Write a 1,050- to 1,400-word paper in which you address the following:
•Explain why the 3 types of goals are important to the strategy of an organization.
•Explain why the different types of planning are important to the strategy of an organization.
•Examine the elements or factors involved in creating an effective strategy for an organization.
Strategy and Planning Paper
This paper explains why the three types of goals and different types of planning are important to the strategy of an organization. It, also, examines the elements or factors involved in creating an effective strategy for an organization. There are three key types of goals that are established for organizations: short-term goals, medium-term goals and long-term goals. It is essential to note that different organization develop different plans in order to achieve their overall goals. In most cases, they usually acknowledge the necessity of separating planning into various phases. According to Schwenger and Straub (2013), this is an essential approach that enables organizational management to trail instantaneous improvements while assessing progress towards the final targets and goals. It is; however, significant to note that each of the three types of goals plays an essential role to the strategy of an organization.
Short term goals are the objectives that an organization expects to achieve within a period of one year. An organization such as Microsoft; for instance, can expect to achieve a 10 percent increment on its sales within one year. It is essential to note that short term goals are significant to the strategy of an organization in the sense that such plans examine an organization’s features in the present and then attempts to develop strategies that can help to see their improvement (Schwenger & Straub, 2013). Some of the features of an organization that are worthy consideration in this regard include employee skills and attitudes. Other short term goals that an organization requires considering in its strategy include issues of product quality and/or the state of production equipment. In order to address such issues, an organization finds it necessary to embrace short term solutions to the current problems. Such short term solutions can entail quality fixes, equipment servicing and employee training courses, which are significant for setting the platform that can enable an organization develop comprehensive solutions to its problems in the long run.
Medium term goals, in most cases, are the consequence of an organizational team completing or achieving a task due to consistently meeting their short term goal requirements. Usually, such goals relate to a timeframe of about 12 months through to five years. They are usually broader objectives than short term goals and require regular reviews. The significance of medium term goals to the strategy of an organization is that their planning enables an organization to apply permanent responses to the problems, which it might have experienced during implementation of its short term goals (Schwenger & Straub, 2013). For instance, if quality issues are still prevalent, the response of the medium term goals can entail strengthening the quality control program of the organization. If repairing the machines comprised short term response in addressing equipment failure, making arrangements for a service contract can be the most appropriate response to equipment failure in the medium term. Therefore, medium term goals play a significant role to the strategy of an organization by implementing procedures and policies to ensure that problems experienced in the short term to do not recur.
Long term goals are usually aspirational in nature and, mostly, relate to a timeframe that exceeds more than five years. In most cases, these types of goals tie closely in with work/life balance and personal goals of organization’s managers and business owners. Long term goals are significant for enabling organizations attain permanent solutions to its problems in order to meet their general targets. It essential to note that long term goals are significant to the strategy of an organization in the sense that they react to its competitive situation in terms of its political, economic and social environment (Schwenger & Straub, 2013). Through long term planning, an organization can assess key capital expenditures like purchasing facilities and equipment as well as implementing procedures and policies that can shape the profile of an organization in order to eradicate mismatch with the ideas of management. In the event that both the short term the medium term goals are fruitful, then the long term goals play a significant role to the strategy of an organization by building on those accomplishments and ensuring that they are well-preserved so that progress can remain a continuous process.
There are three types of planning that are significant to the strategy of an organization. These types of planning are: strategic planning, tactical planning and operational planning. Strategic planning is significant to the strategy of an organization because it entails development of a statement that describes the manner in which an organization intends to utilize its scarce resources in order to see that its strategic goals are accomplished. Strategic planning is an issue usually reserved for an organization’s board of directors and top management. Managers who engage in strategic planning should have the capacity to work in conditions of uncertainty, and should be able to evaluate opportunities and threats that might be present in the future environment of the business (Gupta, 2011). Strategic planning usually covers a longer period that may range from five years through to fifteen years. The second type of planning is tactical planning, and it is significant to the strategy of an organization in the sense that they define the kinds of actions that the various units within the organization should take in order to successfully implement the strategic plan. Compared to strategic planning, tactical planning involves less risk taking and uncertainty, and it is an issue that is usually reserved for mid-level management. The third type of planning is operational planning and it is significant to the strategy of an organization in the sense that it serves as a guide for departmental managers so that they can accomplish the day-to-day operations.
There are various elements or factors that are involved in creating an effective strategy for an organization and they include: engagement, communication, innovation, project management and culture (Gupta, 2011). In respect to engagement, it should be clear that creating a strategy is a process; not just an event. Engagement of all staff levels in the entire organization is a key element. The second key element is communication. Embracing a top down and bottom up communication approach is a key element required for successful creation of an effective organization strategy. The third element is innovation. For an organization to develop an effective strategy, it should reshape its organization culture in order to be innovative. This is essential for implementing a process that can help it manage it manage innovations. The fourth element is project management. The moment an organization’s strategy has been put together, there is need for project management skills that can facilitate its successful execution. The last element is culture. Proper comprehension of an organization’s culture can influence successful development of behaviors, beliefs, values and attitudes that can support creation of an effective strategy.
In conclusion, this paper explained why the three types of goals and different types of planning are important to the strategy of an organization. It, also, examined the elements or factors involved in creating an effective strategy for an organization. The three types of goals that are significant to the strategy of an organization are short term, medium term and long term goals. There are three types of planning that are significant to the strategy of an organization. These types of planning are: strategic planning, tactical planning and operational planning. There are various elements or factors that are involved in creating an effective strategy for an organization and they include: engagement, communication, innovation, project management and culture.
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