How does the strategic plan provide a basis for decision making?
A strategic plan provides a basis for decision making. Once you have your franchise business goals and objectives, your decision becomes a question of whether it aligns with your goals and objectives. You will no longer be making decisions based on a hunch or what you think is best; you will follow the goals and objectives you’ve set out to achieve, and anything that takes you off this path will take you further away from reaching your success.
Clarity of objectives
A strategic plan defines the organization’s mission, vision, and objectives, clearly understanding what the organization aims to achieve. This clarity allows decision makers to align their decisions with the organization’s goals.
Allocation of resources
A strategic plan outlines the resources required to achieve the organization’s objectives. Stakeholders can use this information to prioritize and allocate resources effectively. If your plan calls for hiring a new staff member by June, then you will have planned for the additional cost and revenue required to support this new team member.
Risk management
A strategic plan identifies potential risks and uncertainties that may impact the organization’s performance. This knowledge enables decision-makers to anticipate and mitigate potential risks. The goal here is to anticipate what is coming your way, whether that is a competitor that is closing or a new competitor to the market.
Monitoring and evaluation
A strategic plan includes performance indicators that measure the organization’s progress toward its goals. Decision-makers can use this information to monitor and evaluate the effectiveness of their decisions and adjust them if necessary. Part of setting clearly defined goals and objectives is the ability to measure them weekly, monthly, and quarterly to understand your progress or lack thereof.
Flexibility
A strategic plan allows for flexibility, enabling decision-makers to adapt to changing circumstances. If an objective is taking longer to achieve, then understanding the domino effect will allow for changes to be made now versus being reactive in the future.
Stakeholder engagement
A strategic plan provides a basis for stakeholder engagement, allowing decision-makers to involve key stakeholders in the decision-making process. This engagement can help to build consensus and support for the organization’s goals.
In the next blog post, I will discuss how the strategic plan increases employee alignment and engagement. Feel free to send an email or leave a comment on how you make decisions in your franchise business.
