The benefits of strategic planning can include:
•Identification of breakthrough strategies, products and operational improvements •A clear road map is that is understood and passionately supported •Resources that are allocated as appropriate on top priorities •Goals that are developed based on solid research and a common understanding •Goals that are aligned throughout the organization
•Employees who are focused, engaged,, empowered and inspired •Improvement and investment initiatives that are focused on top priorities •Risks and threats that are systematically identified and addressed
If strategic planning is conducted poorly it may be nothing more than a game of politics. Some managers try to look smart, do what they can to get promoted and/or protect their silos. This type of an exercise should be called "political positioning" as opposed to "strategic planning." Instead of bringing people together towards a compelling vision and a smart strategy, it creates discord and points the organization in the direction of failure.
What is Strategic Planning?
Let's start by separating strategy from planning. Simply put, strategy is about making decisions. It is about trade-offs. Strategy is deciding how to focus, how to be the best, how to be different, and how to best pursue opportunities. Planning is the process of deciding what actions are needed to achieve the vision.
Jim Collins led a five-year study in which he and his team "scoured a list of 1,435 established companies to find every extraordinary case that made a leap from average results to great results. To qualify, a company had to generate cumulative stock returns that exceeded the general stock market by at least three times over 15 years. The 11 good-to-great companies that we found averaged returns 6.9 times greater than the market's."
"There was no miracle moment. Instead, a down-to-earth, pragmatic,...