Having just completed two three-year strategic plans for businesses and gearing up to lead one or two for non-profits next year, I’ve been reflecting on the question: When is the right time to embark on a strategic plan? Here are some key triggers and considerations:
1. Completion of Prior Objectives
If your organization has successfully executed the majority of objectives and actions from a previous strategic plan, it’s time to evaluate where you stand. A fresh plan can set the stage for the next phase of growth or innovation.
2. Significant Changes in the Business Environment
Certain events may render your previous strategic plan obsolete or in need of major adjustments, such as:
Unexpected business losses (e.g., losing a major account).
A significant acquisition or merger.
Competitors introducing disruptive technologies or products.
Shifts in market trends or regulatory environments.
3. Other Factors
A strategic plan may also be warranted if:
There’s an organizational desire for a long-term vision to guide decision-making.
You’re entering a new market or launching a new business line.
Internal or external stakeholders are seeking clarity or alignment on priorities.
A Solid Strategic Plan: Balancing Specificity and Flexibility
A well-crafted strategic plan is both specific and broad. While it provides clear objectives and a roadmap, it must also allow for course corrections. Business environments are dynamic, and plans must evolve. Reviewing assumptions and progress during the annual planning process helps identify if a larger evaluation is needed.
Some organizations opt for quarterly check-ins on progress. While monitoring task completion is valuable, deep-dive analyses every three months can be counterproductive. Teams need time to execute initiatives, achieve results, and refine processes.
Key Considerations for Execution:
Branding initiatives take time to resonate and build equity.
New products require trial-building and awareness.
Go-to-market structures need time to stabilize and optimize.
Capital investments must run and be monitored to identify efficiency opportunities.
What Is a Strategic Plan?
A strategic plan is not a sales plan. It’s a holistic blueprint that:
Reviews the external environment (market trends, competitive landscape, regulatory changes).
Evaluates internal capabilities (strengths, weaknesses, operational capacity).
Conducts financial analysis to ensure feasibility and alignment with business goals.
While a strategic plan may lead to a sales or marketing strategy as an output, its scope is much broader. It addresses systemic issues and uncovers opportunities across the organization, paving the way for sustainable growth. And it provides a roadmap detailing how to get it done.
How to Approach Strategic Planning
Start with Research:
Analyze industry trends, competitors, and customer needs.
Assess your organization’s internal strengths and weaknesses.
Engage Stakeholders:
Gather input from leadership, employees, and key partners.
Facilitate discussions to align on vision and priorities.
Define Goals and Strategies:
Set realistic, measurable objectives.
Develop actionable strategies to achieve these goals.
Build an Implementation Plan:
Assign clear roles and responsibilities.
Establish timelines and milestones.
Monitor and Adapt:
Regularly review progress and adjust the plan as needed.
Strategic planning is not a one-time event but an ongoing process that ensures your organization stays focused, aligned, and prepared for the future. By understanding when to embark on a new plan and how to execute effectively, you’re setting your organization up for lasting success.
