How to Effectively Update your Strategic Plan & Why It’s Important To Do So
Your strategic plan serves as the roadmap for your business. It outlines your vision, clarifies your goals, and explains what you will need to do to accomplish them. Businesses that are strong, profitable, and growing have detailed strategic plans t0 guide them.
However, like most aspects of a business, these plans aren’t set in stone and they certainly aren’t “set it and forget it” documents. It’s important to regularly review your plan, ensure that it’s still accurate and viable, and update it as necessary.
The Importance of a Strategic Plan
As mentioned, a strategic plan guides a business. By outlining your company’s goals and detailing the strategies needed to accomplish them, you ensure that your business has the vision and resources needed to reach your goals. A strategic plan also strengthens the culture of your business by getting everyone on the same path. It focuses your management team on what matters, helps you understand your business better, and much more.
However, it’s critical that your strategic plan matches the current state of your business. As organizations grow and change, their plans must change with them. This is why you’ll want to make sure you periodically take some time to assess and evaluate your situation, analyze your industry as a whole, and re-align your goals and vision to match current circumstances.
How to Review & Update a Strategic Plan
How often you should review and consider updating your strategic plan will depend on several factors, including the nature of your business, how often your industry changes, and much more. Sit down with your management team and discuss how often it makes sense to review your plan. For some organizations, a yearly review is suitable, while others will benefit from more frequent reviews.
If, at any point, you feel like your organization is not in alignment in terms of your goals, you should review your plan as soon as possible. Failing to conduct a review and make adjustments when necessary can result in lost productivity, team member frustration, and a lack of focus that will hurt your company.
When it’s time to conduct a review, make sure to bring your management team and people from across the organization together to offer feedback and guidance. Schedule this meeting in advance to give your team time to review the current plan and prepare to offer their input.
Some topics you may wish to consider when reviewing your plan include:
- How your business and your market has changed since you last reviewed your plan
- What your organization has accomplished since the last review
- What you believe your organization can accomplish with the right planning and effort
- What external factors (economic and otherwise) could have an affect on your business
Use the information gathered from this review to make changes to your plan. Depending on your situation, you may need to update only some sections of the plan, or you could find that a larger re-write is required. Once your plan accurately reflects your current organization and the environment that exists, be sure that this plan is shared widely throughout the company to keep everyone on the same page.
How We Can Help
At Ralevic & Ralevic LLP, our team of professionals is here to help your business grow. Our accountants and financial advisors can conduct business valuations, gather information about your competitors and your industry as a whole, analyze the current market, provide financial reviews, and much more. For more information on how we can help your organization prepare and update a strategic business plan, please contact us today.