Strategic Planning And Its Importance In Business

Strategic planning is key for better performance, focus, teamwork, direction, and overall long-term success. Let’s look at 11 essentials for an effective, strategic plan.

Company Vision

A 100-word vision statement should be made available to employees and customers to tell them key facts about your business – the direction, the goal, and so on.

Personal Vision

This is for you to know what you want your business to bring into your life – growth, profit, early retirement, or time management.

Personal Vision

Know your business

Knowing where your business is currently and finding out where you can make improvements for steady growth and success (for instance through SWOT analyses) is vital to any business.

Set short-term goals

Establishing reasonable, specific and enforceable goals for the next 36 months will give you an idea of what your business can realistically achieve over a specific time period.

Outline strategies

Once you have your short-term goals in place you must devise strategies to achieve them, for instance, coming up with a development plan, researching competitors, etc.

Make an action plan

Even the most intelligent strategies cannot be put to use without an action plan that is a changeable, updateable working document that outlines the steps to be taken to implement strategies.

Strategic Communication

Good teamwork is facilitated through result oriented communication that cuts out excessive meetings that take up time and resources. Communicate strategically to figure out the how, when, where and why of each action plan.

Regular review and modification

A regular review of your goals, strategies and action plans will shed light on your progress to date and update you on any modifications that need to be made to increase effectiveness.

Be accountable

With time, leaders tend to become too accepting of underperformance. Having a close yet objective outlook enabled by a business coach or mentor will keep you on your toes and push you to keep the standards high.

Be adaptable

Not everything will always go according to plan. An effective leader will be able to amend action plans and strategies at the drop of a hat, often pushing the business to exceed the set plan, and exploiting weaknesses in the market.

Strategic planning team

Being the owner does not entail doing everything alone. A team of key management staff and employees will help formulate and execute effective business strategies, as well as to reduce errors and adapt to anything that may come your way.