Strategic planning models are a vital tool in any organisation’s toolbox. They can identify and address specific goals, map out a plan of action, and track progress. There are many different models available, each with advantages and disadvantages.
However, no model is perfect for every organisation. It’s essential to select the model that best suits the specifics of your business.
What is a Strategic Planning Model?
A strategic planning model is a process that organisations use to plan their future. The model helps the organisation identify its goals, objectives, strategies, and plans for achieving them. The model can help the organisation decide how to allocate resources and improve its performance. There are many different types of strategic planning models, but they all have some common uses and benefits.
One type of strategic planning model is the business strategy model. This model helps businesses determine which products or services to offer and how to position them in the market. It also helps businesses decide which markets to target and which products or services to offer.
Another type of strategic planning model is the marketing strategy model. This model helps businesses determine which marketing strategies to use and how much money to spend on each one.
Do You Need a Strategic Planning Model?
Strategic planning is a process that helps organisations define their long-term goals and objectives, create plans to achieve them, and assess the effectiveness of their current strategies. A strategic planning model can help an organisation implement its plans and track progress.
There are many advantages to using a model, including the following:
- Provides structure: A model provides a framework for organising thoughts and ideas, which can help participants focus on critical issues.
- Offers a starting point: A model provides an initial set of assumptions about the business environment and what needs to be done to compete. It also guides how best to measure success.
- Facilitates communication and consensus-building: By providing a common language and structure for discussion, models help groups build consensus on decisions.
18 Strategic Planning Models To Consider
1. Balanced Scorecard
There are many strategic planning models available to organisations, but one of the most popular is the balanced scorecard. A Balanced Scorecard is a tool that has been used by businesses for decades to measure their performance and make strategic decisions.
The Balanced Scorecard was developed in the early 1970s by Dr Joseph L. Weihl and Dr James P. Womack at the Institute for Management Studies in California.
The goal of the Balanced Scorecard was to improve business decision-making by providing managers with a comprehensive view of their organisation’s performance across dimensions such as financial results, customer satisfaction, employee productivity, environmental impact, and social responsibility.
Today, the Balanced Scorecard is used by organisations worldwide to measure their performance and make decisions that will improve it.
2. VRIO Framework
Virtual Reality (VR) is a growing industry with great potential. It can transport users into different worlds, which can be used for several purposes, such as entertainment, education, and training.
There are many different VR frameworks available, but one that should be considered when planning for VR strategy is the VRIO framework. This framework can help organisations understand their goals for VR and identify how they can be used to achieve those goals.
One significant benefit of using the VRIO framework is that it helps organisations develop a clear vision for VR. Without a plan, it’s challenging to know what to build or where to focus resources. The framework also guides how to create compelling experiences for users and manage risks associated with VR. Finally, the framework helps organisations measure progress and adjust strategies as needed.
3. PEST Model
The pest model is a strategic planning model that can be used by organisations to identify and prioritise opportunities and threats. The pest model uses a five-level hierarchy to organise opportunities, threats, needs, resources, and risks.
The first level of the hierarchy is opportunities, which are things that could happen that would make your organisation better off. The second level of the hierarchy is threats, which are things that could happen that would make your organisation worse off.
The third level of the hierarchy is needed, which are things your organisation needs to be successful. The fourth level of the hierarchy is resources, which are things your organisation has available to it.
The fifth level of the hierarchy is risks, which are things that could happen that would make your organisation worse off even if it had all the resources it wanted.
4. Strategy Map
The strategy map is a strategic planning model that helps managers to identify the goals and objectives of an organisation, as well as the steps needed to achieve them. The strategy map helps managers to understand how their business works and where it can improve.
Additionally, the strategy map can help managers make better decisions by helping them see how different initiatives impact each other.
To use the strategy map effectively, managers must first understand its benefits. First, the strategy map is easy to use; all you need is a sheet of paper and some markers. Second, the strategy map is versatile; it can be used for small and large organisations.
Third, the strategy map helps managers to see relationships between different parts of their business; this is important because it allows them to make better decisions about which initiatives to pursue.
5. Porter’s Five Forces
Porter’s Five Forces is one of the strategic planning models to consider. The model was developed by Michael E. Porter in 1979, and it is a framework for analysing the competitive environment of a business or organisation.
It uses five forces to determine the competitive intensity and profitability of an industry: the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants, the threat from substitutes, and industry rivalry.
The model is helpful because it helps companies understand their competitors and assess their potential threats. It allows them to identify which areas of their business are most vulnerable to attack and make strategic decisions based on that information.
The five forces are important because they help companies determine their ability to resist competition and influence their surroundings. They also help companies decide how much they should spend on marketing, R&D, and other resources.
6. SWOT Analysis
SWOT analysis can be a helpful strategic planning model to consider. The SWOT analysis is a tool that helps identify strengths, weaknesses, opportunities, and threats. It can be used to help improve business strategy and performance.
There are many benefits to using the SWOT analysis as a strategic planning model. First, it can help identify the strengths and weaknesses of an organisation. This can help improve decision-making by ensuring that resources are directed towards areas where the company has strengths and away from areas where the company may have weaknesses.
Additionally, it can help identify opportunities for growth and improvement. Finally, it can help assess the risk associated with different strategic options. By understanding the risks involved in various options, businesses can make informed decisions about how best to proceed.
7. Objectives and Key Results
Objectives and Key Results (OKR) are a popular strategic planning model that can be used to focus and track progress towards specific goals. They are also a valuable way to communicate results with managers and employees. Here are some key advantages of using OKRs:
- They help keep priorities clear. By setting specific goals, managers can more easily determine what needs to be done to achieve those objectives.
- They help track progress. Knowing how far the organisation has come towards its goals is an essential confirmation of success.
- They provide a framework for setting stretch goals. By tying objectives directly to results, organisations can better anticipate how much progress they need to make to reach their ultimate goal.
- They offer a method for measuring success. Periodic performance reviews can help ensure that objectives remain relevant and valuable while driving improvement.
8. Gap Management
Gap management is one of the strategic planning models that can help organisations identify, assess and address any gaps in their current operations.
Gap management can be a valuable tool for ensuring that an organisation remains flexible and adapts to changing environments. Here are some key benefits of using gap management as a strategic planning model:
- Gap management can help organisations identify areas where they need to improve their operations. This can help them avoid potential gaps in their ability to meet customer needs and achieve business goals.
- Using gap management as a strategic planning model can help organisations better understand the risks associated with their current situation. This information can help them make informed decisions about how to address potential gaps in their operation.
- Gap management can also help organisations develop plans for addressing any identified gaps in their operations.
9. Baldrige Framework
The Baldrige Framework is a strategic planning model adopted by many organisations to improve their performance. The framework was created by Gerald Baldrige, a dentist and businessman, in the early 1970s.
The framework consists of 6 principles that help organisations achieve excellence in their fields. The principles include creating a Mission Statement, establishing Core Values, designing an Organisation Structure, setting Organisational Goals, developing Performance Measures, and implementing Management Systems.
The Baldrige Framework can be used to improve performance in several different areas, including customer service, organisational design and structure, marketing campaigns and initiatives, product development timelines and quality assurance processes.
The benefits of using the Baldrige Framework include improved communication between employees and management, increased efficiency and effectiveness of operations, and better decision-making due to an improved understanding of customer needs.
10. Goal-Based Strategic Planning
Goal-based strategic planning is a model that emphasises establishing specific, measurable goals. The main advantage of this model is that it allows for clear and concise communication of the organisation’s objectives to all stakeholders.
Additionally, goal-based planning can help organisations achieve their short-term and long-term goals more effectively. One of the critical uses of goal-based planning is crisis management. By having specific goals in place during times of crisis, organisations can stay focused on their objectives and address the issues at hand efficiently.
Furthermore, setting achievable goals allows for gradual progress towards objectives, which reduces anxiety and stress among employees.
Another great benefit of goal-based planning is that it can help organisations achieve better alignment between their business strategies and their operational plans. This can result in increased efficiency and improved performance across the board.
11. Blue Ocean Strategy
Blue Ocean Strategy is a strategic planning model that has been gaining traction in recent years. The model is based on the premise that there are vast areas of opportunity in the market and that it can be difficult for businesses to find new markets or to compete in existing ones. As such, it can be helpful to focus on creating new markets and opportunities.
One of the key benefits of using the blue ocean strategy is that it can help businesses create new products or services that are different from those currently available. In addition, this type of strategy can lead to increased revenue and growth.
Additionally, the model can help businesses avoid competition by creating a unique niche market. Finally, this approach can help businesses become more innovative and agile as they navigate changing markets.
12. Issue-Based Strategic Planning
When creating a strategic plan, it is essential to consider the various planning models available to you. One of these models is issue-based strategic planning. This type of planning focuses on specific concerns that must be addressed to achieve a company’s objectives.
There are many benefits associated with using issue-based strategic planning as your method of strategic planning. For one, it can help you identify and address problems and issues quickly and efficiently.
This can save you time and money in the long run, as fixing problems will likely lead to improved performance. Additionally, issue-based Strategic Planning allows companies to focus their resources on the most critical issues rather than spreading them too thinly across a number of different areas.
13. 7s Model
The 7s Model is a strategic planning model that helps organisations identify, assess, and prioritise their goals. This model helps organisations build a plan that will help them achieve their objectives. The 7s Model is based on the stages of development: survival, growth, stability, sustainability, expansion, innovation, and transition.
The first step in using the 7s Model is identifying your organisation’s goals. After you have identified your organisation’s goals, you need to assess what stage your organisation is currently in. This involves looking at your current resources and analysing how they are being used to achieve your goals.
Once you have assessed where you are currently in terms of stage, you can start to develop plans for moving forward.
14. Real-Time Strategic Planning
Strategic planning is an essential process in any business or organisation. Many different models can be used for strategic planning, and one of the most popular is real-time strategic planning. Real-time strategic planning uses a continuous feedback loop to adjust plans as events happen constantly. This allows for rapid response to changing conditions, leading to improved performance.
There are many benefits to using real-time strategic planning in an organisation. First, it can help ensure that plans are constantly updated and reflect current conditions. This can lead to better decision-making and faster reactions to environmental changes.
Second, real-time strategic planning can help organisations stay ahead of their competitors. By anticipating changes and adapting quickly, companies can maintain a competitive edge.
Finally, real-time strategic planning can help reduce the risk of poor performance due to incorrect assumptions made about the environment.
15. Organic Model Of Strategic Planning
There are a variety of strategic planning models to choose from when creating an effective business plan. One popular model is organic. Organic models are based on the premise that companies should grow organically or through their initiatives and endeavours.
Organic models have several advantages over other types of plans. They use natural resources more efficiently and focus on long-term growth. Additionally, they are often more cost-effective because they do not rely on outside funding sources.
Finally, organic plans appeal to companies that want to be environmentally conscious because they reduce the impact of their operations on the environment.
16. Constraints Analysis
As a business strategist, you know many different ways to achieve success. One of the most important models you can use is constraint analysis. Constraint analysis helps you identify and understand the limitations that prevent your business from achieving its goals.
There are many benefits to using constraint analysis as a strategic planning model. First, constraint analysis helps you identify and understand the potential limits to your business’s growth. This knowledge can help you make intelligent decisions about how to allocate resources and focus your efforts.
Second, constraint analysis can help you identify and address problems early in their development. By identifying and solving constraints before they become big problems, you can minimise damage and improve your chances of success.
Finally, constraint analysis can help guide decision-making throughout the business process.
17. Scenario Planning
If you are planning your business future, one of the models to consider is scenario planning. What is scenario planning? It’s a process that helps organisations understand and prepare for various possible future scenarios.
Scenario planning can provide improved decision-making, innovation, and better preparation for potential changes. Here are some key reasons why you might want to consider using scenario planning in your business:
- It allows you to explore different possibilities and make better decisions based on what could happen.
- It can help improve innovation by allowing companies to explore different ways they could go about solving a problem.
- Scenario planning can help organisations better prepare for potential changes, such as regulation or market shifts.
18. Ansoff Matrix
Strategic planning models can help develop an overall plan for a business or organisation. One model that is often used is the Ansoff Matrix. The Ansoff Matrix is a tool that helps to identify different areas of a business or organisation and how they relate to each other.
The benefits of using the Ansoff Matrix include that it can help to identify areas that need attention and how they are related to each other. Additionally, the model can help to develop strategies for addressing these areas.
The advantages of using the Ansoff Matrix include that it is simple to use and can be adapted to different types of businesses or organisations.
Conclusion
Strategic planning models can help businesses with the process of developing long-term plans.
- They offer an organised approach to thinking about the future. They can help companies make better decisions by providing information on what they need to do to achieve their goals.
- Models can be helpful in that they provide a guide for how to allocate resources, and they can help identify areas where companies might need to improve.
- Additionally, many models offer tips for mitigating risk and improving chances of success.
Frequently Asked Questions
How does a basic planning model work?
In addition to establishing your company’s vision, mission, objectives, and values, the basic strategic planning model can also be used to create your company’s mission statement. To keep everyone on track, this model outlines specific steps you must take to achieve your goals, monitors progress, and addresses issues as they arise.
How does organic planning work?
In some organisations, allowing all perspectives and activities over time in a planning process might be preferred. As with natural systems, such as plants, animals, and humans, this planning process may be considered “organic”.
How do strategic planning tools work?
A strategic planning tool is a technique or model that business leaders use to determine where their business stands now, where they want it to be in the future, and what key metrics and initiatives to track to achieve that goal.
