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Before analysing about STRATEGIC PLANNING, it is necessary to understand the term 'STRATEGIC MANAGEMENT' of which STRATEGIC PLANNING is but a TOOL.
According to David F. (Strategic Management, Columbus: Merrill Publishing Company, 1989), 'Strategic management is the art and science of formulating, implementing and evaluating cross functional decisions that will enable an organisation to achieve its goals'.
The term 'MANAGEMENT' is now being gradually replaced with 'STRATEGIC MANAGEMENT' to describe the responsibility and working at higher levels of management. However, these higher levels of management can only influence the organisation's effectiveness with the help of certain tools of management such as the organisation's planning (Strategic planning) and control systems, the organisational structure, the organisation's competitive strategy and the management techniques.
Strategic planning is an organisation's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT (Strengths, weaknesses, opportunities, threats) analysis and PEST analysis.
The outcome is normally a strategic plan which is used as guidance to define functional and divisional plans, including Technology, Marketing, etc.
There is no standard definition for STRATEGIC PLANNING. However, different versions of it's definition do exist. For eg.
The process of determining a company's long-term goals and then identifying the best approach for achieving those goals.
Strategic planning saves time, every minute spent in planning saves ten minutes in execution.
The purpose of individual strategic planning is for you to increase your return on energy, the return on the mental, emotional, physical and spiritual capital you have invested in your life and career.
Every minute an individual spends planning their goals, activities and time in advance saves ten minutes of work in the execution of those plans. Careful advance planning gives you a return of ten times, or 1,000%, on your investment of mental, emotional and physical energy.
To bring the entire community together working toward the same future vision of success in the context of its core values
A Strategic Plan is a framework for strategic thinking that helps a school stay competitive, live into its core values, ward off threats and take advantage of opportunities.
As wide as possible.
' Core Values Statements
' Overarching Goals
' Evaluation System
Organic in areas of strategy and initiatives; static for the duration of the plan in areas of mission, vision, values and goals.
Process hallmarks are:
inclusivity, accountability, shared responsibility, evaluation and institutionalization.
Tourism growth worldwide provided a wide social and economic windfall and a high priority for nations and community all over the world.
Throughout the world today a policy makers making a wide planning to promote tourism, based on the simple rule of the more economy. Tourism is more important to mankind to drift.
PURPOSE OF TOURISM POLICY:
Is to know about the necessity of planning and also fears and misunderstanding of planning. Main purpose is to reach towards better economic impact of enhanced visitors satisfaction.
CONCEPTS OF TOURISM PLANNING:
According to ROSE 1884, Planning is a multidimensional activity and seeks to be integrative. It embraces political, psychological and technological factors. And more it is concerned with the past, present and the future.
Planning of tourism development is a relatively recent. It stimulates with a mathematical formulas of demand, supply, attractiveness and selection of plans. Generally most tourism planning approaches have also been influenced by the field of urban and rural planning. Nowadays more tourism planning has been developed because is more competitive then before.
The need for tourism planning may not be as conspicuous as other development concerns. But, nevertheless its true. Throughout the world, public and private sectors trying to implement tourism in good manner. New approaches are developing like adventure travel, cultural and ecotourism.
In recent decades, the concept of tourism have given rise to a systematic process.
GOALS OF TOURISM DEVELOPMENT PLANNING:
Goals are defined as from different objectives. Goals are ideals or it should be some aims and objectives. Objectives are specific, real and actual activities that can be accomplished within a given time.
WHAT IS PLANNING FOR TOURISM?
The planning system, by taking a pro-active role in facilitating and promoting the implementation of good quality development, is crucial to ensuring that the tourism industry can develop and thrive, thereby maximising these valuable economic, social and environmental benefits. At the same time, the planning system aims to ensure that these benefits are achieved in the most sustainable manner possible
Main Components of the strategic plan:
Vision and Mission Statement:
A mission statement is a statement of the company's purpose or it's fundamental reason for existing. The statement spotlights what business a company is presently in and the customer needs it's presently striving to meet. To build a good foundation for a successful business, it's essential to have a written, clear, concise, and consistent mission statement. This statement should simply explain who you are and why you exist. The mission statement of Olsen & Associates Public Relations is 'Dedicated to improving and optimizing public perceptions on behalf of our clients.' If the company doesn't live up to this mission, it has no reason to exist.
Elements of an effective mission statement:
Your mission statement serves as a guide for day-to-day operations and as the foundation for future decision-making. Make sure that your statement includes the following criteria:
Focuses on satisfying customer needs: Focus the business on satisfying customer needs instead of spotlighting your product or service.
Based on your core competencies: Base the mission on a competitively superior internal strength or resource that the company performs well in comparison to your competitors.
For e.g. McDonald's core competency is providing low-cost food and fast service to large groups of customers.
Motivates and inspires employee commitment: The mission statement should be motivating. Don't base it on making more sales or profits but on employees' significant work and how the mission contributes to people's lives.
Realistic and clear: Avoid making the mission too narrow or too broad. A mission needs to contain a purpose that's realistic to avoid 'mission creep.' Many organizations can go off on tangents that aren't core to their purpose and are unrealistic because their mission isn't clearly defined.
Specific, short, sharply focused, and memorable: Write a precise statement of purpose that describes the essence of the business in words the employees and customers can remember you by.
Clear and easily understood: Develop and write our mission statement so that you can quickly and briefly tell people you meet at a party or on airplanes why your company exists. If you keep that concept in mind, your statement can automatically be short and comprehensible.
Says what the company wants to be remembered for: In the end, a mission statement leaves a lasting impression. How do you want the world to think of you? The statement can provide simple insight into why you do business.
Forming a strategic vision should provide long-term direction, delineate what kind of enterprise the company is trying to become, and infuse the organization with a sense of purposeful action. Vision serves as a unifying focal point for everyone in the organization ' like a North star. In fact, your vision statement needs to be something you can achieve at some point in the future.
Visions are also referred to as big, hairy, audacious goals or BHAGs. A vision statement can be as far reaching as 100 years or as short as five years. Some people think if you aren't planning for 20 years in the future, you're being too short-sighted. Others say that the world is changing too quickly to plan more than a few years out. Either way, your vision statement needs to work for your company and the industry you operate in. I recommend developing a vision statement that's far reaching but attainable. If you attain it in a shorter amount of time, congratulations! But if you don't push your thinking out far enough, you find yourself being too tactical in your strategic planning.
A vision should include:
A vision statement: A short, concise statement of the organization's future state.
A vivid description: A long list of words and phrases that describe what that future state is like.
Here are two examples of visions or BHAGs that were very lofty at the time they were established:
We will put a man on the moon before the end of the decade and bring him back (President John F. Kennedy).
Elements of an effective vision statement
The vision statement needs to incorporate many elements. The following list contains elements that one can include in an effective vision statement.
Audacious: Represents a dream that's beyond what you think is possible. It represents the mountaintop the company is striving to reach. Visioning takes you out beyond your present reality.
Capitalises on core competencies: Builds on the companys core competencies. It builds on what is already established: company history, customer base, strengths, and unique capabilities, resources, and assets.
Future casting: Provides a picture of what the business looks like in the future.
Inspiring: Engaging language that inspires. It creates a vivid image in people's heads that provokes emotion and excitement. It creates enthusiasm and poses a challenge.
Motivating: Clarifies the direction in which the organization needs to move and keeps everyone pushing forward to reach it.
Purpose-driven: Gives employees a larger sense of purpose, so they see themselves as building a cathedral instead of laying stones.
Many people mistake vision statement for mission statement. The Vision describes a future identity and the Mission describes why it will be achieved. A Mission statement defines the purpose or broader goal for being in existence or in the business. It serves as an ongoing guide without time frame. The mission can remain the same for decades if crafted well. Vision is more specific in terms of objective and future state. Vision is related to some form of achievement if successful.
A mission statement can resemble a vision statement in a few companies, but that can be a grave mistake. It can confuse people. The vision statement can galvanize the people to achieve defined objectives, even if they are stretch objectives, provided the vision is SMART (Specific, Measurable, Achievable, Relevant and Timebound).
A mission statement provides a path to realize the vision in line with its values. These statements have a direct bearing on the bottomline and success of the organization.
GOALS, AIM AND OBJECTIVES:
Strategic planning is a very important business activity. It is also important in the public sectoe areas such as education. It is practiced widely informally and formally. Strategic planning and decision processes should end with objectives and a roadmap of ways to achieve those objectives.
The following terms have been used in Strategic Planning: desired end states, plans, policies, goals, objectives, strategies, tactics and actions. Definitions vary, overlap and fail to achieve clarity. The most common of these concepts are specific, time bound statements of intended future results and general and continuing statements of intended future results, which most models refer to as either goals or objectives (sometimes interchangeably)
One model of organizing objectives uses hierarchies. The items listed above may be organized in a hierarchy of means and ends and numbered as follows: Top Rank Objective (TRO), Second Rank Objective, Third Rank Objective, etc. From any rank, the objective in a lower rank answers to the question "How?" and the objective in a higher rank answers to the question "Why?" The exception is the Top Rank Objective (TRO): there is no answer to the "Why?" question. That is how the TRO is defined.
People typically have several goals at the same time. "Goal congruency" refers to how well the goals combine with each other. Does goal A appear compatible with goal B? Do they fit together to form a unified strategy? "Goal hierarchy" consists of the nesting of one or more goals within other goal(s).
One approach recommends having short-term goals, medium-term goals, and long-term goals. In this model, one can expect to attain short-term goals fairly easily: they stand just slightly above one's reach. At the other extreme, long-term goals appear very difficult, almost impossible to attain. Strategic management jargon sometimes refers to "Big Hairy Audacious Goals" (BHAGs) in this context. Using one goal as a stepping-stone to the next involves goal sequencing. A person or group starts by attaining the easy short-term goals, then steps up to the medium-term, then to the long-term goals. Goal sequencing can create a "goal stairway". In an organisational setting, the organization may co-ordinate goals so that they do not conflict with each other. The goals of one part of the organization should mesh compatibly with those of other parts of the organization.
Having goals, objectives, and strategies are great, but knowing how they all work together (if in fact they do) and if you need them all is another story. I suggest ignoring the semantics and focusing on establishing a time frame. What matters is having a combination of long-term and short-term markers to keep your organization moving in the right direction. Think of the following hierarchy to demystify the terms of your priorities:
Core Values: Your guiding principles that rarely change and that you to stick to no matter what vision you're pursuing
Mission: The underlying reason why you're in business in the first place
Vision: The big, hairy, bold goal you're headed for, and the thing concept that everything your company does is focused on.
Strategy: The guiding statement that explains how you get to your vision
Three year strategic objectives: Intermediate goals that are broad and continuous, that you achieve on the way to the vision, and that explain the activities need to be in to achieve vision
One year goals: One year markers that support your long term strategic objectives
Action items: Items that explain who and the when.