Strategic Planning Models Flashcards
Refers to the frameworks, processes, and
methodologies used by organizations
to develop and implement strategic
plans
Strategic Planning Model
Designed to help organizations takes
its strategy and creates a plan to
implement it to improve operations
and better meet its goals.
Strategic Planning Model
Ideal for establishing your company’s
vision, mission, business objectives,
and values
Basic SPM
Outline the specific steps you need to
take to reach your goals.
Basic SPM
Monitor progress to keep everyone
on target.
Basic SPM
Address issues as they arise
Basic SPM
Also known as “goal-based planning
model”
Issue-based SPM
Essentially an extension of the basic
strategic planning model.
Issue-based SPM
Aims to identify the major challenges
your organization faces now
Issue-based SPM
This is typically a short-term (6-12
months), internally-focused process.
Issue-based SPM
Three steps of Issue-based strategic
planning model
- Identify
- Suggest
- Include
Also called the strategic alignment
model (SAM), one of the most
popular strategic planning models.
Alignment SPM
Focuses on first looking internally to
develop a strategy.
Alignment SPM
It helps determine the degree to
which the organization is aligning its
longer-term plans.
Alignment SPM
Resources, Opportunities,
Vulnerabilities, Risk
Alignment SPM
4 IMPORTANT PERSPECTIVE when applying
the alignment strategic planning model
- Strategy Execution
- Technology Potential
- Competitive Potential
- Service Level
Alignment Strategic Planning Model
- Outline
- Identify
- Adjust
- Include
Making assumptions on what the
future is going to be and how your
business environment will change
over time considering that future.
Scenario SPM
This model needs to consider
external factors such as government
regulations and technical, or
demographic changes that may
impact your business.
Scenario SPM
Also called the “organic planning
model”
Self-organizing SPM
Focus on the company’s shared
vision and values instead of plans
and processes.
Self-organizing SPM
Concentrates on continuous
improvement.
Self-organizing SPM
Self-organizing strategic planning model
- Clarify
- Articulate
- Adjust
- Dialogue
- Remind
- Learn
- Reflect
Primarily used by organizations that
need to be more reactive, and
perform strategic planning in “real-time.”
Real-time SPM
Long-term plans quickly become
irrelevant because of rapid changes.
Real-time SPM
3 levels of real-time strategic planning
- Organizational
- Programmatic
- Operational
Forming strategies in response to opportunities or trends
Organizational
Decide how to
respond to specific outcomes or
environmental changes.
Programmatic
Study internal systems, policies, and people to
develop a strategy for your
company.
Operational
Designed to inspire and energize
people on the team as they work
toward your organization’s goals.
Inspirational SPM
People discuss an inspirational
vision for the company and
brainstorm far-reaching
Inspirational SPM
Developed in the late 1970s by Tom
Peters and Robert Waterman,
former consultants at Mckinsey &
Company
McKinsey 7s SPM
One of the most popular strategic
planning tools.
McKinsey 7s SPM
Businesses commonly use it to
analyze internal elements that affect
organizational success.
McKinsey 7s SPM
7 key elements of McKinsey 7s Model
- Strategy
- Structure
- Systems
- Shared Values
- Style
- Staff
- Skills
Organization’s plan for
building and maintaining a
competitive advantage over its
competitors.
Strategy
How your company is
organized.
Structure
The daily activities and
procedures to get the job done
Systems
The core values of
the organization
Shared Values
The style of leadership adapted
Style
The employees and their
general capabilities.
Staff
The actual skills and
competencies
Skills
Two categories of McKinsey elements
- Hard Elements
- Soft Elements
Hard Elements
- Strategy
- Structure
- Systems
Soft Elements
- Shared Values
- Style
- Staff
- Skills
Strategic management tool that
evaluates performance relating to
four perspectives: Financial,
Customer, Internal Business, and
Learning and Growth.
Balance Scorecard SPM
4 Perspectives in Balance Scorecard SPM
- Financial
- Customer
- Internal Business
- Learning and Growth
Balances strategy with financial
measurements
Balance Scorecard SPM
Developed by Robert Kaplan and
David Norton in 1990s.
Balance Scorecard SPM
SPM best for: Small businesses ororganizations.
Basic SPM
SPM best for: Companies with little to no strategic planning experience.
Basic SPM
SPM best for: Organizations with few resources.
Basic SPM
SPM best for: Organizations with basic strategic planning experience.
Issue-based SPM
SPM best for: Businesses that are looking for a
more comprehensive plan.
Issue-based SPM
SPM best for: Organizations that need to fine-tune their strategies
Alignment SPM
SPM best for: Businesses that want to uncover
issues
Alignment SPM
SPM best for: Companies that want to reassess
objectives.
Alignment SPM
SPM best for: Organizations trying to identify
strategic issues and goals caused by
external factors.
Scenario SPM
SPM best for: Companies need to react quickly
Real-time SPM
SPM best for: Businesses that are seeking new
tools to help them.
Real-time SPM
SPM best for: Large organizations that can afford to take their time
Self-organizing SPM
SPM best for: Businesses that prefer a more
naturalistic, organic planning
approach.
Self-organizing SPM
SPM best for: Companies that have a clear
understanding of their vision.
Self-organizing SPM
SPM best for: Organizations looking for inspiration to reinvigorate the creative process.
Inspirational SPM
SPM best for: Companies looking for quick
solutions and strategy shifts.
Inspirational SPM
SPM best for: Organizations that want to assess and improve its structure, strategy,
and performance, regardless of their
size, industry, or structure.
McKinsey 7s SPM
SPM best for: Organizations that are committed to transparency and accountability.
Balance Scorecard SPM
SPM best for: Both small and large organizations of any industry
Balance Scorecard SPM
