Which term best describes a plan of action that starts by examining the current state of an organization and then deciding how to reach the best future state?

Which term best describes a plan of action that starts by examining the current state of an organization and then deciding how to reach the best future state?

• A. Mission statement
• B. Strategic planning
• C. Strategy
• D. Tactical plan

Answer: (B)

Strategic planning is the process of looking at where the organization is today and then shaping the path to where it wants to be in the future. It’s a forward-looking, long-range activity that involves assessing current capabilities and the external environment, defining a clear vision and goals, choosing broad approaches to reach those goals, and allocating resources over time to implement those approaches. This emphasis on moving from the current state toward a desired future state is what sets it apart. A mission statement, by contrast, communicates the organization’s purpose—why it exists—which is important but doesn’t lay out the plan for getting to a future state. Strategy refers to the chosen approach or method to achieve objectives, but strategic planning is the overall process that creates and governs that path. A tactical plan, meanwhile, focuses on specific actions to execute a strategy in the near term, not on the big-picture planning from current to future state.

Strategic planning is the process of looking at where the organization is today and then shaping the path to where it wants to be in the future. It’s a forward-looking, long-range activity that involves assessing current capabilities and the external environment, defining a clear vision and goals, choosing broad approaches to reach those goals, and allocating resources over time to implement those approaches. This emphasis on moving from the current state toward a desired future state is what sets it apart.

A mission statement, by contrast, communicates the organization’s purpose—why it exists—which is important but doesn’t lay out the plan for getting to a future state. Strategy refers to the chosen approach or method to achieve objectives, but strategic planning is the overall process that creates and governs that path. A tactical plan, meanwhile, focuses on specific actions to execute a strategy in the near term, not on the big-picture planning from current to future state.