The reason strategic planning and thinking is so helpful is that it saves you an enormous amount of time and money. By thinking through the key questions and concepts of strategy, you very quickly find yourself doing more and more of the most important tasks that can move you toward your key goals. At the same time, you do fewer and fewer of those things that are not particularly helpful. You do more things right and fewer things wrong. You establish specific targets for the company and for everyone in it. You greatly improve your ability to measure and track results. You move onto the fast track in your work and in your life in general.
The purpose of corporate strategic planning is to increase return on equity. Equity is defined as the actual amount of shareholder money invested and working in the enterprise. The aim of strategic planning in business is to reorganise and restructure the activities of the corporation so as to achieve a higher quality and quantity of outputs relative to inputs. It is to improve and increase financial results. It is to achieve superior profitability.
Overall, the goal of strategic planning is to enable the company to utilise its people and resources more effectively. The company will then function better than before. It will be in a superior position relative to its competition. This improvement can be measured in terms of higher sales, greater market share, better profitability, higher returns on invested assets and better positioning for the future.
Should you wish to corroborate your choice, you can ask this question: “In leading a life based on these values, am I moving toward or away from being the kind of person who would inhabit the kind of world I want to leave to my descendents seven generations hence?”
As I began the process of examining my Values, committing them to paper and prioritising them as I had done so many times in strategic planning exercises with clients, I recalled a story. It occurred in 1944 in Medicine Hat, Alberta, a tiny cattle and railroad town on the Canadian prairies. I was five years old. Read more…