The Benefits of True Strategic Planning

The way you manage your business in a constantly changing environment is just as, if not more, important to the success of your business than the actual products and services you offer. Leaders who can strategically think and act are able to successfully manage their businesses through increased competition, recession, globalization or any other factor that destroys an average or poorly managed company. This is part of strategic planning’s benefits.

What is Strategic Planning?

Contrary to popular belief, strategic planning is more than deciding how to get where you want to go from where you are now. Strategic planning is a methodical and ongoing process of obtaining and evaluating information, making strategic decisions, implementing strategies designed to achieve a developed vision, and measuring the results. A strategic plan shows how your vision can become reality by developing objectives that provide the framework for tactical planning.

Any business with a dynamic vision can benefit from true strategic planning because a thorough strategic planning process forces you to do several things:

1. develop and/or refine a vision of the organization’s future;
2. thoroughly assess the strengths and weaknesses of the organization;
3. gather and interpret information about your customers, industry, and competitors;
4. develop strategies that significantly enhance the likelihood that the vision will become reality;
5. develop an operational plan to guide daily implementation of strategies;
6. devise a method of accountability; and
7. decide on a benchmarking method to measure progress and the real added value of strategic planning efforts.

All of the practical benefits of true strategic planning are too numerous to mention in this space. A few prominent ones (in addition to those stated above) are:

1. the formalization of core values and priorities for the organization;
2. enlightenment to existing and possible future managerial and operational challenges;
3. understanding how to best position yourself in your market and which opportunities are best to pursue given your core values and priorities; and
4. understanding what qualities and skills are needed from existing personnel and new hires.

If your current strategic plan isn’t meeting expectations, then look first at the integrity of the plan, the strategic thinking skills of its developers, and the training and skills of those implementing the plan.

Integrity of the Plan

A thorough strategic planning process results in a realistic, viable operating guide based on the best information available at the time. The integrity of a strategic plan is seriously compromised when the source of data and the method used to compile it are questionable and when assumptions are not recognized and fully challenged. A thorough planning process addresses these concerns.

Strategic Thinking Skills

In the end, a strategic plan is only as good as its strategies. The strategies in the plan directly represent the quality of thinking skills that went into developing them. Assessing (and providing training for) the strategic thinking skills of those devising the plan before the planning process is critical.

Training and Skill Development

Everyone in the organization must have the skills to do their part in implementing the plan. Training and periodic reinforcement are needed to ensure that all employees understand the plan and their role in the plan, and are properly equipped to accomplish their tasks.

The value of true strategic planning is not limited to the business world. Its principles and benefits apply equally to the management of your personal life and finances.

Objective assistance during the strategic planning process is priceless. So make a decision to get the objective help you need. You’ll be glad you did.

Until my next post, keep making great decisions!

Sherrin

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