Business planning is necessary for company growth and success.
Business plans provide companies with the tools to track growth, establish a budget and prepare for unforeseen changes in the market place.
However, according to the Small Business Administration, a strategic business plan can benefit companies of all sizes and can be a great advantage to small businesses.
Small businesses may utilize the document to develop the strategies necessary to attract and retain the customers it needs to succeed.
Yet if they try something that is a little dangerous and new, they will realize true innovation.” Some strategic plans include strategies to develop a new product or deliver a new service or re-structure a department, etc. However, there are many examples of organizations that have a strategy for innovation and this helps drive their new product and service delivery strategies. Once the strategic plan is together, there are two critical elements related to project management.
They put teams of individuals together to work on these major initiatives and give them investment money to ensure success. It is the lack of an Innovation Process to manage the strategy that led to the failure. They lack a clear strategy for innovation – but they do have strategies for new product development. One is to identify the projects that are required to ensure success in the execution of each strategy.
Yet over time it becomes apparent that this team won’t realize the strategic goal given to them and the strategy itself will be deemed a failure. The senior management created strategies that required innovation to achieve them. Many organizations tell their employees to be more innovative. Yet since the development of the Blackberry, they haven’t released a single innovative product. Another is to develop a prioritization of all these projects to ensure the high priority ones have the proper resourcing to ensure success.
They create strategies for new products and services. This requires a high involvement and commitment on the part of employees to spend the time required on the projects.
The plan allows businesses to focus on a particular niche in the marketplace, which makes sales, advertising and customer management more effective.
The plan allows a company to know as much as possible about the needs of its customers and gaps in the marketplace that need to be filled.