Strategic Planning is the systematic clarification and documentation of what an organization wishes to achieve and how to achieve it. The objective of strategic planning is to set goals, action steps and measurements constructed to guide performance.
Entrepreneurs and business managers are often so preoccupied with immediate issues that they lose sight of their ultimate objectives. That’s why a business review or preparation of a strategic plan is a virtual necessity. A sound plan should:
- Serve as a framework for decisions or for securing support/approval.
- Provide a basis for more detailed planning.
- Explain the business to others in order to inform, motivate and involve.
- Assist with benchmarking and performance monitoring.
Within a business, strategic planning may provide overall direction and strategic management to a company or give specific direction in areas such as:
- Financial strategies
- Human resource/organizational development strategies
- Information technology deployments
- Marketing strategy