Importance of Strategic Planning in Business Success

Strategic plans prove to be a vital resource for the success of a lot of businesses. While a strategic plan is not required, research shows that most successful companies have a strategy plan in place and some means of testing the effectiveness of the plan along the way. As a leader within an organization you have an obligation to provide guidance and direction for the company. A strategy plan is defined as being "management 's action plan for running the business and conducting operations" (Thompson, A., Strickland, A.J. and Gamble, J., Crafting & Executing Strategy The Quest for Competitive Advantage: Concepts and Cases, 2009 Custom Edition, pg. 6). There are three important reasons for developing a strategy plan which include: recognition

This is the platform to develop your "brand" for yourself. Once you have communicated to all internal stakeholders the plan of action it makes it easier to streamline and make processes and procedures more effective to meet the goal of the organization. As you get everyone in line and on the same page within the organization, you develop cohesiveness and efficiency. Efficiency is the direct result of a well executed strategy plan, which leads to more productivity within the organization. As things come together a good strategy plan ultimately will lead to name recognition for your company and a distinctive edge or advantage over the competition. Ideally, this is what you look for as a business. You want something that sets you apart from others competing within your market. A competitive advantage is important because it creates a loyal following of consumers, which leads to more revenue for the

You want to make sure everyone within the company is customer-focused and willing to meet the needs of the consumers. The goal is to provide extraordinary customer service...ordinarily! When the customers feel that you have their best interest at heart they will stick with you until the end. It is also important to always be forward thinking and stay creative. You always want to be ahead of the competition and make your company stand out amongst the rest. Company 's should always search for the best talent, have great technology and products that consistently meet the needs of your customer base, which will give the company sustainability and longevity. Efficiency in your operational processes is key to keep operational costs at a minimum while creating more productivity. Efficiency and productivity lead to more profits, which give you the revenue to do the things you need to do to keep the business running. Extra money gives businesses the much needed income to invest in their human capital, provide a ROI for their investors and give back through philanthropic efforts in the