Strategic planning is a process that outlines how your organization will deliver ongoing value to its stakeholders. Unlike a project with a set timeline, a strategic plan is integrated into the continuous operations of the business. It translates the high-level ideas expressed in your mission, vision, and values into actionable behaviours and initiatives across the organization.
It’s important to recognize that stakeholders are not solely your customers. While customers buy your products or services, they may not have a vested interest in the company unless they are also shareholders.
To identify your stakeholders, consider the following questions:
- Do you have investors? If yes, they are stakeholders interested in receiving a return on their investment.
- Are you funded by taxpayers, possibly through a government agency or a non-profit supported by public funds? In that case, taxpayers are stakeholders who expect their contributions to be managed responsibly, even if they don’t seek a financial return.
- If you operate as a non-profit or not-for-profit, members of the board of directors and trustees are stakeholders.
- In a privately held company, the owners are stakeholders seeking profits to justify their investments of time and money.
It is crucial to establish who your stakeholders are before moving forward with strategic planning.
A balanced approach to strategic planning is essential to accurately represent what is feasible. Be mindful that various areas may compete for resources and attention, leading to challenges in the planning process. Those facilitating strategic planning discussions must foster an open environment where all perspectives are acknowledged and included in the final plan. Neglecting this can result in a lack of support when the strategic plan is ready for implementation.
Your strategic plan should identify four or five key focus areas that will guide your efforts while aligning with your mission, values, and vision.
In addition to the overarching strategic plan, individual departments may develop complementary plans that are similarly structured. In larger organizations, it’s common for departments such as human resources, customer service, sales, and marketing to create strategic plans that align with the overall company objectives.
