Strategic Management Legal and Ethical Consideration
Describe the strategic planning process for an organization. Include legal and ethical considerations for each part of the strategic planning process.
Strategic Planning Process
The strategic planning process entails a set of steps to be followed in developing a plan. Organizations adopt a strategic planning process to achieve long-term goals. In this process, a roadmap is created highlighting the strategic objectives that should be prioritized to fulfill business initiatives. It is one of the tools that organizations use to streamline the functioning of their teams. The strategic planning process also allows the organization to focus on its energies and resources, thus achieving a given objective. It is essential to adhere to legal and ethical considerations at each step in the strategic planning process. This paper describes the strategic planning process for an organization defining the legal and ethical considerations that should be made at each part of the planning.
Strategic Planning Process
Determination of the Organization’s Strategic Position
This is the preparation phase and entails setting the stage for all work by determining the organization’s current strategic position. In this step, the organization gets the right stakeholders by considering internal and external sources. Identifying critical strategic issues involves employee’s suggestions, considering customer insights, and collecting market data (Burgelman et al., 2018). The analysis is also done at this phase using the SWOT analysis and helps refine the organization’s goals so that the plan can proceed constructively. Inputs from the customers, employees, and market data will be used to determine strengths, weaknesses, opportunities, and threats (SWOT) (Benzaghta et al., 2021). Synthesizing this information will give a better overview of the unique strategic position for the organization in the market from which the organization can start solidifying its strategic objectives.
Several legal and ethical considerations should be made in this step. First, the organization should not influence the views of the employees and customers in the strategic evaluation for the key issues. In evaluating the company’s strengths and weaknesses, the organization should ensure all components are represented honestly, avoiding all forms of biasness (Jennings, 2019). Employees should not be subjected to unreasonable workload, leading to poor job performance and high-stress levels. In identifying opportunities, it is essential to respect the existing organizational values. It is unethical for any strategic plan to adopt processes or systems that negate the organization’s values (Ghadge et al., 2020). When individuals are raising their concerns, they must do it independently, without fear or hesitation, since it helps in improving the quality of the discussion and decision made.
Prioritization of Objectives
After identifying the organization’s current position, the determination of objectives is done and helps achieve the goals. The objectives set should concur with the organization’s mission and vision. Prioritization of the objectives will consider the initiatives that will significantly impact the organization’s ability to achieve its mission/vision while improving its position in the market. The most critical impacts are identified and requirements for the accomplishment of goals defined. Methods for measuring the success of the strategic plan are defined based on the set goals. It is crucial to set distinct and measurable objectives to achieve the long-term strategic goals and initiatives.
There are legal and ethical considerations governing the prioritization of the objectives. Stakeholders should participate in prioritizing these objectives so that they are comfortable with the selected initiatives. Involving stakeholders will challenge the existing paradigms and offer broad perspectives to support the plan. In prioritizing these initiatives, it is essential to take an honest and truthful look at the agreed-upon risks and impacts (Ghadge et al., 2020). The needs of the stakeholders should be considered thoroughly to maintain their welfare.
Development of the Plan
The strategic plan is then developed to meet the goals successfully. In this step, appropriate tactics are communicated to attain the objectives within time. The plan should take account of all information collected. Strategy mapping is then done to visualize the entire plan and makes it simple to effectively view the business processes by identifying the gaps necessary for improvement. In this phase, strategic choices involve a trade-off in opportunity cost. Goals are set by converting the strategic objectives into specific performance targets (Burgelman et al., 2018). The company will then define the key performance indicators (KPIs) that will effectively track and monitor its ability to meet the set goals. The organization should move from big ideas to actions by transferring the strategy from the organizational level to individuals involved in the planning. These individuals then develop short-term goals and activities supporting the administrative direction. Finally, an action plan for each goal is designed to help previously established targets.
Several legal and ethical considerations govern this step. In developing a strategic plan, it is essential to subject the strategy to the developed organization’s values. Any concern in the development process conflicting with the values should be addressed immediately. It is crucial to train the employees and the management team to integrate ethics into the whole plan. Ethical officers should be consulted on the key issues that may arise in the development process (Jennings, 2019). The organization should not neglect the quality of products and services in developing the plan. It is also expected that the organization will maintain a safe working environment in the development of the strategic plan.
Execution and Management of the Plan
Once the plan has been developed, then it progresses to implementation. First, the plan is communicated to the organization’s stakeholders such as employees, suppliers, society, customers, shareholders, and owners. Next, all relevant documentation and facts about the plan are disclosed. Finally, the developed strategic plan is turned into a concrete plan by mapping the processes. The KPI dashboard provides a framework for clearly communicating the team responsibilities at each step. The implementation schedule will establish a performance management and reward system, followed by monthly and quarterly strategy meetings with established reporting procedures. Annual strategic review dates will then be set (Bryson et al., 2018). Goals and actions will be tracked at monthly meetings where the team members report on the progress of each goal. Course correction will be done if necessary. Regular review on the KPI should be done during the regular meetings.
There are several legal and ethical considerations at this phase. When communicating on the plan, it is essential to disclose all details honestly, including how they will impact all stakeholders. The organization should not leave out any side effects related to the plan. Team members should provide honest and accurate reports on the progression of each task. Accountability should be maintained at this phase, where each measure, initiative, objective, and data source should be accounted for (Jennings, 2019). This will ensure that errors and mistakes are easily identified and corrected before impacting the whole process. It is also essential to ensure the highest standards of transparency between the different departments in the planning process. Transparency will increase collaboration and team understanding to ensure timely and accurate plan objectives. There must be a platform for confidential reporting where anonymous reporting can be done (Jennings, 2019). This will allow the organization to effectively address issues arising in the planning process without putting anyone on the spot, thus avoiding internal conflicts among the team members.
Review and Revision of the Plan
After implementing the plan, it is essential to reevaluate the priorities and initiate correction strategies based on previous successes or failures. This will entail determining the KPIs that the team has achieved in a specified period and improvements that should be made to comprehensively understand and execute strategic plans (Bryson et al., 2018. Significant focus has to be put on accomplishing the top priorities while accelerating the organization’s growth.
In this phase, the organization should identify how legal and ethical considerations have been adhered to at the different stages. The organization should identify any potential opportunities and threats the plan may have to the legal environment and against them to minimize threats (Jennings, 2019). Review results should be communicated accurately to teams responsible for the adjustment.
Strategic planning should help the organization achieve its vision. It entails creating and maintaining a long-term perspective of the business in the market to efficiently react to competition while focusing on the current business initiatives. Strategic planning also improves the decision-making abilities of the organization. However, the organization needs to adhere to legal and ethical considerations in the strategic planning process. These are guiding principles and policies that ensure that the plan follows the right direction, eliminating malpractices that may endanger the stakeholders, environment, and the business itself. Legal and ethical considerations are vital in maintaining the business values and mission statement. Organizations should therefore strive to meet the legal and ethical requirements at each strategic planning stage to achieve the intended objective while avoiding all forms of misconduct.
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 54-72. https://www.doi.org/10.5038/2640-64184.108.40.2068
Bryson, J. M., Edwards, L. H., & Van Slyke, D. M. (2018). Getting strategic about strategic planning research. Public management review, 20(3), 317-339. https://doi.org/10.1080/14719037.2017.1285111
Burgelman, R. A., Floyd, S. W., Laamanen, T., Mantere, S., Vaara, E., & Whittington, R. (2018). Strategy processes and practices: Dialogues and intersections. Strategic management journal, 39(3), 531-558. https://doi.org/10.1002/smj.2741
Ghadge, A., Kara, M. E., Moradlou, H., & Goswami, M. (2020). The impact of Industry 4.0 implementation on supply chains. Journal of Manufacturing Technology Management. https://www.emerald.com/insight/content/doi/10.1108/JMTM-10-2019-0368/full/html?casa_token=GAy6uzH_GS4AAAAA:AMtxmWli8e-HF9htcojDc6_QEfnbmzuu5a8Uo651j4BSqYyy2wjeLyPSTNhHdQOaombd0fGFKIPztVfGO-bInemtacUwoFl92FNFjV_E3VxYN4OPKMPo
Jennings, M. M. (2019). How Management Theories and Culture Fads Kill Organizational Ethics. Next-Generation Ethics: Engineering a Better Society, 143. https://books.google.co.ke/books?hl=en&lr=lang_en&id=sYK0DwAAQBAJ&oi=fnd&pg=PA143&dq=business+ethics+in+strategic+planning&ots=