Most organizations make strategic planning for a particular period and then cannot execute them in their entirety due to some reasons. This leads to the non-achievement of goals put against different strategic plans at the beginning. And those that try and execute those plans often take too much time, which makes the cost of execution go beyond what they initially thought they would have to spend. There is only a tiny percentage of leaders in strategic planning who report maximum success rate on the successful execution of long-term strategic plans.
On the other hand, if strategic planning is done right, it can help leaders define the business strategy of an organization into actions that provide a clear path for the execution of the plans and achievement of business objectives. There are now tools and templates available to help leaders involved in strategic planning define and communicate the most critical points in the strategy to every member of an organization to know what, how, and why of plan execution.
Many organizations and leaders find it very hard to differentiate between detailed strategic planning and the crux of strategy. This mostly happens when changes in conditions are happening thick and fast. If this is the case, it is essential to understand how both are different and why they are necessary to know the difference.
You might also be interested to read: Workforce Planning – Post-COVID Recovery Depends On Normalizing The Agile Work Environment
In simple words, a business strategy is nothing but the direction in which an organization intends to move in the coming time. It features plans on how the organization will compete with others and bring success in the markets it wants to do business in. On the other hand, strategic planning enables an organization to define the roadmap to long-term success. It includes all the strategic investments and initiatives the organization will make to ensure the timely achievement of business goals. Strategic planning is defined differently for different functions within the organization. Leaders of other parties determine their respective functions’ actions to contribute to their overall goals.
Strategic planning may also include operational plans directed at specific parts of operations or projects and the changes happening in them regularly. People responsible for creating strategic plans for different functions need not only focus on the material things. Their programs should also emphasize the importance of initiatives, assumptions, and metrics that can contribute effectively to a business’s overall objectives. And it is also imperative for functional leaders to not forget about disruptions and trends that could affect their strategic plans in one way or the other. Leaders that don’t understand the importance of accounting for these disruptions leave unaddressed gaps in their strategic goals. This is why they shouldn’t be overlooked for proper market positioning and value proposition.
Reference: Strategic Planning | Gartner
You might also be interested to read: