Just exactly what is strategic planning?
There is a great deal of misunderstanding and misuse of the terms "strategy"
and "strategic". These terms derive from the military. In the military,
"strategy" deals with the overall direction of the entire war effort.
It lays out the top command's vision as to the general course and direction
of the war, i.e. how the war is to be won. The "Generals" determine
what is to be attacked, what is to be defended, what is to be by-passed and
what is to be given up without a battle.
They must consider many factors in the quest for a successful strategy, such as their own resources, capabilities, limitations, strengths and weaknesses and those of the enemy; the terrain, the weather, the likelihood and impact of uncertain events and developments (including what the enemy might do); threats; opportunities; things that might go wrong.
What are the benefits of strategic planning?
While there are many very real ancillary benefits, they all fall under
the umbrella of the primary benefit which is to optimise the organization's
future potential through the formulation and realization of a well thought-out,
sound, and appropriate overall course and direction.
Does every company need a strategic plan?
Every endeavour or enterprise already has a strategy. These range from some
vague sense of the desires of the owner to massive, overly sophisticated master
plans. So the question is not whether every company needs a strategy, but
rather whether the company's strategy needs to be well thought out, sound
appropriate and achievable. The answer is self-evident.
We are highly successful already: Why should we
plan?
Success is strong evidence that a company has had a sound and appropriate
strategy. Notice the past tense. There is absolutely no guarantee that yesterday's
sound and appropriate strategy will continue to be successful in the future.
Indeed, there is great danger in assuming so without adequate study. There
are many examples of once successful companies that failed because they stuck
with a once successful strategy that had become inappropriate.
Does a smaller or simple company really need strategic
planning?
First, it should be pointed out that smaller companies have less tolerance
for misapplying their limited resources than larger companies. Therefore,
if anything, they have a greater need. Second, it should be pointed out that
smaller, simpler companies require smaller, simpler planning.
Does a smaller company have the resources to do
adequate strategic planning?
The resources in question are the people who will be doing the strategic planning
- those who are running the business. The management of the smaller company
has a distinct advantage over the management of the business giant when it
comes to strategic planning because they are intimately familiar with what
goes on in the business. They are down in the trenches rather than insulated
and isolated up in corporate headquarters. So the answer is a resounding YES.
Can a smaller company afford the time for strategic
planning?
Experience shows that the top management team will devote approximately
2 - 4% of its time to Strategic Planning. In reality, structured strategic
planning is not something more to do, but rather a better way of doing something
already being done. Indeed, in the long run it is a net time saver. It should
be acknowledged that there is a danger of strategic planning becoming a time
trap. Avoiding that trap is one of the fundamental purposes of Strategic Planning
Why plan in a world that is highly uncertain?
There is sometimes the feeling that forward planning is futile because it
will be overwhelmed by unanticipated events and developments. Uncertainty
is, indeed, a major problem in forward planning. However, to conclude that
the best way to deal with the problem is to not plan is an ostrich-like response.
To the contrary, the greater the uncertainty, the greater the need for good
strategic planning
Extracted from: "Centre for Simplified Strategic Planning USA"