With the New Year and changeover to a new calendar upon us, it is a perfect opportunity to reflect on what was learned during 2010, set exciting new goals for the year ahead and start building a plan of action to achieve those goals.

Each year I eagerly anticipate the arrival of December 31, partly to celebrate the year and mostly because I look forward to using January as a launching pad to re-energize my work. My business relies largely on client demand to assist in developing strategic plans. As such, here are the top three reasons that came to mind on why a plan matters:

Focus & Direction

The initial task of setting goals allows an organization to engage key individuals, and if done effectively reach agreement on the vision, shared values and goals. Once goals have been established, ease of communication on expectations and needs with all stakeholders is greatly improved. A focus on goals and priorities is needed to keep any individual or group motivated, on task and on budget.

Responsiveness

With goals on paper, the organization can begin its fact-finding mission so that current and relevant information related to the internal and external operating environment is collected, summarized, shared and considered to develop the strategies and action items in the plan. This information is essential for management to make decisions grounded in reality, be proactive in taking advantage of opportunities and mitigating risks.

To quote Charles Darwin, “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

Performance Management

2011 is certain to bring many surprises, and a plan can be an organization’s most strategic asset. In addition to providing focus and direction, improving communication on expectations and needs, a greater ability to respond, organizations can monitor and evaluate performance against their plan of action. There is little value in setting goals if they are not measured. Goal should be monitored regularly to ensure the organization is reaching its full potential, or taking the appropriate corrective action. Further, appreciating and rewarding team members’ performance is fundamental and sure to boost morale, promote optimum productivity and organizational stability.