Strategic Planning for Business

In businesses, strategic planning is an important step in implementing and maintaining a successful business. The question is ‘What is strategic planning’? Strategic planning is an organizational activity that sets priorities, focuses energies, strengthens operations, and ensures employees and other stakeholders are working towards a common goal. When a company develops a strategic plan, they can use it to lead them into the future while establishing fundamental practices and principals the drive the company forward.

The strategic plan is a document used to communicate the goals of the organization and the actions needed to achieve the goals. It also includes all the other critical elements of development of the plan. When developing a strategic plan companies should look at where they would like to see their company go and how they want to get there. It is impossible to get everyone on board without having a map to see where they are going. The strategic plan provided that map.

The steps to formulating a good strategic plan is:

  1. Analysis: Have an understanding of the current internal and external environments for the company.
  2. Strategy Formulation: Formulate the high-level strategies and basic organization level strategies.
  3. Strategy Execution: Implementation of the high-level strategies that are translated into operational plans and action items.
  4. Evaluation and Sustainment: Ongoing refinement and evaluation of the strategies implemented through performance, culture, communications, data reporting, and other management reports.

When developing a strategic plan companies need to have input from all level of the organization. It important to have everyone on board with the changes and understand the implementation of the strategies. This is an ongoing process that is always needing refined and updated.