Debbie Narver discusses the value of strategic planning in enhancing business performance, emphasizing its importance for organizations of all sizes and types. The document outlines three key benefits: creating focus, reducing risks, and guiding decision-making and operations, while also addressing reasons why strategic planning can fail. To maximize effectiveness, it is crucial to utilize thorough research, tailor strategies to an organization's unique vision, and develop strategic leadership skills.

1. Debbie Narver, BSc MBA MScIB
Strategic Management Instructor at NMC Strategic Manager
Is Strategic Planning
really worth the
effort?
3 Ways that Strategic
Planning can improve
business
performance.

2. Is Strategic Planning worth the effort?
Proponents point to examples
of where effective strategy
lead to superior performance.
Critics argue that it may be
too rigid.
So which is true?

3. In their meta-study of 26 previous published
studies, C. Chet Miller and Laura B. Cardinal
demonstrated that strategic planning has a positive
impact on business performance.
Source: Strategic Planning and Firm Performance: A synthesis of more than two
decades of Research, published in Academy of Management Journal, 1994, Vol.
37, No. 6, pp 1659-1665

4. Why Doesn’t it Always Work?
I believe the reasons that
planning fails or is less effective
are due to:
1) An ineffective planning
process
2) Failure to execute
(implement)

5. Is Strategic Planning relevant for all types
and sizes of businesses?
Business of all sizes – from
single owner/operator to multi-
national enterprises, need a
strategy.
But there can be some
differences depending on the
nature of your industry.

6. Different measures of performance
While the financial “bottom line”
is usually critical in private
enterprise, there can also be
other important aspects of
success.
For example: respected in the
community, employer of choice..

7. Different measures of performance
Not-for-profit, public service,
academic and other unique types of
organizations will each have their
own definition of success and
performance.
So strategy can (and should!) be
designed around the vision and
goals of your organization.

8. 3 Ways that Strategic Planning leads to superior
business performance

9. 1) Creates Focus
Ever feel like you are going
in many directions, but not
making progress?
When we try to be all things
to everyone – we almost
never succeed!
We use up our resources
without seeing significant
return.

10. By having the clear direction of a strategy, we
know the exact actions and sequencing that we
need to follow to achieve our goals. We can focus
our limited resources on these actions. And often,
the more we focus on specific actions, the better
we become at it. That is, we get more
efficient. Thus, there is an additive performance
improvement over time.

11. 2) Reduces Risks
Effective Strategic plans
use extensive research
and analysis.
This knowledge prepares
you to either mitigate
risks or put processes in
place to minimize the
impact.

12. One of the biggest risks that is often over looked is
allowing your core competencies to erode. Often,
businesses don’t have a clear understanding of their
true strengths. And so they focus on the wrong
things.
For example, often the first thing to go in budget
reductions are training, research & development. So
if these were actually your core competencies (and it
often does lie in unique knowledge..), you trade a
short term gain but eventually lose your competitive
edge.

13. 3) Guides Decision
Making & Operations
When the strategy is
effectively communicated,
everyone knows the end
goal.
When you are faced with
numerous demands, it’s
essential to know what you
can say NO to.

14. By communicating this down through all levels of the
organization, employees can be empowered to find
new and better ways of achieving your goals. They
may find efficiencies, or innovative new
approaches. And it can help them in communicating
with customers and other stakeholders when they
understand the focus and the value of your
strategy. By knowing their direction, it can help
reduce the inefficiencies of reacting to different
interest groups.

15. But it doesn’t end here. Strategic Plans need to
be IMPLEMENTED!

16. Implement with
Strategic Management
Develop strategic
leadership skills in your
organization
Apply Performance
Planning & Management
Lead positive change

17. Summary on Strategic Planning for Improved
Business Performance
1. All types and sizes of organizations need a strategic plan, but
the scope and approach can be different
2. Be sure to us EFFECTIVE strategic planning techniques that
involve thorough research and analysis.
3. Base strategy on your UNIQUE vision, values and
competencies.
4. Develop strategic management and leadership skills within
your organization to ensure plans are implemented.

18. Learn more about Strategic Planning &
Management
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www.nmcstrategicmanager.com