Matswapati June 25, 2020 Strategic Planning
Strategic planning is one of the important keys for a company to grow, develop and succeed in today’s business competition. Having a well-planned strategy like this helps the company to reach its goal much easier. But, the purpose of strategic planning is not only that. there are at least three things that a company can acquire from having a good strategy planned.
1. Direction and Clarity
The first purpose is providing clarity for the direction that your company is going to take. You and your team create and plan the road that will take your company to the goal you have been aimed at in the beginning. Having a clear described or written vision, mission, and plan, is a good thing. You know what decision you should make, which path you can take, and it also lowers the risk of failure and mistake.
Strategic planning for small business becomes much more important. It doesn’t only help small businesses to find the right path for the company to focus on. But, strategic planning also helps them to find the strength of their business/service/product that they can use to compete in the market.
2. Bonds and Delegations
This is maybe the most important reason why a company needs strategic planning. A company can have many talented, skillful and experienced employees. However, if they can’t work together, there won’t be any results. You can find a business strategic plan example that shows the best result after the planning was held.
The strategic planning meeting involves all elements in a company. It helps to create and strengthen the bond between those elements. It doesn’t matter what position you have, in the meeting everyone will become one and have the same goal, which is to reach success.
Through the meeting, the company also can find the correct field where the employee can work with their best performance and skill they mastered. This is important in long term strategic planning. A right man at the right place will improve the efficiency of that company that can make them keep producing a good result for a longer time.
3. Communication Platform
You, as the CEO or the owner of a company, might have many business ideas in your head. Applying it to your company system is not an easy task. This is where strategic planning helps you to create a platform where you can share the idea, apply it on the plan, and then execute it.
What about Business Plan?
After you read the three main purposes of strategic planning, you might wonder about its difference between business plan vs strategic plan? It seems similar when you see it at glance. The truth is they are two different things.
The clear difference between those two is the time. A business plan mostly is created to aim for the short-term or mid-term goal. It has various time ranges, but in most cases, it is a plan for reaching the goal within 1 year. A strategic plan is long-term planning. It is applied for 3-5 years or even more than that.
The goals and practices are also different. The business plan is created to aim for the company's operational goal. For example, you make a business development strategy plan to develop your business to a certain scale level in the short-term, to reach a new market. Even though it sounds simple, but creating a business development plan that can reach the goal within a short time can be difficult. You may need a proper business development strategy template, as the start to construct the plan.
On the other hand, the strategic plan focuses on where the organization/company goes. Mostly, it relates to the principle that the company owner or founder was set in the beginning. In short, the strategic plan will decide the identity of your company in the market.
Business planning and strategy are important. A company will need them to run and reach their goal. More importantly, with proper business and strategic plans, the company can survive in a harsh environment.
How to Build a Strategy Plan
As we explained above, the strategic plan is like your company’s identity. It describes where your company stands on the market that you aim for. So, to build a proper strategy plan, the first thing you need to do is determining your company position. You can use the SWOT method that commonly used in many fields for this one. It is like a sales strategy plan template to create your plan.
• Strength – find the part that can help you to reach the goal,
• Weakness – find the part that can obstruct your journey to that goal,
• Opportunities – find the external factor that can help your company to reach the goal,
• Threats – find the external factor that can obstruct your company plan, such as competitors, economic, political situation and other.
It might be difficult to construct the plan manually. In this case, you can always use the strategic business plan template to help you save more time. You can find these templates available for free on the internet.
Now, once you know your company SWOT and you might also have the template already, you can move to the next step, which is writing it down. Here are some of the elements you need to include in your plan:
• Internal and external driver (all factors that can affect your company's strength and weakness, plus the market condition).
• Vision (the position where your company stands five years from now).
• Main objective (the main goal you need to reach that can realize your vision).
• Implementation (what you need to do to get that objective).
• Resourcing (effect on your company’s resource, when you use it to reach your vision/goal).
The purpose of strategic planning, as explained above, is easing your work. Isn’t it much easier if you have a clear goal to reach and know-how to reach that goal? Moreover, the chance to get the goal and success is much higher with a proper plan.
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