3 Principles of Strategic Planning You Should Follow

Follow these three principles when putting together a strategic plan for your organization.

What is a strategic plan and why is it important? A strategic plan defines what your organization stands for. It assesses the market where you compete and determines how you compete in that market. It’s the definition of the goals you’re going to pursue and more importantly, the initiatives you’re going to execute to achieve those goals. The process will determine how to allocate your very limited resources to pursue those initiatives and reach those goals.

Why is a strategic plan so important? First, it provides focus for your efforts and your limited investments. Next, it gives your team something to rally around and be excited about. And last, it identifies the risks and opportunities you’re going to face in the market, which enables you to plan for those risks or exploit those opportunities.

There are three principles of strategic planning that you should follow.

1. Set a clear direction

First, set a clear direction and stay in your lane versus meandering and pursuing strategies that change every year.

2. Say no to distractions

Second, say no to distractions. It’s easy to get caught up in the, wow, that looks like a cool initiative. Let’s pursue that. But a good plan keeps you focused.

3. Diversify your bets

The third is making sure you diversify your bets. You have limited pools of money and people and time. shouldn’t put all your eggs in one basket. You should instead pursue initiatives that are spread across different time horizons, different markets, different products.

If you follow these three principles of strategic planning, you’re going to have a clear direction that you’re able to follow over time and drive achievement of your goals.

Want to learn more about strategic planning foundations? How about taking an entire course on it? Go directly to the course and start learning how to create strategic plans. The entire course is available at LinkedIn Learning. Enjoy!

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