What's Driving Your Business: Defined Strategy or Destination Unknown?

How 3 Simple Questions Will Tell You.

By Peter Christian • Published July 2010

Why Strategic Planning Makes an Impact

It's a leading management tool
There are a lot of tools out there and they come and go like fashion trends. Determining which one is going to generate the most results for your situation can be daunting, even financially risky. Using a database of 7,283 businesses from 70 countries, The Bain's & Company 2005 Management Tool Survey found that out of 25 different management tools cited in their survey, 79% of respondents listed Strategic Planning as their number 1 tool of choice.

Failing to plan is planning to fail
Sounds like a pep talk you might have heard from a sports coach, but it rings true. Lack of a plan, or the notion that planning isn't necessary, will negatively impact the culture, attitude and results of the organization. Employees need a reason to come to work everyday — beyond collecting a paycheck. Planning takes the uncertainty out of the future and fosters ownership in the company's mission. This clarity helps everyone focus on their individual contributions to the organization's success.

Successful companies make it a habit
The best of the best companies do it. They don't have a magic elixir, nor does it happen on the talent of one person. Success starts with a clear vision and the commitment to see it through. It's critical to understand that sustainable success does not happen by accident — it takes planning. Strategic Planning provides the framework to communicate the vision and how to execute the plan throughout the entire organization. Having a plan focuses and empowers seemingly ordinary people to do extraordinary things. No superstars required.

Inc. 500 CEOs spend 50 to 90 percent of their time on strategy and business development.