Strategic planning is a lot of work. If it is to be effective, it needs to involve a whole organization. That means hours of meeting time, reaching out to people who may not want to be involved, resolving conflicting visions, setting goals, translating ideas into action statements, tracking progress and more. 

Strategic planning is also not a “one and done” activity. An organization’s circumstances or its environment can change in ways that may require changes in the strategic plan. This kind of planning may seem like more trouble than it’s worth. These considerations invite the question: Why is strategic planning worth the effort?

There are several compelling reasons for an organization to put the time and effort into creating a strategic plan.

First, a strategic plan gives direction to the organization’s work. It answers the questions: Where are we going? And how will we know when we get there? 

The beginning of the answer to these questions can be found in the organization’s mission statement. But missions are often quite broad and can be realized in many ways. A strategic plan gives priority to some of those ways and eliminates others. It helps guard against mission creep by articulating the work it encourages and the work it rules out.

Second, a strategic plan sets funding priorities. The enumerated activities that support the plan’s goals will have priority for resource allocation. Once the plan has been put on paper, this should be clear: Activities will be funded if they are identified in the plan; other activities may only be funded if resources become available and are not otherwise required.

Third, a strategic plan encourages those in the organization to align their work with the goals of the plan. A well-articulated plan guides the work assignments of all those who have designated responsibilities in relation to the plan’s goals. It takes the mystery out of why employees are given certain assignments and helps keep everyone on the same page. Understanding the plan helps employees understand how they fit in.

Fourth, a strategic plan gives credibility to decisions that favor some uses of resources over others. A strategic planning process that is widely inclusive of employees and stakeholders sets priorities that have been discussed and decided in the process and have been approved with the acceptance of the plan. A decision to set aside a new proposed idea that is not in the plan may be disappointing, but it will not be unfair and should not be unexpected. Rejections of proposals that are not in the plan are not arbitrary. A strategic plan gives leaders a rationale for saying yes to some requests and no to others.

Fifth, a strategic plan is a roadmap to achieve an organization’s vision. If the plan is sound, it will help the organization become what it hopes to be. A shared vision and a path to achieve it can be a source of inspiration to those who see their work as more than a job. 

All these benefits are clearly worth the time and effort that goes into planning.