8 key facets of a successful strategic plan

Have you ever stopped long enough to consider what the future looks like for you and your company? It may prompt you to ask questions like: Do I want to grow the company? If so, how big? What services should I provide now and in the future? If you are getting older, you might think, how long do I want to keep doing this? What will happen to my company when I retire? If these thoughts have been going through your head, strategic planning should be on your to-do list.

In absence of a long-range strategic plan, you may be making decisions by the seat of your pants. That seldom ends well. It could mean the difference between success or doing the same thing the same way with the same results.

Strategic Planning vs. Operational Planning

Many people confuse strategic planning and operational planning.

Strategic Planning – An organization’s process of defining its strategy or direction and making decisions on allocating resources to pursue that strategy. It involves setting strategic goals, determining actions to achieve the goals and mobilizing resources to execute actions.

Operational planning – It describes milestones, conditions for success and explains how or what portion of a strategic plan will be put into operation during a given operational period. A three-year strategic plan has three operational plans funded by three operating budgets.

Strategic planning is a critical tool for organizations, businesses or individuals aiming to achieve long-term success. It involves setting priorities, aligning resources and outlining actions to reach desired goals over a longer period of time. This means years, not days or weeks. Consider these eight key facets of the power of strategic planning:

1. Direction and purpose: Strategic planning defines a clear vision for the future and sets specific, measurable goals. This clarity guides decision-making and ensures everyone is working toward the same objectives.

2. Resource allocation: Effective strategic planning ensures that resources, including time, money and human capital, are allocated efficiently. This prevents waste and maximizes the impact of every resource.

3. Risk management: Strategic planning allows an organization to anticipate and prepare for potential obstacles and reduces risks. Through this, businesses can adapt more easily to changes in the market.

4. Improved decision-making: A well-formulated strategic plan is based on careful analysis and data, improving the quality of decisions. Leaders are more likely to make informed choices that align with long-term goals.

5. Competitive advantage: A good strategic plan allows businesses to focus on their unique strengths and points of differentiation.

6. Employee alignment and motivation: A strategic plan provides a shared vision and purpose, which helps align employees’ actions with organizational goals. This boosts morale and motivation as individuals see how their work contributes to the bigger picture.

7. Performance measurement: Strategic planning includes setting key performance indicators and benchmarks, making it easier to assess whether the organization is on track or needs to adjust its strategy.

8. Sustainability: Strategic planning helps ensure that an organization doesn’t just focus on immediate profits but also plans for sustainable, long-term growth. A robust plan allows organizations to be adaptable, ensuring their continued success.

How to get started

Typically, strategic planning is done at the executive leadership level. Many companies now include their management team as well. Participation of the management group is not only a great way to see how forward-looking your managers are, but it’s also a way to allow managers to think like owners of the company and get buy-in from your team on the direction of the company.

Strategic planning should precede the budgeting process. Your budget confirms that the strategic plan is viable and that profit goals are met or exceeded. Since your budget should be in place by December, strategic planning should be completed by late fall.

Finally, if you’ve never gone through the strategic planning process, it’s a great idea to bring in a facilitator to lead the process. The facilitator is invaluable in keeping the discussions on point. A good facilitator will also summarize the meeting and document decisions made and directions set.

Conclusion

Strategic planning empowers organizations to be proactive, purposeful and aligned. By taking the time to craft a thoughtful strategy, businesses can achieve long-term success. Whether you are leading a small startup or a global enterprise, the power of strategic planning is undeniable in navigating the path to success.

Cream of the Crop features a rotating panel from the Harvest Group, a landscape business consulting company. Jud Griggs is Design/Build Consultant of the Harvest Group. He can be reached at judson@harvestlandscapeconsulting.com.