How Often Should I Update My Strategic Plan
Strategic plans have traditionally been designed to last 3-5 years, with strategies implemented and goals achieved within that timeframe. But in today's increasingly volatile and complex business environment, many leaders are questioning whether such lengthy planning horizons still make sense. How can you plan five years ahead when the world might look completely different in five weeks?
Planning in Uncertainty: The Football Coach Analogy
The future may be unknown, but that doesn't mean you shouldn't plan for it. Consider a football coach preparing for the next game. The coach develops a detailed game plan knowing only one thing for certain: the name of the opponent. Everything else—injuries, individual performance, weather conditions, the opponent's strategies—remains uncertain. Yet the coach still creates a plan and then makes real-time adjustments throughout the game.
Business and nonprofit leaders need the same approach. Develop your plan based on educated assumptions about economic conditions, cultural trends, pricing, supply availability, and client expectations. Then build in a systematic process for assessment and adjustment.
The Answer Depends on Your Industry
How often should you update your strategic plan? It depends largely on your industry's pace of change.
High-volatility sectors like technology, energy, and retail need to monitor competition and consumer trends closely, often requiring significant plan adjustments multiple times per year.
Stable sectors like insurance, grocery, and utilities face more predictable market conditions and may only need substantial updates every few years.
A Three-Tiered Approach to Strategic Plan Management
Regardless of your industry, I recommend implementing a three-tiered review structure:
Quarterly Reviews (Minimum): Examine your performance measures and report results to your board of directors or key stakeholders. When performance lags in specific areas, revisit related strategies and make necessary adjustments.
Annual Strategy Retreats: Go deeper into organizational performance and emerging environmental trends. This dedicated time allows leadership to step back from day-to-day operations and think strategically about the year ahead.
Ongoing Tactical Adjustments: Empower the people implementing your strategies to make minor changes as needed. These team members are closest to the work and often spot opportunities or obstacles before leadership does. Give them the authority to adapt tactics while staying aligned with overall strategic goals.
Your Plan Should Be a Living Document
There's no hard and fast rule for strategic plan updates because a strategic plan should never be a static document. The most effective plans are living documents with built-in flexibility and accountability mechanisms that help you achieve your desired results despite changing conditions.
Think of your strategic plan less as a rigid blueprint and more as a GPS that recalculates your route when conditions change—the destination remains the same, but the path to get there adapts to reality.
Need Help with Your Strategic Review?
If it's time to review and revise your plan but you're not sure where to start, Mustful Strategic Consulting can help. We partner with organizations to make the critical "halftime adjustments" needed to achieve success. Contact us today to learn more.