As the economy begins to turn around, I am receiving an increasing number ofrequests to conducts strategic planning for new and existing clients.Repeatedly I hear, “We think our industry has hit bottom and is on the verge of rebounding so we want to be ready to take advantage of opportunities as they begin to emerge”.

Interestingly,the term ‘strategic planning’ or even just ‘strategy’ or ‘strategic’ has been a much misunderstood and maligned concept. What do you think when you hear the word, ‘strategic’? Do you think “long range planning” or “big picture”?

Because there are so many different types of business planning, I frequently find my self helping clients sort out what they really want before I start providing strategy planning services. 

To start off on the right foot, I suggest we take Plato’s advice: “Every discussion should begin with the definition of terms”.

First, there are two dimensions to strategy: vertical and horizontal.

Strategy is often associated with strategic planning, so most people think of strategy in only the vertical dimension, or the long range perspective.

However, the horizontal dimension is just as important. The horizontal component of strategy is the linkage, alignment and integration of objectives, plans and resources, etc. This alignment is just as important as long range thinking in order to ensure that all the components of the organization and its competing priorities are working in concert with each other.

How often has your organization invested valuable time and energy on a strategic plan only to find it ending up on a shelf gathering dust?

Often,the blame is attributed to faulty assumptions, excessive analysis or lack of support.  Many plans often become an exercise in futility - a 'blue-sky’ forecast that no one really uses. 

We all know the drill:

1.    Clarify business mission, vision and values

2.    Conduct a SWAT analysis (Strengths, Weaknesses, Opportunities and    Threats)

3.    Conduct a trend and forecast analysis

4.    Identify strategic objectives

5.    Design organizational structures (form follows function)

6.    Allocate and align resources (financial, physical, technological and human)

7.    Develop metrics for tracking progress

And, while each of these steps is important, the key to making it happen involves more than merely constructing the plan. Often, selecting the right planning method has more affect on the potential success of the plan.

In my next blog, I’ll discuss the two major approaches to strategic planning: rational models and emergent models.

“If you always do what you've always done, you'll always get what you've always got.”

- Ed Foreman