Strategic Planning and Business Planning

Strategic planning meetingThe terms “strategic planning” and “business planning” are often lumped together. However, innovative managers must seek additional clarity. While the terms are related, there are distinct differences that shouldn’t go unnoticed.

Difference Between Strategic Planning and Business Planning

Strategic planning should be universal. It is typically defined as the process of specifying the higher level, birds-eye mission of an organization. Depending on your goals, the strategic planning process can take on many different shapes and forms. It’s important to remember that strategic planning should cut across all departments and divisions of a company.

Business planning is more closely tied to individual products, services, or merchandise. Your company should set different plans in place in accordance with the specific line of product. After all, different customers buy different things, so you need to craft unique plans for each set of them.

Organizational Structure

Organizational structure and size will affect the way you implement your plans. Your process will depend on whether your company is public, private, a C-corp, S-corp, or non-profit. You must take numerous things into consideration such as tax status, and whether or not your financial information is required to be published.

What Strategic Planning Can do for Your Business

1. Specify and articulate the company’s mission or objective.
2. Outline goals company-wide to speak to all employees and ensure understanding.
3. Enhance employee accountability.
4. Narrow organizational focus to a specific set of priorities.
5. Create benchmarks and scorecards.
6. Establish consensus and agreement among management.
7. Bring employees together and make sure that everyone is on the same page.
8. Team building.
9. Increase management visibility.
10. Increase cost-assurance and employee productivity all company divisions.

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