Human Resource Strategic Planning

Summary

This video outlines the strategic planning process that organizations follow to define their direction, allocate resources, and achieve growth. It highlights the importance of mission statements, SWOT analysis, and setting goals for business units. The process typically spans 3-5 years and involves evaluating both internal and external factors impacting the business. Managers formulate strategies at both organizational and departmental levels, adjusting the plan as needed to respond to changes in the business environment. The ultimate goal is to enable the firm to navigate obstacles and maintain long-term success.

Takeaways

• 😀 Strategic planning is the process of defining an organization's strategy, direction, and allocating resources to achieve its goals.
• 😀 The strategic planning cycle usually spans three to five years, although some organizations may plan for up to 10 years or more.
• 😀 The process begins with a mission statement, which defines the organization's core reason for existence.
• 😀 SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a common tool for assessing both internal and external factors that affect the business.
• 😀 The goals and objectives for the planning cycle are set after assessing the current business state and external factors.
• 😀 Managers create strategies at the organizational level to achieve the defined objectives, and functional departments like HR also formulate their own supporting strategies.
• 😀 The strategic plan is regularly reevaluated to adapt to changing conditions and ensure that the organization can respond effectively to new challenges.
• 😀 A successful strategy relies on proactive management that continuously assesses current conditions and adapts to overcome obstacles.
• 😀 External factors such as industry conditions play an important role in shaping the strategic plan.
• 😀 Effective strategic planning is a fluid process that requires flexibility and responsiveness to shifting business environments.

Q & A

What is the main goal of strategic planning for an organization?

The main goal of strategic planning is to define the organization's strategy or direction and allocate resources, such as capital and people, towards achieving it. This helps the organization to compete successfully, survive, and grow.

What are the typical steps involved in the strategic planning process?

The strategic planning process typically involves several sequential steps: mission statement, SWOT analysis, setting goals and objectives, and formulating strategies to achieve those goals.

How long does the strategic planning cycle usually last?

The strategic planning cycle typically covers a three to five-year time frame, although some firms may conduct long-term planning that spans ten years or more.

What is the role of the mission statement in the strategic planning process?

The mission statement serves as the guiding force behind the strategic planning process. It represents the core reason for the organization's existence and is often determined by what makes the organization unique.

What is SWOT analysis, and why is it important in strategic planning?

SWOT analysis involves evaluating the strengths, weaknesses, opportunities, and threats of the organization. It is important because it helps managers assess both internal and external conditions that could impact the business, enabling informed decision-making.

How do objectives and strategies relate to each other in the strategic planning process?

After conducting SWOT analysis, managers set objectives for the planning cycle and develop organizational-level strategies to achieve these objectives. Each function within the organization, such as HR, then formulates strategies that align with and support these broader organizational strategies.

Why is it important to periodically reevaluate the strategic plan?

The strategic plan should be reevaluated periodically because conditions may change in the business environment. Managers need to react to these changes and adapt the strategy accordingly to ensure continued success.

What external and internal forces should be considered during strategic planning?

During strategic planning, both internal factors (such as organizational strengths and weaknesses) and external factors (like industry conditions and market forces) should be considered to ensure the strategy is well-informed and comprehensive.

How does the strategic planning process help a business grow and survive?

By clearly defining the strategy and allocating resources towards specific goals, strategic planning helps the organization focus on overcoming challenges, seizing opportunities, and sustaining success, which ultimately contributes to its growth and survival.

What role do managers play in the strategic planning process?

Managers play a crucial role in the strategic planning process by closely assessing current conditions, identifying obstacles, and developing a game plan that enables the organization to adapt, overcome challenges, and sustain success.