What are Some Common Strategic Planning Frameworks?
There are several strategic planning frameworks that business leaders can use to guide their planning efforts. Some of the most popular ones include:
Balanced Scorecard (BSC) The Balanced Scorecard (BSC) framework was developed by Robert Kaplan and David Norton. It provides a comprehensive view of an organization’s performance by evaluating it from four perspectives: financial, customer, internal processes, and learning and growth. The BSC helps leaders to translate their vision and strategy into actionable objectives and measures.
SWOT Analysis SWOT Analysis is a simple yet effective strategic planning tool that helps organizations identify their internal strengths and weaknesses, as well as external opportunities and threats. This analysis enables leaders to capitalize on strengths, mitigate weaknesses, exploit opportunities, and defend against threats.
PESTEL Analysis The PESTEL Analysis framework examines the external macro-environmental factors that can impact an organization. These factors include Political, Economic, Social, Technological, Environmental, and Legal aspects. By understanding these external influences, business leaders can make more informed strategic decisions.
Porter's Five Forces Porter's Five Forces is a framework developed by Michael Porter that analyzes the competitive forces within an industry. These forces include the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. This analysis helps leaders understand the competitive landscape and develop strategies to enhance their market position.