Strategic planning is crucial as it provides a roadmap that guides decision-making and resource allocation. It helps organizations align their activities with their mission and vision, fostering a sense of purpose among employees and stakeholders. Additionally, it facilitates proactive responses to changing market dynamics, ensuring that the organization remains agile and competitive.

This process typically involves conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), defining clear objectives, outlining action plans, and establishing performance metrics to measure progress.