American Institute of Certified Planners (AICP) Practice Exam

What major question should a Strategic Plan address regarding the organization's future direction?

1. What are our current financial constraints?

2. Where are we going as an organization?

3. What staff training do we need?

4. How do we reduce operational costs?

The correct answer is: Where are we going as an organization?

A strategic plan is fundamentally about charting the future direction of an organization. It seeks to establish a clear vision of where the organization wants to go, often setting long-term goals and defining priority areas for action. By addressing the question of "Where are we going as an organization?", the strategic plan helps stakeholders understand the desired future state and provides a framework for decision-making and prioritization of resources to achieve that vision. While financial constraints, staff training needs, and operational cost reduction are important considerations for an organization, they are typically tactical and operational in nature. These aspects are supportive and serve as tools to execute the overall strategy but do not fundamentally define the organization's future direction. The focus of a strategic plan should be primarily on the vision and goals, ensuring that all actions align with that overarching trajectory.