I was asked recently about why it was important for a company to have a strategic plan. Doesn't having a vision statement and a mission statement suffice?
The idea of having a strategic plan is to help to minimize the effects of being “blind-sided” by unexpected events and to be able to build into the organization’s infrastructure the ability to respond appropriately to changing circumstances both in the internal and external environments. For these reasons, preparing a strategic plan requires the consideration of alternative actions, all of which are intended to bring the strategy to fruition, although by different paths of action. It is a requirement for sustained success, primarily because it allows the organization to stay ahead of changes in its environment.
Without a strategic plan, the operating elements of the organization are in constant confusion. People mill about, confusing activity with accomplishment. Money and time are wasted on go-nowhere projects. Morale remains low. It is difficult to get people to participate in organizational activities. Everything that seems to “go wrong is always “somebody else’s fault.” And usually, everything is going wrong.
Drafting a strategic plan requires the planners to “think strategically.” A significant problem with thinking strategically is that few people sufficiently understand “strategy.” In fact, although the term is thrown about by almost everyone, most people don’t agree on just what it is.
So, what is "strategy" and how does one think and plan strategically? To simplify, “strategy,” as differentiated from “tactics,” which are the actions taken to fulfill a strategy, comprises the position one takes to reach a particular goal. In other words, “strategy” provides a direction so that, over time, choices of courses of action can be made that have a high probability of propelling the organization consistently in the direction intended.
Obviously, if an organization has no vision, i.e., where it wants to go, and no clear mission, i.e., what it wants to do to get there, planning strategically is impossible.