For this reason, I will take the time to define strategic management as separate from strategic planning, as despite the debate, subtle differences divide the jargon.Īccording to USAID, both strategic management and strategic planning involve defining and outlining the mission and goals of an organization. Strategic management and strategic planning are 2 separate terms, despite their interchangeable use, which can spike confusion when thinking about strategic planning. When researching the term strategic planning, you may have come across another term strategic management. Strategic planning is a term used more in the business world, whilst strategic management is used more-so in the academic environment – Strategic Management Insight, Strategic Management, and Strategic Learning Strategic management vs strategic planning: What is the difference between these 2 terms?
The strategic plan comes with the overall business plan, along with marketing, financial, and operating/management plans.
Metric measures and KPIs are used to assess performance □.Policies, projects, and plans are established to achieve objectives □.An organization’s mission, vision, and values (overall direction of the organization) is defined □.A strategic plan explains where the organization going and how the organization will get there.įor understanding, think of a strategic plan in terms of the following steps: Strategic planning is an umbrella term describing the processes used to establish long-term/overall goals. This is a key feature of the Cascade Strategic Planning Model to gets the whole organization involved to deploy your new strategy. You can see how each task moves down the organizational hierarchy regarding what teams are involved. Strategy is a plan of action designed to achieve a long-term or an overall aim. “ Strategy is the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” – Strategy and Structure: Chapters in the history of industrial enterprise, Alfred D. To understand what strategic planning is, let’s break the term down into its constituent parts. Strategic planning is a plan to execute business strategy. Other strategic planning models and how you can implement them via Process Street.Strategic plan outline: Framework, structure, and governance.Use Process Street’s strategy planning template to document your strategic plan.Strategic management vs strategic planning: What is the difference between these 2 terms?.In this article, I’ll discuss what strategic planning is, the different strategic planning models – with an emphasis on the Cascade Strategic Planning Model -, why strategic planning is important, and more.Ĭlick on the links below to read through: To bridge this gap between strategic ambition and business performance, Process Street has created a Strategic Planning Template, which you can use – for free – right away!īy executing the steps given in this template you will not only develop good strategy, but the delivery of this strategy will also prove successful.Ĭlick here to access our free Strategic Planning Template!īut to accommodate this template, you need to have a solid understanding of strategic planning itself. In this sense, can we not infer executing business strategy = business success? This is a concerning statistic when you consider that, for a majority of companies considered successful, an emphasis is placed on having formal and pre-established systems to inform, manage, and meet their strategic obligations. In the book The Balanced Scorecard, by David Norton and Robert Kaplan, it is noted that 90% of organizations fail to execute their pre-set strategy.