top of page

Why is effective strategic planning important?

  • If you run a business, you are continuously making choices

  • Given that we define strategy as business choices it therefore follows that you are in fact developing and implementing a  strategy even if you do not have a formal, documented strategy

  • Running a business “on the fly” is an extremely ineffective way of managing a business, as you are constantly reacting to the environment, instead of proactively building your business vision.

  • A lack of and inability to undertake effective strategic planning is a dominant cause of business failure and poor performance.

  • Research into small medium enterprises (SME’s) in South Africa show that small businesses have both a failure and a growth problem.  As many as 80% of businesses fail within the first three to 5 years.  Research also shows that only 1% of businesses that start with less than 5 employees grow to more than 10 employees.

  • A good strategy is an adaptive approach where the business develops a plan that guides the business on an ongoing basis . This strategic plan is a living plan that helps the business adapt to change

  • By undertaking effective strategic planning you focus on the things that matter most and will have the most positive impact on the business.  Therefore, undertaking effective strategic planning increases the likelihood of sustained business success.

bottom of page