Strategic Planning provides a future vision for the business. Leadership (or the owner) envisions a desired future and translates that vision into broadly defined goals and objectives to achieve it within 3-5 years. Strategy (or direction) is set and decisions are made to allocate resources to pursue the plan.
In addition to creating awareness of future opportunities, along with potential challenges, it helps to set priorities, allocate resources, provides company-wide focus and assess and adjust the company’s direction in response to a changing environment.
Businesses with more age, experience in organizational planning, or are strongly vision driven may be good candidates for Strategic Planning. Usually, such companies are in the 5-10+ year age range, typically manage multiple goals and activities at the same time, and coordinate and align them at the organization level.