While most business owners understand the importance of having a strategic plan as a foundation for a sustainable organization, many are intimidated by the complexities and hard truths that are unlocked throughout the strategic planning process. So, they continue to put it off. Even more common is a strategic plan sitting on the shelf untouched and unapplied across the organization after all the hard work, insight, and aspiration was poured into it! When you align your organization to a shared North Star, you can increase operational efficiency, market share and profitability, as well as approach challenges proactively. Learn how to create a powerful, sustainable human enterprise by committing to strategic planning now!
5 Benefits of Strategic Planning
Strategic planning is not just for large companies – organizations of all sizes can benefit from this exercise! Set your organization up for long-term success through the creation and adoption of a strategic plan. Read about the five benefits of strategic planning below.
1. Identifies a North Star
Creating a strategic plan every three to five years provides a focused sense of direction for your organization to move towards collectively. This establishes necessary guard rails for aligning objectives and goals to your mission and vision. New space opens up for growth across all facets of your business, through resource allocation and efficient decision-making. When all stakeholders have a clear understanding of organizational goals, how and why they were chosen, and what they can do to help achieve them, you reinvigorate your staff with an increased sense of responsibility and purpose.
2. Increases Operational Efficiency
When you have a strategic plan in place, it is much easier to ladder up the functional activities of your organization to achieve set goals. In order to reach your objectives, management can refer to the strategic plan to make informed decisions surrounding resource and budget allocation, also and setting specific KPIs to measure progress along the way. With effective monitoring and enhanced communication between all stakeholders (with the strategic plan in mind!), your company can reduce waste across the board and increase operational efficiency.
3. Rejects Reactivity and Unlocks Proactivity
Strategic planning for long term goals allows your organization to prepare for all anticipated challenges on the horizon. Without a plan, you are subject to the volatility of market trends and forced to act from a position of reactivity instead of proactivity. Why not armor yourself with a strong strategic plan so that you can fortify your ability to benefit from future opportunities and stay one step ahead of the competition? When you foster a proactive business, you hold the reins to your company’s future success.
4. Increases Market Share and Profitability
When the efforts of your strategic planning have been implemented across all channels of your organization, it becomes easier to unlock insights on market trends, customer segments, buying behaviors, product and service offerings, and more! With a targeted approach towards your sales and marketing efforts, particularly one informed by your organization’s strategic intent, you are more likely to gain a stronger market position and increase profitability.
5. Creates Powerful, Sustainable Businesses
As industries and markets move through never-ending cycles of change, it is critical that businesses have clear foresight and strong foundations to survive long-term. The ability to effectively and efficiently adapt is empowered by a strategic plan that has properly assessed your strengths, weaknesses, resources, competitors, and current and desired future state. This will equip you to make smarter decisions, minimize risk, and create durability for your business. Having a strategic plan will empower your employees to unite around a shared vision, resulting in a powerful, sustainable human enterprise.
Begin the Strategic Planning Process with EVOLVE to Lead Today!
Ready to kick off your strategic planning? One of the first milestones in this work is assessing your current state against the future state you’re hoping to achieve within the next three to five years. When you take the time to define your long-term goals and develop strategies, tactics, timelines, and responsibilities to help you achieve them, you will truly reduce your risk and reap rewards. Kick-off your strategic planning process with EVOLVE to Lead today!