BUSINESS PLANNING
Strategic planning is creating a vision of the future and managing towards that future.
Strategic planning is a process of determining what an organization intends to be in the
future. An organization searches for the best possible future and then determines how to
reach it. The purpose of the strategic plan is to provide a road map to guide the
organization and the decisions it makes (Murphy, 2004). The roadmap tells you, your staff
and the world how you expect your organization to achieve its stated objectives.
A strategic or business plan has often been defined as a comprehensive document that
clearly describes how the organization tends to operate its business. It is the blueprint that
sets you going towards your goals. It is an important communication tool that also details
the financial strategy associated with achieving the goals of the organization. In contrast,
operational planning is more detailed than a strategic or business plan as it focuses in on
just the operations. An operational plan identifies how an organization will implement the
business plan in a given year. An operational plan contains a breakdown of activities that
supports business plan strategies and ongoing programs. Operational plans are also
referred to as work plans, where employees should see how their work connects to the
organization’s business plan.
Strategic business planning is creating a vision of the future and managing towards that
future. It will focus the effort of your ASB, and provide an effective process to align short-
term decisions with long-term goals. It will also aid your ASB in responding to changing
environments. Strategic planning is a process all ASBs should go through every three
years, coordinating with local government elections to:
·
Set realistic goals of the board;
·
Provide a road map to show where the ASB is going and how to get there;
·
Develop better coordination of activities with stakeholders;
·
Develop a frame of reference for budgets and short-range operating plans;
·
Build commitment among key stakeholders;
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Identify and analyze issues affecting clients, stakeholders and the industry.;
·
Recognize the impact current issues are having on the ASB and how they affect the
needed changes in direction to address them;
·
Identify and analyze available opportunities and potential risks; and
·
Develop better communications with those both inside and outside the ASB.
It is important that the ASB members be completely involved in planning, as this is the way
in which they as ASB members give their input and as a result, take ownership of the plan
that they create. Planning must be done on an ongoing basis, and reviewed at least once
per year by the ASB.
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