The Value of Business Analytics: Identifying the Path to Profitability

REASONS BEHIND STRATEGIC PLANNING

At the highest level, these reasons are fairly straightforward. As is commonly the case, the devil lies in the details—achieving these outcomes is rarely guaranteed. Success requires a plan.

Developing a Plan

As a rule, we are a fairly motivated species, regardless of whether one is talking about individual performance or organizational performance. As individuals, we typically seek opportunities for professional or personal advancement. As organizations, we typically seek opportunities for financial or social improvement. In both situations, we leverage the resources that are available to us in order to achieve our desired outcomes.

However, success does not normally occur without effort. At an individual level, we deal with personal limitations and environmental challenges that have the potential to undermine our success. At an organizational level, we face competitive challenges and regulatory constraints. The opportunities in front of us are often real; the difficulty is in determining the best route to achieving them.

To help identify this path to profitability, we need a plan of some form. And that, fundamentally, is the role of strategic planning within an organization. Through applying the principles of strategic management, leaders aim to:

• Identify longer-term opportunities
• Understand their current advantages and limitations
• Develop a plan to achieve their target opportunities
• Manage challenges in such a way as to limit or negate them

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