Planning is an important activity for each enterprise. Depending on the lead-time period, different types of this process are distinguished. The fundamental varieties are strategic planning and tactical planning. They have specific goals and objectives, and also apply appropriate techniques for analysis. The main properties of these types of planning, their principles will be discussed later.
general characteristics
Strategic, tactical and operational planning allow us to predict the state of the company in a different perspective. This is an important job that managers of any large and medium-sized enterprise do. Without planning it is impossible to make the right decisions, while maintaining a competitive advantage in the market.
Implementing an organization’s strategy requires tactical decisions. Moreover, the time periods allotted for this can be very short. Strategic planning is also called promising. It is aimed at solving global processes. Long-term planning cannot be accomplished without tactical or ongoing forecasting. Strategic goals are achieved in stages. Therefore, the lead time in analyzing the company's prospects should be different.
Strategic, tactical and operational planning are interconnected. However, they have fundamental differences in the methods of implementation, as well as in the structure of decisions and the timing of their implementation in the future. Ongoing forecasting is an integral part of developing a long-term plan. It specifies the indicators, as the state of the company in the near future is more predictable.
There are different types of strategic and tactical planning. They are aimed at achieving different goals. So, the current (tactical) forecasting includes short-term, operational plans. They help to link the main activities of the company with the help of estimates, budgets. In this case, plans are developed for all functional units. These include staff development, research, manufacturing and finance, sales, etc.
The complex of tasks that are solved with the help of tactical planning includes the development of a plan of profit, balance, cash flow. Such forms of financial statements reflect the financial condition of the company in the current period and in the future. The current plan is for one year.
To draw up a short-term plan, data on sales, sales, as well as the results of marketing analysis are used. Based on the forecast of sales indicators, the production volume is planned. It also determines the need for the loading of production capacities, the acquisition of fixed assets, as well as the amount of labor.
Strategic, tactical and operational planning of personnel, material resources, other areas of the organization are related processes. But its current form is used as the main plan for the smooth operation of the enterprise. It is used to develop an implementation plan. They repel him, creating other important plans.
Long term
Strategic, tactical and operational planning of personnel, production, and other activities of the organization allows you to make the right decisions when choosing the direction of the company. Each organization has its own goals, which can be set and achieved only by considering the state of the enterprise and the industry as a whole in the future.
Strategic planning is one of the functions of strategic management. In the course of this activity, goals are set, and ways to achieve them are selected. This type of planning is a support when making almost all decisions of managers. They focus on the functions of motivation, organization and control.
If the company does not take advantage of the benefits that strategic planning opens, employees will not be able to clearly understand the goals of the company, as well as its lines of business. Therefore, it will not be possible to manage all employees. It is strategic plans that are the basis for this process.
Long-range forecasting provides an opportunity for managers and owners to assess the possible paths and pace of development of their organization. Also during this process, the global market prospects are determined. We study not only the alleged development of the organization, but also its environment.
Previously, companies used far from all types of planning during the pricing process. Strategic, tactical and operational planning differ in level of complexity. Forecasts for the long term previously made only large corporations. But today the situation has changed a bit. To maintain competitive advantages, the organization should plan its work, correlating it with the likely changes in the external environment. Therefore, representatives of medium-sized businesses also took up the issues of forecasting their activities in the future.
Mission, goals and long-term planning process
Considering the essence of strategic and tactical planning, it should be noted the features of such processes. In any organization, long-range forecasting begins with the organization’s mission. It is a reflection of the meaning of the enterprise, its philosophy.
Mission means a global concept that defines the movement of a company at the moment and in the long run. It details the status of the organization, its main principles in work, the intentions of managers. The mission indicates the most important characteristics of economic activity. The mission determines what resources will be allocated, which areas are promising and which are not worth paying attention to. The financing process in this case is directed.
The mission reflects priority values. It does not depend on the current state of affairs of the organization. It should not be affected by the financial problems of the organization. In the process of describing the mission, it is not customary to indicate that the company is working with the goal of generating income. Although this is precisely the main aspiration of any organization in a market economy.
The goal allows you to specify the mission. This allows you to complete the process of implementing the main idea in the management process. The goals of strategic planning are as follows:
- Measurability, specific volume.
- The time frame is clearly specified.
- Consistency, consistency with other company missions.
- Ability to confirm resources.
- Targeting, controllability.
Strategic and tactical planning of marketing, finance, human resources, etc. are related components of a single process. They cannot contradict each other. Otherwise, it would introduce dissonance into the big picture, and prevent progress towards the goal. Strategic planning consists of the following steps:
- Formation of the mission, setting goals.
- Analysis of the market, the strengths and weaknesses of the organization, its capabilities and potential dangers.
- The development of a specific strategy.
- Its implementation in practice.
- Evaluation, performance monitoring.
Strategy Analysis
The system of tactical and strategic planning is based on the results of analysis, marketing, financial research of the organization, its environment. After determining the mission and goals of the organization, the strategy is built. Based on this, an organization policy is developed.
The main element of planning in the long run is analysis. It may include various elements. Such an analysis is also called portfolio analysis if it is carried out for a diversified company. This is a control element that allows the management of the organization to evaluate their activities in terms of resource efficiency. Also, by conducting such studies, hidden trends are revealed that negatively affect the work of the enterprise, as well as reserves are found to improve the competitive position in the market.
One of the main methods of portfolio analysis is the construction of matrices. With their help, they compare production, processes, products according to certain general criteria. Matrices can be formed in three ways:
- Tabular way. Values of parameters that vary in time are reflected in increasing order. The analysis is carried out from the upper left corner of the table to its lower right corner.
- Coordinate approach. The values of the indicators increase with the intersection of the coordinate point. The analysis is performed from the lower left to the upper right corner.
- Logical method. This approach is most common in foreign practice. It involves a portfolio analysis from the bottom right to the top left.
At different levels of planning, strategic, tactical analysis allows you to assess prospects, identify reserves, monitor progress towards the goal, etc. This tool is also used to study the organization’s environment. This approach allows you to evaluate your own market position, to develop a development strategy and gain new competitive advantages.
In the course of such work, they study the external environment as a whole, as well as the immediate environment of the organization. Then the internal environment of the enterprise is analyzed.
Strategy selection and implementation
Considering the features of strategic and tactical planning, it is worth considering the process of formation and promotion of the selected goals of the company at different levels of development. So, based on forecasting in a distant future, a strategy is formed. This is a qualitatively defined, long-term direction of the company’s activity, which should lead to the achievement of the organization’s goals within the indicated time frame.
The strategy is selected taking into account the following factors:
- company position in this market;
- industry development prospects;
- accounting of technologies available to the company.
After choosing a long-term direction of movement, a period of strategy implementation begins. This is a critical process, since it depends on its course whether the organization will achieve its goals. The implementation of strategic plans is carried out through the creation of special programs, the development of budgets and procedures. They can be considered at different lead times. There are several factors that influence the successful implementation of a strategy:
- The plans and goals of the developed strategy are communicated to each employee. Workers must understand what the organization is committed to. This allows you to involve the entire work team in the process of implementing the strategy.
- Resources must be delivered to the appropriate funds on time. The management of the company controls this process. Managers should formulate a plan according to which target installations will be carried out.
- The distribution of responsibilities between management at different levels. This allows you to solve the tasks, distributing them among the performers.
Be sure to periodically evaluate how the process of achieving the set planning goals is progressing. Strategic and tactical plans should undergo continuous study of their implementation. To do this, an assessment is carried out in the following areas:
- whether the principles of the chosen strategy correspond to the requirements and state of the environment;
- the appropriateness of the risk that was laid down in the strategy;
- correspondence of the chosen perspective concept to the real capabilities and potential of the enterprise.
The process of implementing the developed plans is evaluated using a feedback system. Need control, which is carried out by managers at different levels, over the implementation of current tasks. Based on the studies carried out, the adjustment of the previous stages is carried out. Strategic control is based on the following principles:
- Calculations should be as accurate as possible. Due to the uncertainty and inaccuracy of the analysis, the project can turn into an abstraction, which is not possible to implement. This is unacceptable, since funding activities should be targeted. Otherwise, resources will be directed to unnecessary, unpromising directions. At the same time, the attention of managers should be focused on indicators of payback, and not on the control of budget funds.
- In the control points of the product life cycle, it is necessary to assess the cost recovery. Implementation of the project continues until the payback exceeds the costs of the control level.
Executive functions
For the development, implementation and control of selected areas of strategic and tactical planning at the enterprise, managers of different levels are responsible. Managers during this process perform a number of functions:
- They conduct a thorough study of the external and internal environment of the company, employees understand their goals. They should increase staff awareness of ideas, tasks and plans.
- Decide on the appropriateness of financing various activities of the organization.
- Form an organizational structure.
- Initiate the appropriate changes within the organization.
- Review plans for fulfilling strategic goals and objectives if unforeseen circumstances arise.
If necessary, managers can carry out restructuring, which can be carried out in various forms:
- radical;
- moderate
- ordinary;
- inconsequential.
The choice of organizational structure depends on the variety of activities of the organization, the size of production. Geographic factors, applied technologies, attitude to personnel structure may also influence this.
Strategic and tactical planning in management allows you to create optimal relationships within the company. There are different styles for applying changes. Control by managers allows you to determine whether the implementation of specific tasks will lead to the implementation of the main goal and mission.
Current period planning
There are certain differences between strategic and tactical planning. These are two interconnected processes. Tactical planning is used to correctly allocate enterprise resources. This allows you to achieve strategic goals.
Each type of planning should answer specific questions. So, strategic planning allows you to determine what exactly the company wants to achieve. Tactical forecasting concentrates on the means by which an appropriate state should be achieved.
If the lead time is not more than a year, you can refine or adjust, specify the selected strategy. Therefore, during the tactical construction of plans, a selection of actions is carried out that are reasonably the most effective for achieving the goal.
This process involves two stages. During the first period of tactical planning, a list of company tasks is prepared. During the second stage, appropriate actions are taken during their implementation.
In the process of preparatory work, information is collected, refined and systematized. These data are analyzed, which allows you to adjust the direction of movement of the company. Separate tasks are set for specific structural units based on the results of studies. Corresponding activities are developed and included in the plan. This process is documented and confirmed by managers.
Goals and objectives of tactical planning
Strategic and tactical planning in management allow us to solve different problems and set different goals. This is necessary for the implementation of the effective activities of the company. In tactical forecasting, the following goals are pursued:
- Identification of reserves that will help to achieve the highest results in the course of the enterprise. For this, a financial credit mechanism is used.
- Determination of economically feasible, optimal norms in the process of using working capital, sources of their formation. The ways of formation and distribution of profits are also investigated.
- The formation and distribution of funds in accordance with the characteristics of production programs.
- Determination of relations with banking, credit organizations, state funds, other structures that are involved in the distribution of funds.
- Ensuring a sustainable financial position of the organization. For this, incoming and outgoing resources must be balanced.
- Creating conditions for the relationship of relevant indicators, their continuity.
- Monitoring the distribution of finances and the progress of the adopted indicators.
Strategic and tactical financial planning are inextricably linked. They mutually influence each other. But each of the processes has a certain area of responsibility.
Differences
To better understand the features of strategic and tactical planning, the differences between them need to be considered in more detail. Characteristic features are inherent not only to their goals, but also to the results, the duration of the lead-up period, participants, etc.
Tactical planning complements, refines the strategy. It allows you to choose the most appropriate actions that will achieve the goal in the shortest possible time. Tactics are a form of expression of strategy. Their goals are related. However, the differences between strategic and tactical planning are significant. If you imagine the development of the company in the form of movement to the top, then the strategy determines the ultimate goal of the activity. In this case, tactical planning - these are the steps that you need to go through to reach the top.
There are several basic characteristics by which these two processes differ. Strategic planning and tactical planning differ in their goals. In the course of the current forecasting, such a path for the use of assets is determined that will allow you to get the maximum profit. The purpose of strategic planning is the creation or improvement of assets, which allows you to increase the value of the company.
The result of current activities is net profit in the reporting period. Long-term planning determines the result in obtaining positive results in the course of investment activity, capitalization of assets.
