Why is Strategic Planning Important to a Business ?

Category: Business

Importance of Strategic Planning & Management in the Business Environment What is Strategy? Strategy cannot be defined definitively. Different strategy gurus have their understanding and mode of defining strategy. We can define strategy as: “Identifying the right scope or goal of an organization, planning the effective methods and efficient resources in achieving them in the short and long term.” Why Strategy? The human mind is comfortable to know where they are traveling—and if you have a map in hand, that will make your travel easier. Similarly, having a strategy on hand gives a sense of direction of which road to take and it will also have alternative methods to achieve the desired. More Lights On! A rigid strategy can never help a dynamic organization. Building a strategy before the start of a financial year is great, but at the same time, a planned strategy should be put to test at regular intervals by keeping regular tracker meetings and updating the strategic plan accordingly. High growth-driven organizations are goal-driven—they are more focused on goals. Hence, such organizations not only understand the importance of having a strategy in place, but they make sure that they leave space for tweaking and adjusting as per business’s demands.