Strategic Planning

 It is the macro perspective of the organization.

 It determines the goals of the organization, sets milestones, and ensures that those goals are
aligned with its mission, vision, and core values.
 It is the process an organization goes through in determining the strategy that can help it in
accomplishing specific goals.

Distinct Features of Strategic Planning

 Strategy – provides the reason why certain steps must be chosen;

 Planning outlines how to establish those steps.

Aim of Strategic Planning

- To provide a well-thought and deliberate approach to achieve goals based on a deep analysis of
both internal & external environments that affect the organization.

Benefits of Strategic Planning

 It aligns those goals of units with the organizational goals.

 It provides clear direction to all stakeholders and clients.
 It clearly defines the vision and mission of an organization.
 It clearly provides for internal or environmental changes.

Importance of Strategic Planning

- Identifies the gaps between an existing state and a desired future state then closes the gaps.
- It provides clear direction from getting from where the organization is now to where it needs to
be.

Parts of a Strategic Plan

1. Introduction – describe the reason why the plan was developed, the period covered, and the
planning team.
2. Background – basic information of the organization, history, structure and the nature of the
organization.
3. Organizational Structure – information on how the organization operates. Description of the
organization and the responsibilities.
4. Mandate – legal basis for creating the vision and mission of the organization.
5. Vision – a brief statement describing what the organization wants to achieve within a certain
period. It is a guiding statement for the whole organization.
6. Mission – describes the main purpose of an organization. It works for the goal of the
organization.
7. Core Values – are core principles that an organization adheres to. These core values shall guide
the development of culture in the workplace.
8. Problem – statement outlines key issues that must be addressed during the period of
implementation of the strategic plan.
9. SWOT Analysis – provides the basis and context for developing the strategy. It explains the
INTERNAL & EXTERNAL factors that affects the organization
10. Goals – may be long term (6 years) or short term (1 year) and SMART. Desired OUTCOME is
stated and the manner by which the outcomes are evaluated.
11. Evaluation – it describes the preferred tools of evaluation. It may be a process, impact, outcome,
and summative evaluation.
12. Executive summary – the part where it provides reader/s a brief understanding of the strategic
plan.
 Differentiating a Tactical Plan

 Must allow flexibility for certain unforeseen events in the internal & external environments; if
tactics does not work immediately adopt new plan to avert crisis.
 It specifies resources as well as timeframes; describes specific activities to reach the goal; must
be articulated to workers.
 Middle managers must regularly coordinate with the workers, get regular reports, process these
reports, make use of the reports in polishing work; feedback to higher levels of management
 Based on strategic goals; tactical plans are consistent with the strategic plan.

Meaning Tactical Plan

- Describes the strategy how middle managers shall implement the organizational strategic plan.

Features of Tactical Plan

- Short-term goals accomplished within a year; specific work; daily guide

Factors in the implementation of Tactical Plan:

1. There is available data and resources to operate the plan.

2. Clearly communicated to all concerned to minimize conflicts in interpretation.
3. Monitor activities & processes regularly if adhering to plan

Strategic decision-making process

 Strategic decision-making – refers to identifying the best way to achieve goals and objectives.
These goals and objectives are long-term, and strategic decision-making assists in describing a
company's main objectives to achieve shorter-term goals with a broad mission.

Strategic leadership in Strategic management

 Strategic leadership – is a practice in which executives, using different styles of management,

develop a vision for their organization that enables it to adapt to or remain competitive in a
changing economic and technological climate.
 What are the 4 types of strategic leadership?
1. Transactional leadership,
2. Transformational leadership,
3. Visionary leadership, or.
4. Collaborative leadership.
 Four Ps of Strategic leadership:
1. Perception
2. Process
3. People
4. Projection
 Transactional leadership

 Transactional leadership – focuses on results, conforms to the existing structure of an

organization and measures success according to that organization’s system of rewards and
penalties.
 Transactional leaders have formal authority and positions of responsibility in an organization.
 This type of leader is responsible for maintaining routine by managing individual performance
and facilitating group performance.
 This type of leader sets the criteria for their workers according to previously defined
requirements.
 Performance reviews are the most common way to judge employee performance.
 Transactional, or managerial, leaders work best with employees who know their jobs and are
motivated by the reward-penalty system.
 The status quo of an organization is maintained through transactional leadership.

Characteristics:

 Focused on short-term goals

 Favor structured policies and procedures
 Following rules and doing things correctly
 Take pleasure in efficiency
 Very left-brained
 Tend to be inflexible
 Opposed to change

Advantage/Disadvantage

 Rewards those who are motivated by self-interest to follow instructions

 Structure is not clear for large corporation
 Achieve short-term goals quickly
 Not fit for organizations where initiatives is encouraged
 Creativity is limited since goals & objectives are already determined

Transformational leadership

 Focuses on the basic distinction between leading for change and leading for stability.

 Four components of Transformational leadership (as introduced by James V. Downton in 1973

and later expanded by Bernard M. Bass in the mid-1980s).

1. Intellectual Stimulation – leaders motivate employees to learn and develop new skills and
promote an environment where team members feel free to apply creative solutions, offer
contrasting perspectives, or voice their concerns.
2. Individual Consideration – leaders are highly excellent listeners with high levels of empathy.
3. Inspirational Motivation – leaders are adept at communicating the mission or vision
underpinning an organization. Inspire the followers to challenge themselves and achieve
more, which has the benefit of producing a more confident and autonomous workforce.
4. Idealized Influence – leaders are leading by example, therefore, can increase trust and team
engagement

Traits of Transformational leaders:

1. Self-aware – they know their strength & weaknesses. Firm believers in continued personal
growth & lifelong learnings.
2. Open-minded – listen and empathize with their followers while building creative and innovative
solutions to problems
 3. Ethical – leading by example, setting and adhering to high moral & ethical standards.
4. Adaptable – leaders are adaptable to experiment and grow, flexible.
5. Proactive – leaders are not passive or reactive; take their own initiative and work to stay ahead
of the curve, inspiring followers to do the same.
6. Creative – leaders practice unconventional thinking to transform an industry or organization.
7. Humble – leaders accept feedback and implement letting of their ego.
8. Active Listener – attentive, asking open-ended questions that show engagement and striving for
clear communication.
9. Risk-taking – in order to bring change to the organization leader need to take calculated risks
and actions outside of their direct knowledge.
10. Accountable – leading by example with accountability.
11. Encouraging – leaders that excel in encouraging team members to try different strategies.

Benefits of Transformational leadership:

The practice of transformational leadership produces empowered members, producing long-term

financial stability and growth. Five benefits are as follows:

1. More engaged employees – higher satisfaction with managers or leaders

2. Improved Financial outcomes
3. Better employee performance
4. Stronger team relationships
5. Lower employee turnover

Pros of Transformational leadership

1. Improves motivation
2. Defines goals and expectations clearly
3. Places a strong emphasis on professional development
4. Promotes better communication and increased transparency
5. Boosts morale
6. Provides more freedom for employees
7. Unites the team

Cons of Transformational leadership

1. Complicates decision-making
2. Creates a heightened need for communication
3. Burnout may become more frequent
4. Risky and disruptive to the organization or team, especially in the early stages of its development
5. Role can be abused and lead the team down
6. Leader can lose power over the team