Quite often, people confuse strategy and tactics and think the two terms are interchangeable in strategic planning, but they’re not. Here’s the full…, By James Rickards Posted September 5, 2017, Jim Rickards’ reveals the global elites roadmap for how to use cryptocurrencies against their populations. What comes next? If innovative thinking is the hippies and artists of the organization’s project management, strategic planning is the architects and engineers. Understanding strategic planning vs. operational planning doesn’t mean you choose between them! You May Like. God bless you all. Operational. The application of strategic planning in business is a result of difficult managerial decisions that comprise good and less desirable courses of action. Unlike the additional work that is created by the process of strategic planning, we can understand strategic thinking as using a new lens to view the business. For example, experience from reading a lot of speeches allows me to intuitively recognize the main message of the speech apart from the jumbles of rhetorics and details. If strategic thinking respects operational planning, it is the case that strategic planning has a tendency to merge with the dictates of operational necessity. And in time of war, things are immensely fluid and fast-paced. And in both war and peace, strategic planning can become a structured process that tends to create relatively neat divisions of formulation and implementation. Strategic planning is, as I mentioned before, a type of high level management. But the planning aspect has to deal with what is more operationally tangible, versus strategically abstract. Strategic planning implies the ability to assert control.  Control requires information, measurements and metrics. The more quickly any process lends itself to measurement and assessment, then the more control there is through the planning process. The keeping of primary interpretive focus on the ways in which the key decisions of business affect or are affected by variations in technology and not on those variations t… If you’re sighing and thinking, “Great, one more thing I have to start doing…”, hold up! (Changing demand will be an very inelastic process, to be sure, but go away the demand will.). Strategic management and strategic planning give an organization a direction to move in. The two not only work together…but they require each other. That said, training and cultivating an organizational culture to think strategically is a vital tool throughout the strategic planning process. The planning to achieve the tactical objectives of the organization is known as Operational Planning. The strategic planning process will allow businesses to identify the possible factors that could threaten or hamper growth and success via SWOT analysis so they can be better dealt with. At the same time, strategy is not just what you say. In more modern parlance, FDR was “the decider.” The broad strategic decision was FDR’s to make, because in the U.S. political system the Constitution vests such legal authority in the office of the president. Thus is strategy controlled by policy, which in turn derives from politics and legal structure. So the next questions are, What is the desired end state? How can you get there? There are many ways to do different things, so a strategy offers the beginnings of an articulated means to achieve some end. UNIT 1: Understanding Strategic Planning 81931_NMAC 8/7/03 11:57 AM Page 9. Introduction . Eventually, the working classes will feel the pinch and they too will exit the oil age.  Then it will be the turn of the lower middle classes. The first strategic question to ask is “what shall we do?” Yes, that is a good question, but just a start. Semper Fi. Alignment . Ahead of the Curve: A Guide to Applied Strategic Thinking was our first book on strategy. I. He has been interviewed by dozens of major print and broadcast media outlets including The Financial Times, The Guardian, The Washington Post, MSN Money, MarketWatch, Fox Business News, and PBS Newshour. The Strategic Thinking Process . Strategic management is a step ahead of strategic planning. Bill Bonner By Bill Bonner Posted September 22, 2017, President Trump sinks into the swamp. When I get an extra hundred grand, bam, 10,000 goes into gold”…. The Mercer paper also uses the expression “strategy by spreadsheet” as a means of illustrating, disparaging and warning against another extreme of strategic planning. Strategic thinking is more than just “thinking outside the box” . Less oil availability on world markets will translate into higher prices for the substance. And as the price of oil rises, some elements of demand will simply go away. The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: So, if you are serious about being strategic, (as well as planning and acting strategically) give me a call. So as we can see by using the War in the Pacific as an example, strategy in general offers a vision of the future. Strategic thinking defines, but does not necessarily predict, the shape of the future, and articulates the desired end state. (For example, the military defeat of Japan was the goal, but it would take a lot of hard fighting to get there.). “I don’t even look at the price. Intuitively anyone recognizes the contrast between operational and strategic: “Operational” is something that helps things to work smoothly today, and requires constant attention, while “Strategic” is something from the world of top managers, defined for a longer-term, often less tangible, but still very important. In order to innovate for future, strategy planning is a key impute. Where strategic management … Frequent readers know that I have written quite a lot about Clausewitz, and his development of the concepts of strategy while writing his opus On War in the 1820s (published in 1832). Applied Strategic Thinking Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables. The willingness to cross older functional boundaries in the search for analytic concepts elegant enough to make sense out of progressively sophisticated data. The two not only work together…but they require each other. 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Strategic planning is one of the several components of project management that a high-functioning organization requires to operate at its maximum operating level. Strategic planning, on the other hand, is a means to manage if not to specify, the details of how to achieve the desired end state. And when I use the word “manage,” I am using it in a broad context. Once the larger strategic goals are broadly defined, it becomes necessary to formulate and implement the strategy. This can be the really hard part, particularly because the “other side” is probably going to react to whatever you determine to do. Using the Pacific War example, MacArthur proposed first to conquer the Philippines, and then proceed on the track to Japan. The Nimitz approach was to bypass the Philippines and move more quickly and forcefully towards Japan. Keep in mind one last bit of strategic advice. Scenario planning. Yes, some of these technologies will work and, if constructed to scale, produce liquid fuels to substitute for what will no longer be available from oil. by Randy Rollinson | Dec 30, 2015 | Uncategorized | 0 comments. Employees, managerial staff, and upper-level management will all be working together to achieve these goals. Sure, you are in the middle of a war zone, where people are shooting at you and trying to blow you up, and you have to watch your back and fight like hell. Rather than a division between creative and strategic thinking, the world’s most agile companies understand that the key to successful problem solving, design and innovation is, in fact, a symbiotic interplay between ‘strategic creativity’ and ‘creative strategy’. The strategic question is, What is the desired end state? In working with our clients, we find that most have a relatively strong understanding and appreciation for the value of strategic planning/management. Ask Them to Review a Flawed Strategic Plan and Identify Potential Problems. Until we meet again… Byron W. King December 28, 2006. Definition – Strategic thinking is a skill. relationship between them. Strategic Thinking and Strategic Planning: Two Pieces of the Same Puzzle During the high-level strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding.  During the operational and implementation phase, a strategic thinking organization will ensure that the higher level strategic direction cascades throughout the day-to-day decision making at all levels. Here’s what’s hiding in plain sight and…, Donald Trump’s positioning has put the U.S military one step closer to the next phase of the Korean War. Strategic Thinking is the combination of Innovation, Strategy Planning, and … That is, FDR happened to hold the one office of the U.S. constitutional system of government in which was embedded the authority of the U.S. president to act as Commander in Chief. There is no agreement in the literature on what strategic thinking is, what strategic planning is, or on the nature of their interrelationship. Our research is based on a literature review. Which one do you live in? Or is the crux of the problem going to be “too much demand” for nonexistent (in the future) traditional energy sources, thus creating the circumstances for what is euphemistically called “demand destruction?” What is the strategic plan for this scenario? Peak Oil is real, of course, and so are market mechanisms. Look after your Marines, my friend. Strategic Planning is long lasting as compared Operational Planning. In the past decades the strategic management literature has witnessed an impressive growth. First, you have to identify the end state that you want to achieve. Through this focus, the company can ensure that their operations are as efficient and effective as possible. It has to be conducted or carried out. Applied Strategic Thinking is the ability to anticipate and begin exploiting tomorrow’s opportunities today. At the Strategy Management Group, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. Determine three (3) specific strategic goals that align with the ideals in those two (2) statements. What is the relationship between Strategic Thinking and Strategic Planning? Importance of Culture in Strategy to Execute June 20, 2019. JEL classification: L1, M1 . Strategic planning. The strategic plan is high-level thinking, without the details, defining strategic focus. Élaboration d une stratégie Question ajoutée par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group How shall we execute the plan? Who is responsible for making things happen?  At which stages do we reassess the entire matter? Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. Applied Strategic Thinking Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables. A quick Google search reveals that academics have pondered and debated this question since the early 1990’s. Contents. How to Cultivate a Growth Mindset at Workplace January 23, 2020. C-suite executives, middle managers, and front line staff are entrusted with the freedom to think through solutions and trade-offs, to ensure each decision is best aligned with the overall strategic direction. It is the habit of visualizing alternative futures for the organization and their impact on others. The truth to know before you go to your nearest jeweller…, A Russian-Chinese plan to encircle Eurasia?…, Would the U.S. have actually invaded Saudi Arabia to seize its oil?… How the U.S. Congress may provoke the Saudis into dropping…, By James Rickards Posted November 26, 2018, “Now it’s Saudi Arabia’s turn to get even by reducing supply and driving prices higher”…, Might the Fed’s bailout of repo market exceed the entire Wall Street bailout of 2007–10?…, Best-Selling author, Nomi Prins takes a deep dive into the Federal Reserve’s impact on Wall Street banks and what that means for…, Here’s Nomi Prins with the latest analysis on the Fed’s repo market action. 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