Every business needs to goal-oriented having a certain and specific set of aims and objectives. It is quite vital to have goals, aims, and objectives as it helps the organization to keep the cash registers ringing and attain the pinnacle of growth and success. And with all the attributes and ethics to the formulated and followed, it is quite crucial for the management of the firm to embrace the facet of strategic planning.
It helps the firm accomplish all its long term and short term goals keeping the work environment positive and elevate the levels of profits and sales.
The Importance of Strategic Planning :
1) It gives a sense of direction to the entire team of the organization :
It is very significant for the management and the key employees of the firm to realize and follow the Importance of Strategic Planning as many a time with the increased work pressures and the rage of satisfying the customer demands and meeting the stringent deadlines, the company loses its way from the actual aims and objectives.
And it also results in the employees working on the futile tasks and there is no proper utilization of the resources. And with embracing the aspect of strategic planning, each and every member of the team gets a sense of direction and knows where to head with a properly framed plan in mind and hand. It is quite imperative to have a long term vision for the organization to grow at the marketplace.
2) Competitive edge in the market :
An organization with a plan in hand and a strategy in mind and place accomplishes its goals and objectives before its contemporaries in the market gaining a competitive edge and advantage. Strategic planning involves studying the market conditions, researching about the next moves of the competitors, coming up with the innovative product ideas, and keeping the customers happy and satisfied with the various means and measures.
And all of it results in the firm marching ahead amidst the tough and ever growing competition from the existing as well as new players in the market.
3) Innovation :
As discussed in the earlier point, understanding the Importance of Strategic Planning and following it, the firm comes up with the products and services that are high on the aspects of innovation and novelty. As with the strategic planning and inputs from the internal team, external parties, and experts; the firm plans and strategizes its next line of offerings that are unique and exclusive in the market and is sure to elevate the sales, profit margins, and brand value.
4) It makes the organization proactive in nature :
Realizing the Importance of Strategic Planning helps the organization to be more proactive rather than being reactive to the forthcoming issues and problems in attaining the goals and objectives.
Whilst accomplishing all the short term and long term objectives, problems and issues are bound to arise and when the firm follows the fundamentals of strategic planning, it becomes more proactive as it envisions and foresees the problems arriving. Hence, the management along with the key members of the team take corrective measures well before time ironing out the issues much before they hamper the brand value and profits of the firm.
5) Elevates productivity and operational efficiency :
With the proper strategy and plan in hand and mind, there is an increase in the levels of productivity and operational efficiency of the entire firm. The team knows and understands all the tasks in hand and how to attain them in the most efficient and effective manner. A properly and aptly formulated strategic plan works like a blueprint or a roadmap for the firm to attain its objectives. It also helps to maintain harmony with the members of the department and inter-departments along with the positive and healthy working atmosphere.
6) Higher sales and profits :
When the firm follows the Importance of Strategic Planning in each of its business facets and operations, it is swiftly moving towards accomplishing the aim of higher sales and profits.
As it is a universal fact that all the strategic planning and measures are undertaken by the firm to not only enhance its brand value in the market but also give a push to sales and profits to keep the cash registers ringing and stay relevant in the market amidst tough competition carving a niche for itself.
7) Keeps the employees motivated :
As mentioned above, following the route of strategic planning helps the firm get a sense of direction and the employees are well aware and apprised on how to attain the assigned short term and long term objectives. And when they are given the tasks and responsibilities as per their expertise and professional qualification along with the proper rewards, they feel highly motivated and strive their level best to accomplish the same in the most efficient manner.
8) Attracts financial investors :
The firm keeps on requiring the financial investments and funds from the outside parties such as banks, private equities, and financial investors in order to expand its business by offering the new and novel range of products and services for the customers. And it can attract good investors and banks only if it has a proper strategic plan and map in hand.
As outside parties will only instill their trust and faith in the organization if it has a strong legacy of strategic planning plus has the future plan ready as well. They are solely interested in their return on investment and profit generation.
9) Minimizes risk :
Each and every business and industry domain has to work with the factor of risk in hand. But if the firm realizes and follows the Importance of Strategic Planning and makes every move understanding the nuances and intricacies, the factor of risk is minimal. It helps the firm to envision and foresee the bottlenecks and problems that may arise in the near future and take corrective measures beforehand.
Here is a video by Marketing91 on Strategic Planning.
For the firm to grow and expand its business operations, it is very crucial to understand and follow the Importance of Strategic Planning.