Strategic planning involves considering potential internal and external impacts on the organization and then mapping out an approach to deal with these impacts. From a marketing standpoint, strategists consider customer needs, competitive factors and organizational advantages. There are a number of tools they can use as they develop and implement ways to ensure that the strategies and tactics developed are appropriate and plans can be effectively put into action.
The SWOT analysis is a tool used in strategic planning to identify and, ultimately, prioritize the organization's strengths, weaknesses, opportunities and threats. In fact, SWOT is an acronym that stands for these elements. The process involves a brainstorming session where participants create a list for each of these areas based on previously gathered data and information. Once the lists are created, a ranking process is used to prioritize the items so that the top items in each category can be used to provide a basis for the development of objectives, strategies and tactics.
Porter's Five Forces Model
Michael Porter developed his Five Forces Model and introduced it to the world in 1980 in his first book, "Competitive Strategy." The model provides a basis for companies engaged in strategic planning to consider the critical forces that are impacting it. These forces include existing competition between suppliers, the threat of new entrants to the market, the bargaining power of buyers, the power of suppliers and the threat of competitive products or services.
Mind maps are visual tools used in strategic planning to show how various items relate to each other. A mind map is a diagram that presents words, ideas or images linked to an initial central theme or idea. Mind maps are a form of brainstorming and was popularized by psychologist Tony Buzan in 1976, according to the University of Surrey. The process starts with an initial question or problem that is written in the center of a large piece of paper or on a whiteboard. Additional ideas or concepts are then tied to and branched out from the central idea.
The Balanced Scorecard is a method used to monitor the implementation and effectiveness of strategic plans. According to the Balanced Scorecard Institute, it has been popularized by Robert S. Kaplan and David P. Norton, who wrote about it in their book "The Balanced Scorecard" in 1996. It is a way for organizations to track progress on strategic planning goals across various categories that are balanced against each other to ensure appropriate focus across all areas.
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