There is no doubt that strategic planning and strategic management link. Strategic management is the process of allocating and making good use of resources to deal with problems and seize opportunities that have been found through strategic planning. It is necessary to do strategic planning before starting the strategic management process. Strategic management plans the way for an organization to get to where it wants to go and sets out the steps it needs to take to get there. We will go over the differences between strategic planning and strategic management in detail in this article.
Strategic planning and strategic management are the building blocks of business strategy. The first one is about making a choice and evaluating it, while the second one is about putting that choice into action.
Differences between Strategic Planning and Strategic Management
Strategic planning and strategic management go hand in hand, just like having a goal and putting it into action. The latter carries out the plan that the former comes up with. Strategic management makes sure the ship stays on its planned course, while strategic planning sets the course. To learn more, take a look at these differences between strategic planning and strategic management. To gain a fuller knowledge of planning vs execution subject, read more extensively.
Future Focus
Strategic planning lets you guess what might happen in the future and decide what to do next. If strategic management wants to reach its long-term goals, it always keeps its attention on the present. For example, if you’re a hotel company, strategic planning might mean expanding into more upscale areas, while strategic management would make sure that service stays the same at locations that are already open.
Imagine Execute
During the strategic planning phase, new and ground-breaking ideas are formulated that will set the stage for the future of the company. Strategic management, on the other hand, is about putting these ideas into action. A fashion label’s strategic planning and management to use eco-friendly materials in their designs and then make sure that these goals are met at every stage of production is a good example.
Decision Level
The CEO and the board of directors, who are the company’s top leaders, are mostly in charge of strategic planning. Intermediate and lower-level managers are part of strategic management because it is their job to turn plans into real projects. The decision by the healthcare provider’s board of directors to open new clinics in areas that don’t have enough medical care is an example of practical strategic planning and management.
Flex Adapt
Strategic management is what makes it possible to adapt to new situations, while strategic planning is what sets the basis. For example, a company’s leaders may have wanted to enter a new global market at first, but changes in the rules that were unexpectedly made them shift their attention to an area with fewer rules that limit their ability to do business.
Horizon of Time
Most of the time, strategic planning covers three to five years. Strategic management ensures alignment between an organization’s short- to medium-term activities and its goals. In a tech business, strategic planning may focus on new products for the next five years. Strategic management ensures timely introduction and successful sales of these products.
Coordinate Setup
Strategic planning makes sure that all of an organization’s parts are working together to reach the same goals. Coordinating activities is vital. Ensuring each group’s work aligns is crucial. These are essential aspects of strategic management. Think about a car company that has made sure that its production, marketing, and distribution plans all work together perfectly. This is possible thanks to smart strategic planning and timing marketing campaigns to coincide with the release of a new model.
Approach Contrast
Senior management often sets the tone for strategic planning from the top down. A bottom-up method could use if strategic management decides that people at all levels will involve in the implementation process. For example, as part of the overall strategic plan for a technology company, the management might give software engineers the power to adopt agile development methods.
Temporal Impact
When making a strategic plan, the market place and long-term effects are the most important things to think about. Immediate results and streamlining operations are at the heart of strategic management. A long-term goal for a company that uses green energy might be to switch to cleaner energy sources within the next ten years. To do this, the business would use strategic management techniques that make the best use of both present and future energy assets.
External/Internal Focus
When strategic planning, the future is often taken into account, along with market trends, a study of the competition, and the needs of the target audience. Instead of focusing on outside factors, strategic management turns its attention inward to improve processes within the company to help it reach its long-term goals. In the airline industry, strategic management might not put as much weight on passenger preference research in order to speed up the check-in and boarding processes.
Choose Act
For a company to make decisions that will affect the future, they need to carefully consider their options and plan ahead. A key part of strategic management is putting these plans into action. Consider the strategic planning a drug company undertakes for entering a new therapeutic area. Then, focus on the strategic management of clinical studies and regulatory processes that follow.
Risk Assessment
When an organization does strategic planning, it looks at the risks and unknowns that might affect its goals. During the execution phase, strategic management includes coming up with ways to lessen the effects of these risks. In long-term planning, a manufacturing company’s strategic management develops backup plans. These plans address issues in the supply chain when problems arise.
Monitor Assess
During the strategy planning process, goals and key performance indicators (KPIs) set. In strategic management, closely monitor key performance indicators (KPIs) for success measurement and necessary adjustments. For instance, a school aiming for increased enrollment regularly examines enrollment data, adapting marketing tactics accordingly.
Nature and Attention
Strategic planning can help people think deeply about the future, which is very important for the growth of a business. On the other hand, strategic management focuse on putting those plans into action so that the desire results can reach. In the retail industry, for example, strategic planning might focus on growing the company’s digital presence, while strategic management oversees the strategy’s application by making the best use of resources.
Thought Vs Reality
It is only possible to imagine what the future holds for a group through strategic planning. These ideas turn into real, measurable results by strategic management. A non-profit group might do strategic planning and administration, then coordinate volunteers and resources to carry out those plans, in order to expand its outreach efforts.
Strategy Varieties
Strategic planning focuses on big choices and long-term goals, while strategic management is more focused on day-to-day tasks. For instance, if you work for a software business, strategic management would make sure that customer market guides the creation of new software suite’s features.
FAQ
Are there Times when Strategic Planning doesn’t Work?
It’s clear that strategies that don’t work in real life can happen when accurate market data isn’t used in the strategic planning process or when big changes in the outside world happen.
Does Strategic Management Focus more on Operations or on Long-term Goals?
When it comes to the successful completion of long-term objectives, strategic management employs a strategy that refer to as being “operational.”
Can Changes be Made to Strategy Planning after it’s been Made?
Strategic plans can change in reaction to new information, changing circumstances, and unexpected changes in the market.
Last Thoughts
Like the base and the structure of a building, management and strategy planning work together. The first one supports the structure, while the second one shapes and works. To conclude, the topic of differences between strategic planning and strategic management is of paramount importance for a better future.
