I often encounter questions about the frequency that businesses should update their strategic plan, such as: how often should strategic planning be done or how often should we update our business strategy? The answer is: it depends!
Each business operates within a system, influenced by both internal and external forces, including technological changes, industry disruptions, fluctuations in the economy (check out this latest report from Robbins Research International), as well as social and cultural trends. Furthermore, every industry and business may be impacted by these differently. Fast paced businesses in the clothing or technology sector may review their strategies every month, while slower paced businesses, like government or financial services, may update their strategy every one to three years.
There is no one-size-fits-all timeframe for strategy. How often you choose to update your strategic plan is less important than moving through the process on a routine basis. The main purpose of strategic planning is to make sure that everyone within your business understands its purpose, vision, and values and that they are aligned and empowered to make the best decisions to effectively achieve the business’s goals. The first step in creating this alignment is to communicate with your team early on in the strategic planning process.:
Whether your business strategy is updated every month, every quarter, or every few years, understanding the purpose and process of strategy is more important than creating a document. Strategic planning is not a one-time or static event – It is cyclical, and involves strategic thinking.
Once you’ve moved through the strategic planning process, you can begin the implementation phase, where strategy and performance must meet for success. Strong leadership that role models your desired culture of success can help reinforce behaviours, as long as your team is aligned and bought into your strategy. If done right, every decision your people make will support your business’s strategic initiatives and goals.
