Strategic planning is a collection of business management activities used to articulate the direction of an organization. An effective strategic plan outlines what needs to be done and how to know if the action taken were successful. It is a systematic attempt designed to produce fundamental decisions and steps that guide and shape what a company does, why it does it, and who it serves. Strategic planning streamlines business goals and steers them towards a company’s direction in response to a changing environment. Other objectives of a strategic plan include:
• To plug all employees into the system and provide accountability standards for all persons, allocated resources, and organization purpose programs.
• To provide leadership, effective staffing, continuity, and a sense of direction for the organization.
• Define the overall mission of a company and focus on its business goals.
• Increase the awareness of the surrounding environment and observe its needs.
• Meeting facilitation – a good strategic management plan analyses the processes involved in an organization’s meeting and provides strategies on how to get the best out of them.
• To help the business look into its future and assume a proactive stance, thereby giving the organization a chance for survival.
A well-orchestrated strategic plan should guide effective decision-making, set the right priorities, and make a clear path for the achievement of organizational goals. A company can choose to facilitate its strategies or hire a firm that specializes in the provision of strategic planning services to oversee its strategy.
The Components Company’s Strategic Plan
To successfully shift your business from strategy to action and actions to results, you need to incorporate all the components of an effective strategic plan. These elements will help you align your actions and resources and keep them in line with the organization’s vision. These components are:
The gap between a strategic business plan and its execution can be successfully bridged by the organization’s company architecture. Business architecture eliminates the need for trial and error, which can be very expensive in realizing the organization’s strategy. It reveals flaws within the company’s strategy and helps determine the proper alignment of strategies and goals.
Market intelligence refers to a set of activities that use existing sources or information to give an organization a view of the market. Market intelligence helps a company formulate its strategic plan by helping the business understand the needs of the consumer, what the competitors are doing, and current market trends. Market intelligence can be sourced from both internal and external data.
Every business needs to formulate a strategic planning strategy to generate sustainable growth and profits that ensure long-term success. There are numerous Canadian firms offering strategic planning services if you decide that an outside facilitator is the way to go.