Over the last couple of months I've been asked to respond to a number of questions about the ins-and-outs of strategic planning. Most recently Patricia Faulkner at NAI Global was asking me to explain the benefits of planning. I think my answer is as clear an expression of what I've seen come from successful planning. Here's what I said:

Planning is about improved performance and better results. Firms that write and implement strategic plans gain a significant advantage over the competition because they are able to recognize and take advantage of opportunities (and challenges) sooner and more effectively. Good plans help managers and employees make better decisions by helping them understand the company’s highest priorities. Smarter, strategic decision-making really means better investment of the financial, human and capital resources of a business. Companies that follow through with their plans can expect increased profitability from three sources:

* better return on their investments due to improved ability to recognize and act upon opportunities and risks,

* increased efficiencies gained from the clearer direction provided by the plan’s mission, vision and guiding principles,

* greater productivity from brokers and employees who recognize a personal stake in seeing the plan succeed.

Planning is not about writing a plan; it’s about making smarter decisions that lead to greater satisfaction for clients, employees and shareholders.

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What do you think? I couldn’t have said this 10 years ago, but I’ve seen it again and again. A good business that has been, as a client of mine once said, “accidentally managed,” all of a sudden becomes a great business because they have the ability to sort through an array of good possible decisions (it’s usually easy to separate the good from the bad) and pick the best one. Strategic planning is not for failing organizations… their plan is easy: survive. Planning becomes most relevant and meaningful to successful, growing companies who have some income to reinvest and many possible future options. The plan provides a context for looking at all those possible futures and pursuing those actions most likely to improve mission performance and accomplishment of a vision.