{"id":34777,"date":"2022-08-04T02:39:00","date_gmt":"2022-08-04T00:39:00","guid":{"rendered":"https:\/\/www.getsmarter.com\/blog\/?p=34777"},"modified":"2022-08-04T12:56:14","modified_gmt":"2022-08-04T10:56:14","slug":"project-management-how-to-develop-a-strategic-plan","status":"publish","type":"post","link":"https:\/\/www.getsmarter.com\/blog\/project-management-how-to-develop-a-strategic-plan\/","title":{"rendered":"Project Management: How To Develop a Strategic Plan"},"content":{"rendered":"\n<p>Without an effective strategic planning process, it\u2019s difficult to achieve success in project management.<sup>1<\/sup> Strategic planning focuses on a business\u2019s future by understanding operational priorities and resource availability, setting out clear strategic objectives for desired business results, and developing an action plan on how to achieve them.<sup>2<\/sup> The process creates and implements decisions that guide an organization&#8217;s direction, ensuring that it\u2019s adaptable to a changing business environment.<sup>3<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a strategic plan?<\/h2>\n\n\n\n<p>Ultimately, <a href=\"https:\/\/getsmarter.com\/products\/oxford-leading-strategic-projects-programme\" target=\"_blank\" rel=\"noreferrer noopener\">strategic planning<\/a> allows a business to take control of its vision and turn projected results into reality. This emphasizes its importance for project managers, who are responsible for the success or failure of a project, and for ensuring an organization operates at optimal efficiency.<sup>4<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Five steps of the strategic planning process<\/h2>\n\n\n\n<p>Strategic planning provides a sense of organizational direction and assists in the creation of realistic business objectives. A KPMG survey found that 27% more projects are executed successfully when an organization\u2019s structure and resources align with its strategy.<sup>5<\/sup> A one-page strategic planning document improves the decision-making process and allows organizations to be more proactive, which aids the ability to prepare for unfavorable situations and minimize any risks involved. The benefits include:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Projects are completed more efficiently<\/li><li>Project communication is increased<sup>6<\/sup><\/li><li>Resources are managed more effectively<sup>7<\/sup><\/li><li>Ensures project managers make informed decisions<\/li><li>Chances of success are improved<sup>8<\/sup><\/li><\/ol>\n\n\n\n<p>While the initial creation task may seem overwhelming at first, simplifying it into a step-by-step process will ensure you target each business goal and reach your proposed business outcome. Try this five-step approach:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Understand your company\u2019s mission and objectives<\/h3>\n\n\n\n<p>This first step focuses on understanding your organization\u2019s current business strategy. Without a clear outline of your mission statement and long-term goals, creating a successful strategic plan is nearly impossible.<sup>9<\/sup> Review past and present performance to critically assess your strategic position and identify how to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Build on your strengths<\/li><li>Combat weaknesses<\/li><li>Take advantage of growth opportunities<\/li><li>Recognize potential threats<sup>10<\/sup><\/li><\/ul>\n\n\n\n<p><em>The University of Cape Town (UCT) <a href=\"https:\/\/www.getsmarter.com\/products\/uct-advanced-project-management-online-short-course\" target=\"_blank\" rel=\"noreferrer noopener\">Advanced Project Management<\/a> online short course, with a firm focus on strategic skills, will also help you align project management activities with your organization\u2019s overarching aims to bring about real change.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Assess resources and capabilities<\/h3>\n\n\n\n<p>Analyzing the business\u2019s resources is incredibly important, as it determines whether you can execute an effective strategic plan.<sup>11<\/sup> The plan should assess all available assets, including finances, employees, and equipment. In addition, it should examine business capabilities, and identify any organizational vulnerabilities.<sup>12<\/sup> This allows management to advocate for the appropriate type and amount of resources to accurately support the goals of the organization.<sup>13<\/sup><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Establish future projections<\/h3>\n\n\n\n<p>The first two steps will help you establish the strategic priorities of your business and the corresponding resources for addressing them, but how do you determine the short-term goals to achieve your overall objectives? Consider this list as a starting point:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Establish clear and specific goals<\/li><li>Track the progress of each goal to remain motivated<\/li><li>Remain realistic and set goals that are challenging, but attainable<\/li><li>Ensure that the goals are relevant and beneficial to your overall business objectives<\/li><li>Include a time target for each goal to create maximum efficiency<\/li><\/ul>\n\n\n\n<p>This process allows organizations to establish a vision statement. While the future is impossible to predict, ensuring there is a unified vision within the company will help define the prospective outlook of your business.<sup>14<\/sup><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Determine the method to meet business strategic objectives<\/h3>\n\n\n\n<p>Once you have established your business\u2019s vision statement, the next step is to develop an action plan. Determining the course of action you will take to reach your short-term goals can be the most significant step within a strategic plan and can directly influence the time it takes to achieve your business&#8217;s strategic objectives.<sup>15<\/sup><\/p>\n\n\n\n<p>The action plan should outline the short-term tasks that need to be completed in order to achieve each of your business goals, and effectively communicate how to budget time, human capital, and finances.<sup>16<\/sup> This plan will ensure that each person is held accountable for their contribution to achieving the overarching goals.<\/p>\n\n\n\n<p>If at this point it is discovered that strategic planning has been implemented incorrectly, your organization\u2019s strategy will need to be reanalyzed further down the line. The 2018 PMI Pulse of the Profession survey found that 82% of project management directors believe it is extremely important to incorporate the lessons learned from failed strategy implementation back into strategy formulation to ensure your business stays competitive over the next three years.<sup>17<\/sup><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5: Ensure the plan evolves<\/h3>\n\n\n\n<p>It\u2019s important to recognize that a strategic plan is not set in stone. It\u2019s more beneficial to assume that the plan is a continuous work in progress or a \u201cliving, breathing document\u201d.<sup>18<\/sup> To ensure the strategic plan continues to function in the intended manner, it\u2019s important to review it regularly and make necessary adjustments as needed.<sup>19<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of robust strategic planning in project management<\/h2>\n\n\n\n<p>There are numerous benefits to <a href=\"https:\/\/www.getsmarter.com\/products\/northwestern-university-strategic-change-management-online-short-course\" target=\"_blank\" rel=\"noreferrer noopener\">robust strategic planning<\/a>, for both the organization and the project manager. Strategic planning:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Helps to ensure that everyone in an organization is aware of the company&#8217;s vision and objectives, and knows how their work contributes to these goals<\/li><li>Gives direction and focus to project managers, who can use strategic objectives as a guide when making decisions about priorities, resources, and risks<\/li><li>Facilitates better communication between the organization and its stakeholders, as everyone is aware of the strategic direction and how it will be achieved<\/li><li>Improves decision-making by providing a framework for evaluating options and trade-offs<\/li><li>Increases the likelihood of success by identifying and addressing risks early on<\/li><li>Helps to ensure that resources are used efficiently and effectively, as project managers can align their projects with strategic objectives<\/li><\/ul>\n\n\n\n<p>The success of a strategic plan relies on the people and systems involved in its creation. Thus, it\u2019s vital that the right people are involved in the strategic planning process and that business objectives, as well as how they will be achieved, are clearly communicated. To do this, there should be a greater sense of accountability. Lessons learned in strategic plan development should be incorporated into future planning processes, while continuously redefining the plan to ensure you keep working towards achieving your vision and overall priorities.<\/p>\n\n\n\n<div class=\"related-programme-block\">\n<div class=\"related-programme\" onclick=\"window.open('https:\/\/www.getsmarter.com\/products\/rice-strategic-project-management-online-short-course', '_blank')\">\n    <div class=\"row\">\n        <div class=\"col-12 col-md-11\">\n            <div class=\"related-programme__school-logo-container\">\n            <a href=\"https:\/\/www.getsmarter.com\/universities\/rice-university\" target=\"_blank\" class=\"related-programme__school-logo-link\">\n                <img decoding=\"async\" src=\"https:\/\/www.getsmarter.com\/blog\/wp-content\/uploads\/2018\/12\/RICE_400px__1_-73631fc212f29156b2983b7c4c4eb0cb.png\" alt=\"School Logo\" class=\"related-programme__school-logo\">\n            <\/a>\n            <\/div>\n            <div class=\"related-programme__copy\">\n            <a href=\"https:\/\/www.getsmarter.com\/universities\/rice-university\" target=\"_blank\" class=\"related-programme__school-name\">\n                Rice Glasscock            <\/a><br>\n            <a href=\"https:\/\/www.getsmarter.com\/products\/rice-strategic-project-management-online-short-course\" target=\"_blank\" class=\"related-programme__programme-name\">\n                Strategic Project Management online short course            <\/a>\n            <\/div>\n        <\/div>\n        <div class=\"col-md-1 related-programme__chevron-column\">\n            <div class=\"related-programme__icon-container\">\n                <img decoding=\"async\" class=\"add-btn\" src=\"https:\/\/www.getsmarter.com\/blog\/wp-content\/themes\/blog\/assets\/icn_arrow-circle_right.svg\" alt=\"Read More Icon\">\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div id=\"accordion\">\n<div class=\"card\">\n<div id=\"headingOne\" class=\"card-header\">\n<h6 class=\"mb-0\"><button class=\"btn\" style=\"background-color: transparent;\" data-toggle=\"collapse\" data-target=\"#sources\" aria-expanded=\"true\" aria-controls=\"sources\"> <strong>Click here to view sources<\/strong> <\/button><\/h6>\n<\/div>\n<div id=\"sources\" class=\"collapse\" aria-labelledby=\"headingOne\" data-parent=\"#accordion\">\n<div class=\"card-body\">\n<ul class=\"mx-0\" style=\"list-style: none;\">\n\n<li class=\"mb-4\"><sup>1<\/sup> Kerzner, H. (Feb, 2019). \u2018Using the project management framework maturity model\u2019. Retrieved from <a href=\"https:\/\/books.google.co.za\/books?id=2BmIDwAAQBAJ&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false\" target=\"_blank\" rel=\"noopener noreferrer\"> Google Scholar<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>2<\/sup> Serino, A. (Oct, 2018). \u2018Strategic planning: a definition\u2019. Retrieved from <a href=\"https:\/\/www.clearpointstrategy.com\/strategic-planning-definition\/\" target=\"_blank\" rel=\"noopener noreferrer\"> ClearPoint Strategy<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>3<\/sup> Kerzner, H. (Feb, 2019). \u2018Using the project management framework maturity model\u2019. Retrieved from <a href=\"https:\/\/books.google.co.za\/books?id=2BmIDwAAQBAJ&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false\" target=\"_blank\" rel=\"noopener noreferrer\"> Google Scholar<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>4<\/sup> (May, 2017). \u2018Who are project managers?\u2019. Retrieved from <a href=\"https:\/\/www.pmi.org\/about\/learn-about-pmi\/who-are-project-managers\" target=\"_blank\" rel=\"noopener noreferrer\"> PMI<\/a>. Accessed July 28, 2022.<\/li>\n\n<li class=\"mb-4\"><sup>5<\/sup> (Jul, 2017). \u2018Driving Business Performance\u2019. Retrieved from <a href=\"https:\/\/www.google.com\/url?q=https:\/\/home.kpmg\/au\/en\/home\/insights\/2021\/11\/kpmg-aipm-project-management-survey-2021.html&#038;sa=D&#038;source=docs&#038;ust=1659609904112543&#038;usg=AOvVaw2LipDqnYA3233ipO_24qxS\" target=\"_blank\" rel=\"noopener noreferrer\"> KPMG<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>6<\/sup> James, A. (Jul, 2017). \u2018Project Management\u2019s role in strategic implementation\u2019. Retrieved from <a href=\"https:\/\/www.projectmanagement.com\/articles\/391129\/Project-Management-s-Role-in-Strategic-Implementation?CFID=54777630&amp;CFTOKEN=62781b0b9a358e5f-036E36E0-5056-9D3A-875DFEC762F00D0E&amp;\" target=\"_blank\" rel=\"noopener noreferrer\"> PMI<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>7<\/sup> MacAdam, M. (Jan, 2018). \u2018Best practices in BRM: deep dive into strategy\u2019. Retrieved from <a href=\"https:\/\/www.projectmanagement.com\/articles\/427953\/Best-Practices-in-BRM--Part-1---Dive-Deep-into-Strategy\" target=\"_blank\" rel=\"noopener noreferrer\"> PMI<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>8<\/sup> Kerzner, H. (Feb, 2019). \u2018Using the project management framework maturity model\u2019. Retrieved from <a href=\"https:\/\/books.google.co.za\/books?id=2BmIDwAAQBAJ&amp;printsec=frontcover&amp;source=gbs_ge_summary_r&amp;cad=0#v=onepage&amp;q&amp;f=false\" target=\"_blank\" rel=\"noopener noreferrer\"> Google Scholar<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>9<\/sup> Alexander, M. (Jul, 2018). \u2018How to develop a PMO strategic plan\u2019. Retrieved from <a href=\"https:\/\/www.cio.com\/article\/3288926\/how-to-develop-a-pmo-strategic-plan.html?upd=1554213188821\" target=\"_blank\" rel=\"noopener noreferrer\"> CIO<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>10<\/sup> Deeb, G. (Dec, 2018). \u2018The top 6 steps of strategic planning\u2019. Retrieved from <a href=\"https:\/\/www.forbes.com\/sites\/georgedeeb\/2018\/12\/04\/the-top-6-steps-of-strategic-planning\/#2465f9e35b25\" target=\"_blank\" rel=\"noopener noreferrer\"> Forbes<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>11<\/sup> Alexander, M. (Jul, 2018). \u2018How to develop a PMO strategic plan\u2019. Retrieved from <a href=\"https:\/\/www.cio.com\/article\/3288926\/how-to-develop-a-pmo-strategic-plan.html?upd=1554213188821\" target=\"_blank\" rel=\"noopener noreferrer\"> CIO<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>12<\/sup> Deeb, G. (Dec, 2018). \u2018The top 6 steps of strategic planning\u2019. Retrieved from <a href=\"https:\/\/www.forbes.com\/sites\/georgedeeb\/2018\/12\/04\/the-top-6-steps-of-strategic-planning\/#2465f9e35b25\" target=\"_blank\" rel=\"noopener noreferrer\"> Forbes<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>13<\/sup> (Feb,2018). \u2018Project management: how to develop a strategic plan\u2019. Retrieved from <a href=\"https:\/\/www.workfront.com\/blog\/project-management-how-to-develop-a-strategic-plan\" target=\"_blank\" rel=\"noopener noreferrer\"> Workfront<\/a>. Accessed July 28, 2022.<\/li>\n\n<li class=\"mb-4\"><sup>14<\/sup> (Feb,2018). \u2018Project management: how to develop a strategic plan\u2019. Retrieved from <a href=\"https:\/\/www.workfront.com\/blog\/project-management-how-to-develop-a-strategic-plan\" target=\"_blank\" rel=\"noopener noreferrer\"> Workfront<\/a>. Accessed July 28, 2022.<\/li>\n\n<li class=\"mb-4\"><sup>15<\/sup> Engel, J. (Feb, 2019). \u2018A three-step model for creating a strategic plan\u2019. Retrieved from <a href=\"https:\/\/www.forbes.com\/sites\/forbescoachescouncil\/2019\/02\/21\/a-three-step-model-for-creating-a-strategic-plan\/#ef5f1b86b338\" target=\"_blank\" rel=\"noopener noreferrer\"> Forbes<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>16<\/sup> McClanahan, C. (Feb, 2019). \u2018A one-page strategic plan that your business will actually use\u2019. Retrieved from <a href=\"https:\/\/www.forbes.com\/sites\/forbescoachescouncil\/2019\/02\/04\/a-one-page-strategic-plan-that-your-business-will-actually-use\/#66d05c903474\" target=\"_blank\" rel=\"noopener noreferrer\"> Forbes<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>17<\/sup> (Feb, 2018). \u2018Pulse of the Profession: Success in disruptive times\u2019. Retrieved from <a href=\"https:\/\/www.pmi.org\/-\/media\/pmi\/documents\/public\/pdf\/learning\/thought-leadership\/pulse\/pulse-of-the-profession-2018.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"> PMI<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>18<\/sup> Kenny, G. (Aug, 2018). \u20186 Steps to make your strategic plan really strategic\u2019. Retrieved from <a href=\"https:\/\/hbr.org\/2018\/08\/6-steps-to-make-your-strategic-plan-really-strategic\" target=\"_blank\" rel=\"noopener noreferrer\"> Harvard Business Review<\/a>.<\/li>\n\n<li class=\"mb-4\"><sup>19<\/sup> Kenny, G. (Aug, 2018). \u20186 Steps to make your strategic plan really strategic\u2019. Retrieved from <a href=\"https:\/\/hbr.org\/2018\/08\/6-steps-to-make-your-strategic-plan-really-strategic\" target=\"_blank\" rel=\"noopener noreferrer\"> Harvard Business Review<\/a>.<\/li>\n\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Without an effective strategic planning process, it\u2019s difficult to achieve success in project management.1 Strategic planning focuses on a business\u2019s future by understanding operational priorities and resource availability, setting out clear strategic objectives for desired business results, and developing an action plan on how to achieve them.2 The process creates and implements decisions that guide [&hellip;]<\/p>\n","protected":false},"author":74,"featured_media":40301,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[171],"tags":[122,129],"article-format":[],"class_list":["post-34777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-development","tag-business-management","tag-project-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Project Management: How to Develop a Strategic Plan | Getsmarter Blog<\/title>\n<meta name=\"description\" content=\"Learn how to develop an effective strategic plan for Project Management, and steps to ensure that you target each of the project\u2019s business goals.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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