Strategic Planning Models

Strategic planning models are as numerous as the various proponents to it. A quick check at a list of the greatest management thinkers and their ideas places the list at more than thirty. This does not include other management thinkers who have had ideas that are put to use but are not acknowledged by the academe.

Our scope is limited to a strategic planning model that we have named as the strategic square. It is a group of four strategic planning models, corresponding to the four sides of a square. One can actually reposition it, so it basically means that all are important but that when you place a model with the face upfront, you are actually placing your emphasis in it.

The Organizational Planning Model

The first strategic planning model is the organizational planning model. It is a planning model with the emphasis on the organization and how it affects strategy. Organization based strategy is a crucial element in the strategic planning model. After all, organizations are made up of people and it is someone on the organization who does the strategic planning.

How does one create the organizational planning model? What is the initial step? The organization has to look at the outside of the organization and then look inside. What is happening in the marketplace? What are the customer needs, demands, and peculiarities? After answering these, organizations start the planning model by answering the question how. How can the organization design itself to fit the marketplace and business environment?

Several characteristics typify the marketplace: it is fast, fickle, and similar to fashion. These call for an organizational model that can adapt to this kind of environment. In order to be fast, organizational planning has to come up with an organization that is small, smart and mobile.

To wit, small not probably in numbers as in composition, smart in order to outthink the competition and mobile in order to follow the constant movement in the marketplace. To create a strategic advantage, the organizational planning model must be speedier, brainier and smaller.

The Marketing Planning Model

A second strategic planning model is the marketing planning model. Goods and services would be of no economic value unless it is introduced and sold to the end-users. The marketing planning model uses a different criterion. While generally the marketplace is fast, fickle and fashionable, the marketing planning model must focus on certain other factors or areas.

These areas are: product or service introduction, product or service positioning and product or service entrenchment. The marketing planning model seeks to design a marketing methodology in order to introduce a product or service.

After identifying customer needs, wants and expectation, it seeks to discover the most appropriate and cost effective method of introduction. Many products and services never made it past the product introduction stage due to faulty marketing planning.

Product introduction should pave the way to product positioning. A product position in the market will dictate deviations in the marketing planning strategy. A product might be positioned for the C market but after the introduction, it may work well with the B market. Such things can happen in the marketplace.

Product positioning then should determine product entrenchment. A well-positioned product has to be well entrenched in the marketplace. When marketing planning decides to entrench, it must be up to par with the expected opposition.

Industry leaders might wage a wiping out campaign in order to dislodge the product from its position and entrenchment. Marketing planning must brace itself to a long, protracted price war, display war, advertising war and so on. The marketing planning model must include such an eventuality.