Strategic planning and strategic management are related but distinct concepts. Strategic planning focuses on formulating an organization's direction, while strategic management encompasses the entire process of achieving that direction.
Here's a breakdown of the key differences:
Strategic Planning vs. Strategic Management
| Feature | Strategic Planning | Strategic Management |
|---|---|---|
| Focus | Formulation of direction (vision, mission, priorities) | Overall process of achieving the direction, from planning to execution |
| Scope | Narrower, focused on planning activities | Broader, encompassing planning, implementation, and evaluation |
| Activity | Defining goals, strategies, and resource allocation | Implementing strategies, monitoring progress, and adapting to change |
| Time Horizon | Typically long-term (3-5 years or more) | Continuous and ongoing |
Key Differences Explained
Strategic planning is essentially the blueprint for the future, while strategic management is the construction and maintenance of that future. According to the provided reference from 30-Aug-2018, strategic planning is the approach used in forming an organization's direction (e.g., its vision, mission and priorities). On the other hand, strategic management is the overall process of achieving that direction, from planning to executing.
Here's a more detailed look:
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Strategic Planning: This involves analyzing the external environment, identifying opportunities and threats, assessing internal strengths and weaknesses, defining the organization's vision and mission, setting strategic goals, and developing action plans. It's about what you want to achieve and how you intend to do it.
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Strategic Management: This involves implementing the strategic plan, allocating resources, managing performance, monitoring progress towards goals, and making adjustments as needed. It's about doing what you planned and ensuring it leads to the desired outcomes. It also involves continuous monitoring and adjustment of the plan to stay on course in response to dynamic external environments.
Examples
- Strategic Planning Example: A company decides it wants to be the market leader in sustainable packaging within the next 5 years. It develops a plan outlining specific strategies for R&D, marketing, and operations to achieve this goal.
- Strategic Management Example: The same company implements its sustainable packaging plan, monitors its progress against key performance indicators (KPIs), and makes adjustments to its strategies based on market feedback and competitive pressures. For instance, if a new technology emerges, the company might adapt its R&D strategy to incorporate it.
