Types of Strategic Planning

TYPES OF STRATEGIC PLANNING
Intro: Business owners develop plans to reach their overall goals. They usually find it useful to separate planning
into phases because this allows them to track immediate improvements while evaluating progress towards
eventual goals and targets. Since we already discussed Strategic Management Process, let’s now differentiate Types
of Strategic Planning. We can differentiate these types based on the time frames of their inputs and expected
outcomes.
Types of Strategic Planning:

1. Annual Plan/Yearly Plan (goal-setter plan)
- an annual plan is a strategy that a company uses to set goals and expectations for the coming year. It helps
employees visualize where they are headed and how they can get there. The annual plan also sets out a company's
long-term goals and helps guide how it will reach these targets. It basically sets goals for the year
- annual planning circles around performance. It helps to define what is critical to achieving over the year.
It delivers clear leadership to employees and it helps to keep the workforce united. Employees gain a clear sense of
direction in their departments and roles. An annual business plan helps workers set goals and holds them
accountable for achieving those goals
- if strategic planning is seen as a roadmap for an organization to reach their goals, segments of the journey
need to be completed yearly, in a continuous and organized fashion, to help keep track of the business’ progress
Example: Have 10% higher sales.
2. Short-range Plan (plan for immediate goals)
- also known as the "operational plans" that is concerned with outlining all the planning that is related to
daily operations
- it is a short run operating period, generally takes a year or season. Wherein it involves gathering of
information that will be selected as the most effective course of action after evaluating the info.
- it provides concrete base for evaluating progress toward the achievement of the intermediate and long-
range plans
- short term plan/goals can also be stepping stones or actionable steps to reach a long-term goal much
further down the road.
Example: Reading two books every month, exercising two times a week, or even improving your time management
to become more productive at school or work.
3. Medium-range Plan (plan to achieve presents goals)
- entails strategies that focus on permanent solutions to short-term concerns. short-term planning deals
with the here and now while medium-term plans address actions intended to permanently resolve short-term
issues. Medium-term planning is the implementation of policies and procedures that ensure short-term problems
don't recur.
- necessary for establishment of clear and accurate awareness of the aims, goals and objectives. In which
can help people to organize their information and make sophisticated judgements about the nature and structure
of the plan
- medium-range plans outline the company's direction for several years into the future. Unlike long-term
plans, which may set goals that take decades to complete, medium-range plans deal with time frames that typically
span 18 months to five years into the future, whichever is for the organization
Examples: Opening a new store
Completing a degree program
Earning a management position in your field
4. Long-range Plan (plan to achieve future goals)
- going back, short-term planning evaluates your progress in the present and creates an action plan to
improve performance daily. However, long-term planning is a comprehensive framework that comprises of goals
to be met within a five-to-ten-year period that outlines the path for the company's future
- long-range planning is about changing the direction of the organization to meet its long-term goals and
protect it from the disturbances that periodically affect the economy.
- to be fast, a long-range plan is a document that acts like a map, because the company stabilizes clearly
how they are going to get their goals and how they want to take a position in the market. It allows to accurately
prioritize work, and have under control your growth and results. This document frees you from the troubling cycle
of day-to-day planning, no need to say that this Long-Range Plan doesn’t save you the little problems that you can
find on your day today. But you have an important vision of where you want to arrive
Example: Hire 50 or more staff members within the next four to five years. In executing this plan, you may set goals
using short term plan for which position needs to get filled quickly.
Outro: Numerous organizations foster these plans as key preparation. To summarize, annual plans are used to set
goals for the year, short-term is an arrangement to accomplish prompt objectives, medium-term requires quite a
while to accomplish, and finally, long-range plan incorporates generally speaking objectives that is met inside 4-5
years. Having these plans assists you with finishing momentary responsibilities while remembering longer-term
objectives.

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TYPES OF STRATEGIC PLANNING

Types of Strategic Planning:

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