15 Strategic Planning Interview Questions and Answers

Strategic planning is a process businesses use to set goals, identify and allocate resources, and create action plans to achieve their desired outcomes. The strategic planning process can be long and complex, so it’s no surprise that employers often ask interview questions about strategic planning to test a job candidate’s knowledge and skills.

If you’re interviewing for a position that involves strategic planning, you need to be prepared to answer questions about the process, including how you would go about developing a strategic plan. To help you prepare, we’ve compiled a list of common strategic planning interview questions and sample answers.

1. What is strategic planning?

This question is a great way to show your interviewer that you understand the basics of strategic planning. You can answer this question by defining what strategic planning is and how it helps businesses succeed.

Example: “Strategic planning is a process in which organizations create plans for their future success. It’s important because it allows companies to make decisions based on long-term goals rather than short-term ones. Strategic planning involves creating a mission statement, identifying key objectives and developing strategies to achieve those objectives.”

2. Can you explain how strategic planning works in practice?

This question is a great way to show your interviewer that you have the skills and knowledge necessary to perform well in this role. Use examples from your experience to explain how strategic planning works, including what steps are involved and why it’s important for organizations to plan ahead.

Example: “Strategic planning is an essential part of any organization because it helps leaders make decisions about their company’s future. In my last position, I worked with senior management to create a five-year plan that included goals and objectives for each department. We then created quarterly plans based on these long-term plans so we could monitor our progress and adjust as needed. This process helped us stay focused on our most important goals while also allowing us to be flexible when unexpected challenges arose.”

3. How does a company use strategic planning to improve its financial performance?

This question can help the interviewer understand how you apply your strategic planning skills to achieve results. Use examples from your experience to explain how you used financial data and analysis to make recommendations that helped a company improve its performance.

Example: “In my last role, I worked with senior management to develop a five-year plan for the organization’s growth. We started by analyzing the current financial situation of the company, including revenue projections, expenses and cash flow. Then we developed strategies to increase sales and reduce costs to ensure the company could meet its goals. By implementing these strategies, the company was able to reach its revenue targets and maintain profitability.”

4. Is it possible for companies to do too much strategic planning? If yes, then what are some of the drawbacks and risks associated with over-planning?

This question is a great way to assess your ability to recognize when strategic planning efforts are not effective. It also helps the interviewer understand how you would know when it’s time to stop planning and start executing.

Example: “Yes, it is possible for companies to do too much strategic planning. The main drawback of over-planning is that it can lead to inaction or delayed action. If a company spends too much time planning without taking any real steps toward achieving their goals, they may lose momentum and fail to meet deadlines. Another risk associated with over-planning is that it can cause employees to feel disengaged from the process. When this happens, it can be difficult to get everyone on board with the plan once it’s ready to be executed.”

5. Why should a company invest in strategic planning?

This question is your opportunity to show the interviewer that you understand why strategic planning is important for a company. Use examples from your experience or refer to the job listing to explain how strategic planning can benefit an organization.

Example: “Strategic planning allows organizations to create goals and objectives, which helps them achieve success. I have seen firsthand how effective strategic planning can be in helping companies reach their goals. In my last role, we used strategic planning to develop our annual budget, set sales targets and determine what resources we needed to meet those goals. This helped us make informed decisions about where we wanted to invest money and how we could use our resources most effectively.”

6. Does strategic planning require special software or tools?

This question can help the interviewer determine your level of expertise with strategic planning software and tools. Use your answer to highlight your knowledge of different types of software that are used for strategic planning, including how you use them and what benefits they offer.

Example: “There are many different types of software and tools that I have used in my previous roles as a strategic planner. Some of these include project management software like Basecamp or Trello, which I’ve used to organize projects and delegate tasks among team members. Another type of tool is mind mapping software, which I’ve used to create visual representations of ideas and concepts. This has helped me communicate more effectively with other team members.”

7. Is it important to have a time horizon when doing strategic planning? What’s your opinion on this?

This question is a great way to show your interviewer that you understand the importance of strategic planning and how it can be used in an organization. When answering this question, make sure to explain why having a time horizon is important and what benefits it has for organizations.

Example: “Yes, I believe it’s very important to have a time horizon when doing strategic planning because it allows you to plan out long-term goals while also creating short-term plans to achieve those goals. Having a time horizon helps ensure that you’re making decisions that will benefit the organization in the future as well as now. This is especially beneficial if you’re working with other departments or teams who are responsible for different aspects of the business.”

8. What is a S.W.O.T analysis?

This is a common question that interviewers ask to test your knowledge of strategic planning. They want to know if you can apply the analysis in your work and how it helps you achieve goals. In your answer, explain what S.W.O.T stands for and give an example of when you used this method to help you complete a project or goal.

Example: “S.W.O.T stands for strengths, weaknesses, opportunities and threats. It’s a useful tool for analyzing information about a company’s current state and identifying areas where improvements can be made. I use this technique often during my projects because it allows me to evaluate all aspects of a business before making decisions on which strategies we should implement.”

9. What are some examples of strategic plans that failed due to setbacks or other reasons?

This question can help the interviewer understand how you respond to challenges and learn from your mistakes. Use examples from your past experience that highlight your problem-solving skills, ability to adapt and commitment to continuous improvement.

Example: “In my last role as a strategic planner for a large company, we were developing a plan to increase sales by 10% over the next five years. We had already met our goal of increasing sales by 5% in the first year when the economy took a downturn. Rather than giving up on our goals, I worked with my team to develop new strategies to reach our target despite the setback. In the end, we developed more effective marketing campaigns and increased sales by 15% within two years.”

10. What are some best practices for developing an effective strategic plan?

This question can help the interviewer assess your knowledge of strategic planning and how you apply it to your work. Use examples from past projects or experiences that highlight your ability to create an effective plan.

Example: “I find it important to start with a clear understanding of the organization’s goals, objectives and values before creating a strategic plan. This helps me determine what resources are available for my team to use when developing our ideas. I also like to involve key stakeholders in the development process so they can provide input on the best ways to achieve success. Finally, I always make sure to include time frames for each goal we set so we can monitor our progress.”

11. Do you think the process of strategic planning needs to be formalized?

This question can help an interviewer understand your thoughts on the process of strategic planning and how you would approach it. It can also show them whether or not you have experience with formalized processes, which may be beneficial to their organization. In your answer, try to explain why you think formalization is important and what benefits it can provide.

Example: “I believe that strategic planning should be a formalized process because it allows organizations to create long-term goals and objectives that are measurable. This helps ensure that everyone involved in the planning process understands the company’s vision and mission and knows how they can contribute to achieving those goals. Formalizing the process also makes it easier for leaders to track progress and make adjustments as needed.”

12. What kind of people need to be involved in the process of drafting a strategic plan?

The interviewer may ask this question to learn more about your leadership skills and how you involve others in the strategic planning process. Use examples from past experiences where you included a variety of people in the drafting process, such as employees, managers or executives.

Example: “I believe that everyone who is affected by the plan should be involved in the drafting process. For example, when I was working for my previous employer, we had an annual strategic planning meeting with all department heads, senior management and our CEO. We used these meetings to discuss what we accomplished during the year and what goals we wanted to achieve over the next 12 months. This helped us create a plan that addressed the needs of many different departments.”

13. What are the different stages of strategic planning?

This question is a great way to show your interviewer that you understand the process of strategic planning and can apply it in your work. When answering this question, list each stage of strategic planning and describe what happens during each one.

Example: “There are five stages of strategic planning. The first stage is visioning, where I meet with my team to discuss our company’s goals for the next three years. Next, we create a mission statement that outlines how we plan to achieve those goals. Then, we develop strategies to help us reach our goals. After that, we implement our strategies into actionable steps. Finally, we evaluate our progress at regular intervals.”

14. What are the most common mistakes made during the process of strategic planning?

This question can help an interviewer determine how well you understand the process of strategic planning and whether you’ve learned from your mistakes. When answering this question, it can be helpful to mention a mistake you made in the past and what you did to correct it.

Example: “The most common mistake I see during the strategic planning process is not having a clear goal or objective for the plan. Without a specific goal, it’s difficult to know if the plan was successful or not. In my last role, we were tasked with creating a new strategic plan for our company. We started by defining our goals and objectives before moving forward with any other steps.”

15. Can you give me an example of a company whose strategy was not well thought out?

This question is a great way for the interviewer to learn more about your critical thinking skills and how you apply them in real-world situations. When answering this question, it can be helpful to provide an example of a company that had a well-thought out strategy but failed to execute on it or one where the strategy was not as effective as it could have been.

Example: “In my previous role, I worked with a team that developed a strategic plan for our organization’s growth over the next five years. The plan included specific goals and objectives that we would need to meet in order to achieve our overall goal. One year into the plan, the company hired a new CEO who decided to make some changes to the plan based on his own vision. While he did add some additional strategies that were beneficial to the company, he also removed several key objectives from the original plan. This led to us missing several important deadlines.”