Matswapati June 26, 2020 Strategic Planning
Why is strategic planning important? Strategic planning is a process conducted by a company or organization to determine strategies, directions, and ways to make decisions as well as to allocate its resources, including capital and human resources. It is clear that the management of a company or organization must make strategic plans to achieve the matters mentioned above. There are even some benefits given by strategic planning. They are also reasons why this process is very important. What are they?
Building Framework for the Annual Budget Development
A budget operation needs a resource commitment not only for now but also in the future. Therefore, it is very important for the management of a company, organization, or business to make a commitment regarding where the direction of the company will be for the following years. Strategic planning tends to provide a wider framework. This way, the plan also facilitates the formulation of the operational budgets and builds it up more effectively.
However, it also depends on the way to how to prepare strategic plan well. The plan must facilitate all decisions related to the allocation of optimal resources that support strategic key options. All people that are involved in the management must brainstorm themselves so that plans can be made and executed properly. It makes the process of framework building can be done well also.
Responding to a Problem with Broader Perspectives
Sure when you are establishing your own company or, at least, working on a company, you need to have broader perspectives. There are so many possibilities following whether they will make your company or organization grow well or, in contrast, fall down. Yes, you may think that you have been open-minded enough. But practically, responding to a problem with broader perspectives is not as easy as it seems.
Therefore, since the beginning, strategic planning is needed. To be more competitive, it is definitely needed alongside other factors like finance, marketing, operation, and more. The team of management must have a strategic plan and business plan that are made from various perspectives in the related environment. So, it is not enough to only have Plan A but also you must prepare Plan B, Plan C, and so forth.
Currently, most of the companies involve “middle” managers from functional fields in formulating strategic plans. Middle managers refer to those people in a company who run strategies that have been determined before. Why should they be involved? There is a tendency in which people who are not involved in a strategy formulation are not really committed to run the plan.
Of course, if a company is suffering from such a problem, it is more difficult for them to achieve strategic goals. What are the strategic goals of a company? One of them is to reach competitive advantages. Meanwhile, competitive advantages are achieved more easily by integrating all functional fields by facilitating communication and collaboration among managers from all levels.
Creating a Mechanism to Think about Long-Term Management
A strategic plan is closely related to the long-term plan. As it has been mentioned in the previous point, the plan itself has been covered problems and solutions from various perspectives. Sure, they are not only problems that happen currently. Based on that fact, with strategic plans, the team also thinks about long-term management at the same time just like it is mentioned in many examples of good strategic plans.
In the beginning, it is probably not an easy thing to do. Moreover, it is when the company or organization is still new with members of management that are limited. But you should not worry, some years later; you can just see multiple benefits of it. It is also an answer to a question; what is the purpose of a strategic plan?
Measuring Growth and Development of a Company
Without strategic plans, it is impossible to measure the growth or development of a company. Ideally, there must be assessments and evaluations that are conducted in a certain period of time. For example, it is done every month, every six months or every year. This way, the growth and development of a company can be measured. Well, the terms growth and development here are not only about profits for sure but also many other things including customers, human resources, and more mentioned in the strategic plan sample for business.
The strategic plan itself is commonly related to what to achieve in a certain period of time. So, in case, the target cannot be reached, the management team can just conduct an evaluation to repair the condition. On the other hand, if the target has been reached, it is time to make improvements. All the processes mentioned above are included in the activity of measurement anyway. Sure, so that your team can reach the target as it has been planned, a strategic management planning process is an essential thing to include.
Building a Bridge between Employers and Employees
Even in this modern day, there is still a big gap between employers and employees. Of course, not all companies may have this problem. Ideally, this gap should be removed for a more comfortable atmosphere in the company. Basically, employers and employees need each other. A strategic plan can be the bridge between employers and employees because one of the focuses is about human resources; they are employees.
A strategic plan tends to listen to opinions and suggestions from employers through the managerial team. Although employees may not directly see the employees, as long as their voices are listened to, it is enough to let them work better and more professionally. As long as you can treat your employees very well, it is just good for the development of your company. Indeed, it is not easy to achieve such a thing. You may even need a sample strategic plan template to start with.
When you are included in a managerial team of a company or organization, you must know how important strategic planning is. Plans that are built up strategically can help you in developing the company in many ways. So, there are so many answers to a question: why is strategic planning important?
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