Common Strategic Planning Mistakes Should Avoid
Strategy involves coming up with activities to gain sustained competitive advantage. Research shows that 90% of strategy plans are never implemented effectively.
Everything in the world is transforming faster than ever; change is inevitable from marketing to technology and distribution of the assets to the capital markets. In order to stay connected to the competitive market, organizations need to avoid the mistakes while making strategic decisions or formulating strategic planning.
Some of the common strategic planning mistakes that should be avoided are mentioned below:
- Lack of Integration: Planning is the first block of strategic thinking. Effective strategy requires aligned plans for business and operations of the organizations. There is a dire need to incorporate strategic thinking into business conversations so that it can be strategically implemented.
- Looking at a Part of Business and not at the Whole: Give equal consideration to all the functions of the organization. Organizational policies and strategies are needed to be adjusted accordingly. The compensation and performance must be organized according to the employees’ work. The functioning, workforce and technology are considered as an engine that will drive the strategy and improved planning will enhance the success probability.
- Not Including Key Stakeholders: The world view has turned out to be broad that it is inconceivable for an individual or a group of administrators to see every advantage. Include key stakeholders who represent your organization at all levels, i.e. providers, merchants or other key influencers.
- Resources to Implement the Business Objectives are Neglected: Setting strategic targets for the coming financial year and then following them for next the five years is one of the common strategic planning mistakes. It is important to conduct a reasonable survey about the required assets and design the sheet of still non-existent assets as a sub-objective. This involves more employees and budget.
- Employees are too Little Involved in Strategy Development: The organizations’ leadership team sees employees’ roles just in implementing the business procedures and they are announced to them by the top management. This gives away the chance to effectively include the employees in strategic development. Not including the employees has two disadvantages: the first is that strategy without contribution of the employees can put some distance between realities; secondly, is the inspiration of the employees can withstand pressures towards implementation of strategy development.
- Employees are Unaware of the Goals: This can lead to huge problems in numerous organizations. At the point when the corporate planning process neglects the individuals who execute the plans, breakdowns take place and required results are achieved once in a while. The set of strategies and plans are required for every activity and objective. These ought to be conveyed all over the organization, so that everybody comprehends what is expected from them.
- Goals not Tied to Measurable Outcomes: The organizational goals ought to be developed as tangible results that are visible to the customers, employees and organizations. Similarly, goals ought to be characterized so that they can be measured and overseen all through the layers of organizations. Goals should help to impel activity and accomplishment from the supervisors and workers.
In conclusion, in order to maintain a strategic distance from the common mistakes of the employees, organization should build a relationship with strategic planning, it is suggested that you set aside the time for proper strategic planning, ensure that the strategic planning session is legitimately overseen, and form strategic planning board of trustees to screen the strategic plan on continuous basis. If the above mentioned common mistakes are avoided, then you are well on your approach to build up a strong strategic plan that addresses the issues of your organization.