Strategic Planning Basics

Wikipedia defines "strategic planning" as "an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people."

Unfortunately, I have also observed that the term, "strategic planning" is often also one of the most abused terms. Many individuals use a supposed strategic planning process as an excuse to promote a specific agenda, and find the guise of strategic planning to be an available manipulative ploy. In three decades of working with organizations, I have found very few that adequately perform a continuous strategic plan.

Before the strategic planning process can truly be effective, the objectives of the organization must be clearly identified in detail. All aspects of those objectives, and the needs of the organization must be identified. For this project to be worthwhile, the organization must be willing to "leave no stone unturned," and have no "sacred cows." Strategic planning means to look completely at all aspects, and come up with a "best practices" method and most realistic approach.

An organization needs to agree upon goals that need to be addressed. Goals can be thought of as the end result that the organization wishes to accomplish. In addition, each concept must be evaluated on a cost/ benefit basis, and weighed in terms of the probability of achieving the desired results.

What are the priorities of the organization? What are the organizations assets and liabilities? How strong is the membership base, and how has those numbers changed in the last few years? Does the organization seem to have a smooth transition from leader to leader? Would an unbiased observer describe the organization's leadership as strong or weak? What are the prospects for the upcoming leadership? What leadership training is done at an ongoing base? Does the organization clearly articulate its mission and goals?

Organizations must be willing to fully evaluate all approaches and alternatives. They must be creative in terms of "brainstorming" and thinking outside the box. Too many organizations get "hung up" on some aspect of the way they "have always done things."

Another important thing to evaluate in the strategic planning process is alternative methods and approaches. Organizations must find not only one method or plan of approach, but also secondary and tertiary approaches as well. Each approach must be evaluated in terms of costs and benefits, assets and liabilities, chances of success, etc. Each approach must also be accompanied by a carefully prepared budget, where worst-case scenarios for expenses are used, and the least optimistic income projections used as well. Many organizations do the opposite, and then when either optimistic revenues, or low-balled expenses are not achieved, the organization dooms itself to failure!

Strategic planning is essential for an organization. However, leaders must not simply use this as an exercise, but rather as a carefully planned approach to make the organization the best that it can possibly be.