Strategic planning is as popular as ever, with companies challenged by today’s uncertain economic climate looking for new ways to stimulate growth. However, while the intentions of strategic planning programs are well placed, managers continue to make several mistakes that negatively affect not only the process of the program, but the end results of the program as well.
Failing to use strategic planning tools
Often, executives will embark on a strategic planning initiative relying nearly 100 percent on the knowledge they’ve accumulated during their career, believing that is all they need in order to plan effectively. This is one of the biggest fallacies involving strategic planning, and the single biggest reason strategic initiatives fail.
In order to properly implement a worthwhile strategic planning process, executives need to use the tools of strategic management that are available. Whether these tools are strategic group maps, the five forces model or something else, they provide critical information such as where a company’s competitive advantages can be found, and how that company’s industry is changing. You might believe, for example, that your company is much better recognized than it really is within your industry. Without using one of the readily available analysis tools on the market, you may be operating under an erroneous belief that can render useless whatever planning you undertake.
Assuming strategic planning is a fast process
There is a surprising number of management teams that are under the mistaken impression a sound strategy can be determined during short, staccato meetings where people are more concerned with the timing of their break than charting an effective course of action. These meetings might serve the purpose of addressing high-level issues and identifying ways to share information, but to truly initiate a useful strategic planning process, it is imperative that days or even weeks be set aside. Without doing so, there is no way possible that an adequate amount of preparation, discussion and review can take place.
If strategic planning meetings are rushed, consisting mainly of summaries of critical issues, the people involved will not be able to truly absorb the forces underneath the surface of those key issues. This often leads to frustration that can result in the untimely death of a strategic planning initiative no matter how great it may have seemed at the outset.
One way of combating this problem is to determine – well in advance of a meeting – four or five key issues to discuss. Have executives brief management teams and have them work on establishing causes of problems and potential courses of action to rectify them. It is not out of the question to make this determination as far as a month in advance of a strategy session. Wait until the day of the meeting to do this and that will almost guarantee frustration and fruitlessness.
On the other hand, by streamlining the strategic planning process, companies can ensure all involved parties have a thorough understanding of all issues, causes of problems and options to attack them, and a clear call to action going forward. Better decisions and effective plans will likely be the result.
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