What is a Strategic Plan?
A strategic plan is a declaration of a firm’s longer term business goals: how big it will be, what practice areas it will have, where it will reside, what will its client base will look like, how it will manage itself, how it will differentiate itself in the marketplace, how will it use technology, what kind of staff will it have, etc.
A strategic plan is seen by most industries as a critical business tool because through its very existence, it guides all day to day business decisions by ensuring they are aligned with an organization’s long-term business goals.
A strategic plan sets boundaries in place: this is who we want to be. It allows people to opt in or out of the firm dependent on their commitment to that vision. It enables a firm to more easily make decisions based on whether or not those choices support the firm’s longer term intentions. A strategic plan makes running a firm more transparent, easier, and usually far more cost effective.
This means there is less guess work around what a firm or practice should and shouldn’t do; there is less wastage in funding activities; there is less times spent on useless activities; and there is a filter through which all new opportunities can be run to determine if they might be of value to the practice or firm. A strategic plan provides incredible focus to a firm; allowing it to put all emphasis on the identification of and delivery on its business objectives.