What is Strategic Planning?

 Some people have a gift for planning, others prefer to be spontaneous and see what develops. It is a question of individual personality. We all know the type of person who is so organized that they have everything classified and labeled in individual storage areas. Other people just put things anywhere that is convenient. Invariably there is always an opportunity for conflict when two opposite personalities share the same work or living spaces.

 We don’t get paid for planning, yet it is an absolute necessity for a successful business.

Planning ensures that we have the right people in the right place at the right time to run the business. The highest level of planning in an organization is called strategic planning. The purpose of the strategic plan is to chart a road map for where the business is headed. If you don’t have a road map it is very difficult to know where you will end up. A strategic plan looks at all the external and internal factors that are going to have an impact on the business in the future. A typical strategic plan looks out anywhere from 1- 5 years into the future. In the strategic planning process the company evaluates its own strengths, weaknesses, opportunities and threats. The company reviews and potentially revises the Vision, Mission and Value Statements of the Organization. High-level goals are set in terms of performance targets and then specific action plans are developed and assigned to key individuals to ensure that the goals are met.

 Companies use strategic plans to drive actions that will ensure that they continue to be a viable company. The strategic plan should be published, the targets for performance should be monitored on the business dashboards, so that everyone can  see how well they are doing in achieving the performance targets necessary for future business success.