Why Your Company Needs a Strategic Plan
This article appeared in the May/June 2022 issue of MiMfg Magazine. Read the full issue and find past issues online.
No serious traveler would begin a trip without having a detailed map to help reach their destination. The map provides directions and alternative routes in case of challenges. Consulting the map will save the traveler both time and money. In business, the road map is called a strategic plan.
What Is a Strategic Plan?
A strategic plan is a document a business creates that identifies the company’s goals, the strategies they intend to use to reach those goals, and the ways in which they will measure their progress so they can fine-tune their plan over time. This process has four distinct parts or phases:
Vision — For most companies, the strategic planning process begins with creating mission and vision statements. The mission statement specifically states what the company values and what its objectives are, it’s leadership’s responsibility to communicate it to every member of the organization. The company’s vision flows from its mission, putting it into practice.
Strategy — Creating a strategic plan is a similar process in that the company will specify concrete, measurable actions that will make their vision possible. Goal-based planning is useful here. These goals can be financial or non-financial. Both require taking specific actions, such as hitting sales targets, bringing in new clients or expanding marketing efforts.
Strategic Plan — The end result of strategy is the creation of a strategic plan. This is a formal document that includes specific details, such as milestones the company intends to achieve, timelines for implementation, progress monitoring and expected financial results.
Execution — The final part of the process is the execution. You know where you’re going, you know how to get there. Now you have to hit the road.
Follow up is a crucial part of the execution process. It involves checking to see if progress is being made on those set goals and, if not, why? Strategic planning is not a one-and-done process; it needs to be ongoing to be effective. The clearer the set goals, the easier it will be to determine if they are met. If they aren’t, then those goals and actions will be subject to review to determine if they were too ambitious or if the execution itself fell short.
Why Does Your Company Need a Strategic Plan?
Planning is what you do when you are serious about setting and meeting your goals. Good planning also encourages better communication within your company. When your leadership and your workforce are on the same page about the company’s goals, it instills a sense of responsibility and improves productivity.
It may seem time consuming to create a strategic plan but, in the long run, it saves time. It focuses attention on the things you determine matter most and gives you actionable items to implement. Without good planning, most businesses will fail or they spend far too much time spinning their wheels.
If you have questions about strategic planning
or need other business advice, please contact Prometis Partners.
About the Author
Vincent B. Mastrovito, CEPA, is a certified exit planning advisor as well as the founder and president of Prometis Partners. He may be reached at 616-918-6551 or email@example.com.
Prometis Partners is an MMA Premium Associate Member and has been an MMA member company since September 2018. Visit online: prometispartners.com.