Main strategic issues mandating coordinated action


15-Feb-2021 22:33

Some elements of the process may be continuous and others may be executed as discrete projects with a definitive start and end during a period.Strategic planning provides inputs for strategic thinking, which guides the actual strategy formation.There will also arise unintended Outcomes, which need to be attended to and understood for strategy development and execution to be a true learning process.Simply extending financial statement projections into the future without consideration of the competitive environment is a form of financial planning or budgeting, not strategic planning.The senior leadership of an organization is generally tasked with determining strategy.Strategy can be planned (intended) or can be observed as a pattern of activity (emergent) as the organization adapts to its environment or competes.

Inputs are gathered to help support an understanding of the competitive environment and its opportunities and risks.In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods.The term "budget" is used for a financial plan for the upcoming year.Capital budgets very often form the backbone of a strategic plan, especially as it increasingly relates to Information and Communications Technology (ICT).

Whilst the planning process produces outputs, as described above, strategy implementation or execution of the strategic plan produces Outcomes.

A "forecast" is typically a combination of actual performance year-to-date plus expected performance for the remainder of the year, so is generally compared against plan or budget and prior performance.



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