Strategic planning means different things to different people and organizations. Some organizations are data intensive and highly analytical. Others are more creative and artistic. Often a combination of analysis and creativity can benefit the organization. There are several factors that can guide companies in deciding what model will best work for them.

More mature companies with competitive markets will use a more analytic approach to assessments and plans to gain an advantage. Companies in newer marketplaces will often use a creative approach. The best companies leverage the advantages of the scientific and creative methods.

The key is to define a strategic planning approach that works best for your company and market. Factors to consider in designing your strategic planning approach include:

• Culture of your organization
• Corporate governance structure
• Size of your firm
• The amount of new product development your firm invests in
• The volatility of the market(s) your firm competes in
• The level of long-term capital investment your firm has made

Each of these points merit a discussion – which will likely be forthcoming.

Most strategies fail because of poor execution. So, this topic needs to be a priority focus. A key reason for this is the lack of  appropriate performance-based cultures. Developing a high performance, highly motivated culture needs to be a top priority.  Ego, poor leadership, favoritism, fear, dishonesty, and a lack of accountability are prevalent challenges in organizations today.

The strategy development and planning process should include reviewing previous targets, identifying key reasons for gaps, resolving issues, and setting new performance goals.  It becomes vital that sound performance indicators be established and monitored regularly to continually address issues so that the targets are achieved.

Both internal and external indicators should be established. Internal indicators help to monitor those critical activities needed to achieve the targets.  External indicators monitor factors outside of your organization that impact your short and long-term goals.

By David Willden