Why a Strategic Plan is important

As consultants, we work with a variety of businesses over a estimate of industries as well as non-profit entities. In reviewing the doing of these organizations, it is entertaining to note that those businesses that perform at the highest levels regularly have some sort of formalized strategic plan in place and have implemented it well.

On the other hand, those businesses that struggle regularly have no plan in place and seem to flounder in their attempts to be successful. And many of the organizations that are thriving in the implementation of their strategic plans use a simplified strategic planning process to get the plan written and implemented more fast and efficiently. One of the things that caused some to proclaim that strategic planning had lost it luster was the tendency of some to drag out the process too long and to originate more work than necessary. The simplified, rapid development approach has helped immensely in getting good strategic plans industrialized and implemented.

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In order for a firm to be successful, there needs to be a road map for success. The development of sound firm strategy is a supervene of the strategic planning process. A essential mistake that is made by businesses large and small is defining essential firm strategies without going through this process. A strategic plan helps to furnish direction and focus for all employees. It points to specific results that are to be achieved and establishes a course of action for achieving them.

Another coarse mistake is naturally allowing the assosication to rove aimlessly without having even generalized goals in place. Having well defined goals, objectives, strategies and tactics reduces the risk of firm failure and helps increase the likelihood of solid success. And speaking strictly from the perspective of a manager, owner, director, president, Ceo, etc., their own success can be defined by having a well industrialized strategic plan in place that is well implemented.

A strategic plan helps the assorted work units within an assosication to align themselves with coarse goals. But possibly most importantly, the strategic planning process provides managers, owners and entrepreneurs the essential framework for developing sound firm strategy.

Arguably, the foremost cause of firm failure is not having a strategic plan in place that is implemented effectively. If a firm has minuscule idea where it is headed, it will rove aimlessly with priorities changing constantly and employees confused about the purpose of their jobs. And it could chase strategies that have minuscule or no chance of success.

Building a strategic plan is not difficult. It will take some concept and some feedback from customers and others, but businesses should be routinely garnering feedback from proper constituent groups on an ongoing basis. The process of developing a strategic plan should be rewarding for all involved and regularly helps establish stronger communications in the middle of members of the planning team.

Managers and firm owners need a well industrialized strategic plan in order to effectively establish expectations for their employees. Without a plan, expectations are industrialized in a void and there is minuscule or no alignment with coarse goals and strategies. A good strategic plan looks out 2 to 5 years and describes clearly what market, product/service, pricing, marketing and other strategies will be followed. In short, it defines how the firm will grow and prosper over the defined planning horizon.

Strategic planning does not end once the plan is put on paper. Once developed, the key to development the plan work is a commitment to finding it through coupled with sound implementation. Unfortunately too many good strategic plans end up on a shelf convention dust without being even partially implemented. The commitment to not only creating a sound strategic plan, but to its full implementation must be made at the beginning of the planning process.

The strategic plan will include an action plan that will detail the steps to be taken in order to fully implement the strategies and tactics defined in the plan document. And that action plan will quote specific deadlines and individuals or teams responsible for completing defined tasks.

Far too many organizations, large and small, fail to establish even basic strategic plans. The absence of a strategic plan is one of the key reasons many businesses struggle or fail. Without that road map in case,granted by a solid strategic plan, decisions are made in a vacuum and/or there is essential blurring and inconsistency clear within the organization. During tough economic times, the need for a solid strategic direction and plan is even more pronounced because the margin for error commonly becomes smaller for most businesses.

All employees need to understand the guiding ideas of the firm and what everybody should be aiming to achieve. A strategic plan that is well developed, properly communicated, and determined implemented can set in motion struggling or underperforming businesses to new heights.

Take a look at your business. Are your essential firm strategies well defined? Are they successful? Does there seem to be a lack of focus on where the firm is headed? Does everybody clearly understand the goals for the business? Strategically, how will the firm perform those goals? Is your current planning horizon longer than one year? Are you developing each year business/operating plans without a strategic plan in place? Strategic plans should drive or at least help define operating plans and budgets.

Writing a strategic plan isn't as involved as some would lead you to believe. Simplified strategic planning has been our focus for some time because too many organizations get caught up in the process and lose sight of what is important. We have found, without exception, that businesses which originate and execute sound strategic plans are commonly far more thriving than those that do not. Remember that thriving implementation of the plan is a must. If you write a plan and then allow it to procure dust on a shelf, you might as well have no plan. There must be a commitment to implementing the strategies and tactics detailed in the plan.

Make no mistake about it, if your firm or non-profit assosication is operating without an productive strategic plan in place, it runs the risk of underperforming or even failure. As mentioned, writing a strategic plan is not difficult and it does not have to be overly time consuming.

The concept that strategic planning has to be a long arduous process to be thriving is complete nonsense. In fact, our experience clearly points to a far more thriving planning experience and best plans when the plan is completed without a lot of "bureaucracy" and extraneous analyses.

There are positive steps required in the strategic planning process in order to establish a solid and actionable plan. Using a strategic plan template is an productive formula of getting a solid plan written and implemented. At the request of our clients, we have created such a template that includes instructions and examples of each step as well as worksheets that can be completed to effectively originate your plan.

Why a Strategic Plan is important

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