Introduction
In today’s complex and rapidly changing world, where business strategies are vital to success, it is evident that firms and organizations that don’t have a strategy will fail to meet their customer demands and market obligations. Below we will examine the five advantages of creating strategic plans:
1-Strategic planning provides a clear sense of direction
Identifying the correct mission statement and vision allows the organization to develop a strategic plan as a roadmap for success. A well-articulated strategy with clearly defined change initiatives and deliverables will enable individuals in an organization to know what must be executed and in what timeframe.
Companies should start by answering these three important questions to set the strategic directions for their businesses:
- What do we want to achieve? (Vision)
- What is the purpose of our business? (Mission Statement)
- How are we going to get there? (Strategy)
2-Strategic planning establishes organizational alignment
Most organizations need more resources to transform strategic objectives into outcomes. But a well-written strategy can help align the essential resources to maximize strategic values. Having employees involved in the early stages of drafting and brainstorming a business strategy ensures everyone is on the same page, creating a sense of ownership, especially when the implementation phase begins, allowing for a seamless transformation of the objectives into outputs and bringing in all organization members to make better decisions regarding the critical organizational goals.
3-Strategic planning helps engage stakeholders
One of the most rewarding benefits of having a documented strategy is that it sets the baseline for top management. It serves as a communication tool for what must be done to create a short- and long-term sense of urgency. At the same time, it helps get people interested in the organization’s day-to-day operations to engage in the strategic setting of the organization.
4-Strategic planning helps allocate the right resources
In reality, a strategy is about making choices: what products, services, and local or international markets will take part in the future must be considered. These decisions are always required to ensure that the few resources are used most profitably.
5-Strategic planning helps keep the company focused
Drifts or shifts in the original strategic direction can cause tremendous losses to the company, and it could negatively impact its market position. Being aware of and prepared for such drifts allows senior managers and strategists to take the right actions before they happen.
In the end, no firm is immune to competition or severe economic conditions, but by adopting a strategy, it might establish a broad line that serves as a baseline or a north star that sets the direction for the company to navigate through such turbulence, helping it to remain ahead of its rivals.
About the Author:
Loay Dirar, educates, writes, and advises on strategy development and implementation, as well as change management and risk management for major regional organizations in the Middle East and North Africa. He has 19 years of management experience, including ten years as a manager in multinational subsidiaries of organizations based in the Middle East and North Africa (MENA).
