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Discuss the Significance of Strategic Planning to Organizations

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Essay title: Discuss the Significance of Strategic Planning to Organizations

Discuss the significance of Strategic Planning to organizations


In discussing the significance of Strategic Planning it is important to clarify the process, though complex, in a definable manner.

(i) “The GUIDING MEMBERS of an organization ENVISION its future and develop the necessary PROCEDURES and OPERATIONS to achieve that future. The strategic plan sets the stage for creating the marketing plan and the financial plan. The risk analysis section of the strategic plan includes the development of a succession plan”1

(ii) A dynamic and stated force which helps drive an organization forward by coordinating and channeling resources towards achievement of pre-determined goals

Significance in a business context will invariably implicate effective results in most cases, profitability and subsequently, at the least, successful survival of an organization. While Strategic Planning does not guarantee success (implementation of the plan will govern that) it does improve the chances of success and minimizes the risk of failure, as without planning, events will be left to chance.

Factors Contributing to significant Strategic Planning

Consistent to this opening basis, the elements of significant or effective strategic planning need to be outlined and should consist of some of the following aspects:

(i) Strategies need to be discussed and established ahead of time to be proactive.

A primary purpose of strategic planning and consequently of its preeminence is to avoid a crisis, Rubin’s Law says "When a crisis forces choosing among alternatives, most people will choose the worst possible one."

(ii) Ownership of and participation with strategies by the people who have to execute them is a key to success. Strategic decisions will be affected by the values and expectations of people in power within the organization. To achieve this, as many managers as possible should be involved, “Plan with people, not for people”.

(iii) Effective Implementation summarily, good management with outstanding communication skills aids the execution of strategic planning and will ensure its positive impact, whilst matching the organizations activities and resources to the environment it operates in

Factors that will reduce the significance of Strategic Planning

Any significance pertaining to Strategic Planning can be minimized by bad practice as even with the best of intentions, the strategic planning process can get off track.

The significance of Strategic Planning to organizations

In consideration of all the above factors that are to be taken into consideration with the formulation, implementation and control of strategic planning, the significance of strategic planning to an organization will emerge and become apparent.

Identification within these benefits can be non - financial but also financial in some or all of the following ways:

(i) Enables the organization to identify, prioritize, and exploit opportunities at the same time as encouraging forward thinking and favorable attitude towards change

(ii) Prepares the organization for internal and external changes whilst minimizing the negative effects if these prove to be adverse as companies can not remain static and must be dynamic to cope with changes in the environment

(iii) Allows major decisions to better support established objectives by enabling the organization to influence, initiate, anticipate, and be proactive, rather than simply reacting to events as they occur

(iv) Increases effective allocation of time and resources with less waste on errors and ad hoc decisions and management of risks ,for example as a company increases in size the risks also increase

(v) Creates a structure for internal communication among personnel whilst contributing to a sense of purpose and encouraging creativity and initiative

(vi) Facilitate the organization to obtain and conserve the resources needed and carry out tasks in the most efficient manner possible.


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