When it comes to business management, strategic planning is an essential element. This is due to the increasing complexity of economic markets and the need to undertake a structured path oriented towards a long-term vision. 

Business strategic planning therefore means creating an action plan that guides the company towards the desired future scenarios, considering the means and liquidity necessary to achieve the objectives. 

The product generated by the planning cycle is called a strategic plan and is usually shared with the entire company; within it, the company mission is translated into strategic objectives to be achieved in the long term. 

The benefits of planning 

Planning offers many advantages to businesses, including: 

• improved profitability: through effective planning, companies can identify and take advantage of cost reduction opportunities, consequently increasing profits; 
• increased efficiency: planning helps to optimise the use of resources, eliminating waste and inefficiencies that can hinder productivity; 
• risk reduction: a careful analysis of potential future risks allows companies to make proactive decisions to mitigate them, protecting financial stability; 
• improved decision-making: planning provides a solid foundation for making informed and strategic decisions, supported by data and in-depth analysis. In addition, through business planning it is possible to promote a long-term vision, avoiding short-term myopic perspectives; 
• building a strong and shared organisational culture at a general level; 
• increased competitiveness: a company that plans effectively is able to respond promptly to changing market conditions and anticipate the moves of competitors, gaining a competitive advantage. 

Strategic cost planning: a fundamental pillar 

Among the different types of planning, strategic cost planning plays a central role in business success. It consists of a systematic and continuous process of analysis, definition and control of costs, with the aim of optimising the allocation of resources and maximising long-term profitability. 

Strategic cost planning is based on several key elements, including:

• definition of cost objectives: establishing clear and measurable cost objectives provides a precise direction for planning and control activities; 
• historical cost analysis: examining historical cost data allows you to identify trends, areas of inefficiency and potential savings opportunities; 
• forecasting future costs: accurately forecasting future costs is essential for making informed decisions about investments, production and business management; 
• cost monitoring and control: regularly monitoring costs and comparing them to established budgets allows for the identification of deviations and the implementation of timely corrective actions; 
• continuous improvement: strategic cost planning is an ongoing process that requires a constant commitment to improvement and innovation. 

For this reason, it is essential to have an advanced solution that allows you to have control over the allocation of corporate costs, quickly and easily. 

LeanCOST: The software for costing and strategic cost planning 

In this context, LeanCOST stands out as a valuable ally for companies that want to optimise their cost planning and control processes. Thanks to its reliable and sustainable analytical approach, LeanCOST offers a series of functionalities that simplify and speed up costing and budgeting activities, allowing companies to: 

• reduce budgeting times by up to 75%; 
• save on purchasing costs by up to 10%; 
• increase product margins by up to 20%. 

To learn more about LeanCOST and how it can help you optimise your strategic cost planning, request a Free Demo on our website. 

Bibliography

(1) L’importanza della pianificazione strategica aziendale | LinkedIn 

Costi e benefici della pianificazione strategica: un cambio di paradigma? – Export Best Practice 

Pianificazione strategica: Cinque passaggi per la pianificazione, guida al processo [2021] • Asana 

Controllo costi aziendali: perché è fondamentale tenerli sotto controllo? (cosmanitalia.it)