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Benefits and Limitations of Strategic Planning
Strategic planning refers to the process of defining future goals in an organization and determining the required resources for achieving them (Micheli and Manzoni 469). In business, there is different strategic planning; for instance, business plan and market plan. In practice, it is always prudent to engage stakeholders of the business in the strategic plan since their views may play a significant role in ensuring the success of the business. Although strategic planning is beneficial to the business, it still has considerable drawbacks. Therefore, evaluation of the benefits and limitations of strategic planning will uncover the available options, set priorities, and define methods to achieve them.
Strategic planning provides management with the direction to run its operations. In order to succeed, managers need a guide that will direct their day-to-day decisions in the business. Moreover, a manager needs a platform that will help him or her evaluate the progress and the dynamism of the business. To achieve these goals, each manager needs to have a well-established strategic plan.
Strategic planning promotes wise decisions making in an organization. Unlike organizations that do not have an effective plan, organizations that have an effective plan do give departmental managers a platform to brainstorm and come up with practical and logical ideas that will improve the overall productivity of the business (Chae and Hill 547).
Strategic planning has several limitations that can adversely affect the operations of an organization. For instance, strategic planning can cause financial problems that may end up threatening the success of an organization (Ryals and Rogers 215). Strategic planning is relatively expensive in terms of time, human resource, and financial resource. In most cases, financial problems may become a burden to an organization if the organization has not laid down the right infrastructure to accommodate these costs. Therefore, it is imperative for organizations to ensure that they are stable before engaging themselves in strategic planning.
Strategic planning is also a challenging task that requires a creative way of thinking to process ideas. Unfortunately, many people are not suited for creative thinking, which makes it hard for all organizations to succeed. Therefore, strategic planning offers guidance and direction only according to what people think (Micheli and Manzoni 469).
To sum up, it is important to acknowledge that strategic planning is an essential exercise for organizational management. Since it is not easy to predict the future, it is always critical to come with an effective strategic plan, as an organization will be avoiding risks of uncertainties and overspending. However, it is also important to consider the various limitations that are related to strategic planning as it will help a manager to weigh the benefits and the limitations of the process.
Chae, Myung‐Su and John S. Hill. “Determinants and Benefits of Global Strategic Marketing Planning Formality”. International Marketing Review, vol .17, no. 6, 2000, pp. 538-563. Emerald, doi:10.1108/02651330010356609
Micheli, Pietro and Jean-Francois Manzoni. “Strategic Performance Measurement: Benefits, Limitations, and Paradoxes”. Long Range Planning, vol. 43, no. 4, 2010, pp. 465-476. Elsevier BV, doi:10.1016/j.lrp.2009.12.004.
Ryals, Lynette and Beth Rogers. “Key Account Planning: Benefits, Barriers and Best Practice”. Journal of Strategic Marketing, vol. 15, no. 2, 2007, pp. 209-222. Informa UK Limited, doi:10.1080/09652540701320894.