Strategic planning is the process of developing an organization’s goals, objectives, and plans to achieve those objectives. The purpose of a strategic plan is to ensure that your team works together toward the same goal, enabling the company to stay unified.
Strategy and Tactics
The term “strategy” originated as military terminology based on Sun Tzu’s The Art of War, but it has since been adapted to fit all kinds of organizations. The most common uses of strategy in the business world are to define a long-term goal, or direction, and to outline the specific actions that will help you reach those goals.
Having a good strategy is important to ensure that your organization achieves the desired end result, and it is essential that you create one that aligns with your company’s core values. You will want to gather input from your leadership team and your teams to ensure that your strategy is relevant to all aspects of the business, and that everyone understands where you are going.
Your strategy should also include a contingency plan to make sure that if your strategy doesn’t work out, you have a backup plan in place so you can still reach your goals. Having a contingency plan will give you the freedom to make decisions that might not be as efficient or effective as your original strategy, but will still get you where you need to go.
You should also be sure to consider the role of tactics in your strategy, as they can play a key part in achieving your goals. Tactical plans outline the short-term measures that will contribute to your larger strategic goals.
It is critical to have an understanding of your company’s strengths, weaknesses, opportunities and threats when establishing your strategy. This is called a SWOT analysis and is a vital part of any strategy-making process.
This analysis helps you determine how your company can position itself for success, and how it can keep up with changes in the market or environment that may affect your ability to succeed. It is also a valuable tool for helping you evaluate where your business needs to improve and where it should focus its efforts.
A strong, well-formulated strategy enables you to identify where your organization stands in relation to the current and future markets. This enables you to develop a sustainable competitive advantage, which will allow you to thrive even in an unstable marketplace. Your strategies should also be adaptable and flexible, so you can quickly respond to changes in the market.