What are the Benefits of Strategy?

The benefits of the strategy are helping everyone in the organization focus on the future with a written plan that contains goals to further the organization’s existence. From top to rank and file, strategy provides a map that gives direction and intention on where the organization plans to use and spend its resources. It helps keep decision-making and activities aligned to ensure that they support the attainment of the planned strategy. It provides a spotlight on what resources are needed, such as talent and development, to progress with the strategy. It also helps determine both positive and negative outcomes for suggested strategies.

Mistakes to Avoid

Organizations can fail to obtain the benefits of strategic planning through their process and/or the management of strategy. They can avoid failing by remembering not to take shortcuts in the process of strategic planning. Analysis such as SWOT (discussed later in this chapter) and an honest look inward, along with valid research externally, are absolutely necessary. Being too comfortable with the status quo and not challenging or assessing the potential risks is another mistake to avoid. Lacking follow-through and alignment of the plan throughout the organization is one of the most common mistakes—creating “the plan” and putting it in a binder on the shelf to just dust it off at next year’s planning retreat is a waste of time, effort, and execution. Insufficient involvement or commitment from management will sideline a good strategic plan in its tracks. Lastly, a lack of communication throughout the organization on what the strategic plan is, and what it means to each employee and function in the organization, will thwart efforts and should be avoided.