Developing a strategic plan is both beneficial and necessary. However, many businesses when given the option would prefer to skip the process altogether. There are a number of theories as to why this is the case, but the most prevalent presumes that those in leadership don’t really value or understand the purpose of the strategic plan, the strategic planning process and/or its importance.
Strategic planning is a useful opportunity for businesses and organizations to take a look into the future and determine in which direction they want to go. It’s a great way to reinvigorate your team, get everyone on the same page and document your strategies. But many go without one.
If you’re on the fence about creating a strategic plan for your company, here are 7 reasons why you definitely want to do so:
1. Defines and clarifies the mission.
Your mission is the driver of your organization or business. The mission gives the overall purpose of who you are and why you exist. It’s the key that helps to direct all decisions within your organization, laying the foundation for everything that you do. Wow, right?! It’s pretty significant. Businesses and organizations can often lose sight of the mission especially if the company has been around for a while. Things like expansion, change of leadership, difference in direction, etc. can make the mission seem a bit cloudy, especially for new comers. Devising your strategic plan helps you put the mission back into perspective, redefine who you are and make sure your goals and objectives are in line.
2. Establishes realistic goals and objectives.
Setting goals and objectives are one thing, but that only matters if the goals and objectives are within the organization’s capacity to implement them. Developing your strategic plan allows you to look at key issues of capacity and then develop goals and objectives based on the resources you have allocated.
3. Aids with efficiency and focus.
As organizations and businesses grow and expand, its easy to lose focus. Efficiency can also become compromised if everyone is not clear on the direction in which the organization is headed. The strategic plan defines the base for what the organization or business is looking to achieve in the long term. This helps everyone stay clear on what needs to get done in the shorter term.
4. Builds and increases team spirit.
Teams work together more effectively when everyone is clear on their role as it relates to the bigger picture. Teams can become disruptive, unresponsive and lose momentum when there is no defined focus and direction. The strategic plan becomes a source for connectivity, team cohesion and excitement.
5. Provides a tool for effective communication.
Communication is key to any project, organization or venture. The strategic plan communicates easily the intent of the organization over the long term. For those participating in the process, it provides an environment for brainstorming, creative thinking, an array of ideas and exploration, opening up doors of open communication and dialogue. For those coming afterwards, it gives a comprehensive view of where the organization wants to go stimulating both internal and external conversations around each individual’s role in progressing the plan forward.
6. Puts assumptions in writing, reducing organizational frustration.
A documented plan becomes a reference point for those within the organization. When a plan is in place that is utilized and available, it ensures that everyone from leadership and management on down are clear on the goals and objectives. This minimizes guessing and making incorrect assumptions. The plan is a reference point from which everyone can meet and come together on the next immediate steps.
7. Builds consensus about where an organization is going.
If you have two or more people coming together you’re going to have a variety of ideas as to the direction of the business or organization. The strategic plan and the planning process provides an opportunity for ideas to be brought to the table, discussed and agreed upon. Everyone will have a vision for the organization. The key is to take a look at what opportunities are available, strengths and weaknesses and to collaboratively set a course for moving forward.
The strategic plan is a valuable tool that can help businesses and organizations at almost any level. It’s purpose is to define a clear direction for where the company wants to go, how to move forward and what resources are needed to do so.
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The Business Practitioner offers strategic planning facilitation as well as Strategy Saturday for smaller organizations and businesses.
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Biz Practitioner
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