In simple terms, strategic plan determines “where
an organisation is going over the next year or more, how it is going
to get there and how
it will know whether it has got there or not”. Strategic plans
usually focus on the entire organisation, while a business plan usually
focuses
on a particular product, service or program.
A good strategic plan is
important to your business or non-profit organisation, because it provides
a roadmap for success and a guide for clear communication
of its aims and goals. Without a good strategic plan, the organisation
is at risk of underperforming and consequent failure.
In reviewing the performance of organisations, it is interesting to
note that businesses that perform best usually have some sort of formal
strategic
plan in place and have implemented it well.
Businesses that struggle in an attempt to be successful usually
have no plan in place. Also, many organisations that are successful
in the
implementation of their strategic plans use a simplified strategic
planning process to get the plan written and implemented more effectively.
A common mistake is to allow your organisation to wander aimlessly
without having aims, goals and objectives in place. Well defined
goals, objectives, strategies and tactics tend to reduce the risk
of business
failure, while helping to increase the possibility of solid success.
A strategic plan helps the various work units within an organisation
to align themselves with common goals. Most importantly, the
strategic planning process provides managers, owners and entrepreneurs
the
necessary framework for developing sound business strategy.
Managers and business owners need a well developed strategic
plan in order to effectively establish expectations for their
employees.
Without
a plan, expectations are difficult to alignment with common goals
and strategies. A good strategic plan defines how the business
will grow
and prosper over the defined operational period.
The strategic plan will contain an action plan that will detail
the steps to be taken in order to fully implement the strategies
and
tactics defined
in the plan document. And that action plan will delineate specific
deadlines and individuals or teams responsible for completing
defined tasks.
Important questions for your organisation:
- Are your critical business strategies well defined?
- Are they successful?
- Does there seem to be a lack of focus on where the company
is heading?
- Does everyone clearly understand the goals for the business?
- Strategically, how will the business achieve those goals?
- Is your current planning horizon longer than one year?
- Are you developing annual business/operating plans without
a strategic plan in place?
There are certain steps involved in the strategic
planning process. It requires knowledge of the process in order
to develop a solid
and actionable
plan.
We provide strategic
planning services for business or non-profit organisations (charities).