All businesses operate around certain business cycles. A business cycle refers to various trends that occur within a business or industry, such as growth or contraction. Often times, management decisions are impacted by where the company stands in reference to a particular cycle. Macro business cycles such as the general state of the economy also play an important role in management decisions.
Strategic Planning Cycle The strategic planning cycle embodied in a set of formal planning procedures, ensures that managers examine major strategic issues, or 'strategic elephants', faced by their organization.
This is necessary to overcome the natural preoccupation with short term operational problems. The formal planning cycle also provides a logical framework to enable managers to tackle their strategic elephants in a systematic way, and so ensure that no major issues are left unaddressed. So many strategic planning cycles in the management tool shop!
This need for a logical and thorough system is expressed in the amazing variety of corporate planning cycle diagrams on offer. This is a small sampling of the literally thousands of planning cycle diagrams available on the Internet.
The variations represent different levels of abstraction, ways of defining stage boundaries, grouping of sub-steps or tasks into larger stages or phases, and so on. Sometimes there are different sector viewpoints that influence the design of the strategic planning cycle.
For example some public sector organizations are governed by funding and budget cycle considerations, as well as the need to explicitly take into account a multiplicity of constituencies in the planning process.
Change, change and more change! The need to use a formal strategic planning cycle, and the many apparent variations in planning process design, also reflects changes in the broader context in which organizations of all types operate.
The need to use a more systematic approach to corporate strategic planning has increased in recent decades. Society has become keenly interested in the behavior and governance of organizations, and now requires clearer public statements of corporate intentions.
Also because organizations have increased in size, complexity and geographic scope of their operations, rates of change, growing lead times on larger, more complex projects, there is a demand for more professional approaches to management at all levels.
Some may see strategic planning as a means of dramatically improving corporate performance through innovation, or grand disruptive ocean coloring master strokes in some great competitive battleground. While I believe that a soundly managed cycle of strategic planning can help an organization to improve overall performance, I see it more as a means of defending against the rising penalty for error.
I believe this because the strategic planning cycle is a way of organizing to take major corporate decisions in conditions of extreme uncertainty. A handful of essentials in the strategic planning cycle There is such bewildering array of strategic planning process diagrams.
Yet the fundamental procedures required are few in number. I will approach the clarification of these procedures by first describing a minimal strategy development cycle; or rather pair of cycles, as shown in the following diagram.
As you can see the planning process depicted is composed of two interlinked cycles. The left of the diagram focuses on setting corporate objectives and keeping them under review. The cycle on the right concerns the determination of strategy and keeping that under review.
The cycles are linked by an arrow in one direction only, indicating that a strategy is selected only after the objectives have been decided.Oct 25, · The typical business cycle will address front, middle, and back office functions, making sure that all aspects of the company work in tandem for the benefit of the business itself.
While there is no one ideal way to create a viable business plan, the tools used in a .
Elements of a Business Plan This is based on a sales cycle similar to a product life cycle where you have five distinct stages: early . The business cycle is an economic concept that shows the stages of business development.
It can refer to a single business, but is often used to describe the movements of entire market or economy. The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (GDP) and other macroeconomic variables.
A. What is System Development Life Cycle? January 9, Motea Alwan in SDLC System Development Life Cycle (SDLC) is a series of six main phases to create a hardware system only, a software system only or a combination of both to meet or exceed customer’s expectations. A planning cycle is the process of combining different aspects of planning into one synthetic unit.
Any plan should be practical and cost-effective. A planning cycle commences by analysing whether any plan is likely to succeed or not. Most plans succeed when they are thought out as a cycle as.