Dynamic Strategy - Current Event: Growing Importance of Business Planning

Dynamic Strategy - Current Event: Growing Importance of Business Planning

The article “How To Adopt A Business Plan In A Sea Of Resistance” by Rober Sher discusses the importance of a proper business planning. The article focuses on mid-size companies and suggests that they must have a business plan in order to grow into a larger firm. It further explains that a business plan creates clarity for mangers in order to know the market, the products to offer and to know how to present the products into the market. Similarly, a recent article by Paul Engle called “Strategic Planning Challenges” explains that an effective strategic planning mitigates the risk of changing markets and fickle customers. In the article, the author suggests focusing on planning strategies based on customer’s needs and knowledge of competitors while controlling the company’s people, processes and technology with a vision for the future. “Strategic Planning: Predicting or Shaping the Future?” by Ira Blatstein likewise emphasizes that strategic planning assist in preparing for the future.  It enables the company to recognize changes in the external environment and prepares them for the changes. All three articles claim that the planning process is a continuous task in order to quickly adapt to the changing market.

Creating a proper business plan is an on-going process. Author Ira Blatstein claims, “The real value of strategic planning is not primarily in the final plan, but more in the intellectual journey that the participants take in exploring the future.“ Based on studies and expert opinions noted in the three articles, it can be drawn that planning is a key component of a successful business in the long run. Without proper planning, the company may struggle to grow or survive. Based on a study conducted in 2011 by Ohio State University and GE Capital found that those with the strongest financial performances were far more likely to have the core elements of a business plan than other companies. Around 66% of growth leaders had formal growth targets, 58% of the leaders formally tracked their progress, and 53% communicated their goals with employees (Sher).

Planning is a vital aspect of a successful business, however the planning process can be difficult to get around. The article “How To Adopt A Business Plan In A Sea Of Resistance” explains that business plan that are rigidly enforced can cause problems due to high levels of pressure. Another common problem discussed is the flawed technique of CEO’s holding private meetings and information in order to hide a missed target. Obviously, hiding poor performance will only lead to further problems as the mistakes are not openly discussed and corrected. Thus, the article suggest for low-pressure improvements during the first quarter, which should be build upon. Three main suggestions were discussed to implement a business plan; target for success and failure, rewards for succession and discomfort for failure and lastly gain exposure (Sher).  Author Paul Engle, suggest 3C’s Model which focuses on three main aspects of business: corporation, customer and competitor. On the other hand, author Ira Blatstein suggest a strategic plan asking three fundamental questions 1. Who am I? 2. Where do I want to go? 3. How am I going to get there? He believes once an organization has gone through answering these questions, they are prepared to recognize the future.  All though all three articles suggest different methods of preparing for a business plan, all of them conclude that a business plan is a key aspect for preparing for uncertainties and stable future.

Blatstein, Ira M. "Patron Authentication." Strategic Planning: Predicting or Shaping the Future? EBSCO Host, 1 June 2012. Web. 16 July 2012. <http://libproxy.uhcl.edu/ehost/pdfviewer/pdfviewer?vid=11>.

Blatstein, Ira M. "Patron Authentication." Strategic Planning: Predicting or Shaping the Future? EBSCO Host, 1 June 2012. Web. 16 July 2012. <http://libproxy.uhcl.edu/ehost/pdfviewer/pdfviewer?vid=11>.

Sher, Robert. "How to Adopt a Business Plan in a Sea of Resistance." Forbes. Forbes Magazine, 31 May 2012. Web. 16 July 2012. <http://www.forbes.com/sites/robertsher/2012/05/31/how-to-adopt-a-business-plan-in-a-sea-of-resistance/>.