Strategic planning 25 years ago differs significantly from the process today. First of all, this is due to the accumulation of knowledge in the field of business and management, which allows the development of new mechanisms. However, the most important factor, in this case, is the speed with which the situation in the modern world is changing. Currently, planning needs to be carried out for a shorter period and also take into account possible unforeseen circumstances.
This statement was illustrated by the recent global pandemic, during which many organizations have experienced difficulties and have not been able to adapt. Moreover, in the modern world, not only economic but political and social contexts are constantly being transformed, which also has a significant impact on planning. Technological innovations available to managers also accelerate the process of implementing strategic changes. Thus, compared to planning 25 years ago, today, decisions are made faster and can be used immediately, which ensures a constant transformation of organizations and the continuation of the planning process.
Planning is now more important for organizations than it used to be, as it allows both long-term and short-term development. With regard to the rapid changes occurring in the modern world, strategic planning is able to minimize the negative impact of unforeseen circumstances and maximize the benefits from them. Fuertes et al. note that planning has “an impact of first-order about the risk of financial accident, a direct economic consequence for the owners, and investors of the companies.” Thus, a correctly chosen strategy, which is at the same time flexible, is able to ensure a stable position in the market for the company. The modern world is constantly transforming; therefore, this aspect is critically important and allows the organization to adapt to external challenges, using them to its advantage.
In the long term, planning is also more important for today’s organizations than it used to be. In particular, this aspect is associated with the dominant position of innovative companies and the introduction of technological changes in the business sphere. Barta et al. underline that planning allows the organization to choose a more flexible strategy through the adoption of available innovations and learning opportunities. Moreover, this process ensures the adaptation of the company to the conditions of the environment, which makes it competitive in the framework of the global economy. The modern world is more diverse and complex than it was several decades ago, so planning is becoming more and more important for organizations. It allows coordinating all the processes and resources available to the organization for maximum benefit. Thus, the more detailed the company’s strategy is, the more aspects it can use to respond to unforeseen situations and to ensure long-term development.