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Why Is Strategic Planning Important?

• 06 Oct 2020

Do you know what your organization’s strategy is? How much time do you dedicate to developing that strategy each month?

If your answers are on the low side, you’re not alone. According to research from Bridges Business Consultancy , 48 percent of leaders spend less than one day per month discussing strategy.

It’s no wonder, then, that 48 percent of all organizations fail to meet at least half of their strategic targets. Before an organization can reap the rewards of its business strategy, planning must take place to ensure its strategy remains agile and executable .

Here’s a look at what strategic planning is and how it can benefit your organization.

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What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees on the organization’s goals, and ensure those goals are backed by data and sound reasoning.

It’s important to highlight that strategic planning is an ongoing process—not a one-time meeting. In the online course Disruptive Strategy , Harvard Business School Professor Clayton Christensen notes that in a study of HBS graduates who started businesses, 93 percent of those with successful strategies evolved and pivoted away from their original strategic plans.

“Most people think of strategy as an event, but that’s not the way the world works,” Christensen says. “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry.”

Strategic planning requires time, effort, and continual reassessment. Given the proper attention, it can set your business on the right track. Here are three benefits of strategic planning.

Related: 4 Ways to Develop Your Strategic Thinking Skills

Benefits of Strategic Planning

1. create one, forward-focused vision.

Strategy touches every employee and serves as an actionable way to reach your company’s goals.

One significant benefit of strategic planning is that it creates a single, forward-focused vision that can align your company and its shareholders. By making everyone aware of your company’s goals, how and why those goals were chosen, and what they can do to help reach them, you can create an increased sense of responsibility throughout your organization.

This can also have trickle-down effects. For instance, if a manager isn’t clear on your organization’s strategy or the reasoning used to craft it, they could make decisions on a team level that counteract its efforts. With one vision to unite around, everyone at your organization can act with a broader strategy in mind.

2. Draw Attention to Biases and Flaws in Reasoning

The decisions you make come with inherent bias. Taking part in the strategic planning process forces you to examine and explain why you’re making each decision and back it up with data, projections, or case studies, thus combatting your cognitive biases.

A few examples of cognitive biases are:

• The recency effect: The tendency to select the option presented most recently because it’s fresh in your mind
• Occam’s razor bias: The tendency to assume the most obvious decision to be the best decision
• Inertia bias: The tendency to select options that allow you to think, feel, and act in familiar ways

One cognitive bias that may be more difficult to catch in the act is confirmation bias . When seeking to validate a particular viewpoint, it's the tendency to only pay attention to information that supports that viewpoint.

If you’re crafting a strategic plan for your organization and know which strategy you prefer, enlist others with differing views and opinions to help look for information that either proves or disproves the idea.

Combating biases in strategic decision-making requires effort and dedication from your entire team, and it can make your organization’s strategy that much stronger.

Related: 3 Group Decision-Making Techniques for Success

3. Track Progress Based on Strategic Goals

Having a strategic plan in place can enable you to track progress toward goals. When each department and team understands your company’s larger strategy, their progress can directly impact its success, creating a top-down approach to tracking key performance indicators (KPIs) .

By planning your company’s strategy and defining its goals, KPIs can be determined at the organizational level. These goals can then be extended to business units, departments, teams, and individuals. This ensures that every level of your organization is aligned and can positively impact your business’s KPIs and performance.

It’s important to remember that even though your strategy might be far-reaching and structured, it must remain agile. As Christensen asserts in Disruptive Strategy , a business’s strategy needs to evolve with the challenges and opportunities it encounters. Be prepared to pivot your KPIs as goals shift and communicate the reasons for change to your organization.

Improve Your Strategic Planning Skills

Strategic planning can benefit your organization’s vision, execution, and progress toward goals. If strategic planning is a skill you’d like to improve, online courses can provide the knowledge and techniques needed to lead your team and organization.

Strategy courses can range from primers on key concepts (such as Economics for Managers ), to deep-dives on strategy frameworks (such as Disruptive Strategy ), to coursework designed to help you strategize for a specific organizational goal (such as Sustainable Business Strategy ).

Learning how to craft an effective, compelling strategic plan can enable you to not only invest in your career but provide lasting value to your organization.

Do you want to formulate winning strategies for your organization? Explore our portfolio of online strategy courses and download the free flowchart to determine which is the best fit for you and your goals.

About the Author

Research Strategic Plan

In 2019, the Department of Medicine invested considerable effort and resources to devising a strategic plan that will provide a roadmap for our research mission today and into the future.

This work was guided by a Research Planning Committee that convened throughout the first half of 2019, reviewing the current state of research in the Department, generating recommendations for strengthening our research efforts, and developing the following plan. Many of our faculty and research administrators participated and contributed ideas as part of this process—through interviews, a survey, and robust discussions at the 2019 Research Retreat.

The result of this combined effort is the clear, direct, ambitious, and ultimately achievable research strategic plan that follows.

We identified five strategies for achieving our vision.

We will foster the success of our current faculty by enhancing our faculty development, mentoring, and funding programs while also strengthening the pipeline of the next generation of outstanding investigators in Medicine.

Lead: Andrew Alspaugh, MD

Initiatives:

• Strengthen faculty career development programs (Xunrong Luo, Matthew Crowley)
• Build a diverse and inclusive Department of Medicine (Laura Svetkey, Julius Wilder)
• Foster a culture of outstanding mentorship in the Department (Alspaugh, Cathleen Colon-Emeric)
• Expand physician-scientist recruitment and programmatic support (Rodger Liddle, Matt Hirschey)
• Launch a Department partnership hires program (Xunrong Luo, Chris Holley)
• Expand cadre of independent PhD investigators (Scott Palmer, Amy Porter-Tacoronte)

We will enhance our partnerships with other departments, centers, institutes, schools, and programs across Duke University.

Lead:  David Simel, MD, vice chair for veterans affairs

• Duke Clinical Research Institute
• Duke Cancer Institute
• Durham VA Medical Center
• Duke Molecular Physiology Institute
• Pratt School of Engineering and MEDx
• Duke Human Vaccine Institute
• Duke Global Health Institute
• Center for Applied Genomics and Precision Medicine

We will solidify a leadership position in data science by leveraging the clinical disease expertise of our faculty; building our data assets; and improving our data collection, storage and analytics resources.

Lead: Chetan Patel, MD, vice chair for clinical affairs

• Cultivate DOM data assets into open science platform
• Augment biostatistics & bioinformatics resources
• Create new leadership role for data science
• Implement learning health units
• Continue implementation of Science Culture and Accountability Plan

We will foster a community and culture of rich scientific investigation by making research easier while achieving the highest levels of research integrity.

Lead: Erica Malkasian

• Provide outstanding grants and administrative support to investigators
• Position Duke as a leader in site-based research
• Develop next-generation biorepository capabilities
• Catalyze innovation and entrepreneurship
• Expand international research efforts

We will invest in emerging research content and method areas that leverage our strengths and address important unmet patient-centered medical needs.

Lead: Heather Whitson, MD

Cross-cutting themes:

• Immunology, inflammation & fibrosis
• Aging, resilience & pain
• Energy, obesity & metabolic disease
• Precision medicine
• Population health & disparities research

To learn more about our research strategies and initiatives, contact

• Scott Palmer, MD, MHS, Vice Chair for Research
• Saini Pillai, MBA, Senior Program Coordinator, Research

• Family Health Center

About New York Medical College

New York Medical College trains graduate students to become world-class physicians, research scientists and health professionals. Our student body comes from all over the country (and the world) to develop their expertise in health care and drive new research discoveries.

Our mission  is to educate and nurture future health professionals and researchers. These goals and our core values guide our strong leadership as they move us forward to educate the next generation of health care providers and leaders.

Quick Facts

2,000+ students on campus and online

475+ residents and fellows

1900+ faculty members

54 acre campus

Established in 1860, we have a long history of training physicians, researchers and clinical therapists. Even as we look forward, we stand firm to the values and vision that has set us apart and continues to distinguish us.

Our Strategic Plan Charts Our Path Forward

The Strategic Plan 2021-2026 charts our path in a dynamic health care and education landscape, ensuring growth and success. This forward-thinking plan will guide NYMC toward embracing new challenges and exciting opportunities and remaining true to excellence, integrity, diversity, and service. Our campus master plan dovetails with our strategic plan to support our growth and values.

Vast Network of Affiliates

NYMC boasts an extensive network of more than 700 affiliated practice sites , which includes urban medical centers, suburban community hospitals and highly advanced regional tertiary care facilities, providing students with a comprehensive range of resources and educational opportunities.

Your Future Health Care Team

New York Medical College boasts three distinctive schools – School of Medicine, the School of Health Sciences and Practice, and the Graduate School of Biomedical Sciences – allowing us to offer degrees in nearly every aspect of health care. Our campus is also home to Touro College of Dental Medicine and the nursing program at Touro's School of Health Sciences. Visit our Academics page to explore our programs and find the one that’s right for you.

New York Medical College is situated on 54 lush acres in picturesque Valhalla, New York, and is part of the larger 565-acre Grasslands Reservation that serves as home to the Westchester Medical Center and county offices. You not only have access to clinical training opportunities right in our own backyard, but with Midtown Manhattan just a quick 30-minute train ride away, you also have access to some of the most prestigious medical institutions in New York City and the tri-state region. Our location allows our students to treat and work with culturally and economically diverse populations, and pursue a wide range of career, medical residency and internship opportunities.

VIRTUAL CAMPUS TOUR

Printable pdf map, committed to diversity & inclusion.

Diversity & Inclusion are central to our mission at NYMC. Historically, we were ahead of our time in admitting and graduating women and students of color, and we were the first medical school in the U.S. to create a scholarship program for students from marginalized communities.

Today, we maintain a diverse student body across race, ethnicity, gender and socioeconomic backgrounds, as well as emphasize educational success for groups historically underrepresented in medicine, science and academic health programs.

52% of students self-reported as a member of an underrepresented group

$6.9M in student scholarships distributed

20% of students awarded scholarships

Focused on Compassion

An NYMC education puts an emphasis on humanistic and compassionate care. We train students to not only be skilled health professionals and competent leaders, but also to treat each patient with respect and an open heart. We teach our students to focus on each patient as an individual and see the whole person, rather than treating an illness or ailment. We know that competence and compassion go hand in hand and this balanced approach will always be part of our education.

Renowned for Research and Innovation

NYMC is a leader in innovative medical research. More than half of the College's research is funded by the National Institutes of Health (NIH). We have ongoing research and sponsored programs in the areas of cardiovascular disease, cancer, neuroscience, and vaccine development, among others. At BioInc@NYMC , our health tech and biotechnology incubator, biopharma companies explore new product and technology development.

NYMC houses a state-of-the-art 21,000 square-foot Clinical Skills and Simulation Center , where students receive hands-on training in a replicated clinical setting with standardized patients and mannequins to hone clinical skills in a safe and controlled environment.

BioInc@NYMC , designated as an Innovation Hot Spot by New York State, is the only fully equipped biotechnology incubator on a health sciences college campus. In 2019, BioInc@NYMC doubled in size, offering additional square footage of shared and collaborative space to support biotech/medtech startups advance health innovation in the Hudson Valley.

World-Class Resources

Our Centers and Institutes , including the Center for Disaster Medicine, are resources that either explore medical and scientific research with direct clinical application or conduct real-world training for population safety. Our Clinical Skills and Simulation Center gives students access to interactive training programs and realistic examination rooms to prepare for real-life clinical situations. Finally, our core facilities , including the Behavioral Phenotyping Core Facility and Flow Cytometry Core Facility, offer state-of-the-art medical technology for advanced research studies.

5 schools on the NYMC campus

200k+ square feet of dedicated research space

100+ databases in the Phillip Capozzi, M.D., Library

25k journal titles in the Phillip Capozzi, M.D., Library

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UNLV launched its comprehensive Climate Action Plan in September. The plan – which will encompasses academic courses, research, and campus operations – will have a lasting impact on our community for years to come. The stakes have never been higher and we all need to do our part. Being sustainability-minded is not new to UNLV, as we have worked hard for years to reduce our carbon footprint and create a more sustainable campus. The CAP moves us to the next level by giving us a clear, strategic roadmap for the future. 

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Partners in research: communities and nih working together to promote health for all.

This Director’s Message was written in collaboration with the  NIH Common Fund  Community Partnerships to Advance Science for Society (ComPASS) Program .

Have you heard about NIH’s innovative research program designed to create lasting change by addressing the underlying structural factors that shape health? Through the Community Partnerships to Advance Science for Society (ComPASS) Program , NIH is directly funding research projects led by community organizations. 

Instead of tackling health disparities one disease at a time, the ComPASS program addresses structural factors that contribute to multiple diseases and health conditions. The projects study interventions that focus on factors that can promote health, such as improving economic stability, employment opportunities, access to healthy food, safe spaces, transportation, and quality healthcare. Communities and researchers work together as equal partners throughout the research process — from developing and launching structural interventions to sustaining and disseminating findings.

To receive ComPASS program announcements and information about funding opportunities, join the ComPASS listserv . 

How ComPASS is advancing prevention research

ODP has enthusiastically partnered with ComPASS to support and shape this innovative program. ODP helped develop and promote ComPASS funding opportunities and provided technical assistance to applicants and awardees. Our office remains actively involved in promoting ComPASS and the success of community-led research programs to advance prevention research and health equity.

ComPASS embodies several priorities and cross-cutting themes from ODP’s Strategic Plan for Fiscal Years 2024–2028: Creating a Healthier Future for All , including promoting collaborative research, addressing health disparities and social determinants of health (SDOH), developing and testing interventions, and building research capacity. We are excited to highlight a few ways in which ComPASS is integrating the principles of prevention and transforming research into sustainable solutions that promote health equity and create lasting change in communities nationwide.

• Unlike traditional research studies, ComPASS projects are led by community organizations that collaborate with academic researchers and other community partners. 
• ComPASS researchers study ways to reduce health disparities and improve health by addressing structural factors within communities.
• Indigenous healthy homes and healthy communities: A community-led initiative to improve health and support Indigenous Resilience in the US Southwest  
• Reducing Health Disparities through Enhanced Mobility Support and Access
• Cancer in Your Community: Strategies to Reduce Cancer and Chronic Disease in the Arkansas Delta

Synergies between ComPASS and ODP initiatives

ComPASS is one of many recent NIH initiatives to address SDOH and foster health equity. ODP is contributing to this area by leading additional funding opportunities emphasizing multilevel preventive intervention research. 

The Developing and Testing Multi-level Physical Activity Interventions to Improve Health and Well-Being Notice of Special Interest (NOSI) , which is open until November 14, 2027, focuses on social and structural interventions and includes 10 other NIH Institutes, Centers, and Offices (ICOs). The NOSI seeks research applications on new ideas that work at two or more levels of influence (e.g., changing the physical environment and public policy or impacting individual behavior and community resources) to help people increase their physical activity levels. 

Our Multi-Sectoral Preventive Interventions Research Network   funding opportunity will support projects to test preventive interventions involving multiple service sectors (like education, housing, and transportation) and community-based organizations that address SDOH in populations that experience health disparities. ODP issued this funding opportunity with 13 participating NIH ICOs as part of the ADVANCE: Advancing Prevention Research for Health Equity initiative , an NIH-wide effort to develop and evaluate preventive interventions that address health disparities. We expect to announce the awarded projects next spring. 

To cultivate a diverse workforce of scientists who can appropriately design and evaluate preventive interventions, the ODP-coordinated ADVANCE initiative published a Predoctoral T32 Training Program funding opportunity . The awarded training grants will train graduate students across three linked areas: (1) health disparities and health equity research, (2) development and implementation of multilevel preventive interventions, and (3) methods for the design and analysis of studies to evaluate multilevel preventive interventions. Programs are also strongly encouraged to collaborate with and involve community partners in their training activities.

With the help of ComPASS and ODP’s aligned initiatives, we look forward to progressing toward a healthier and more equitable future. Subscribe to ODP’s listserv to get updates on all these funding opportunities and upcoming awards!

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Strategic Planning: Why It Makes a Difference, and How to Do It

Short abstract.

Take action before problems reach crisis level. Strategic planning provides the structure to make day-to-day decisions that follow a larger vision, creates a direction for your practice, and maximizes your options for influencing your environment.

In oncology practice, where dramatic changes in reimbursement, technology, and the marketplace are just a few of the driving forces, “the future,” as Yogi Berra once said, “ain't what it used to be.” You may not be able to control the future, but strategic planning can create a direction for your practice and maximize your options for influencing your environment. Without it, your group will likely take action only to address immediate problems—a kind of crisis management approach. Strategic planning gives a practice the structure to make day-to-day decisions that follow a larger vision. This article presents the principles of strategic planning and outlines processes that your practice can adapt for short- or long-term planning. Strategic decision making is needed now more than ever for success in oncology practice.

A strategic plan is a tool that moves your practice toward a goal you have set. However, the definition of a strategic plan differs among different people, according to management consultant Teri Guidi, MBA. Guidi, chief executive officer of Oncology Management Consulting in Philadelphia, Pennsylvania, points out that although there is “no wrong idea” of what a strategic plan encompasses, people often do have misconceptions about it. “Some expect a strategic plan to be precise—it's not. Some think that it will take you forward forever—it won't. The biggest mistake people make is already having the end result in mind when they start.”

Of all the compelling reasons for your group to engage in strategic planning, perhaps the most critical is the speed at which forces in your environment are changing. “Physicians who try to keep practicing as they have in the last five years will be at a disadvantage,” says Dawn Holcombe, MBA, president of DGH Consulting in South Windsor, Connecticut. “The world swirling around oncologists is changing, and things they may not even know about will affect their practice.”

Engaging in the process of strategic planning has benefits in addition to the plan that comes out of it. For starters, having everyone in the same room fosters collegiality and creates a milieu in which you can focus on the direction of your practice, away from patient care and other duties. In addition, the process promotes the open and creative exchange of ideas, including putting disagreements on the table and working out effective solutions.

Short- and Long-Term Planning

Establishing the direction of your practice and identifying overarching goals provide the foundation for strategic planning, whether short or long term. In the field of health care today, a long-term plan will likely address no more than the next 3 years. After the strategic course is determined in the initial planning session, the group should meet at least annually. During these sessions, the partners should revisit the practice goals, update the environmental assessment with new data, and identify strategies needed to address issues that will arise within the next 12 months. For example, as the retirement of one or more partners approaches, a succession plan may need to be developed (as described in related article on page 136). Meanwhile, growth in patient volume may call for recruitment strategies for both physicians and midlevel providers.

Should You Use a Consultant?

Although use of an outside facilitator entails expense, turning to a strategic planning professional has a number of advantages that can contribute greatly to success, especially if you are undertaking strategic planning for the first time. A professional has done this before—many times—and thus can direct the process efficiently. He or she knows how to collect and analyze diverse information—opinions, practice data, and market reports, for example—and present it in a concise way, thereby saving you and your administrator many hours of work. As a moderator, a consultant knows how to keep a group moving forward, prevent it from getting bogged down in side issues, and objectively help participants resolve disagreements and develop effective solutions.

Perhaps the biggest value added by a consultant is guidance in assessing your environment. A well-qualified strategic planning consultant should have a thorough and current knowledge of national trends in medicine as well as detailed knowledge about oncology practice. Regarding your community, although your group naturally knows the local marketplace well, an outsider can provide a fresh and objective perspective; in fact, the familiarity of physicians with the local scene may create blind spots. Similarly, in assessing the strengths and limitations of a group, a consultant can contribute objectivity and should be able to provide national benchmarks for objective comparison.

In choosing a consultant, look for an individual or firm that will contribute valuable knowledge about national reimbursement, patient care, and business initiatives and trends affecting oncology practice. Many management consultant firms offer strategic planning services, but you will be best served by a consultant who has worked with physician practices and has significant recent experience with oncology practice.

Scheduling a Strategic Planning Session: Who, When, and Where

Just as there is no one way to define strategic planning, there is no single way of doing it. Examples and guidelines are presented here that you may draw on to implement a process that makes sense for your practice.

The decision makers of the practice should be the ones who conduct strategic planning. If your practice is so large that including all partners could make a meeting unwieldy, it might make sense to have a smaller group, such as the executive board, do the planning. In addition to shareholders, you may want physician associates and key managers to participate. Inclusion of individuals who are not partners, at least for some parts of the meeting, may also have advantages. This can foster buy-in to the strategic direction, thereby contributing to the success of the resulting action plan. The oncology group at the Toledo Clinic, a large multispecialty center in Toledo, Ohio, found it beneficial to include the executive director of the clinic. By participating, the director gained valuable insight into the special administrative and practice needs of oncology.

Setting aside at least one day for strategic planning is recommended, especially if this is the first time your group has undertaken it. Distribute an agenda ahead of time, and use a moderator to keep the meeting on track. The location should be comfortable and private. The participants must be able to focus solely on strategic planning, without interruption, so arrange to have patient-related calls covered. Members of the Toledo Clinic used a consultant to guide them through strategic planning, and the consultant facilitated a one-day retreat at a country club. The meeting began around 9 am , after physician rounds, and the nurse practitioners of the group provided patient coverage. Other oncology groups may have conference space available in their office. A half-day meeting can be adequate for groups that have been doing strategic planning for many years.

Starting Point: Mission and Values

Developing a mission statement for your practice—a statement of its basic purpose—is the first step of strategic planning and provides the foundation for the entire process. You may think that putting your mission in writing is a bureaucratic waste of time, but in fact, determining how to articulate your mission is a productive experience. It sets the stage for later prioritization, and the process compels the shareholders to reflect on and express the purpose of the practice. Is providing high-quality care to patients with cancer your entire mission? What about research? Does your practice have a mission to serve the community through education? Answering questions such as these helps spell out the core mission of the group.

Once you succinctly define the mission of your organization, you should develop value statements expressing your core beliefs regarding issues such as patient care, interaction with the community, and how members of the practice work together. In the framework of a traditional strategic plan, the mission statement is concisely expressed in not more than one or two sentences, with value statements articulated separately. However, some organizations combine the mission and values into a narrative of one or more paragraphs. The format used is inconsequential; most important is that your group express the enduring elements of your practice, which will form the foundation on which the practice direction and strategies are expounded.

For a practice that is hospital based or part of a larger organization, the mission and values of the group should be consistent with those of the larger organization. Your group may want to state its own distinct mission or simply adopt that of the larger organization, as did the group of nine oncologists affiliated with the Toledo Clinic. “In practices like ours, which are within a larger organization, it's important to support the larger organization's mission,” says Peggy Barton, group manager. “It could lead to confusion if the broad organization and the practice are going in different directions.”

Vision: Where Do You Want to Go?

With the mission and values defined, the next step for the group is determining what kind of practice you want in the future. Again, the words of Yogi Berra apply: “If you don't know where you're going, you'll wind up somewhere else.” A vision statement—whether just a few words or a longer document—creates the desired image of the future state of your practice. Do you want to be recognized for treatment of a certain type of cancer? Is your vision to be the leader in clinical research in your state? Do you want to grow larger and have a network of practice sites? The vision of the group must complement your practice environment, so you may find that your review of internal and external information (described in SWOT Analysis) leads you to revise your vision statement to some extent as you continue planning strategically.

The vision statement for your group should be painted in broad strokes, not in detail, and it should represent the end point, not the strategy for achieving it. For example, your vision may be to provide multidisciplinary services to your community, but your vision statement would not include a specific strategy, such as merging with a certain radiology group or recruiting two physicians. When developing a vision statement, an atmosphere of openness should prevail to encourage creativity and thinking beyond current boundaries.

As in all stages of strategic planning, disagreements may surface. “Different opinions about the direction of a practice are very healthy,” says Guidi. “The ideas might be in conflict, but getting them out on the table helps [you] to see what is really important.”

Barton agrees. “One purpose of the strategic planning meeting was to get everyone in the room at the same time to identify where we agree and disagree and to reach compromise. The process encouraged input from everyone, and the group made some important decisions that have helped them over the past year.”

SWOT Analysis

The SWOT analysis—an assessment of the strengths, weaknesses, opportunities, and threats of your practice—is a staple of strategic planning. This analysis uses a mix of quantitative and qualitative information, most of which should be gathered and analyzed before the planning meeting. The process for gathering information and performing a SWOT analysis varies greatly, and there is no single correct method. The size of the group, the frequency of strategic planning meetings, and how fast changes are taking place both nationally and locally are all significant factors affecting the process.

Internal Assessment: Strengths and Weaknesses

In identifying internal strengths and weaknesses, include hard data such as the number of new consults, cost of drugs per full-time-equivalent physician, and financial reports. It is useful to benchmark aspects of the quality and efficiency of the practice against data on other oncology practices (Sources for Benchmarking Data provides references for locating this information).

If possible, investigate the perceptions of individuals outside the practice—patients, hospital administrators, and referring physicians, for example. A consultant naturally has an advantage in gathering candid assessments from such individuals, unless an anonymous survey is used. How others view the practice can be critical to performing an accurate SWOT analysis, as demonstrated in an experience reported by consultant Guidi. In one practice that had rather long wait times, the physicians believed that the patients did not mind, because “they know that when it's their turn, they'll get just as much attention as the patient before.” But the patients interviewed by Guidi cited long wait times as a top complaint and said they would mention it to others considering the practice for treatment.

Gather qualitative information and opinions from physicians and staff. What do they see as the top issues facing the practice, and what do they consider to be the strengths and weaknesses of the practice? These perspectives can be provided during the meeting, but it is useful to collect information ahead of time, so a larger group can be polled, and anonymity can be assured. Holcombe distributes a questionnaire to solicit information from each physician and also interviews key individuals. Her summary is then reviewed and discussed during the strategic planning retreat.

Sources for Benchmarking Data

• ASCO Quality Oncology Practice Initiative (QOPI). http://qopi.asco.org
• Medical Group Management Association: Performance and practices of successful medical groups. www.mgma.com/surveys or call 877-275-6462
• American College of Physicians: Practice management check up: Examining the business health of your practice. www.acponline.org/pmc/new_checkup.htm
• Akscin J, Barr TR, Towle EL: Benchmarking practice operations: Results from a survey of office-based oncology practices. J Oncol Pract 3:9-12, 2007
• Akscin J, Barr TR, Towle EL: Key practice indicators in office-based oncology practices: 2007 report on 2006 data. J Oncol Pract 3:200-203, 2007
• Barr TR, Towle EL, Jordan W: The 2007 National Practice Benchmark: Results of a national survey of oncology practices. J Oncol Pract 4:178-183, 2008

Oncology Associates in Cedar Rapids, Iowa, uses its face-to-face planning meeting to share personal perspectives about the practice. The group is small—currently five oncologists—and has been doing strategic planning for many years. SWOT data for analysis is gathered ahead of time, but at the beginning of the meeting, each physician discusses how he feels about his own practice, including his workload, his satisfaction with the schedule, and other aspects of practice. “With everyone in the room, they all hear each other's perspective, which helps later on when we are talking about the practice as a whole and making decisions about issues such as expanding services or recruiting a new provider,” says Carole Dzingle, practice manager.

A third method is used at the Mark H. Zangmeister Center in Columbus, Ohio. The executive board of the 16-oncologist practice holds an annual strategic planning session. Glenn Balasky, executive director, obtains input from six or seven staff managers and works with the managing partner to complete a SWOT analysis that is presented at the meeting.

External Assessment: Opportunities and Threats

Data about the marketplace of the practice, such as demographics, economic trends, referral patterns, and competition, should be analyzed in light of whether they represent threats or opportunities. In addition to the local picture, the broader environment, including the regional health care system and approaching changes in reimbursement and regulation, should also be assessed. Although the physicians and staff in some groups stay abreast of local, regional, and national trends, a consultant knowledgeable about oncology market forces is often needed to provide an analysis of the environment. The Toledo Clinic found the report on the national picture prepared by the consultant significantly helpful.

Some groups work to keep up with trends on their own through active involvement in state and national oncology societies. The physicians of Oncology Associates are active in ASCO as well as in the Iowa Oncology Society, and the staff managers are involved with organizations such as the Association of Community Cancer Centers and the Medical Group Management Association. Physicians and staff leaders at the Zangmeister Center are involved with the Community Oncology Alliance and other oncology organizations at both national and state levels, and each staff manager actively participates in a professional organization. Monitoring the environment takes energy and commitment, but it produces advantages, according to Balasky. “It pays off in the raw market intelligence we get, and we stay in touch continually rather than having a once-a-year report.”

Developing Strategies

Once a clear picture of the practice and its environment has been established, the group should develop strategic options for moving the practice from its current status toward the desired future position. Be alert to the pitfalls of discussing operational issues and trying to decide on tactics instead of identifying strategies. For example, a strategic decision may be to go forward with implementing an electronic medical record system, but the strategic planning meeting is not the place to discuss available systems, preferred data fields, or training required. Managing these kinds of details will be the responsibility of individuals assigned in the action plan.

In some cases, the SWOT analysis can reveal weaknesses that call for implementing one or more strategic priorities before pursuing others. Practices sometimes realize they need to create the infrastructure necessary to reach their goals. For example, they may not have systems in place to provide data that will be needed to remain competitive.

In other cases, the group may come up with many strategies that need to be prioritized during the meeting or at a subsequent meeting. To narrow down big lists, Guidi describes two approaches that work well when groups meet more than once. One mechanism she uses is to put all the strategies in writing after the first meeting; she then asks individuals via e-mail to score the importance, difficulty, and cost of each strategy on a scale of one to five. In another approach, after one or two brainstorming sessions, Guidi boils down the information to three or four overarching goals for additional discussion by the group. Guidi finds that several short strategic planning sessions are often more productive than is a full- or half-day retreat, and in the end, the shorter sessions call for about the same total hours of physician time.

More Information About Strategic Planning

• Soper WD: The meeting you won't want to miss: Annual strategic planning. www.aafp.org/fpm/20010200/28them.html
• Holcombe D: Strategic planning and retreats for practices. www.dghconsulting.net/images/holcombe_strategic_planning_0908.pdf
• McNamara C: Strategic planning (in nonprofit or for-profit organizations). www.managementhelp.org/plan_dec/str_plan/str_plan.htm

Action Plan

The outcome of developing strategies should be the prioritization of a few (ie, two to five) achievable strategies and creation of related action plans. Many strategic plans have faltered or failed because they were too ambitious or too complex. Do not try to take advantage of every opportunity or address every limitation identified in your SWOT analysis. Some goals may be important but can be scheduled for implementation in a year or two. By having an annual strategic planning meeting to update your plan, these goals will stay in sight and can be addressed successfully.

Create an action plan to address each strategic priority within the next 12 months. Spell out steps to be taken, who will have the lead responsibility, and the milestones that will show progress. For example, a strategy of adding midlevel providers might have a work plan with dates and assignments for finalizing a position description, creating a compensation package, recruiting, hiring, and conducting orientation. A strategy of building a new facility or merging with another practice will ultimately involve complex actions, but initially, the work plan might specify only the steps involved in finding and retaining a consultant to present a business plan by a certain date. Make sure the action plan is in a format that can and will be used by those with responsibility for implementation.

Communicate the strategic goals and action plan to all clinical and administrative staff. Everyone in the practice should know the goals and clearly understand his or her role in implementing strategies to achieve them. Effective communication and cultivation of a team culture are especially important if your strategic planning results in changes or begins moving the practice in a new direction.

Keep in mind that a strategic plan does not have to involve a lot of paperwork or a big report. The mission, values, and vision of the practice should be documented, and the group should revisit them at the beginning of subsequent strategic planning meetings to validate them or make revisions if appropriate. A summary of the SWOT analysis should be included, but this may be brief, with the data that went into it provided as appendices or even stored elsewhere while remaining easily available for updating. The action plan must be available for tracking progress. Your strategic plan must be a living document—a roadmap that guides what happens in your practice on a day-to-day basis—not a report that sits on a shelf.

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Research Strategic Planning

In 2018, the University Science Strategy Committee identified the most promising opportunities for university-wide investment across scientific disciplines. Building on this effort in 2020, Yale School of Medicine has developed a strategic plan for scientific research that aligns with the broader plan and builds on key strengths in the school.

The plan recommends three areas for cross-cutting themes, eight focused areas of research, and ongoing investments in institutional infrastructure essential to meet this vision.

Table of Contents

• Cross-cutting themes
• Focused areas of research
• Institutional infrastructure
• Download YSM's Research Strategic Planning report as pdf

Cross-Cutting Themes

Data science - 2020 plan.

• Create a new section/department in biomedical informatics and data science as a home for faculty experts in all areas ranging from clinical informatics to bioinformatics and data science
• Expand in areas that may include Biomedical/health record data, Image processing, or Next generation “omics”
• Develop infrastructure for core support in this area

Data Science - Progress

• The section of Biomedical Informatics and Data Science was created with Lucila Ohno-Machado, MD PhD , as the first chair and also Deputy Dean for Biomedical Informatics
• This work is ongoing with several recent faculty recruitments into BIDS as well as new hires. Ohno-Machado is leading efforts to build new computing infrastructure and data workflow.

Team Science - 2020 Plan

• Set up organizational structure to facilitate teams in large initiatives/team science
• Provide pilot funding program to support nascent teams to develop high impact projects
• Facilitate exposure of faculty new to the YSM and Yale community via research-in-progress presentations and networking

Team Science - Progress

• Created the Office of Team Science , led by Kakie Mashburn , to facilitate the organization of large grant submissions by teams.
• Provided pilot funding to 10 projects for $200k via our program for the promotion of interdisciplinary team science (POINTS) program .
• Young “rising star” faculty have presented to the YSM leadership group in monthly meetings.

Support for Graduate Students & Postdocs - 2020 Plan

• Create new opportunities for endowed slots for students and postdocs
• Create new paths for training PhD students in clinical departments
• Enhance postdoctoral training
• Expand and enhance our culture of inclusive excellence

Support for Graduate Students & Postdocs - Progress

• All new fundraising initiatives include requests for endowed student slots.
• YSM has also covered >30 unbudgeted PhD students on an annual basis.
• Megan King, PhD and Dick Kibbey, MD, PhD have been tapped to lead the new PhD Program in Translational Biomedicine (PTB) .
• Developed a process for faculty in clinical departments to be directly appointed as trainers by the Graduate School.
• The clinical departments have been proactive in requesting the addition of pre-doctoral slots to long-standing post-doctoral T32 training programs.
• Erin Heckler, PhD has been recruited to Direct the new Office of Postdoctoral Affairs , supported by Faculty Director Elias Lolis, PhD . In addition to improvements to recruitment and process, the office has rolled out wholesale programs to advance career development, led by Victoria Hallinan, PhD .
• Through the Office of Diversity, Equity and Inclusion we support several initiatives to support our PhD students and postdocs .

Focused Areas of Research

Inflammation - 2020 plan, inflammation - progress.

• Launched the Center for infection and Immunity , under the direction of Akiko Iwasaki, PhD .
• Launching the Tananbaum Center for Theoretical and Analytical Human Biology under the direction of Ruslan Medzhitov, PhD .

Single Cell Biology--2020 Plan

• Build on strengths in nuclear cell biology, epigenetics, and single cell biology
• Recruit cohort with a concentration of expertise in single cell biology
• Support groups already working together on program project-type applications
• Synergize with investments in key technologies and data science
• Seize opportunities for collaborative team projects that span departments and disciplines

Single Cell Biology - Progress

• Centrally supported single cell users group meets regularly and started an annual symposium in 2021. View the agenda from the heavily-attended 2022 annual symposium on single cell approaches .
• Developed core services for key technologies in the single cell space and are currently piloting several leading/bleeding edge new technologies for single cell ‘omics and multi-omics

Metabolism - 2020 Plan

• Establish the Yale Center for Molecular & Systems Metabolism
• Integrate with Diabetes Research Center, Liver Center, and Vascular Biology & Therapeutics

Metabolism - Progress

• Established the Yale Center for Molecular & Systems Metabolism with Anton Bennett, PhD as the inaugural director. Two new recruits join the center in the fall of 2023.
• Key faculty from across the school, including the Diabetes Research Center , Liver Center , and Vascular Biology & Therapeutics , have joined the center to broaden and deepen collective knowledge and research areas .

Developmental Brain Disorders - 2020 Plan

• Bring together strength distributed across many departments and centers

Developmental Brain Disorders - Progress

• One multi-disciplinary team received a POINTS award for a team-based effort to understand how genes underlying neurodevelopmental disorders impact brain circuit development and function.
• Center for Brain & Mind Health established
• Multiple collaboration initiatives in progress

Health Equity Research - 2020 Plan

• Leverage appointment of Marcella Nunez-Smith, MD, MHS, as inaugural associate dean of health equity research to coordinate efforts across the school and create common tools
• Enhance positions in YCCI and Yale Cancer Center devoted to health equity research
• Support the SEICHE Center for Health and Justice (Yale School of Medicine plus Yale Law School)
• Include as a targeted area for cluster hiring in our FIRST Award application

Health Equity Research - Progress

• Marcella Nunez-Smith, MD, MHS has leadership positions in both the Yale Center for Clinical Investigation (the Yale CTSI) and the Yale Cancer Center (NCI Comprehensive Cancer Center) with infrastructure in both to enhance career development and pilot funding in health equity research .
• New funding has been successfully obtained to develop methodologies to enhance diverse participation in clinical trials through decentralization and other approaches.

Technology and Biomedical Engineering - 2020 Plan

• Facilitate joint hires in data science, biomedical engineering, and computer science
• Recruit faculty in cutting edge technologies (mass spec, FIB-SEM, imaging)

Technology and Biomedical Engineering - Progress

• Made first fully joint appointment between Computer Science and Genetics .
• Recruited C. Shan Xu, PhD and Song Pang to lead new initiative in FIB-SEM .
• Held Dean’s Workshop on promising new approaches in mass spectrometry
• Several recent hires in mass spectrometry

Biomedical & Biological Imaging - 2020 Plan

• Recruit new PET Center director; continue the transformative initiative that the PET Center has been, and simultaneously enhance its service role
• Organize and brand an umbrella center to facilitate collaboration and serve as a home for program/center grants and training grants
• Identify opportunities to better connect biomedical and basic biological imaging (example: FIB-SEM)

Biomedical & Biological Imaging - Progress

• Recruited Georges El-Fakhri as new head of PET Center .
• Fib-Sem Collaboration Core (F-SCC) created
• Strategic planning with key stakeholders begins Fall, 2023
• Work is ongoing

Translational Medicine/Clinical Trials - 2020 Plan

Translational medicine/clinical trials - progress.

• A YCCI team has been formed to address the diversity of clinical trials and has successfully received major funding to explore new templates from FDA and PhRMA Foundation
• A new Faculty Advisory Committee for YCCI has been formed and a strategic planning process will move forward in fall 2023.

Institutional Infrastructure

Office of team science - 2020 plan, biorepository - 2020 plan, biorepository - progress.

• Created YSM Biobank , a coordinated biorepository that allows for the alignment of collected tissue, plasma, serum and genetic samples, and clinical data, using common processes and information systems. Led by Chen Liu, MD, PhD.

How to improve strategic planning

In conference rooms everywhere, corporate planners are in the midst of the annual strategic-planning process. For the better part of a year, they collect financial and operational data, make forecasts, and prepare lengthy presentations with the CEO and other senior managers about the future direction of the business. But at the end of this expensive and time-consuming process, many participants say they are frustrated by its lack of impact on either their own actions or the strategic direction of the company.

This sense of disappointment was captured in a recent McKinsey Quarterly survey of nearly 800 executives: just 45 percent of the respondents said they were satisfied with the strategic-planning process. 1 1. “ Improving strategic planning: A McKinsey Survey ,” The McKinsey Quarterly , Web exclusive, September 2006. The survey, conducted in late July and early August 2006, received 796 responses from a panel of executives from around the world. All panelists have mostly financial or strategic responsibilities and work in a wide range of industries for organizations with revenues of at least $500 million. Moreover, only 23 percent indicated that major strategic decisions were made within its confines. Given these results, managers might well be tempted to jettison the planning process altogether.

But for those working in the overwhelming majority of corporations, the annual planning process plays an essential role. In addition to formulating at least some elements of a company’s strategy, the process results in a budget, which establishes the resource allocation map for the coming 12 to 18 months; sets financial and operating targets, often used to determine compensation metrics and to provide guidance for financial markets; and aligns the management team on its strategic priorities. The operative question for chief executives is how to make the planning process more effective—not whether it is the sole mechanism used to design strategy. CEOs know that strategy is often formulated through ad hoc meetings or brand reviews, or as a result of decisions about mergers and acquisitions.

Our research shows that formal strategic-planning processes play an important role in improving overall satisfaction with strategy development. That role can be seen in the responses of the 79 percent of managers who claimed that the formal planning process played a significant role in developing strategies and were satisfied with the approach of their companies, compared with only 21 percent of the respondents who felt that the process did not play a significant role. Looked at another way, 51 percent of the respondents whose companies had no formal process were dissatisfied with their approach to the development of strategy, against only 20 percent of those at companies with a formal process.

So what can managers do to improve the process? There are many ways to conduct strategic planning, but determining the ideal method goes beyond the scope of this article. Instead we offer, from our research, five emergent ideas that executives can employ immediately to make existing processes run better. The changes we discuss here (such as a focus on important strategic issues or a connection to core-management processes) are the elements most linked with the satisfaction of employees and their perceptions of the significance of the process. These steps cannot guarantee that the right strategic decisions will be made or that strategy will be better executed, but by enhancing the planning process—and thus increasing satisfaction with the development of strategy—they will improve the odds for success.

Start with the issues

Ask CEOs what they think strategic planning should involve and they will talk about anticipating big challenges and spotting important trends. At many companies, however, this noble purpose has taken a backseat to rigid, data-driven processes dominated by the production of budgets and financial forecasts. If the calendar-based process is to play a more valuable role in a company’s overall strategy efforts, it must complement budgeting with a focus on strategic issues. In our experience, the first liberating change managers can make to improve the quality of the planning process is to begin it by deliberately and thoughtfully identifying and discussing the strategic issues that will have the greatest impact on future business performance.

Granted, an approach based on issues will not necessarily yield better strategic results. The music business, for instance, has discussed the threat posed by digital-file sharing for years without finding an effective way of dealing with the problem. But as a first step, identifying the key issues will ensure that management does not waste time and energy on less important topics.

We found a variety of practical ways in which companies can impose a fresh strategic perspective. For instance, the CEO of one large health care company asks the leaders of each business unit to imagine how a set of specific economic, social, and business trends will affect their businesses, as well as ways to capture the opportunities—or counter the threats—that these trends pose. Only after such an analysis and discussion do the leaders settle into the more typical planning exercises of financial forecasting and identifying strategic initiatives.

One consumer goods organization takes a more directed approach. The CEO, supported by the corporate-strategy function, compiles a list of three to six priorities for the coming year. Distributed to the managers responsible for functions, geographies, and brands, the list then becomes the basis for an offsite strategy-alignment meeting, where managers debate the implications of the priorities for their particular organizations. The corporate-strategy function summarizes the results, adds appropriate corporate targets, and shares them with the organization in the form of a strategy memo, which serves as the basis for more detailed strategic planning at the division and business-unit levels.

A packaged-goods company offers an even more tailored example. Every December the corporate senior-management team produces a list of ten strategic questions tailored to each of the three business units. The leaders of these businesses have six months to explore and debate the questions internally and to come up with answers. In June each unit convenes with the senior-management team in a one-day meeting to discuss proposed actions and reach decisions.

Some companies prefer to use a bottom-up rather than top-down process. We recently worked with a sales company to design a strategic-planning process that begins with in-depth interviews (involving all of the senior managers and selected corporate and business executives) to generate a list of the most important strategic issues facing the company. The senior-management team prioritizes the list and assigns managers to explore each issue and report back in four to six weeks. Such an approach can be especially valuable in companies where internal consensus building is an imperative.

Bring together the right people

An issues-based approach won’t do much good unless the most relevant people are involved in the debate. We found that survey respondents who were satisfied with the strategic-planning process rated it highly on dimensions such as including the most knowledgeable and influential participants, stimulating and challenging the participants’ thinking, and having honest, open discussions about difficult issues. In contrast, 27 percent of the dissatisfied respondents reported that their company’s strategic planning had not a single one of these virtues. Such results suggest that too many companies focus on the data-gathering and packaging elements of strategic planning and neglect the crucial interactive components.

Strategic conversations will have little impact if they involve only strategic planners from both the business unit and the corporate levels. One of our core beliefs is that those who carry out strategy should also develop it. The key strategy conversation should take place among corporate decision makers, business unit leaders, and people with expertise essential to the discussion. In addition to leading the corporate review, the CEO, aided by members of the executive team, should as a rule lead the strategy review for business units as well. The head of a business unit, supported by four to six people, should direct the discussion from its side of the table (see sidebar, "Things to ask in any business unit review").

Things to ask in any business unit review

Are major trends and changes in your business unit’s environment affecting your strategic plan? Specifically, what potential developments in customer demand, technology, or the regulatory environment could have enough impact on the industry to change the entire plan?

How and why is this plan different from last year’s?

What were your forecasts for market growth, sales, and profitability last year, two years ago, and three years ago? How right or wrong were they? What did the business unit learn from those experiences?

What would it take to double your business unit’s growth rate and profits? Where will growth come from: expansion or gains in market share?

If your business unit plans to take market share from competitors, how will it do so, and how will they respond? Are you counting on a strategic advantage or superior execution?

What are your business unit’s distinctive competitive strengths, and how does the plan build on them?

How different is the strategy from those of competitors, and why? Is that a good or a bad thing?

Beyond the immediate planning cycle, what are the key issues, risks, and opportunities that we should discuss today?

What would a private-equity owner do with this business?

How will the business unit monitor the execution of this strategy?

One pharmaceutical company invites business unit leaders to take part in the strategy reviews of their peers in other units. This approach can help build a better understanding of the entire company and, especially, of the issues that span business units. The risk is that such interactions might constrain the honesty and vigor of the dialogue and put executives at the focus of the discussion on the defensive.

Corporate senior-management teams can dedicate only a few hours or at most a few days to a business unit under review. So team members should spend this time in challenging yet collaborative discussions with business unit leaders rather than trying to absorb many facts during the review itself. To provide some context for the discussion, best-practice companies disseminate important operational and financial information to the corporate review team well in advance of such sessions. This reading material should also tee up the most important issues facing the business and outline the proposed strategy, ensuring that the review team is prepared with well-thought-out questions. In our experience, the right 10 pages provide ample fuel to fire a vigorous discussion, but more than 25 pages will likely douse the level of energy or engagement in the room.

Adapt planning cycles to the needs of each business

Managers are justifiably concerned about the resources and time required to implement an issues-based strategic-planning approach. One easy—yet rarely adopted—solution is to free business units from the need to conduct this rigorous process every single year. In all but the most volatile, high-velocity industries, it is hard to imagine that a major strategic redirection will be necessary every planning cycle. In fact, forcing businesses to undertake this exercise annually is distracting and may even be detrimental. Managers need to focus on executing the last plan’s major initiatives, many of which can take 18 to 36 months to implement fully.

Some companies alternate the business units that undergo the complete strategic-planning process (as opposed to abbreviated annual updates of the existing plan). One media company, for example, requires individual business units to undertake strategic planning only every two or three years. This cadence enables the corporate senior-management team and its strategy group to devote more energy to the business units that are “at bat.” More important, it frees the corporate-strategy group to work directly with the senior team on critical issues that affect the entire company—issues such as developing an integrated digitization strategy and addressing unforeseen changes in the fast-moving digital-media landscape.

Other companies use trigger mechanisms to decide which business units will undergo a full strategic-planning exercise in a given year. One industrial company assigns each business unit a color-coded grade—green, yellow, or red—based on the unit’s success in executing the existing strategic plan. “Code red,” for example, would slate a business unit for a strategy review. Although many of the metrics that determine the grade are financial, some may be operational to provide a more complete assessment of the unit’s performance.

Freeing business units from participating in the strategic-planning process every year raises a caveat, however. When important changes in the external environment occur, senior managers must be able to engage with business units that are not under review and make major strategic decisions on an ad hoc basis. For instance, a major merger in any industry would prompt competitors in it to revisit their strategies. Indeed, one advantage of a tailored planning cycle is that it builds slack into the strategic-review system, enabling management to address unforeseen but pressing strategic issues as they arise.

Implement a strategic-performance-management system

In the end, many companies fail to execute the chosen strategy. More than a quarter of our survey respondents said that their companies had plans but no execution path. Forty-five percent reported that planning processes failed to track the execution of strategic initiatives. All this suggests that putting in place a system to measure and monitor their progress can greatly enhance the impact of the planning process.

Most companies believe that their existing control systems and performance-management processes (including budgets and operating reviews) are the sole way to monitor progress on strategy. As a result, managers attempt to translate the decisions made during the planning process into budget targets or other financial goals. Although this practice is sensible and necessary, it is not enough. We estimate that a significant portion of the strategic decisions we recommend to companies can’t be tracked solely through financial targets. A company undertaking a major strategic initiative to enhance its innovation and product-development capabilities, for example, should measure a variety of input metrics, such as the quality of available talent and the number of ideas and projects at each stage in development, in addition to pure output metrics such as revenues from new-product sales. One information technology company, for instance, carefully tracks the number and skill levels of people posted to important strategic projects.

Strategic-performance-management systems, which should assign accountability for initiatives and make their progress more transparent, can take many forms. One industrial corporation tracks major strategic initiatives that will have the greatest impact, across a portfolio of a dozen businesses, on its financial and strategic goals. Transparency is achieved through regular reviews and the use of financial as well as nonfinancial metrics. The corporate-strategy team assumes responsibility for reviews (chaired by the CEO and involving the relevant business-unit leaders) that use an array of milestones and metrics to assess the top ten initiatives. One to expand operations in China and India, for example, would entail regular reviews of interim metrics such as the quality and number of local employees recruited and the pace at which alliances are formed with channel partners or suppliers. Each business unit, in turn, is accountable for adopting the same performance-management approach for its own, lower-tier top-ten list of initiatives.

When designed well, strategic-performance-management systems can give an early warning of problems with strategic initiatives, whereas financial targets alone at best provide lagging indicators. An effective system enables management to step in and correct, redirect, or even abandon an initiative that is failing to perform as expected. The strategy of a pharmaceutical company that embarked on a major expansion of its sales force to drive revenue growth, for example, presupposed that rapid growth in the number of sales representatives would lead to a corresponding increase in revenues. The company also recognized, however, that expansion was in turn contingent on several factors, including the ability to recruit and train the right people. It therefore put in place a regular review of the key strategic metrics against its actual performance to alert managers to any emerging problems.

Integrate human-resources systems into the strategic plan

Simply monitoring the execution of strategic initiatives is not sufficient: their successful implementation also depends on how managers are evaluated and compensated. Yet only 36 percent of the executives we surveyed said that their companies’ strategic-planning processes were integrated with HR processes. One way to create a more valuable strategic-planning process would be to tie the evaluation and compensation of managers to the progress of new initiatives.

Although the development of strategy is ostensibly a long-term endeavor, companies traditionally emphasize short-term, purely financial targets—such as annual revenue growth or improved margins—as the sole metrics to gauge the performance of managers and employees. This approach is gradually changing. Deferred-compensation models for boards, CEOs, and some senior managers are now widely used. What’s more, several companies have added longer-term performance targets to complement the short-term ones. A major pharmaceutical company, for example, recently revamped its managerial-compensation structure to include a basket of short-term financial and operating targets as well as longer-term, innovation-based growth targets.

Although these changes help persuade managers to adopt both short- and long-term approaches to the development of strategy, they don’t address the need to link evaluation and compensation to specific strategic initiatives. One way of doing so is to craft a mix of performance targets that more appropriately reflect a company’s strategy. For example, one North American services business that launched strategic initiatives to improve its customer retention and increase sales also adjusted the evaluation and compensation targets for its managers. Rather than measuring senior managers only by revenue and margin targets, as it had done before, it tied 20 percent of their compensation to achieving its retention and cross-selling goals. By introducing metrics for these specific initiatives and linking their success closely to bonus packages, the company motivated managers to make the strategy succeed.

An advantage of this approach is that it motivates managers to flag any problems early in the implementation of a strategic initiative (which determines the size of bonuses) so that the company can solve them. Otherwise, managers all too often sweep the debris of a failing strategy under the operating rug until the spring-cleaning ritual of next year’s annual planning process.

Some business leaders have found ways to give strategic planning a more valuable role in the formulation as well as the execution of strategy. Companies that emulate their methods might find satisfaction instead of frustration at the end of the annual process.

Renée Dye is a consultant in McKinsey’s Atlanta office, and Olivier Sibony is a director in the Paris office.

This article was first published in the Autumn 2007 issue of McKinsey on Finance . Visit McKinsey’s corporate finance site to view the full issue.

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Strategic Planning Should Be a Strategic Exercise

• Graham Kenny

Don’t create a plan. Create a system.

Many managers complain that strategy-making often reduces to an operational action plan that resembles the last one.  To prevent that from happening they need to remember that strategy is about creating a system whereby a company’s stakeholders interact to create a sustainable advantage for the company.  Strategic planning is how the company designs that system, which is very different from an operational action plan in that it is never a static to-do list but constantly evolves as strategy makers acquire more insights into how their system of stakeholders can create value.

Over the years I’ve facilitated many strategic planning workshops for business, government, and not-for-profit organizations. We reflect on recent changes and future trends and consider how to engage with them for corporate success.

• Graham Kenny is the CEO of Strategic Factors and author of Strategy Discovery . He is a recognized expert in strategy and performance measurement who helps managers, executives, and boards create successful organizations in the private, public, and not-for-profit sectors. He has been a professor of management in universities in the U.S. and Canada.

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A Milestone in India’s West Asia Diplomacy: The India-GCC Strategic Dialogue, September 2024

• September 19, 2024
• Insights , Center for International Relations and Strategic Studies , International Relations and Strategic Studies , Policy Update

Policy Update Srishtistuti Roy

Introduction.

On 9th September, 2024 India and the Gulf Cooperation Council (GCC) adopted a Joint Action Plan for 2024-2028 to facilitate joint ventures in various sectors including energy, trade, security, agriculture, health, and food security. External Affairs Minister (EAM) S. Jaishankar, co-chairing the inaugural India-GCC Joint Ministerial Meeting for Strategic Dialogue at Riyadh with Qatar’s Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman, highlighted the critical importance of cooperation with the GCC for India.

The Gulf region holds geostrategic significance not only due to its geographic proximity to India but also because of the shared pursuit of peace and security. Additionally, it is one of India’s largest trading partners; its substantial gas and oil reserves are crucial for India’s energy security, and it hosts a large Indian expatriate community. Thus, Jaishankar’s address to the GCC members underlined three key pillars for future partnerships: People, Prosperity, and Progress.

Drawing attention to the increased volume and diversity of trade while urging the expeditious finalization of the India-GCC Free Trade Agreement (FTA), the EAM stressed upon the need to ‘invest in each other’s future and support each other’s continued prosperity.’ Jaishankar also held separate bilateral talks with his counterparts from Qatar, Saudi Arabia, Oman, Kuwait, and Bahrain on the sidelines of the Strategic Dialogue. 

Simultaneously, at the invitation of PM Modi, the Crown Prince of Abu Dhabi His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan visited India on the same day. In light of the substantial progress achieved through the India-UAE Strategic Partnership, the Comprehensive Economic Partnership Agreement (CEPA), and the recent Bilateral Investment Treaty (BIT), the two nations signed five further pacts to strengthen bilateral ties and enhance cooperation.

Of vital significance was the MoU on Nuclear Cooperation for the ‘maintenance and operation’ of the Emirates’ first nuclear power plant; a fifteen-year agreement for the supply of liquified natural gas (LNG) to India; and an MoU on Food Parks signed between ADQ–an Abu Dhabi-based investment company–and the government of Gujarat. Furthermore, on 10th September, 2024 at a business event in Mumbai, a Virtual Trade Corridor (VTC) with the MAITRI interface was also launched between India and the UAE to boost trade and investment by reducing administrative processes, logistics, and transportation costs. 

Background: India’s Foreign Policy in West Asia

Both of these events and the resultant actions stem from a persistent need for regional cooperation, and must be understood in the larger context of India’s West Asian (Middle East) policy. Mr. Anil Trigunayat, ex-ambassador of India to Malta, Jordan, and Libya, is of the view that India’s proverbial ‘Link West’ policy is in reality an ‘Act West’ policy. For decades, Pakistan had been a deciding factor for India’s foreign policy in the Middle East. However, with India’s growing dominance in the Indian Ocean Region (IOR)– in part, due to its Act East and Indo-Pacific policies– the NDA government has moved beyond Pakistan and adopted a proactive regional and sub-regional approach in its West Asian policy. 

Bilateralism: In the last decade, India has forged strong partnerships in the Middle East through bilateral cooperation, not only in the commonly prioritized areas of economic growth and energy security, but also in areas of untapped potential such as maritime cooperation, space, science and technology, artificial intelligence, medicine and healthcare, cyber security, food security, fertilizers, renewable energy, and climate change. In fiscal year (FY) 2022-2023, the GCC became India’s largest trading partner, taking up 15.8% of India’s total trade. Additionally, in FY 2023-2024, the volume of bilateral trade with Saudi Arabia, the UAE, Bahrain, and Israel reached record highs. 

This followed in the wake of certain specific eventualities: India became part of the I2U2 (India, Israel, the UAE, the US) and the IUSU (India, the US, Saudi Arabia) which gradually gave way to the signing of the India-Middle East-Europe Economic Corridor (IMEEC) Agreement in September 2023 in the sidelines of the G20 Summit. Additionally, other bilateral partnerships that have characterized India’s foreign policy in West Asia include:  

• the CEPA signed between India and UAE in 2022; 
• the Strategic Partnership Council (SPC) established in 2019 between India and Saudi Arabia which convened its first meeting in 2023; 
• India’s turn towards Iraq for crude oil imports following the Red Sea Crisis in 2023; 
• a twenty-year deal signed in 2024 for supply of LNG from Qatar to India; 
• agreements signed with the UAE and Saudi Arabia in late 2023 to collaboratively work on transitioning towards clean energy sources such as wind and solar energy by 2030;
• conducting joint military exercises such Al Nagah with Oman and Zayed Talwar with the UAE
• and periodic maritime exercises conducted by naval forces of Oman, Saudi Arabia, Kuwait, Qatar, and the UAE with India in the western IOR and the Arabian Sea.

De-Hyphenation: Furthermore, India has successfully maintained diplomatic ties with oft-warring states. The NDA government has broken new ground in India’s West Asian foreign policy by de-hyphenating its stand on Palestine from its bilateral ties with Israel. As the war in Gaza continues for the eleventh month– causing extreme humanitarian carnage and a potential polio outbreak–India continues to call for an independent state of Palestine, all the while continuing its shrewdly strategic partnerships with Israel.

Though initially India was the only country from the Global South to have abstained from voting against Israel at the UNGA, it later abandoned this position in December 2023 and voted for a ceasefire while also voting against the expansion of Israeli settlements in the West Bank. 

Similarly, India has maintained a de-hyphenation policy in its bilateral ties with Iran. Despite the recent tensions between Iran and Israel owing to the war in Gaza, India has continued to call for ending hostilities on both sides and engaging in diplomatic dialogue. More importantly, in May 2024, India and Iran signed a ten-year contract to develop and operate the Iranian port of Chabahar.

For this project, India has pledged to invest $120 million in infrastructure development and extend a $250 million line of credit to Iran, because it envisions this port as a strategic trade route to reach the landlocked Central Asian countries. This contract has materialized despite warnings from the US about the potential risk of sanctions on countries engaging in business with Tehran. 

Furthermore, in the wake of the Russia-Ukraine war, India has actively advocated for peace in the region through dialogue and diplomacy. While it has shielded itself from the socio-economic pressures of rising oil prices caused by the conflict, India has consistently worked towards mediating a peace agreement between the two nations.   

Impact: Evolution of India-GCC Relations

The first India-GCC political dialogue in 2003 marked a new era of strategic engagement. It laid the foundation for cooperation in the key areas of energy security, trade, welfare of expatriates, maritime security and the safety of sea lanes of communication (SLOC). However, in 2022 when an MoU on the Mechanism of Consultations was signed, a quantum leap in India-GCC relations materialized by further institutionalizing the partnership.

This MoU laid down the framework for conducting regular consultations between India’s EAM and the GCC-Troika. Following this, in 2023 the first India-GCC Senior Officials’ Meeting took place in Riyadh where new areas of collaboration, such as digital infrastructure and climate security, were also explored. The progress made during this meeting paved the way for the landmark India-GCC Joint Ministerial Meeting for Strategic Dialogue in September 2024. 

At the Strategic Dialogue, India highlighted ongoing efforts to boost partnerships with the GCC in areas of green hydrogen, clean energy, and advanced technologies. Initiatives such as the Saudi Vision 2030 and the UAE’s Vision 2031 have opened up new avenues of cooperation as India seeks to diversify its energy sources and further invest in sustainable development. Additionally, the Joint Action Plan 2024-2028 adopted at the meeting underscored various joint activities in diverse areas including health, trade, security, agriculture, food security, transportation, energy security, and culture, inter alia.

It also focused on enhancing academic and scientific cooperation through cultural exchanges for research and development. It was also decided that other areas of cooperation can be included in the Plan later on based on mutual consensus. Furthermore, India called for an immediate ceasefire in Gaza at the Strategic Dialogue. While Jaishankar reiterated that India condemns acts of terrorism and hostage-taking, he stressed that India wants an end to the violence on innocent civilians at the earliest. The EAM also stressed upon the importance of global peace, security, and stability for mutual progress and prosperity of the member nations. 

Emerging Areas of Focus

The India-GCC Strategic Dialogue reflects India’s enhanced role in the Middle East through cooperation and collaboration in multiple sectors. With various strategic partnerships underway, India must engage with the following focus areas in the future:

• Agriculture & Food Security: In light of the rising global concerns over food supply chains, strengthening agricultural ties with GCC countries for leveraging technological innovations such as climate-resilient crops and water-efficient farming methods will be vital for securing food security in India. The MoU on food parks with the UAE is a step in the right direction and India should deliberate on more such partnerships. 
• E-Commerce: The India-UAE VTC launch reflects a larger proclivity towards digitalising trade processes for ease of doing business. Thus, India should invest more in e-governance and e-commerce infrastructure to fully capitalize on trade agreements like the CEPA and the IMEEC. It will also expand market access for Indian businesses abroad while providing the necessary impetus for finalizing the FTA between India and the GCC. 
• Energy Transition & Green Technologies: As the world inches closer to 2030, India and the GCC countries must strengthen their cooperation to achieve energy transition goals. The UAE, Saudi Arabia, Oman, and Bahrain are all member nations of the International Solar Alliance (ISA); thus, partnerships on harnessing and sharing solar energy can hasten the process of decreasing dependency on fossil fuels. Similar initiatives on wind energy will also be strategic to this end. Therefore, knowledge-sharing platforms on green technology and actively investing in them will be a major focus area for India. 
• Strategic Trade Routes & Maritime Security: Prompt conclusion of the FTA between India and the GCC is the need of the hour for long-term institutionalization of India-GCC relations. India must build on the momentum it has gained in maritime influence and build robust sea lanes for trade as well as communication, especially in the Arabian Sea and IOR. Enhancing naval cooperation to safeguard critical waterways, expanding joint military exercises, and intelligence-sharing in the region could further bolster India’s role as a peacemaker in West Asia. 
• Expatriate Welfare: With approximately 8.9 million Indian workers populating the Gulf, continued efforts to safeguard their welfare remain critical. India must prioritize strong labor laws, remittance frameworks, and social security benefits for the Indian expatriate community. This will ensure that India’s ties with the GCC remain people-centric while increasing avenues for cultural exchanges. 
• Balancing Geostrategic Interests: In maintaining strong partnerships with diverse actors such as Iran, Israel, Saudi Arabia, and Palestine, India walks a geopolitical tightrope on which it must traverse cautiously. Though India has played a commendable role in regional mediation efforts so far, contingency planning to shield itself from political volatility in the Middle East would be a wise move. 

The India-GCC Joint Action Plan 2024-2028 marks a significant milestone in India’s West Asia policy, reinforcing its commitment to deepening ties with the Gulf region. The partnership’s emphasis on energy security, trade, food security, and innovation aligns with India’s long-term strategic goals.

As India seeks to diversify its energy sources, enhance its trade relations, and address global challenges such as climate change, risks to food supply chains and political instability, its collaborative ventures with the GCC offer immense potential. By fostering cooperation in emerging areas, India is poised to play a pivotal role in championing progress and prosperity–not only in India, but also in West Asia altogether. The India-GCC dynamic will not only bolster India’s influential position in geopolitics but also contribute to its broader vision of sustainable development and regional peace. 

• Embassy of India. (n.d.) India-GCC Relations. Riyadh, Saudi Arabia.
• Ministry of External Affairs (MEA), Government of India (GOI). (n.d.) Visit of EAM, Dr. S. Jaishankar to Saudi Arabia for the India-GCC Joint Ministerial Meeting for Strategic Dialogue . New Delhi.
• MEA, GOI. (n.d.) Visit of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi to India (September 9-10, 2024). New Delhi.
• Trigunayat, A. (2024). Transforming Ties: India’s Strategic Triumph in West Asia. IMPRI Impact and Policy Research Institute, New Delhi.
• Trigunayat, A. (2019). India’s Foreign Policy in West Asia. Distinguished Lectures, MEA, GOI, New Delhi.
• Ningthoujam, A. (2024). Modi 3.0 and the likely trajectory of India-West Asia ties . Observer Research Foundation, New Delhi.
• ‘ India-UAE launches Virtual Trade Corridor to enhance ease of doing business .’ (2024). ANI News, New Delhi. 
• Press Trust of India (PTI). (2024). India, GCC discuss ways to bolster co-operation; adopt Joint Action Plan . The Economic Times, Mumbai.
• ‘‘India Deeply Pained by Death of Innocent Civilians in Gaza’: Jaishankar at GCC Summit.’ (2024). The Wire, New Delhi.
• Abbas, B.A. (2024). Analysis of India’s voting patterns on Israel-Palestine issues at the United Nations . Hindustan Times, New Delhi.
• Marsi, F. (2024). India exports rockets, explosives to Israel amid Gaza war, documents reveal. Al Jazeera, Doha. 
• Pasricha, A. (2024). India seals deal to operate Iran’s Chabahar port. Voice of America (VOA), Washington DC. 
• Haidar, S. (2024). Russia-Ukraine Conflict: Can India be a Peacemaker? The Hindu, Chennai.
• ‘Unrealistic Expectations: On India and Russia-Ukraine Peace.’ (2024). The Hindu, Chennai.

About the Contributor – Srishtistuti Roy is a researcher at IMPRI, New Delhi. She is an alumna of Jadavpur University, Department of International Relations. She has recently completed her postgrad in Gender Studies from the University of North Bengal and hopes to pursue a doctorate soon. Her research interests include South Asian political economy, gender & sustainable development, contemporary social movements, and cultural studies.  

Acknowledgement – The author expresses her humble gratitude to Dr. Arjun Kumar, Aasthaba Jadeja, and Meenu Mohan for their valuable insights. 

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