Does your company have a strategy development plan? This is important for your company to have a strategy to reach its goals. However, it’s important to also adjust it when necessary in order to help grow your business. Here are some of the reasons you might need to make changes:
1. Your old plan is outdated There are various reasons why your strategy development plan should be revisited since last year. For example, there might have been faster changes that you predicted. Your company possible just did a bad job on the last business plan tweaks. The particular reasons the strategic plan should be revisited isn’t as important as the fact that it shouldn’t be antiquated. You can determine whether that’s true by comparing the document with your company’s current situation. 2. Milestone reached Milestones are important for your company, and it’s also important in terms of your strategy development. If your company has achieved success in areas such as sales figures, customer satisfaction, market share, profit margins, etc., they should be reflected in the business plan. These milestones are important because it shows that the company is on the right track to achieve its goals. There’s no guarantee that it will get there this month or next month. That said, it’s important to infuse those milestones into your company’s business plan. It’s practical to do that each year because it will reflect the major milestones over a 12-month period instead of some mini achievements within the last week or even month. 3. Core assumptions were wrong It’s possible that the assumptions your company made about its future business environment were wrong. That’s OK! By definition they’re guesses based on the information the company had at the time. A lot can happen within a year. That’s why it’s important to cross-reference the past core assumptions with the current business environment. You might find the assumptions were spot on, way off, or included hits and misses. Remember this strategy development. 4. Management changes Sometimes changes undergo big changes, which can include changes in management. In those cases your company’s strategy development should reflect those changes. There are various reasons why managers leave a company. Sometimes it’s related to their performance, and other times they simply are looking for greener pastures. What’s important is that the new manager should have a fresh perspective of where your company is that. That will be less likely if he/she is using old information from your company’s strategic plan. Perhaps the plan was last updated a year or two years ago. What’s important to keep in mind is that it’s important for a new manager to have a fresh perspective so they can make the best decisions. There are various ways to do that, but one of the most critical ones is by making sure the strategic plan is up-to-date. That will help to make sure they have the right information for the best decisions. These are some of the many reasons you should review your strategy development every year or so as your business changes.
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