The importance of reviewing and updating strategic planning begins with the idea that leaving it on a shelf collecting dust is a waste of money and does not produce structural changes in the company.
Strategic planning does not move an organization into the future if it is not being used.
We decided to bring this reflection today.
Continue Reading to understand why it is important to review and update strategic planning periodically!
Why review and update strategic planning
Planning is used to measure the health and position of the organization; It is also its guiding force as it moves towards the future.
Due to its importance over time, planning should be revised and updated at planned intervals.
Some organizations review their strategic planning every year, while others do so every three or five years — there is no standard Time, each company will realize what the best periodicity is.
One of the main reasons why organizations revisit their plan annually is that the review process places fundamental values and objectives within the reach of everyone involved, ensuring that they are aligned with the institution’s priorities.
Some areas within a plan may need half-yearly analysis, especially in the first year. As a minimum, leadership and senior management should update the strategic planning annually to measure progress towards the established objectives.
In short, the positive side of dealing with planned and unplanned revisions is the fact that most initial processes do not need to be repeated. In addition, there are many lessons learned from the initial process, so that numerous errors will be eliminated with revisions and rewrites.
Review and update the strategic planning every six months
The budget is one of the areas that require semiannual review. Leaders need to monitor expenses and ensure that they are decreasing. Or, the changes implemented in the plan to reduce expenses or increase revenue need to be monitored to see if they are meeting the established goals.
Other areas that may be considered necessary for the semiannual review include those where dramatic changes were made in the tactics used or if the entire department was revised and a new mission was attributed.
This review process does not have to turn into a new planning. Unless it manages very radical changes.
Review and update strategic planning annually
The annual assessment is usually designed for the organization’s leadership to take stock of progress. As a minimum, leadership should consider the following points:
- Were the immediate objectives fulfilled in the plan?
- Are resources allocated to meet demands or are there deficits?
- Are there important changes in the organization not covered in the plan?
- Is there any legal change made (or ongoing) that cancels any part of the planning?
- Is the plan’s budget within the programmed expectations?
- Have the planned tactical improvements reached expectations?
- With the accumulated experience this year working on the plan, is there anything missing? If so, does this issue need to be addressed immediately or can you wait for the planned general review?
If any of the answers does not meet expectations, the leadership should include the subject matter specialists and the planning area needs to get into action.
And in your company, how do you work to review and update strategic planning? Leave your comment!