What Are the Benefits of Strategic Direction?

by Jonathan Lister ; Updated September 26, 2017

A company's strategic direction is created through the development of a strategic plan. The direction a company chooses to take to achieve its goals is an important part of the strategic planning process. The benefits of a clear strategic direction are felt all over the company — from ground-level employees, who work more efficiently with clear goals, all the way up to shareholders, who remain confident in the company's potential for continued success and financial prosperity.

The Benefits of a Plan

A company with a focused, strategic direction is much more attractive to potential shareholders and investors than a company seemingly adrift and rudderless. A high level of organization within your company, along with its dedication to achieving both short-term and long-term goals, can make it easier for your business to raise capital and continue to grow both in size and profitability. Your strategic direction in this case serves as a form of advertising for financial institutions and private investors.

Focus Employees on Goals

A strategic direction within a department or business as a whole allows you as a business owner or manager to focus your employees on specific goals. Employees are able to work with greater efficiency and with better allocation of resources because each worker is pointed towards a specific task aimed at achieving the larger goal. Employees should understand how each task fits into the larger business goal to gain a greater sense of importance in the larger project.

Analyze Strengths and Weaknesses

A strategic direction for a particular project or business goal allows your business to determine its strengths and weaknesses, and create a plan which best suits those characteristics. For example, if your company identifies its sales staff as a strength, it may create a strategic plan designed to create higher sales through incentive programs and more in-depth sales training. Goals for this plan are measured through sales performance of the entire staff, as well as the performance of individual salespeople within the department.

Solving Operational Problems

When your company makes a firm decision on its path to success it becomes easier to determine what elements of your company block that path. A clear strategic direction can allow your company to eliminate wasteful spending and streamline its workforce for optimal efficiency in working to meeting company wide goals. Healthier operational expenses can also help your company weather any economic downturn or retraction in your industry which may slow the company's growth and hurt its chances of meeting financial goals.

About the Author

Jonathan Lister has been a writer and content marketer since 2003. His latest book publication, "Bullet, a Demos City Novel" is forthcoming from J Taylor Publishing in June 2014. He holds a Bachelor of Arts in English from Shippensburg University and a Master of Fine Arts in writing and poetics from Naropa University.