Mistakes to Avoid in Strategic Planning ((Strategic Planning and Management))

 

Mistakes to Avoid in Strategic Planning

There may be a number of reasons why organizations fail to reap the benefits of strategic planning and management:

Taking shortcuts. Effective strategy requires extensive research, detailed analysis, and honest evaluation of the organization and its competitive situation. Poorly researched, vague, or overly ambitious strategies are usually not successful and make a poor argument for strategy.

Little follow-through. Often, strategic planning is a pro forma exercise that produces a plan that is placed in a desk drawer. This perception may be due to the early association of strategies with annual budgets, among other reasons. Strategic plans should lead to decisions. Because these decisions are risky, require complex execution, or are in conflict with the current organizational culture, leaders may be reluctant to translate intent into action. Strategy requires leadership and good decision makers.

Overreliance on the comfortable and familiar. Strategy often requires change and risk taking. Risks must be taken methodically, with due diligence, and transparently, according to agreed standards and guidelines.

Insufficient commitment from management. Sometimes the task of setting strategy is handed off to consultants; senior management and the board are not committed to the process or directly involved. It is difficult then to obtain their support for strategic initiatives.

Insufficient involvement of the rest of the organization. If the strategy is developed by a small management group, it will be more difficult to convince the entire organization of the wisdom of the decisions and the value of changes, effort, and sacrifices.

Inadequate communication. The strategic intent and decisions may not be shared with the entire organization. This negates one of the primary benefits of strategy that it becomes a guidepost for decision making at all levels and in all parts of the organization.