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The Planning Process

19 一月, 2016 - 14:33

Planning can be accomplished in a variety of ways. Figure 8.1 presents a typical model of the strategic planning process. 1 The mantra is an often-repeated phrase that provides the basis for the existence of the company. It is a slogan, a watchword, a byword, or a motto that breathes life into the firm’s existence. The mantra is not a replacement for the mission statement. The mission statement is an overall view of the business at an abstract level. It describes what the company does and why it exists and how it satisfies customer needs. The mission statement can also include a statement reflecting whether the company will focus on product differentiation and niche markets, focus on being price-competitive, or focus on both. The mantra and the mission are rarely static but ever-changing and emerging throughout the life of the firm.

The essence of the planning process consists of looking-inside and looking-outside analysis. Analysis involves both introspection and extrospection. The internal and external organization environments are examined using a number of analytical approaches, several of which are included in Table 8.1. These techniques will be covered in the next section. There is a lot of confusion related to identifying goals and objectives. Many view the terms goals and objectives to be interchangeable. Goals are more abstract and broader than objectives. Objectives are generally more detailed. The important point that will be discussed in The Ten-Ten Planning Process: Crafting a Business Story is to identify the goals and objectives that will help support the mantra, the mission, and the value proposition over a certain time frame. The tactics are the activities the organization will use over the next 3 months to a year to reach their goals and objectives. The tactics can include timetables and schedules related to the goals and objectives. The key to the model in Figure 8.1 is that this is not a linear process. Sometimes a new mission emerges after analysis has been completed. Mission statements that change reflect an organization that can adapt to dynamic environments.

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Figure 8.1 The Planning Process (Adapted from May) 
 

Inter organizational focus

External competitive environments focus

Time to execute

Table 8.1 Orientations of Strategic Planning Approaches

Value and supply chain analysis

High

Low

Moderate

Porter’s five force model

Low

High

Long

Resource-based framework

High

Moderate

Long

Strategy maps

High

Moderate

Long

Creating Blue Ocean markets using the strategy canvas

Moderate to high

Moderate to high

Short

SWOT analysis

Moderate to high

Moderate to high

Short

 

We will revisit the definitions in The Ten-Ten Planning Process: Crafting a Business Story and illustrate how the planning process can be streamlined and made more efficient and facilitate the development of business plans in a very short time span using the Ten–Ten planning process.