The importance of the strategic planning process
It is interesting to note even though planning is the most critical component of success in business, it is still the most overlooked.
Many companies make big decisions without any planning.
The strategic plan is the roadmap -the big picture view of where the business is headed, and lays the foundation of a robust business.
Without a formal, strategic plan, organizations will find it increasingly difficult to accomplish their goals.
So how do you start working on your strategic plan so you do not miss any critical components?
The four main components of a strategic plan are the:
- Mission- This is basically your organization’s purpose. It is your organization’s “why” -the very reason it exists. It is worth taking the time to work on crafting the perfect mission statement for your business. It’s what your business does, how and why it does that.
- Vision –This is often the hardest part of the plan -this is the goal you would like to achieve eion the next 3-5 years. It nee3ds to be quantified, and communicated to the entire team, in a way that inspires them to achieve it, This is the direction you want to go.
- SWOT analysis -At this point, you have determined your direction and set the compass with your vision statement. So now it’s time to see how you will maneuver to reach your destination. This is where the SWOT analysis comes in. At this point, you determine your internal strengths and weaknesses as well as external factors like opportunities and threats. While you have control over your strengths and weaknesses, you do not really have control over external factors such as opportunities and threats.
- Goals – The final step in the strategic planning process is setting goals. These goals can be specific or general and will be based on the mission, and vision of the organization. These broad goals are often further segmented into other functional areas, such as marketing, personnel, finance and operations.
Your strategic plans lay the spadework for all future planning, including your documented business and marketing plans.
Failing to plan equates planning to fail.
As Toby Keith sings, “If you don’t know where you’re going/You might end up somewhere else.”
Check out the “SME Mastery” course in Brad Sugars Business Academy called “Fail to Plan or Plan to Fail”. This is a critical component of the course because as mentioned above, “if you fail to plan, then get ready to fail.” The number one reason businesses fail is because they do not have a plan. In this unit, you will learn how to create a strategic plan for your business. You will also build a logical planning platform that ties into your regular business operations to keep all eyes on the ultimate goal. And most importantly, you will discover ways in which you can engage others in the planning process.