We believe that strategic business planning should be at the top of the list of initiatives for management and the board of directors. Survey and studies conducted by naitonal consulting firms continue to indicate that the lack of a clear and focused business strategy is a key indicator, if not the most significant factor, leading to poor performance.
- Top 3 Reasons for Decline in Shareholder Value -
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Losing touch with the market place
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Failing to have a strong business strategy
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Neglecting to leverage brand assets
Lippincott Mercer, December 2003
Investors, directors, and all stakeholders are vitally concerned with strategic business planning. Key elements that affect the long-term performance of the organization should be continually addressed as part of management and board review of company performance.
An evaluation of the company’s planning capabilities should include a review of botht he prospective and retrospective goals and results of the company. If the scope of the plan has been three years, how accurate were the projections three years ago measured against the actual results in the third year of the plan?
In today’s business environment, boards and management are coming together to regularly evaluate key planning related initiatives:
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Growth and Earnings Potential
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Capital Requirements
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Risk Assessment
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Market Leadership
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Strategic Direction
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Alignment of Resources
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Core Competency and Competitive Advantage
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Governance Capabilities
