress, and stay on target. Set and achieve goals with Asana Which of the following is a crucial aspect of strategic planning?Communication is crucial to the success of the strategic planning process. It is initiated through participation and dialogue among the managers and employees, which shows their commitment to achieving organizational goals.
Which model of strategic management includes analysis and diagnosis?SWOT Analysis Model
By utilizing this basic model of strategic management, organizations can gain a competitive advantage over others.
What is diagnosis in strategic management?Strategic diagnosis is a systematic approach to determining the changes that have to be made to a firm's strategy and its internal capability in order to assure the firm's success in its future environment.
What are the key parts of a strategic plan?The major parts of a standard strategic plan include the following:. Mission, vision, and aspirations.. Core values.. Objectives, strategies, and operational tactics.. Measurements and funding streams.. |