The Impact of Strategic Planning in Business
“Strategy is simply resource allocation. When you strip away all the noise, that’s what it comes down to. Strategy means making clear cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets.”
Jack Welch
Having a solid strategy is the first step in creating a framework for your business to succeed. Strategic planning helps you better understand your goals for your business, as well as bring to light any flaws or setbacks you should plan for. A good business strategy will clear away a lot of logistical complications so you can focus on growing your business. But what exactly goes into a business strategy, and how do you know what to track?
We’ll dive into what strategic planning means for business, the benefits of having a solid strategy, and a few processes you can consider to get started.
I’ve been helping businesses with their strategies for over 10 years. Together, we can craft a personalized plan for your company that will match your goals.
So…What Exactly Is Strategic Planning?
A business strategy can mean a lot of different things to different people. Each business and mission is unique, so it shouldn’t come as a surprise that no business strategy will look the same – and something that works really well for one company might not work for another.
At its core, strategic planning involves a systematic process of outlining an organization’s objectives and roadmap to achieve them. This process highlights a business’s strengths and weaknesses, as well as opportunities for growth and challenges that might arise. Sometimes this takes the form of a written “guide” or document that the company can refer to. Other times this is mapped out as a chart, or listed in the form of goals and key performance indicators (KPIs).
Having clear goals and a way to reach them not only moves the business towards a unified purpose, it also helps many companies have quantifiable measures of performance – which are crucial when navigating today’s dynamic market. Let’s look at some other benefits that come with strategic planning.
Why You Should Invest in a Strategy
A lot of the time, our goals can be subjective. For example, you might want to “increase user engagement” or “improve member onboarding.” But how do you measure these goals? Many successful founders will tell you that if a goal is not measurable, it doesn’t exist – and I agree. A strategy can help you better define these goals and specify exactly how you will measure if they are successful or not.
Tip: Instead of saying “increase user engagement,” try to add numbers to your goal so you can track progress and clearly define what success means, such as “increase user engagement by boosting newsletter sign-ups to 25%.”
Besides helping you track your progress, a strategy also helps inform the decision-making progress and choose paths that align with long-term goals. By doing this, you can significantly cut back on resources that aren’t necessary to reaching those goals, which will save you time and money.
Lastly, strategic planning fosters a sense of alignment within an organization. When everyone can see what they are working towards and monitor the progress of those goals, collaboration becomes easier and efforts synergize towards a common purpose.
Getting Started
So how do you know where to start with your business strategy? Luckily, there are a few templates you can use to get your gears turning. Each strategy is unique to each business, so personalizing your strategy down to the minute details will be in your favor.
SWOT Analysis
The SWOT Analysis (strengths, weaknesses, opportunities, and threats) is a common way to identify both internal and external factors in a business’s success. By identifying exactly what works and what doesn’t, as well as what might affect the business, organizations gain valuable insight into their competitive advantage, areas for improvement, potential for growth, and challenges that need addressing.
SMART Criteria
SMART stands for specific, measurable, achievable, relevant, and time-bound. Setting goals within this framework helps provide clarity as well as set realistic targets. Using this template transforms abstract goals into measurable, actionable milestones that help focus on what’s doable in a certain timeframe. And as I already said, if it’s not measurable, it doesn’t really exist!
KPIs
KPIs, or key performance indicators, are another great way to track progress and set goals. These consist of quantifiable metrics that provide a clear way to measure progress and assess the success of implemented strategies. KPIs break general goals down into tangible steps and help divide up tasks among various teams.
Tip: Even when setting large goals, make sure to check in regularly and update them as needed. In fact, you’ll probably realize that many goals and strategy documents will need adjusting as processes will be reassessed to align with evolving circumstances.
Let’s Strategize!
In the ever-evolving landscape of business, it’s crucial to have a well-defined strategy that outlines your goals and provides tangible ways to measure your progress and success. While this strategy can take many forms, it should be a dynamic way to equip your business and team with the tools to make informed decisions, optimize resources, and adapt to changing times.
Let’s chat about how we can use strategic planning to help your business not just survive, but THRIVE in today’s competitive market. Together, we’ll give your company a new purpose.
