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. Strategic planning is the formal consideration of an organisation's future course. All strategic planning deals with at least one of three key questions:
- What do we do?
- For whom do we do it?
- How do we excel?
In many organisations, this is viewed as a process for determining where an organisation is going over the next year or more – typically three to five years, although some extend their vision to 20 years. In order to determine where it is going, the organisation needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the 'strategic plan'.
It is also true that strategic planning may be a tool for effectively plotting the direction of a company. However, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organisational strategy. Therefore, strategic innovation and tinkering with the strategic plan have to be a cornerstone strategy for an organisation to survive the turbulent business climate.