Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s direction in response to a changing environment.
The strategic plan essentially focuses on the future and suggests measures that an organization must take to achieve its goals. Strategic planning also helps in establishing concurrence around the desired results of the destined objectives. It directs an organization towards its goals as well as reviews and adjusts the overall direction of the organization in response to changing circumstances. Furthermore, it filters the problems that prevent organizational growth and progress and suggests suitable measures and steps in correcting these issues.
An effective strategic planning is a result of disciplined efforts which ultimately define an organization, shapes and guides its activities and functions, classifies its services and the reasons behind its functions and services along with a strong focus on the future. It communicates the overall journey of an organization, the necessary actions that are needed to be taken for its growth and development and also the ways by which it will assess its progress and evaluate its achievements.
Importance of Strategic Planning for NGOs
Just like any other organization, strategic planning is equally important for Non-Governmental Organizations (NGOs). A strategic plan is not only important for promotion but also worthwhile for organizational development of NGOs. Primarily, strategic planning is important for the following reasons:
- An effective strategic plan helps in building up the main initiative behind a NGO. It clearly states the mission and vision of the organization and gives an overall direction to its way- forward.
- Best decisions are taken when NGOs have a strategic plan in hand. At any given instance, members can refer to the vision and define its further course of action. Therefore, a complete plan acts as a useful guide all throughout the organizational journey.
- Through a strategy plan, NGOs can have good idea and understanding about its strengths and capacities, weaknesses and problems as well as resources. A SWOT (strength, weakness, opportunity, threats) analysis shall enable the organization to analyze their strengths and build upon opportunity. In this process, they can also determine their core competency.
- By means of strategic planning, NGOs shall know what all it needs to do in order to accomplish its set targets. They can execute their duties and functions in accordance to their strategic planning. This shall make its activities more organized and well planned.
- Proper and well efficient management of time, money and human resource becomes easier through strategic plans.
- NGOs can manage their investment and resources, define a budget for a specific time period and proficiently utilize its funds.
- The NGOs members can share responsibility and be accountable for specific work. This will also enhance organizational management and better utility of human resource.
- NGOs can have both short-term and long-term objectives and can conveniently work towards achieving its goals.
- Strategic planning also helps in updating for addressing changes within the environment. When it becomes a part of organizational culture, people become more disciplined, things run smoothly without any flaws and NGOs witness better performance.
- Strategic planning results in increased energy which arises from removing conflicts and disorders from important matters.
- A strategic plan helps people to focus more on the important affairs and matters of the NGOs and give less attention to the insignificant projects and initiatives. It also informs them about the specific areas that demand attention at a specific period of time. At times, it guides them to shift their focus from one project to another, in order to aim for a bigger picture. Hence, there is increased capacity and efficiency.
- With good decision and proper administration, come highly productive results. NGOs can have innovative solutions and better thought-process while working on any initiative or during any course of action.
- NGOs can enjoy good competitive advantage by following their strategies. They can develop good image and reputation and gain market recognition. Furthermore, they can create their own identity and secure a good position in the marketplace.
- Finally, by channeling their activities, NGOs are sure to enhance their success and achievements and look into further prospects in the long run.