- September 16, 2021
- Posted by: Veera Salman
- Category: Blog
All organizations require a roadmap to attain their short and long-term goals, know where it is going and where it wants to go, and work proactively while increasing the productivity and operational efficiency of the firm. Strategic planning is no doubt one of the major cornerstones for the success of a business. Despite being the most important factor for setting the direction, many C-Suit Professionals and Line Managers do not understand the strategic planning process well. Strategic Planning is the crucial process that takes place, in an organization where the business direction is identified, the strategies are aligned and streamlined with the organizational goals. Moreover, resources allocation is also part that helps to support the strategic planning process.
Robert J. McKain explained the concept of strategic planning as:
“Strategic planning will help you fully uncover your available options, set priorities for them, and define the methods to achieve them.”
Moreover, a strategic plan is a required document of this process prepared to communicate the organizational goals to the organization. If the goals are written randomly, it won’t make sense to the employees. It entails the sequential documentation of the mission statement, vision, values, strategy, and targets of the organization, and a strategic plan provides that platform.
Strategic Planning and Leadership
The effectiveness of strategic planning depends on how effectively the leaders are leading the organization towards the vision. It is because the leaders are the ones who make strategic plans and steer the organization towards meeting future goals. So, there exists a relationship between the two which is vital to understand for the success of the organization. Subsequently, strategic planning and leadership combine to create or find the best possible path to success.
Strategic Planning Leadership Consulting
Effective strategic planning act as one of the main foundations for the success of the organization. Because proper planning provides a direction to the organization to achieve its mission and vision by more than just providing goods or services. Jibran Bashir Leadership Institute has devised the most practical solution to craft the detailed strategic plan of any organization called the SPIVSA Model for Strategic Planning. The consultants of Jibran Bashir Leadership Institute deliver the service of Strategic Planning Leadership Consulting. The need for this framework and the consulting service arises because there is a lack of a standardized framework and clear strategic planning concept. SPIVSA Model enables the strategists to carry out the strategic planning in a sequential manner which results in the development of the right strategic path for the organization pursuing it.
SPIVSA Model for Strategic Planning
SPIVSA is an abbreviation for Scan, Purpose, Inspiration, Values, Strategy, and Aims. All six elements of SPIVSA are interlinked. If a single element is missing, the organization cannot move towards the other.
Scan means environmental scanning. It is the situational scanning of the company. Before planning, a complete scan of the environment is necessary to understand what is already happening and what is to be done. Without this crucial step, an organization cannot move forward. Scanning involves the analysis of the environment through the SKEPTIC model where the Socio-demographics, Competition, Economics, Political & regulatory situation, Technology, Industry, and Customer are scanned. Moreover, SWOT Analysis is conducted where the Strengths and Weaknesses of the organization are identified, and the Opportunities and Threats faced by the organization are determined
Purpose means crafting the Mission Statement of the organization. Mission provides a reason for the existence of the organization. If documented and communicated to the employees, it helps them work accordingly. According to a professor of strategy and governance at McMaster University, the mission statement consists of three main components that include the target market, the contribution the organization is making in the society, and the distinction which makes an organization unique.
Inspiration means the vision or the dream of the organization. Once the mission is set, the organization determines where it wants to see itself after a certain period. It tells what the organization wants to be. Vision can be a crucial inspiring tool and make workers feel more involved. According to Hartford,
“Organization should also develop it in transparent and encouraging terms so that staff and other stakeholders understand and feel it and are ready to live by it.”
Values mean the guiding principles on which the organization stands. They make the culture of the organization and vice versa. Organizational culture is developed or cultivated is centered on the values of the organization. Thus, when culture is clearly defined, it makes it easier for leaders and employees to show better judgment. They show that the organization would not compromise its values no matter what. Planners need to establish or revisit corporate principles through proper common values surveys in organizations during strategic planning.
Strategy means the business strategy on which the organization will work. There are three types of business strategy; corporate-level, business level (cost leadership, differentiation, and blue ocean), and functional level. Together, these three stages of strategy can be demonstrated in a Strategy Pyramid. The strategy further helps to formulate and implement the goals of the organization. The SKEPTIC and SWOT analysis is done in the first step to help to select the best one for the company.
Aims mean the financial and non-financial goals of the organization. They are set using the Balanced Scorecard Approach that is a performance metric used to identify and improve the following organizational areas;
- Financials, i.e., the goals related to total sales, gross income, net income, and return on investment
- Customers, i.e., the goals pertinent to customer loyalty, retention, and the growth of new customers.
- Internal Business Processes, i.e., the goals associated with the enhancement of business processes
- People, i.e., the goals linked to employee satisfaction and retention and their growth
Why use SPIVSA Model?
SPIVSA Model is a useful structure for strategic planners, including the CEOs, senior managers, and strategic consultants. It is because having a proper model helps them carry out the strategic planning of their organizations in a systematic way. Besides, it proposes the use of authentic resources at various planning stages. Lastly, this framework helps to produce a detailed strategic plan text called the strategy paper. So, utilization and application of the SPIVSA Model in the strategic planning process are beneficial for the organization due to the aforementioned reasons.
Strategic Planning Leadership Consulting is one of the consulting services delivered by Jibran Bashir Leadership Institute. This service is based on SPIVSA Model which is a modern strategic planning paradigm based on a system approach. SPIVSA is an acronym for Scan, Purpose, Inspiration, Values, Strategy, and Aims. This framework, if followed in the prescribed sequence, helps the strategic planners to systematically conduct the environmental scanning, craft the mission statement and the vision of the organization, define the values and principles, come up with the company’s strategy, and then set targets to achieve the long-term vision. Consequently, this framework also would create more and more strategists with a clear and explicit understanding of strategic planning.