Updated: Feb 26
Organizational health is a critical aspect of any successful business, and strategic planning plays a vital role in ensuring that organizations remain healthy and viable over the long term. Strategic planning provides a framework for identifying an organization's strengths and weaknesses, assessing market trends, and developing strategies to capitalize on opportunities and minimize risks. It allows businesses to set priorities, allocate resources effectively, and ensure that all departments are working towards the same goals.
Strategic planning is a critical process that helps companies achieve their goals and objectives by identifying their strengths and weaknesses, analyzing market trends, and developing strategies to succeed in a competitive business environment. Effective strategic planning can help organizations stay ahead of the curve and capitalize on new opportunities. In this article, we will explore the connection between strategic planning and organizational health, and how effective strategic planning can contribute to the overall well-being and success of an organization.
Firstly, it's important to note that not all organizations engage in strategic planning, and not all strategic planning initiatives are equally effective. However, studies have shown that organizations that engage in strategic planning tend to outperform those that don't.
According to a study by the Harvard Business Review, companies that engage in strategic planning tend to have higher levels of profitability, productivity, and overall organizational effectiveness than those that don't. The study found that companies with a formal strategic planning process had an average return on assets (ROA) of 9.9%, while those without a strategic planning process had an average ROA of 4.7%.
Another study by the Balanced Scorecard Collaborative found that companies that had a well-developed strategic planning process had higher levels of employee engagement and satisfaction, which in turn led to better performance outcomes. The study found that companies with a formal strategic planning process had an employee engagement score of 71%, while those without a strategic planning process had an engagement score of only 41%.
Furthermore, a survey by the Institute of Management Accountants found that organizations that engage in strategic planning tend to have a clearer sense of direction, greater alignment among their departments, and better communication channels. The survey found that companies with a formal strategic planning process had a higher level of alignment between their departments (67%) than those without a strategic planning process (29%).
In conclusion, these statistics demonstrate that organizational strategic planning can be an effective tool for achieving business success. Companies that engage in strategic planning tend to have higher levels of profitability, productivity, employee engagement, and organizational effectiveness than those that don't. If your organization is not currently engaging in strategic planning, now may be a good time to start.
Creating OKRs after your strategy is complete can provide your organization with a double layer of clarity and purpose by aligning individual goals and objectives with the overall strategy. This ensures that everyone in the organization is working towards the same goals and objectives and is focused on achieving them. The creation of OKRs after strategy completion also allows for more flexibility in adapting to changes in the market or unexpected obstacles, as the organization can pivot its goals and objectives to align with new strategic priorities. Ultimately, creating OKRs after strategy completion can help an organization achieve its goals and objectives more effectively and efficiently.