Of all the components that are part of the strategic planning process this is the most critical component. Articulating with specificity where the company will be at a specific point in time in the future (usually 5 years out), with clarity.
Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
A company that produces a regular business plan is often the sign of a well-managed business. It provides direction and focus, and is an essential document when seeking financing. It defined objectives, strategies and actions and enable management to track performance and take corrective action in good time. It enables management to step back at least once a year to contemplate the bigger picture, look at strengths and weaknesses, and tackle the negatives. It should be a living document and not something stored in a file. It should be a roadmap to success.