Why do you need a Strategic Plan?

Recently, the leader of an organization asked me the following question: “Why do we need a Strategic Plan?” Here’s my reply.

Think of a strategic plan as a map.

Why might you need a map?

If you are returning to a destination that you have visited many times, and you know the way, you don’t need a map.

But if your purpose is real and meaningful growth, growth that is more than iterative and incremental, then, by definition, you will be exploring uncharted territory and journeying to new destinations.

Without a map, you will be travelling blind. You need a map that shows where you are today, where you are going, and identifies the most optimal route to growth, carefully considering the territory and environment you must travel. Without that map you put your journey at risk and potentially put your survival at risk.

A strategic plan is your road map. A good plan will focus the organization’s energy, resources and time. It will align the people and help to define the culture. All these things create value.

The process of developing a thoughtful strategic plan will force you to take a critical look at your business from a 360 degree perspective, analyzing your market and competition, quantifying and qualifying your opportunities, defining your target audience(s), examining your value proposition, developing measurable objectives, and reviewing your organization including structure, people, resources, and importantly, culture.

Once the plan is finalized, it should be socialized and communicated throughout the entire organization. Your chances of success will be optimized if every individual understands the plan at a high level and understands their own role in delivering it. Doing this will create engagement and ownership of the plan.

Creating a Strategic Plan is not a facile exercise, but nor should it be a tortuous one. If it’s done well, it will help ensure that your business arrives at its chosen destination, building enterprise or shareholder value in the process, and building an organization with a vibrant and engaged culture.

Are you travelling blind or do you have a good map?