Strategic Planning: What You Need to Know for Success

What is the most critical element of a strategic plan for your organization?

            Clarity and communication are the two most important components of a strategic plan.  You need to make sure first and foremost that the vision is clear as well as the mission. Understanding where the organization is currently by supplying evidence or data helps to gain clarity in a strategic plan.  If you don’t know where you are it’s hard to see where you are going.

            Planning is about analysis, breaking a goal down into actionable steps, and then implementing those steps.  Strategy is choosing what unique activities you can do better than your rivals.  Strategic planning is all about leaders in the organization being able to see the big picture, meaning they have a deep understanding of where the company is currently at and where it needs to go.

Whose job is it to be strategic?

            Leaders are responsible for keeping their followers focused on the mission.  They are also the ones responsible for strategic planning, strategic thinking, implementation, and making sure everyone is inspired to carry out the vision. Leaders take followers on a journey and inspire them along the way.  Your organization needs to be anchored in a common, logical, and prioritized framework.

            In order to create an effective strategic plan, leaders need to be able ‘think’ strategically.  Leaders also need to be able to make decisions, choose directions, and avoid distractions.  It’s not enough to just make the decisions and choose the strategy, leaders need to be able to teach about the strategy and say no when necessary.

Strategy requires constant discipline and clear communication.  Thus, clarity and communication are the most important parts of a strategic plan and leaders are the ones responsible.

Key Elements

• What is your company's vision?
• What is your company's mission?
• Where is your organization currently at?
  • Analyze where you are at in the market place with data. Survey your employees and gather information that can help you with insight into day-to-day operations.
• What is the goal?
• What key activities will it take from each department to get to your goals?
• Prepare your leaders for the journey they need to take their followers on.
• Do leaders have a plan to clearly communicate the strategic plan?
• Are your leaders capable of teaching the strategy?

Now let's break down what strategic planning is, the process and why it's so important.

Strategic planning is a crucial process because it provides a roadmap that defines the organization's direction, goals, and how to achieve them over a set period, typically 3-5 years. Here's a breakdown of the process and its importance:

The Strategic Planning Process:

• Preparation: This involves setting the stage for successful planning. This could involve securing leadership buy-in, allocating resources, and choosing participants who represent various departments and stakeholders.
• Assessment: This phase focuses on understanding the organization's current situation. It involves two main activities:
  • Environmental Scan: Analyze external factors that can impact the organization, such as economic trends, competitor activity, and technological advancements.
  • Internal Analysis: Evaluate the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis). This involves assessing resources, capabilities, and competitive advantages.
• Strategic Direction: Based on the assessments, this stage defines the organization's desired future state. This includes:
  • Vision Statement: A description of the organization's long-term aspirations.
  • Mission Statement: A clear and concise statement of the organization's purpose and core values.
• Goal Setting: Develop specific, measurable, achievable, relevant, and time-bound (SMART) goals that translate the strategic direction into actionable objectives.
• Implementation: This translates the strategic plan into actionable steps. It involves:
  • Developing Initiatives: Create specific projects or programs to achieve the goals.
  • Assigning Resources: Allocate necessary resources, such as budget, personnel, and technology.
  • Establishing Timelines: Set deadlines for achieving milestones.
• Monitoring and Evaluation: Track progress toward goals and adapt the plan as needed. This involves defining performance metrics and regularly reviewing results.

Why Strategic Planning is Important:

• Clarity and Focus: The process provides a clear direction for the organization, ensuring everyone is working towards the same goals.
• Improved Decision-Making: By considering the internal and external environment, strategic planning allows for informed decisions.
• Competitive Advantage: It helps identify opportunities and threats, enabling proactive strategies to stay ahead of the competition.
• Enhanced Performance: Clear goals, action plans, and performance measurement lead to improved efficiency and effectiveness.
• Increased Stakeholder Alignment: Involving stakeholders in the process fosters buy-in and commitment to the strategic direction.