Business Consultants often get asked why businesses need a strategic plan, and what benefit it really provides. When managed correctly and implemented effectively a Strategic Plan, particularly in challenging times, can provide many benefits:
A strategic plan establishes the direction for a business and helps it to sharpen its focus to get there
Many MD’s spend too much time working in the business and not enough time working on developing the business, so this process helps redress the balance
A strategic plan helps an organisation to develop goals and communicated well help everyone focus their efforts in the same direction
“What is measured gets done”. By setting and communicating targets and regularly measuring performance against them, helps a business strive to achieve results.
A strategic plan can help to predict human resource and operational requirements
When a market is in a state of flux or changing rapidly it provides a pause and re-set button. COVID-19 has seen many companies reacting quickly to change and able to adapt their operating models to ride out the uncertain times.
Strategic Planning can sound complex, and is often shrouded in detailed, technical language, but it shouldn’t be. Essentially it can be a very simple process, and executed correctly results in a clear direction, effective targets for the business, and ultimately a sustained increase in turnover and profitability for the business.
6 Simple Steps to an effective Strategic Planning Process
Determine the businesses strategic position - where it is now, what works well, what isn’t working so well, and what is the business’s vision for the future?
Reviewing the market - what market are you operating in, how is that changing, what opportunities does that bring, who are the main competitors and what are the threats to the business?
Prioritising objectives - what does the business want to achieve and by when?
Develop a Strategic Plan - what are the key requirements for the business to be able to react to the current market conditions, and to meet its vision and growth objectives. This element should include long and short term Financial Plans, Marketing Plan and Operational and Resourcing Plans.
Communicate and Implement the Strategic Plan - ensure everyone is aware of the planned objectives and how this filters down to their own role in the achievement of the plan
Review and monitor performance and revise the plan as appropriate
Business Consultants provide a valuable role in working with a business on Strategic Planning to facilitate the planning process, providing challenge, debate, managing any conflict in ideas, and helping in the production and communication of the final plan.
However, arguably the most important aspect for the Business Consultant is ensuring accountability for the implementation and execution of the business plans, because a plan that is produced and just sits on a shelf is of no value to anyone.
