NAHQ CPHQ Practice Exam

Which of the following is the first step in the strategic planning process?

1. Defining organizational structure

2. Determining productivity indicators

3. Establishing and controlling a budget

4. Setting goals and objectives

The correct answer is: Setting goals and objectives

The first step in the strategic planning process is to set goals and objectives for the organization. This is important because it gives the organization a clear direction and focus for their actions and decisions. Option A, defining organizational structure, is an important step in the planning process, but it typically comes after setting goals and objectives. Option B, determining productivity indicators, is also an important consideration in strategic planning, but it falls under the step of measuring progress towards the goals and objectives that have been set. Option C, establishing and controlling a budget, is an important part of the planning process, but it is not the first step. The budget should align with the goals and objectives that have been set. Therefore, option D is the best answer as it aligns with the most important initial step in the strategic planning process.