Multimedia | Utility University
Strategic planning for results: 8 key steps
In the dynamic landscape of the public sector, the significance of strategic planning cannot be overstated. This proactive approach involves evaluating the current state of the organization, analyzing external factors, setting objectives and creating a roadmap for the future. But why is strategic planning so vital, and how can organizations navigate the challenges that often accompany it?
Importance of strategic planning
The critical importance of strategic planning lies in its multifaceted benefits. It not only facilitates effective budgeting and ensures alignment in resource allocation but also enhances communication within the organization. By fostering a clear vision and mission, strategic planning empowers organizations to adapt to changing environments, making it a fundamental process for sustained success.
Solutions to common challenges in strategic planning
Strategic planning is not without its challenges. Unrealistic or excessive goals, vague roles and resistance to change are hurdles that organizations often face. Solutions to overcoming these challenges can include:
Organizations should prioritize and focus on goals within their control to ensure realistic and achievable outcomes.
Realistic time commitments are essential. Organizations must be adaptable and willing to say “no” when necessary.
Connecting roles to goals is critical for ensuring organizational alignment and accountability in the strategic plan.
Key steps in strategic planning
Strategic planning involves key steps that form the foundation for success:
Step 1
Conducting environmental and SWOT analysis
Identifying internal strengths and weaknesses, as well as external opportunities and threats, provides a comprehensive understanding of the organizational landscape.
Step 2
Customer value proposition
Identifying major stakeholders and articulating the value proposition is essential for effective strategy development and future success.
Step 3
Vision, mission and values
Crafting a compelling vision, mission and values defines the organizational purpose and helps guide plans to achieve its goals.
Step 4
Defining goals and objectives
Clearly outlining both programmatic and organizational goals sets the direction for the organization.
Step 5
Key performance indicators (KPIs)
Developing quantifiable indicators aligns with strategic objectives, providing a focus for improvement and decision-making.
Step 6
Roles in implementation
Leadership plays a critical role in setting the tone, providing direction, building cross-functional teams and ensuring accountability.
Step 7
Continuous monitoring and evaluation
Strategic plans should not be static documents but living frameworks that adapt to changing circumstances. Continuous monitoring and evaluation are essential to prevent the failure of strategic plans. Selecting criteria, choosing evaluation mechanisms, collecting and analyzing data, and revising plans based on lessons learned are integral steps in this ongoing process.
Step 8
Creating a graphical strategy map
A key deliverable of strategic planning is the use of a graphical strategy map, such as the balanced scorecard. This visual representation connects projects, measurements, objectives and the organization's mission and vision, serving as a quick reference guide and facilitating communication.
Strategic planning is not just a managerial exercise; it's a compass that guides organizations through the complex terrain of today's ever-changing environment. By understanding its importance, addressing challenges proactively and embracing continuous monitoring, organizations can navigate the future with confidence and resilience.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
During Baker Tilly’s on-demand webinar, Khala Stanfield and Chris Strom cover a variety of approaches for conducting a strategic planning process and how to make sure the plan gets implemented and results are communicated to stakeholders, both internal and external. Learn about the steps to a successful strategic planning process, how to develop meaningful key performance indicators (KPIs) and how to continue internal and external engagement throughout the implementation process.
Key takeaways
- Recognize the components of a best practice strategic planning process
- Define KPIs associated with strategic initiatives
- Identify the role that change management and communication plays in the strategic planning process
Presenter
Khala Stanfield | Director, Baker Tilly
Chris Strom, MPA | Senior Consultant, Baker Tilly
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
