Why Strategic Plans Fail: Mistakes of Business Strategies
Careful strategic planning is paramount for organizations seeking to establish themselves in our dynamic economy. Still, even the best thought-out strategic plan will falter if employee buy-in is not supported and a thoroughly considered implementation process is not put into effect. My new book Why Strategic Plans Fail casts light on these dark corners of entrepreneurship and share with you the kind of knowledge that can save you a lot of time and frustration. But most importantly, it can save you from failing in your venture.
A thoroughly prepared strategic plan is vital for reaching objectives and goals; any business depends on careful planning to be successful. Regrettably though, many individuals, groups and organizations, fall short when it comes to executing their plans. The outcome can be wasted time, cash and various missed opportunities. If a strategic plan is to be successfully implemented, one must count for a number of interrelated factors. I am addressing the most crucial of these in my book – Why Strategic Plans Fail. Creative awareness of the pitfalls of strategic planning will help to circumvent organizational failure.
Today’s organizations typically consist of two organizational processes: one is performance management; the other is strategic planning. Both processes offer great potential payoffs, yet most of the time they do not pay off. Along these lines, what is the most common reason strategic planning comes up short? The answer may not be that difficult to figure out, but it’s a bit surprising. Much like with any form of planning, whether for associations or people, the improvement of a plan is not going to be very favorable unless the plan is implemented, or utilized for what it’s designed to do. For any business, strategic planning is a crucial prerequisite. It is the way of looking into the future and making a bearing purposefully, rather than just responding to market movements on a daily basis. In today’s quick paced market context, proper strategic planning helps organizational leadership keep their wits about them and assemble a company emphasizing the values that matter most to them.
Strategic planning is an important part of our culture; it is what builds up our personal and professional lives. It is what makes the world revolve and evolve but, as we will see, it’s not always full proof. As a matter of fact, if life has taught us something, is that no matter how prepared we are, how determined and disciplined we strive to be, there’s a slight chance that our plans will fail. For some, failure is an incentive for trying even harder, for others, it’s a dead-end. However, we’re not here to question our willingness to reach out for a better life, but instead to determine what are the causes of our failures.
Traditionally, strategic planning entailed going offsite for a few days once a year and laying out the company’s goals and direction for the next two or three years. Moreover, most organizations, particularly the bigger ones, feel they have to participate in this activity to get everybody in agreement. On the other hand, surveys reveal that most administrators are disappointed with the outcomes they get from investing their time into these matters. Actually, more than 50 percent of administrators say that they are currently unsatisfied with their vital strategic planning process. Therefore, while they do realize the importance of strategic planning, they do not completely understand the gains they were counting on to achieve from it. Lamentably, this frequently brings about a criticism about the strategic planning process all across the organization, which further causes a shortage of responsibility and an absence of clarity about their company’s strategy. Therefore, what was meant as a dynamic exercise (with a huge effect on the organization’s future achievement) threatens to become something that is simply tolerated. What’s more, when individuals feel just as they are simply sitting through yet another tiresome and insipid gathering, they’re not locked in, not imaginative and not productive.