Is Strategic Planning a Worthwhile Investment for a Business or Organization ?
By : C . B . " Bix " Rathburn , Ph . D . President
Rathburn Planning & Consulting rathburnplanning @ gmail . com
This is the first in a series of articles exploring the value and components of a comprehensive strategic planning process for a business or organization . The goal of these articles is to equip organizations with the motivation and tools to invest quality time in planning and assessment exercises leading to enhanced focus and organizational success .
This is the first in a series of articles for Momentum to assist organizations and businesses in gaining a better understanding of strategic planning and its potentially powerful impact on the daily operation and ultimate success of any business or organization . Let ’ s start with a comprehensive definition of strategic planning .
Strategic planning is collection of organizational management processes and disciplines that guide an organization or business in :
• Establishing and clarifying mission and purpose
• Clarifying organizational values and culture
• Establishing vision and charting a future path
• Establishing organizational goals
• Setting organizational priorities
• Focusing the energies and resources of an organization
• Strengthening operations and decision making processes
• Ensuring that employees and other stakeholders are working toward agreed goals
• Establishing agreement and commitment around intended outcomes / results
• Measuring success
• Constantly assessing and adjusting direction in response to a changing environment
Strategic planning can be as simple as clarifying mission and goals of a business or organization or as detailed as a daily disciplined activity . Sophisticated tools and strategies are not always critical to success in strategic planning . However organizational commitment to the process by the entire team , from the CEO to the line worker , is necessary for the process to have its desired impact . For any strategic planning process to be effective at a minimum it must
• Clarify the purpose of the business and organization
• Articulate the direction the organization is going
• Document the actions and resources needed for advancement and
• Define expected outcomes . Variations in the strategic planning processes beyond these core components are usually tailored to the complexities , needs and environment within which the organization operates . In summary strategic planning processes , to be effective , must be tailored to meet the needs of each organization ’ s needs , setting and circumstances .
There are a number of critical questions that an organization must consider when choosing to engage the discipline of strategic planning . This series will present these questions and provide guidance . The critical first question is :
Why Is Having A Strategic Plan Critical to the Success of My Business or Organization ?
The well quoted proverb states that “ A journey of a thousand miles begins with a single step ”. The ultimate question is choosing the direction of that first step as it will ultimately lead to a specific destination . Strategic planning defines the destination and direction of an organization or business and guides progress along the path that will lead the enterprise to the desired destination . Strategic planning is critical for developing resource allocations and guiding day-to-day decisions . Strategic planning provides the foundation for evaluating progress and assessing alternative strategies when conditions warrant . Without a strategic plan an organization is flying blind without a flight plan . An organization or business may be active and even profitable but will never come close to realizing its full potential without a strategic plan . The organization may even be a good organization , comfortable with their level of success but as Jim Collins states “ Good is the enemy of Great ” 1 . Great organizations and businesses think and act strategically and their foundation is an effective strategic planning process .