Strategic planning is the of defining an organization’s direction, goals and major actions over the next 3-10 years.

Strategy is what makes a business competitive, unique and sustainable. Strategic plans influence long-term and day-to-day decision-making regarding the distribution of resources such as money, people and time. The most successful and competitive organizations use strategic planning to set priorities, focus energy and identify goals.

Multinational brands typically have strategic planning departments and teams that research and strategize all year. Small businesses, startups, social enterprises, and local non-profit organizations should engage in strategic planning at least once a year. A major benefit of strategic planning is that is offers a structured approach to assess and adjust the company’s direction in response to a changing environment and customer needs.

Both areas of planning are necessary and depend on each other. Strategic planning establishes direction and goals for the company based on existing market conditions and current customer needs, while business planning determines the operational activities based on these goals. Business plans typically reflect new projects or the potential of a financing opportunity. Strategic plans typically detail the current market conditions, opportunities, challenges and operating environment, along with the goals of the company. The strategic plan provides context for the business plan.

A strategic plan highlights the why, what and who; a business plan highlights the how, where and when.

Strategy typically will be the first to show up, albeit not intentionally. Often business plans start with the mission, vision, and goals, followed by a market research section. These sections combined form the basis of a strategic plan. Often, you will first complete the strategic plan components before defining your business plan. Engaging in strategic planning after your initial launch means you’ve completed your previous goals and the reached the end of the path set out in your business plan.

Plans are just that - plans. Plans are nothing without action and implementation. However, plans provide an optimized guide, so your time, money and skills are utilized with the most efficient and impactful actions in mind. It ensures that resources—such as time, money, and personnel—are allocated efficiently toward activities that support the organization's strategic objectives. This alignment helps in avoiding wasted efforts on initiatives that do not contribute to the long-term vision.

1. Proactive Decision-Making: Strategic planning allows organizations to anticipate future challenges and opportunities. By analyzing trends and potential scenarios, organizations can make proactive decisions, rather than simply reacting to circumstances as they arise.

2. Competitive Advantage: By carefully analyzing the market and the competition, strategic planning helps organizations identify opportunities for differentiation and innovation, leading to a sustainable competitive advantage.

3. Long-Term Sustainability: Strategic planning helps ensure that the organization is positioned for long-term success. It enables leaders to think beyond short-term gains and focus on building a sustainable business model that can adapt to changes in the market.

Your strategic plan is a combination of available time, money, and skills, + your short and long term goals + external market conditions. Depending on the size your organization and phase of business, you may benefit from a half-day workshop that provides you with knowledge and mindset development. Every leader should be informed on strategic planning and develop their own approaches. You may also choose to bring a facilitator to provide customize strategic planning support to your business.