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Putting the "Strategy" in Strategic Planning

The Strategic Planning Proble​m

How does your business do strategic planning?  Many businesses approach strategic planning by defining a mission, setting goals, outlining objectives, and establishing measurement processes. Responsibilities are assigned, budgets allocated, and execution begins. The problem? There is nothing truly strategic about the plan—except that leadership created it.


The Solution

Understand principles of business growth strategy before you embark on strategic planning! Here are three indicators of a strong strategy.


  1. Clear Direction: 
    The company knows that strategy drives tactics. It knows where it is and where it wants to go within the framework of core strategy quadrants. This provides clarity necessary for the critical task of aligning business activities with the identified rules for success.
  2. Know the Rules: 
    Items in the execution-portion of their plan align with the rules that determine success based on the company's core strategy. For example, commodity businesses focus on scaling and cost reduction, while niche businesses prioritize innovation, differentiation, and barriers to entry. By understanding these rules, the company can fine-tune tactics to accelerate growth.
  3. Informed Decisions: 
    The company bases decisions on relevant data and strategic insights from asking the right questions. Awareness of market trends, customer preferences, and competitor actions enables it to create/identify and seize opportunities arising from market volatility.


A company with a strong strategy does more than plan—it sets a clear “core-strategy” oriented direction, follows the corresponding rules for success, and makes informed decisions based on relevant data.


Putting the "Strategy" in Strategic Planning
Alan Christensen January 29, 2025
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