Do we need a strategic plan?
By Starsha Valentine
Partner + Managing Director, PP Mid-Atlantic
Deciding whether to do a strategic plan can be challenging for organizations of any size. The process can seem daunting - there are staff resources, board time, and expenses related to the planning process that many leaders are unsure how to navigate. However, a strategic plan can provide direction, focus, and a clear roadmap for achieving long-term goals, but it's not always necessary at every stage or for every type of organization. Here are some key factors to consider when deciding whether to do a strategic plan:
1. Organizational Maturity and Complexity
Stage of development: Newer organizations or startups may not need a formal strategic plan immediately but could benefit from a simpler roadmap or set of priorities. Established organizations with more complex operations and goals often require detailed strategic planning to manage growth and address challenges.
Size and complexity: Larger organizations or those with multiple departments, geographies, or products will benefit more from a strategic plan to align different functions toward common goals.
2. External Environment and Market Conditions
Market instability: If your industry is undergoing significant disruption or change, having a strategic plan can help guide the organization through uncertainty.
Competition: In highly competitive environments, a strategic plan can help you stay ahead by identifying competitive advantages, strengths, and potential weaknesses.
3. Current Organizational Needs
Clarity and alignment: If your organization is facing confusion about its direction, mission, or vision, a strategic plan can help clarify these points and align all stakeholders around shared goals.
Crisis or stagnation: If the organization is struggling or experiencing stagnation, a strategic plan can help pinpoint underlying issues and chart a new course for recovery and growth.
Leadership changes: If your organization has recently or will soon experience a leadership transition, in addition to a succession plan, the organization may benefit from a new strategic plan.
Expansion or innovation: If you’re developing new programs or campaigns, launching new products, or undergoing significant expansion, a strategic plan can help navigate these transitions smoothly and effectively.
4. Stakeholder Engagement
Internal alignment: If you have a diverse set of teams or stakeholders, creating a strategic plan helps align their efforts, set expectations, and drive performance. For organizations with fragmented cultures or silos, a formal plan can be the tool that brings everyone together.
5. Resources and Capacity
Time and personnel: Strategic planning is a time-intensive process. Does your organization have the internal resources—time, personnel, expertise—to dedicate to developing and executing a strategic plan? If not, you might want to consider whether it’s the right time or whether you need to first build internal capacity.
Financial resources: A strategic plan requires an investment in planning time, workshops, and possibly external facilitation or consulting. If resources are limited, it may be prudent to weigh the costs against the potential benefits.
6. Clarity of Vision and Mission
Vision and mission statements: If your organization lacks clear and inspiring vision and mission statements, developing them might be the first step before a full strategic plan. Without these foundational elements, a strategic plan may lack the direction needed for effective implementation. Developing a refreshed mission and vision could also be a part of the strategic planning process.
7. Leadership and Governance
Leadership buy-in: A strategic plan requires strong leadership commitment and involvement. If leadership is divided or lacks alignment, the strategic planning process could become fragmented or ineffective.
Governance structure: Does your organization have the right governance structure in place to support decision-making and accountability as you implement the plan? This is something to consider before embarking on the plan.
8. Implementation Capacity
Execution ability: Having a strategic plan is one thing; implementing it is another. Before committing to a plan, consider whether your organization has the processes, leadership, and culture to follow through on the plan once it's developed. If your organization struggles with execution, you may need to include a plan for the implementation.
Considering a strategic plan in 2025? Contact our business development team at purposepossible.com/contact.
