Strategic Planning

There are multiple types of planning that take place within a business. When thinking of planning, attention often goes directly to financial or business planning. Strategic planning is another important aspect of a successful business. The interesting part about strategic planning is that it is an ongoing process. Individuals crafting their strategic plan should utilize available knowledge to decide and motivate the direction of their business. Strategic plans can be used to identify how to effectively allocate resources and prioritize efforts. Communication is key in any operation. It is sometimes hard to effectively communicate organizational goals to all shareholders and employees. Strategic planning can assist in successfully sharing the goals of the operation with those shareholders and employees. Furthermore, strategic planning should be based on sound reasoning and backed by data. The plans created and the goals that are set will have a solid foundation due to comprehensive strategic planning.

The first step in a solid strategic plan is to gather pertinent information and data. Information can be gathered by speaking with employees and consumers as well as reviewing data such as budget books or past records. An individual creating a strategic plan should also stay up-to-date with local, state and federal news, especially news that can impact your operation. By having a solid background on previous financial status, planning techniques, employee attitude and worldly events you can begin creating a strategic plan that matches the business and its needs.

After compiling information, you should prioritize it for items that impact your business from most to least. When reviewing, decipher which factors and actions will have the greatest influence. Consider making a table and ranking each item utilizing time and potential impact.

After deciding the priority, make an action plan. Your action plan should include items that can be completed and who will complete them. You should also consider how long the action items will take and what financial needs will be necessary to complete them.

When determining your action items and finalizing your plan the final draft ultimately is your choice. However, stakeholders are important individuals in any business. Asking for advice and opinions from others can be helpful. When pulling in others you can bring in new ideas and opportunities. It is important to be open-minded, especially when thinking through new strategies.

Creating a strategic plan can be time consuming and will look different for every operation. It is important to tailor each item within your plan to ensure it fits you and your business.

Creating a solid plan can create paths to push your operation to the next level and achieve success. They help you plan for potential roadblocks and think through ways to celebrate success at stops along the way.

Source: 
https://online.hbs.edu/blog/post/why-is-strategic-planning-important