CORPORATE GOVERNANCE: STRATEGIC PLANNING

The constant search for better organization and professionalism is fundamental for any company that wants to succeed in this current globalized and competitive environment. In addition to the Board of Directors, noted in the article”Corporate Governance and the Board of Directors”, another important Corporate Governance practice to be adopted by companies is to carry out Strategic Planning. According to Alfred Chandler, renowned professor at Harvard University, “strategy can be defined as the determination of basic long-term goals and objectives of a company, as well as the adoption of courses of action and the allocation of resources necessary to achieve those goals and objectives.” Strategic Planning is a process that consists of mapping the current scenario of a company and the definition of ambitions (vision) and its long-term objectives, determining a set of tasks, goals and guidelines for creating short, medium and long-term business growth and development projections. The preparation of Strategic Planning requires attention and commitment and must be carried out by the company's main leaders, with the objective of being as judicious, assertive, balanced and flexible as possible. In this process, as noted in the article”Corporate Governance in Family Businesses”, it is extremely important that the shareholders' vision is aligned with the company's strategic objectives and that the main stakeholders of the company be heard. Strategic Planning must assist the organization in internal development, allowing the creation of competitive advantages over competitors. The more participants involved in the preparation of Strategic Planning, the more aligned and engaged the team will be, making it clear what needs to be done to achieve the objectives. The preparation of Strategic Planning can be divided into four major stages, namely: definition of the Mission, Vision and Values, analysis of the Internal and External Environments, definition of Strategic Objectives and Goals, and finally, the definition of Performance Indicators (KPI) or Strategic Projects for monitoring and strategy.

• Mission, Vision and Values: it is the starting point of the Strategic Planning of a company or a new business, since that is where the company will demonstrate to the market and all stakeholders involved in your strategic direction.

1. Mission: the motivation for which the company was created. It can be considered as the DNA, the identity of the company.
2. Vision: The vision must demonstrate where the company is pointing its efforts, where it wants to go. It must always be realistic and measurable.
3. Values: represent the principles and beliefs through which shareholders, managers, and employees will guide their actions to achieve the Vision.

• Analysis of the Internal and External Environment: this stage is extremely important in the preparation of Strategic Planning. Through it, the main factors that will influence the company's strategic direction and market positioning are identified, determining the path to be taken.
• Definition of Strategic Objectives and Goals: Once the Mission, Vision and Values have been defined and the company's market positioning is determined, the short, medium and long-term strategic objectives are defined and the goals that will make it possible to achieve these objectives. At this stage, the company's Budget is also developed.
• Performance Indicators: Defined what will be the main goals to be achieved by the company, namely financial, commercial and operational, it must also be defined what will be the Indicators of Performance, also known as KPIs, which will be monitored monthly by the company, making it possible to measure the results achieved by the company over the period covered by Strategic Planning.

Several tools have been created to assist organizations in the preparation of Strategic Planning, such as:

• Business Model Canvas: assists in the conceptualization of the business, that is, in the way in which the company will operate and generate value to the market.
• SWOT Matrix (Strengths, Weaknesses, Opportunities, and Threats): consists of the complete mapping of the internal and external environment of factors that influence the organization, aiding in decision-making and the definition of strategies and objectives.
• BCG Matrix: its purpose is to help the company analyze its business based on the value proposition of its products.

Regardless of the way used by the company to carry out Strategic Planning, the main thing is to approach these four stages during the process, because, as the philosopher Seneca says, “there are no good winds when you don't know what port you want to reach.” Family Companies are often faced with situations of management transition, lack of organization, strategic misalignment between shareholders/shareholders, among others, as noted in the article”Corporate Governance in Family Businesses”. To ensure the company's continuity, it is essential to prepare a careful Strategic Plan, which mainly meets the company's future interests. As a result, the succession process, often complicated and conflicted, becomes milder for the family members involved. As much as Family Business entrepreneurs realize the need to prepare a Strategic Plan, many still do not understand the importance of this tool and treat it as something secondary to the business. Managing a company is not a trivial task, several challenges and complex situations fill the routine of entrepreneurs. When it comes to a family business, where relationships between partners and managers go beyond the work environment, the situation is even more delicate. The alignment of expectations among family members, partners, and executives, who often have differing opinions and interests, is extremely important for business continuity. This is when Strategic Planning demonstrates its importance!ARTICLE WRITTEN BY PEDRO FENATI - ASSOCIATE OF FC PARTNERSGo to our site: http://www.fcpartners.com.br