Importance of Culture in Strategy to Execute June 20, 2019. In order for your strategy to win, you must first conquer your doubts and fears. In the view of F. Graetz, strategic thinking and planning are “distinct, but interrelated and complementary thought processes” that must sustain and support one another for effective strategic management. it is also knowing which box to think outside of! Semper Fi. Strategic Thinking is the combination of Innovation, Strategy Planning, and … Don’t count on it. Strategic planning. Paul, the CEO of a widget-producing company, wants his executives to improve the strategic process of his company and to understand the difference between strategic thinking and strategic planning. What comes next? Strategic planning is one of the several components of project management that a high-functioning organization requires to operate at its maximum operating level. Best wishes for the new year. The more you learn about…, Clipping coupons can be a fun hobby, but there are far more efficient ways for you to save money while shopping with…, By Nilus Mattive Posted September 21, 2019, Just about everyone nowadays has a cell phone. Intuitions are knowledge derived from accumulated experience. by Randy Rollinson | Dec 30, 2015 | Uncategorized | 0 comments. . However, strategic planning is useful to help in strategic thinking, strategy development, decision-making, performance improvement, and to build camaraderie (14). When I get an extra hundred grand, bam, 10,000 goes into gold”…. That kind of decision, and strategic vision, would have to await another president, in another era with different technology, 100 years later. Through this focus, the company can ensure that their operations are as efficient and effective as possible. But in the long…, Today, Zach Scheidt explains how to play the most recent rally in oil prices, and uses a real-life story to explain his…, Today, Zach Scheidt explains the strong trends emerging in today’s hotel industry, and gives his top three stocks to buy…, Why the marijuana market is about to get a major shot in the arm…, “We’re on the ground floor of a momentous trend that’s only beginning to get traction — and the profit opportunities from investing…, “First of Foot and Right of the Line,”. In today's environment rapid changes and technological explosion, almost all the management writers' emphasis on the need of updated and sophisticated techniques to outperform others or at least to survive. Strategies Available Worldwide to Help You Building Vision and Mission November 16, 2019. Strategic planning is often used to refer to a programmatic, analytical thought process, and strategic thinking to refer to creative, divergent though process. By way of contrast, strategic planning for its own sake can develop a dangerous tendency to focus on the creation of “the plan,” and only “the plan,” as the ultimate objective. While these scholarly discussions are intellectually stimulating, we are left lacking a simple and practical explanation to differentiate between the two. You can have a different strategy for each section of the bridge, or you can have a consistent strategy for the whole thing. “It is not the plan,” said General Eisenhower during the campaign in Europe in the Second World War, “it is the planning that matters.” That is, the habit of thinking strategically lends itself to making rapid changes in plans when one course of action does not meet with success. Strategic planning without strategic thinking will digress into a sluggish and lifeless process of setting goals and measuring objectives. It was the same ultimate goal, but with two entirely different means of implementation. Difference Between Strategic planning vs Strategic management. . First, you have to identify the end state that you want to achieve. Strategic thinking vs. strategic planning. How to Cultivate a Growth Mindset at Workplace January 23, 2020. In conclusion: Strategic thinking is about where you are, where you want to be, identify the gap and create the alternate approaches to anticipate and provide solutions; whereas system thinking looks at the whole pictures, the interaction and relationships holistically, and involves the sequential alignment of a series of steps in already identified strategic approaches. Rather than a division between creative and strategic thinking, the world’s most agile companies understand that the key to successful problem solving, design and innovation is, in fact, a symbiotic interplay between ‘strategic creativity’ and ‘creative strategy’. Élaboration d une stratégie Question ajoutée par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group It’s not just a way of thinking what could be, but also a way of seeing what should be. Importance of Culture in Strategy to Execute June 20, 2019. Strategic planning makes organizational goals and objectives real, and employees can more readily understand the relationship between their performance, the company’s success, and compensation. Individually they cannot support an organization alone, but when combined they provide projects with a diverse, robust set of operational capabilities. Here is where the strategic planning has to occur. Explain the difference between strategic planning and long-range planning. Figure out what you want, and then work backwards from that point, and forward from where you are, to devise the pathways to get there. The Difference Notice that the main difference between these definitions is the timing. Describe what a strategic plan is not. You are raising an important point, and it is my privilege to offer an answer. Yes, some of these technologies will work and, if constructed to scale, produce liquid fuels to substitute for what will no longer be available from oil. A quick Google search reveals that academics have pondered and debated this question since the early 1990’s. Here’s what’s hiding in plain sight and…, Donald Trump’s positioning has put the U.S military one step closer to the next phase of the Korean War. The gold (strategic) commander must ensure that a strategy to direct police action is developed. In the lesson, we'll look at how Paul did just this. According to strategy guru Michael Porter, “Competitive strategy is about being different. Intuitively anyone recognizes the contrast between operational and strategic: “Operational” is something that helps things to work smoothly today, and requires constant attention, while “Strategic” is something from the world of top managers, defined for a longer-term, often less tangible, but still very important. Bill Bonner on why deficits don’t matter — until they do…, Bill Bonner By Bill Bonner Posted August 20, 2017, Out with the old gods and in with the new. Strategic Thinking and Strategic Planning: Two Pieces of the Same Puzzle The Mercer paper labeled a concept called “blue-sky strategic planning” that emphasizes a so-called “vision” but with little attention given to the details of how to execute the vision. But the raw data, and even the identifiable trends that clearly indicate an impending “peak” in oil and gas production within certain time frames, do not in and of themselves create or lead to a “strategy,” let alone offer up a strategic plan. The term “Peak Oil” is a short-hand way of describing trends that will lead to a global energy problem, but it by no means presents a self-evident strategy or strategic plan that moves towards a solution. It is the habit of visualizing alternative futures for the organization and their impact on others. In the process of making the plan, it is vital to think about not only traditional oneto- many communication vehicles, but also to stage strategy conversations at large-scale events, embed peer-to-peer strategy dialogues in daily routines and apply strategy games stimulating thinking about making good strategic choices in different situations. But you are also in the midst of a large scale sociological phenomenon driven by irreversible demographic, technological, economic and military forces. The planning to achieve the tactical objectives of the organization is known as Operational Planning. “I don’t even look at the price. What is the desired end state? There are more questions that follow-up in the process. What are the fundamental assumptions? What are the risks of action? What are the risks of delay? What are the resources available? The blue-sky approach also fails to answer the question, ‘What do people on the front lines do differently tomorrow?’”. The relationship between the two ideas of strategic planning and strategic thinking is by no means clear in the literature, which is in a state of confusion over this issue. Introduction . At the same time, strategy is not just what you say. Four distinctive tendencies separate this recent research from earlier work: 1. Be completely realistic, to the point of engaging with enemies if for no other reason than to gain access to tactical intelligence. How shall we execute the plan? Who is responsible for making things happen?  At which stages do we reassess the entire matter? (Changing demand will be an very inelastic process, to be sure, but go away the demand will.). Where strategic management … It helps in defining if the strategies that are implemented and worked upon properly. Strategy is what you do and it is, in many respects, where you invest your funds and resources. Strategic thinking tends to focus on the planning process itself as a critical value-adding element. Strategic planning, on the other hand, is a means to manage if not to specify, the details of how to achieve the desired end state. And when I use the word “manage,” I am using it in a broad context. Once the larger strategic goals are broadly defined, it becomes necessary to formulate and implement the strategy. This can be the really hard part, particularly because the “other side” is probably going to react to whatever you determine to do. Using the Pacific War example, MacArthur proposed first to conquer the Philippines, and then proceed on the track to Japan. The Nimitz approach was to bypass the Philippines and move more quickly and forcefully towards Japan. Strategic Planning & Policy Development, Woodward and Company (May 16, 2006) 5 Issues to Consider 1. Introduction . First, strategic thinking is grounded in a strong understanding of the complex relationship between the organization and its environment. Real time . Applied Strategic Thinking is the ability to anticipate and begin exploiting tomorrow’s opportunities today. relationship between them. Strategic planning without strategic thinking will digress into a sluggish and lifeless process of setting goals and measuring objectives.  Strategic thinking without strategic planning/management will cannibalize itself in a quest for structure and process. From the standpoint of military strategy, in mid-1944 the desired end state was to defeat Japan. This was the goal. After the strategy was formulated by FDR, specifically the immediate strategic goal of  liberating the Philippines, it was necessary for the operational commanders to set out the possible courses of action and to write up the prescriptive documentation to achieve the end. In order to innovate for future, strategy planning is a key impute. 1. Find out why the real story Wall Street is…, The Wall Street Journal wags a finger at China…, Trump will win reelection this year. Employees, managerial staff, and upper-level management will all be working together to achieve these goals. The two not only work together…but they require each other. So, as you can see, SWOT analysis and strategic planning are distinct concepts, however, both involve the use of essential data about the business to create effective solutions for success. Create a mission and vision statement for your organization. At some high level, for example with FDR during the Pacific War, the formulation of the strategic concept was founded on a profound sense of strategic intent and purpose. Unlike the additional work that is created by the process of strategic planning, we can understand strategic thinking as using a new lens to view the business. A strategy is a plan of action designed to achieve a series of objectives or a particular goal. Keep in mind one last bit of strategic advice. Strategic thinking is more than just “thinking outside the box” . Recently, the roles of Strategic Thinking, Organizational Foresight and Strategic Planning, as significant management tools in SMEs, have drawn more attention among scholars. and A Chain of Linked Engagements. Strategies Available Worldwide to Help You Building Vision and Mission November 16, 2019. “The strategy falls into the no-man’s-land between vision statement and concrete action. Because the strategy is vague, it does not force the organization to make choices or to build whole-hearted organizational commitment. On the contrary, strategic management is a series of decisions or moves taken by the top managers in relation to the … During the War in the Pacific, for example, the American forces had developed such innovations as radar and high-performance aircraft fuels. Thus U.S. forces could locate and track the Japanese ships and aircraft at far greater distances than the Japanese could detect U.S. forces. And once the Japanese were detected, the U.S. could send aircraft to pummel the opponent in an arena and environment of air superiority, if not air supremacy. This “investment” side of the strategic equation is part of the story of war-changing U.S. success at the Battle of Leyte Gulf. Determine three (3) specific strategic goals that align with the ideals in those two (2) statements. Differentiate between strategic management, strategic thinking, strategic planning, and managing strategic momentum. Operating a successful business requires ongoing assessments of how resources are allocated relative to meeting the company's financial goals. Strategy has never been more challenging, or more important, than in today’s environment of global competition, in which, corporate strategies must transcend the borders of nations and markets. At LBL Strategies, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. I. The short answer to the question is that “strategy” typically refers to a thinking process that focuses upon a particular course or alternative courses of action that will achieve some desired end or end state. And eventually,…well, you get the picture. It is just a question of time. Strategically, people can think about these things. This is one form of strategic planning, albeit rather linear, just extrapolating the past oil age into the future and attempting to reinvent what no longer will exist. Likewise, we find that many are hungering for an organizational culture which is bettered trained and more engaged in thinking strategically. God bless you all. Strategic thinking is a skill set that can be applied to any complex problem solving process. Strategic management and strategic planning give an organization a direction to move in. How you build the bridge is your strategy. But Lincoln could never have declared in, say, 1863, that another national goal for the U.S. was to land a man on the Moon. Be sure that you widen your aperture beyond thinking of the mission as one of pure force-on force. And the U.S. is the sucker…, The increasing vulnerability of markets to financial warfare, and why now is the time to protect your money against it…, “The first shot of World War III has been fired”…, By Nilus Mattive Posted November 26, 2019, Black Friday is just a few days away! It has to be conducted or carried out. Is the crux of the problem going to be simply “not enough oil supply,” and thus arises the need to find a substitute for, say, gasoline that is now derived from oil? Strategic Planning & Policy Development, Woodward and Company (May 16, 2006) 5 Issues to Consider 1. Too many organizations try to be everything to everyone, wasting resources in markets that may never provide a worthwhile return on investment. He is a Harvard-trained geologist who has traveled to every U.S. state and territory and six of the seven continents. The two not only work together…but they require each other. If innovative thinking is the hippies and artists of the organization’s project management, strategic planning is the architects and engineers. In a well-known paper published in 2004, entitled Strategic Planning Redux, Mercer Management issued a dire warning against strategic planning becoming a “sterile…exercise in template completion.” The worst scenario is when the strategic planning process becomes “burdensome, bureaucratic, vague and divorced from reality.” This highlights the problem that “without a clear strategy, managers have no guide with which to make tradeoffs, so initiatives proliferate and sap organizational resources.” Again, this gets back to the idea of strategy as a means of identifying the desired end state and matching that end state with the available resources. When you use your resources to accomplish one effort, by definition those resources are not available to use in another effort.  Perhaps you can use the same resources sequentially, meaning that Campaign B follows Campaign A, but in almost no case can you use the same resources simultaneously. This is part and parcel of the classic axiom of military doctrine, not to divide one’s forces. One extremely helpful scholarly overview can be found in the June 1998 volume 31 of Long Range Planning, in a very high-level discussion by Loizos Heracleous entitled “Strategic Thinking or Strategic Planning?”  Heracleous presents a variety of perspectives from business academicians differentiating between the two. The following are the differences between strategic planning and operational planning: The planning to pursue the organization’s vision is known as Strategic Planning. A normal business plan includes a strategic plan and a marketing plan. Looking forward, what is the strategy for a Peak Oil world, if not for a post-Peak Oil world? You begin to formulate a strategy with an honest assessment of where things are now, and where you want things to go. This requires a sense of both honest realism and realistic vision on the part of the strategist.  Abraham Lincoln, for example, had both a vision and the national resources (at least from the Northern half of the Union) to set about to free the slaves of the Confederacy. Organic. This is the kind of thinking and visions embedded in grandiose plans for massive programs to create liquid fuels from plants, or from a set of coal-to-liquid processes. Our research is based on a literature review. At the Strategy Management Group, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. To be a strategy-focused company, you need a strategic plan and departmental operational plans. Strategic management is a step ahead of strategic planning. After FDR made his broad decision first to invade and liberate the Philippines, it fell to the military commanders MacArthur and Nimitz to crystallize the next level of strategic guidance by means of a series of operational plans. Thus strategic thinking is a continuing process, and must respect (if not yield to) the concrete requirements for operational planning and careful husbanding of scarce resources. And strategic thinking has to be resident in the minds of the highest-level managers or commanders throughout the organization. Strategic thinking must guide the commander’s choices on a daily basis.  It is a process that is often difficult to measure, let alone to monitor. Sure, you are in the middle of a war zone, where people are shooting at you and trying to blow you up, and you have to watch your back and fight like hell. How you build the bridge is your strategy. Quite often, people confuse strategy and tactics and think the two terms are interchangeable in strategic planning, but they’re not. 1. In the realm of strategic thought, formulating and implementing strategy tends to be an interactive and iterative process, and not a series of discrete and sequential actions. For example, experience from reading a lot of speeches allows me to intuitively recognize the main message of the speech apart from the jumbles of rhetorics and details. Keep on looking for new tools, a new philosophy, and a new attitude in your effort to conduct operations. The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: Strategic planning is an application of strategic thinking that involves teams, organizations or communities. Describe what a strategic plan is not. strategic planning is to align a company’s mission with its vision. That said, training and cultivating an organizational culture to think strategically is a vital tool throughout the strategic planning process. Bill Bonner By Bill Bonner Posted September 22, 2017, President Trump sinks into the swamp. In the arena of energy strategy, for example, it is important for policy makers and strategists to know at least the aggregate of world oil and natural gas production statistics. But who will win in 2024?…, The 5,000-year old solution to wipe out America’s debt?…, Uh-oh — CNBC says the economic expansion is “alive and well”…, By Nilus Mattive Posted November 16, 2019, There are a ton of resources available online to help you sell products through Amazon’s FBA program. Culture of Your Community • Each First Nation has its own unique culture, comprised of its language, history, stories and legends, art and dance, and the personality of its people. Strategic Thinking is a planning process that applies innovation, ... Tregoe and Zimmerman outlined the relationship between strategy and operations in their work on strategy, “Top Management Strategy: What It Is and How To Make It Work”. The willingness to cross older functional boundaries in the search for analytic concepts elegant enough to make sense out of progressively sophisticated data. The Strategic Thinking Process . The first strategic question to ask is “what shall we do?” Yes, that is a good question, but just a start. By James Rickards Posted September 8, 2017, Jim Rickards’ open letter to President Trump on the threat of new world money, known as special drawing rights. Issue based . As a result, both employees and managers tend to become more innovative and creative, which fosters further growth of the company. JEL classification: L1, M1 . A critical link between technology and strategy exists; the only real choice is whether managers want to see it. The difference between strategic planning and strategic management is what happens after the goals are defined. Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. Applied Strategic Thinking is the ability to anticipate and begin exploiting tomorrow’s opportunities today. Eventually, the working classes will feel the pinch and they too will exit the oil age.  Then it will be the turn of the lower middle classes. Just in the past couple of weeks, I visited the issue in articles entitled Never Call Retreat? What are the costs and tradeoffs to do one thing, versus another? 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It means deliberately choosing a different set of activities to deliver a unique mix of value.” Strategy is the “what” part of the […] The two not only work together…but they require each other. The following views on the relationship between strategic thinking and strategic planning are found in the literature: Strategic Planning and Strategic Thinking are Two Distinct Thinking Modes, and Strategic Thinking Should Precede Strategic Planning According to this view, planning cannot produce strategies because it is a programmatic, formalised and analytical process; … Here’s the full…, By James Rickards Posted September 5, 2017, Jim Rickards’ reveals the global elites roadmap for how to use cryptocurrencies against their populations. You can have a different strategy for each section of the bridge, or you can have a consistent strategy for the whole thing. relationship between them. A well designed business strategy is required by organizations to channelize the underpinned innovation as a tool for enhancing advantage over others in the marketplace. Strategic planning without strategic thinking will digress into a sluggish and lifeless process of setting goals and measuring objectives. Understanding strategic planning vs. operational planning doesn’t mean you choose between them! Question everything, and take nothing for granted. Package theft, or porch piracy, is on the rise and with Christmas coming quickly it’s important to protect yourself, and your goods. Culture of Your Community • Each First Nation has its own unique culture, comprised of its language, history, stories and legends, art and dance, and the personality of its people. JEL classification: L1, M1 . Strategic planning is a process. But what comes next? Exactly. If strategic thinking respects operational planning, it is the case that strategic planning has a tendency to merge with the dictates of operational necessity. And in time of war, things are immensely fluid and fast-paced. And in both war and peace, strategic planning can become a structured process that tends to create relatively neat divisions of formulation and implementation. Strategic planning is, as I mentioned before, a type of high level management. But the planning aspect has to deal with what is more operationally tangible, versus strategically abstract. Strategic planning implies the ability to assert control.  Control requires information, measurements and metrics. The more quickly any process lends itself to measurement and assessment, then the more control there is through the planning process. So in our attempt to remain practical and engaged in the “real world” of our clients’ business, we underscore that at its essence, “Strategic Thinking” is a way of viewing challenges and opportunities from a variety of perspectives and altitudes, in order to proffer the very best solutions and directions. Until we meet again… Byron W. King December 28, 2006. Strategic management and strategic planning give an organization a direction to move in. performance management KPI / performance measurement. For these souls, the oil age has ended in the past tow or three years. Strategic vs. Let’s examine this last point. What happens if (or when) we realize that one or more fundamental assumptions are no longer valid? So, if you are serious about being strategic, (as well as planning and acting strategically) give me a call. Scenario planning. Frequent readers know that I have written quite a lot about Clausewitz, and his development of the concepts of strategy while writing his opus On War in the 1820s (published in 1832). The keeping of primary interpretive focus on the ways in which the key decisions of business affect or are affected by variations in technology and not on those variations t… He has been interviewed by dozens of major print and broadcast media outlets including The Financial Times, The Guardian, The Washington Post, MSN Money, MarketWatch, Fox Business News, and PBS Newshour. If innovative thinking is the hippies and artists of the organization’s project management, strategic planning is the architects and engineers. Applied Strategic Thinking Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables. The two not only work together…but they require each other. What you’ll be doing to achieve those goals in the shorter term (typically the next fiscal year) is outlined in your operational plan. Bill Bonner shows you why America is going broke… and nobody cares…, Donald Trump opens the floodgates on $317 billion of debt. Definition – Strategic thinking is a skill. Through this focus, the company can ensure that their operations are as efficient and effective as possible. “First of Foot and Right of the Line,” Charles. Strategic planning without strategic thinking will digress into a sluggish and lifeless process of setting goals and measuring objectives. 2. I have also looked at strategy through the lens of energy supply in another ongoing effort here in Whiskey & Gunpowder, my three-part (so far) series on energy entitled Planning, Policy, Strategy and Energy. What is the relationship between Strategic Thinking and Strategic Planning? Where strategic and creative thinking meet. Byron King is a Senior Geologist at Rickards’ Gold Speculator. In World War II in the Pacific, for example, the key U.S. military goal was to defeat Japan and to force that nation to surrender to the U.S. and its allies. U.S. Army General Douglas MacArthur convinced President Franklin Roosevelt that the U.S. military strategy to achieve the end of defeating Japan had to include the early invasion and liberation of the Philippines, hence events led to the Battle of Leyte Gulf, above-noted.  U.S. Navy Admiral Chester Nimitz, on the other hand, did not believe that the U.S. should use its limited resources to liberate the Philippines. That is, Nimitz believed that it would be militarily feasible to bypass the Philippines, and utilize U.S. and Allied combat power to strike sooner and more directly towards the Japanese Home Islands. This Nimitz approach might, of course, have been an equally successful military strategy, and could possibly have shortened the length of the war. (Imagine what would have happened if the war in the Pacific had terminated before the U.S. atom bomb was ready for use. Would this be a different world?) Today our co-founder and Executive Publisher, Addison Wiggin, asks a new question: Could the cashless society represent a threat to free speech? I. Thank you for reading Whiskey & Gunpowder. But then, you probably learned how to do that from some Marine Corps Drill Instructor, a long time ago. How to Cultivate a Growth Mindset at Workplace January 23, 2020. The lockdowns’ devastating impact on small businesses… $4.8 Trillion of lost GDP?…, Why Paul Krugman is ecstatic that Janet Yellen will be the next Treasury Secretary… The delusional world of mainstream economists…, By Charles Hugh SmithPosted November 28, 2020. If you are the type of person who likes to shop in store, this…, By Nilus Mattive Posted November 21, 2019. We'll start with the definitions of the two kinds of strategic processes. Finally, during the all-important evaluation and control phase, strategic thinking ensures that an organization is measuring those drivers which best lead to success of the overall mission. Contents. Your strategic plan outlines long-term goals for the next three to five years. According to a 2009 Harvard Business Review article “Four Fatal Flaws of Strategic Planning,” 88 percent of companies engage in strategic planning, yet few adequately manage their strategies, and even fewer see their goals completely met. In more modern parlance, FDR was “the decider.” The broad strategic decision was FDR’s to make, because in the U.S. political system the Constitution vests such legal authority in the office of the president. Thus is strategy controlled by policy, which in turn derives from politics and legal structure. We live in two different Americas, argues Charles Hugh Smith in today’s reckoning. Strategic planning is often used to refer to a programmatic, analytical thought process, and strategic thinking to refer to … In the past decades the strategic management literature has witnessed an impressive growth. ONE OF OUR dear readers – one of the dearest readers, let me say, for reasons that you will discern in the next sentence — sent me an email, short and sweet.  Charles, an officer of the U.S. Marine Corps, transmitted this from western Iraq: “Byron, you write a lot about strategy…Even when you write about George Washington and the French and Indian War, or Clausewitz examining the campaigns of Napoleon, you give me ideas that I can use. But can you write something about the difference between strategic thinking and strategic planning?”. First, strategic thinking is grounded in a strong understanding of the complex relationship between the organization and its environment. Strategic Thinking and Strategic Planning: Two Pieces of the Same Puzzle Explain the difference between strategic planning and long-range planning. While the technology packed into one of these pocket sized marvels is amazing the…, The world is in a three-handed poker game. The strategic planning process will allow businesses to identify the possible factors that could threaten or hamper growth and success via SWOT analysis so they can be better dealt with. Employees, managerial staff, and upper-level management will all be working together to achieve these goals. Now because the span between the two pillars is quite long, you need to bridge the gap with long-term strategic objectives and short-term goals. Relationship Between Strategic Planning & Marketing Strategies. State the reasons for strategic planning. Strategic thinking tends to focus on the planning process itself as a critical value-adding element. But can individuals, can businesses, can governments, and can nations strategically “plan” their way around this impending dilemma? Now because the span between the two pillars is quite long, you need to bridge the gap with long-term strategic objectives and short-term goals. Generally speaking, the emphasis on implementation is where strategic planning and strategic management differ. You May Like. But will they successfully and sustainably reinvent the past, and carry the past forward into the future? Previous Previous post: Strategic Thinking and Strategic Planning Next Next post: Strategic Thinking Process. It is a skill that can be used on a daily basis, on your own or in groups. That is, FDR happened to hold the one office of the U.S. constitutional system of government in which was embedded the authority of the U.S. president to act as Commander in Chief. Our research is based on a literature review. What is Strategic Thinking? Here’s Bill Bonner on why the issue of Civil War statues goes…, By James Rickards Posted November 27, 2020, By James Rickards Posted November 23, 2020, By James Rickards Posted November 12, 2020, There’s plenty of gold to support the monetary system — you just need to set the right price…, The coronavirus could take a big chunk out of first-quarter U.S. GDP…, The optimistic case for the stock market… “In the short term, the stock market is a voting machine. Key words: strategic planning, strategic thinking, strategic management, strategy, company. Ask Them to Review a Flawed Strategic Plan and Identify Potential Problems. The strategic plan is high-level thinking, without the details, defining strategic focus. But one point I want to make is that, whatever you are doing, keep on looking at your fundamental assumptions. I have helped organisations as diverse as Oil & Gas and Charities, Central Government Departments and dot.com start-ups. Ahead of the Curve: A Guide to Applied Strategic Thinking was our first book on strategy. A second tactic is to … Where strategic management … There is no agreement in the literature on what strategic thinking is, what strategic planning is, or on the nature of their interrelationship. The way that a strategic plan is developed depends on a variety of factors such as the nature of the organisation's leadership and the culture of the organisation. In conclusion: Strategic thinking is about where you are, where you want to be, identify the gap and create the alternate approaches to anticipate and provide solutions; whereas system thinking looks at the whole pictures, the interaction and relationships holistically, and involves the sequential alignment of a series of steps in already identified strategic approaches. Strategic thinking can look forward and identify a profound problem, as worldwide production of fossil fuels such as oil and natural gas hits a peak, bumps along a plateau and then commences an irreversible decline. This term describes a process of looking at minutiae – voluminous measurements of mere stuff — in a misplaced effort to discern the large-scale trends and to create a proposed pathway for the future. “This is,” states Mercer, “like driving while looking at the speedometer and odometer, but not the road ahead; come the next curve, a crash is inevitable.” Of course, metrics have their uses and are important in their own ways. In working with our clients, we find that most have a relatively strong understanding and appreciation for the value of strategic planning/management. In the past decades the strategic management literature has witnessed an impressive growth. Strategic planning models can include: Goal based . THE RELATIONSHIP BETWEEN STRATEGIC PLANNING AND GROWTH IN SMALL INDUSTRIAL BUSINESSES IN PALESTINE CASE STUDY: THE GAZA STRIP BY MUEEN GHAZI ARAFAT EL-MOBAYED SUPERVISED BY Dr. MUHAMAD AL-MADHOUN DISERTATION PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE IN MASTER OF BUSINESS … Implementing the Goals. Today, our co-founder Addison Wiggin shows you the role demographics has played in the West’s great political revolutions. Strategic thinking informs strategic planning/management.  Strategic planning/management gives voice, action and structure to strategic thinking. Applied Strategic Thinking Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables. At the Strategy Management Group, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. Look after your Marines, my friend. Then again, Nimitz’s strategy might not have worked out.  But we will never know, and today we can only speculate about “what if.” Whatever its merits might have been, the strategy offered by Nimitz was overruled by the Commander in Chief, FDR. Recently a client asked a very simple, and yet extremely complex, question: “What’s the difference between ‘strategic thinking’ and ‘strategic planning’?” Great question! During the high-level strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding.  During the operational and implementation phase, a strategic thinking organization will ensure that the higher level strategic direction cascades throughout the day-to-day decision making at all levels. Alternatively, if you want to cut through all this material quickly and effectively, we do provide strategic thinking training and strategic thinking workshops. You May Like. Jim Rickards’ analysis…, By Addison Wiggin Posted September 4, 2020. In a world of shorter and shorter product times, and tighter and tighter decision loops, research and development efforts are critical to successful implementation of any strategy. Without mission and vision, the plan exists in a vacuum, as the mission is the starting point for planning, the vision is the destination, and the strategic plan is the roadmap that helps you navigate from one to the other. Exactly. At some point, a strategy has to be translated into something that people can do “tomorrow,” and a strategy requires that the resources be identified and supplied to the operators for its accomplishment. Poorly articulated strategy can lead to misguided and wasted efforts, overlapping or contradictory initiatives, and general organizational confusions that burn up gas and create the appearance of activity but makes for little progress. Blue-sky planning also tends not to tie strategy to financial and material resources. When the economics or logistics of a major effort are not explicit, then no one in the organization can know which metrics matter. Under these circumstances, it soon becomes impossible to understand if you are on the right path to the desired end state. State the reasons for strategic planning. Strategic management and strategic Any initiative can be made to fit, ultimately creating initiative overload. So as we can see by using the War in the Pacific as an example, strategy in general offers a vision of the future. Strategic thinking defines, but does not necessarily predict, the shape of the future, and articulates the desired end state. (For example, the military defeat of Japan was the goal, but it would take a lot of hard fighting to get there.). This can be good, but it can also be a dangerous thing. Well Charles, of the U.S. Marine Corps and serving in Iraq, I hope that I have given you some more ideas. You are over there, and I am not, so I am reluctant to get too specific with any advice for you in the realm of strategic thinking or planning. UNIT 1: Understanding Strategic Planning 81931_NMAC 8/7/03 11:57 AM Page 9. At the Strategy Management Group, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. Ahead of the Curve: A Guide to Applied Strategic Thinking was our first book on strategy. So the next questions are, What is the desired end state? How can you get there? There are many ways to do different things, so a strategy offers the beginnings of an articulated means to achieve some end. The Difference Notice that the main difference between these definitions is the timing. C-suite executives, middle managers, and front line staff are entrusted with the freedom to think through solutions and trade-offs, to ensure each decision is best aligned with the overall strategic direction. The strategic question is, What is the desired end state? 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First, let’s just ask the question, What is Strategy? I have discussed the basics of strategy in numerous previous articles.  In an article entitled Strategic Ladder I used a critical period during the Second World War, the events in the Western Pacific Ocean leading up to the Battle of Leyte Gulf in the fall of 1944, to illustrate some of the basic points of strategy. “It is not the plan,” said General Eisenhower during the … The Mercer paper also uses the expression “strategy by spreadsheet” as a means of illustrating, disparaging and warning against another extreme of strategic planning. Strategic management in the simplest terms would mean planning for the known as well as the unknown contingencies of the business. The main difference between strategic thinking and strategic planning is planning doesn’t predict a future state of where the organization wants to be (13). The only question is how…, Three principal drivers powering the third major bull market in gold…, Are diamonds a big scam? But metrics are a means of identifying progress towards some goal or another, and certainly not the way originally to establish the desired end state. What happens if (or when) we have to change the plan? The application of strategic planning in business is a result of difficult managerial decisions that comprise good and less desirable courses of action. A key distinction between strategic thinking and strategic planning is that the former occurs on a regular basis, as part of our daily activities, while the latter occurs periodically (quarterly, semi-annually or annually). If you’re sighing and thinking, “Great, one more thing I have to start doing…”, hold up! UNIT 1: Understanding Strategic Planning 81931_NMAC 8/7/03 11:57 AM Page 9. Alignment . Operational. I am honored that you would ask me such a question. In the world of business, there is a school of thought that claims to be able to develop strategy simply by “asking the customers what they want.” But this confuses what is, at root, short-term marketing with long range strategy. Alan Mullaly, formerly of Boeing and now running Ford Motor Company, illustrated the point in a recent talk by referring to what might have happened if the original Henry Ford had asked people what they wanted. “They probably would have told Henry Ford that they wanted better horses,” said Mullaly.  But Henry Ford had a different view of the future, and so he invented it. Or is the crux of the problem going to be “too much demand” for nonexistent (in the future) traditional energy sources, thus creating the circumstances for what is euphemistically called “demand destruction?” What is the strategic plan for this scenario? Peak Oil is real, of course, and so are market mechanisms. You can develop it, leverage it or improve it. Which one do you live in? Previous Previous post: Strategic Thinking and Strategic Planning Next Next post: Strategic Thinking Process. Strategic Planning is long lasting as compared Operational Planning. The following points are substantial so far as the difference between strategic planning and strategic management is concerned: A future-oriented activity which tends to ascertain the organizational strategy and used to set priorities, is called strategic planning. Key Differences Between Strategic Planning and Strategic Management The following points are substantial so far as the difference between strategic planning and strategic management is concerned: A future-oriented activity which tends to ascertain the organizational strategy and used to set priorities, is called strategic planning. Less oil availability on world markets will translate into higher prices for the substance. And as the price of oil rises, some elements of demand will simply go away. It sets out the high-level overview of the police response and, as such, does not get drawn into tactical or operational detail. Key words: strategic planning, strategic thinking, strategic management, strategy, company. The relationship between the two ideas of strategic planning and strategic thinking is by no means clear in the literature, which is in a state of confusion over this issue.