Strategic planning is a formalized, documented organizational management process used to analyze its current situation, set priorities, and to focus resources and energy to achieve and maintain an organization’s competitive advantage. While many organizations understand the importance of strategic planning and spend a great deal of time and money coming up with the strategic plan, it still remains something that is reviewed just once a year or worse - a glossy document that sits on the shelf!
"If you don't know where you are going, you are certain to end up somewhere else." - Yogi Berra
You might be thinking: Is it worth embarking on a strategic planning process? There are many benefits that go along with strategic planning. The key to successful strategic planning is to build in measures and implementation steps that allow you to engage your staff and monitor the results at regular intervals. A great resource to get started with is our . (opens in a new tab)
The work of strategic planning doesn’t stop at the strategic plan, but it’s a start!
Here are the top 5 benefits of strategic planning:
1. It allows organizations to be proactive rather than reactive
A strategic plan allows organizations to foresee their future and to prepare accordingly. Through strategic planning, companies can anticipate certain unfavourable scenarios before they happen and take necessary precautions to avoid them. With a strong strategic plan, organizations can be proactive rather than merely reacting to situations as they arise. Being proactive allows organizations to keep up with the ever-changing trends in the market and always stay one step ahead of the competition.
2. It sets up a sense of direction
A strategic plan helps to define the direction in which an organization must travel, and aids in establishing realistic objectives and goals that are in line with the vision and mission charted out for it. A strategic plan offers a much-needed foundation from which an organization can grow, evaluate its success, compensate its employees and establish boundaries for efficient decision-making.
3. It increases operational efficiency
A strategic plan provides management the roadmap to align the organization’s functional activities to achieve set goals. It guides management discussions and decision making in determining resource and budget requirements to accomplish set objectives -- thus increasing operational efficiency.
4. It helps to increase market share and profitability
Through a dedicated strategic plan, organizations can get valuable insights on market trends, consumer segments, as well as product and service offerings which may affect their success. An approach that is targeted and well-strategized to turn all sales and marketing efforts into the best possible outcomes can help to increase profitability and market share.
5. It can make a business more durable
Business is a tumultuous concept. A business may be booming one year and in debt the next. With constantly changing industries and world markets, organizations that lack a strong foundation, focus and foresight will have trouble riding the next wave. According to reports, one of every three companies that are leaders in their industry might not be there in the next five years... but the odds are in favour of those that have a strong strategic plan!
If you're considering adopting a strategic plan at your organization, or are looking for a way to align your staff and daily operations on your existing one, then Envisio may just be the solution you've been looking for. Envisio is a cloud-based software that helps organizations manage their strategic and operating plans, track performance, and report to stakeholders. To learn more, schedule a free demo with one of our strategy experts, below!