Benefits claimed for strategic planning
Strategic planning can achieve several purposes:
1. Creates a management process to detect and respond to changes in market and environmental forces and so improve performance
2. Provides a framework for all Strategic Business Units-SBUs of the organization to produce plans with clear, long term goals thus avoiding short-termism
3. Enables derivation of milestones for achievement of goals and monitoring progress by stages
4. Mechanism to ensure harmony of objectives, both between different Strategic Business Units and over time (often referred to as ‘goal congruence’)
5. Improves stakeholder perceptions of the business, for example a clear strategy may improve the share price
6. Investment in planning process develops future management potential and can aid continuity when senior management retire or move on.