Why Are Creating and Using Strategic Plans Important?

While many organizations have heard of strategic planning, and even claim to strategically plan, few actually do so effectively. Many organizations and their leaders discuss strategic planning as if it is some sort of panacea for "fixing" the organization. That expression is almost as misused as "getting to the next level." It is somewhat amazing that few organizations, and few leaders seem to comprehend that strategic planning must be an ongoing process, if it is to be an effective use of time. Otherwise, what many organizations refer to as strategic planning ends up being little more than an exercise in philosophy and oration. Although I refer to organizations in this article, the same concepts apply to any types of businesses, as well as as a part of personal development! We each need a strategy, if we are to succeed, to our potential! This applies to organizations, small and large businesses, self - employed/ Independent Contractors (such as professionals, Realtors, etc).
 
The first step in effective strategic planning is to properly identify where an organization is at presently, and how it got there. What is the history of the organization, and how does that and the organization's mission impact its planning? How can the organization evolve to improve, while maintaining its reason for being? Strategic planners must carefully understand the ramifications of its actions, or conversely, what the impact of not acting might be.

This process must identify both the strengths and weaknesses of the organization, as well as the reasons and causes for each. All too often, so-called strategic planners inaccurately identify either strengths or weaknesses, or both, and then make decisions or recommendations based on false or faulty premises. This is often seen, especially on the weaknesses sign, when an organization is facing a challenge in a specific area, and often oversimplifies, misinterprets, or misunderstands the reason for the obstactle. When planning begins based on inaccurate premises, the plan is doomed from the onset.

Strategic planners must consider all alternatives in their deliberations. They must consider factors such as short-term, intermediate-term and long-term impacts, ramifications, costs both in terms of financial as well as personnel related. Costs include not only direct costs, but also indirect costs, such as the wastes and excesses. Planners must consider multiple alternatives, and weigh all relevant factors in analyzing ideas.

Strategic planning necessitates entering the process with an open mind, and considering alternatives. Where many organizations drop the ball, however, is that after they expend considerable time, energy and other resources in the process, but rather than seeking a solution, permit the process to break down into a gripe, blame and complain, session!

Organizations, companies, individuals, and Independent Contractors, will benefit if they use this process regularly and properly. Focus on solutions, options, and determine a best primary course of action, as well as the best contingencies!