Strategic Planning - Why Does It Fail?

Many companies have already put this year's strategic plan they worked on last fall up on a shelf, never to be cracked open until the 2013 planning season is upon us again. Why do so many people put so much effort into a project that is never used? Here are the top six reasons. See if any of these are true at your company:

1. No buy in at the top
   Strategic planning is very important, but sometimes it's treated as a necessary evil to be gotten out of the way so you can do your 'real' work. If the President, C-level executives and VP's are not completely aligned on the importance of and reasons for a strategic plan, it's doomed from the start


2. It's a secret
   This is the classic Dilbert cartoon scenario, where the pointy-haired boss refuses to divulge the strategy to his hapless employees. Many well-intentioned strategic plans are restricted to those who 'need to know'. It's vital that your plan to be clearly communicated to the whole organization so they can support its execution at all levels


3. No buy in at the bottom
   This is a variation on "It's a secret". The rank and file may know about it, but there's been no real effort to solicit buy-in, so the topic is accompanied by rolling of eyes and shakes of the head.


4. No one is accountable
   What gets rewarded gets done. Guess what happens when execution of the strategic plan is tied into executive compensation? Suddenly people are motivated to make it happen, and the VP's in turn will ensure their team members in turn have an incentive to help them make it happen


5. Poorly executed
   If you don't understand the game you're playing (market dynamics, channels, technology, end user issues and other external factors), what winning looks like, and have well-thought through strategy to win in attractive market segments, it's no wonder your strategic plans don't move you forward and may be viewed with scorn and disdain.


6. Not really actionable
   A strategy to become "The Market Leader" sounds nice but isn't really actionable. How do you segment the market? Are all segments equally attractive? Are you focusing on revenue or profit or growth or share position? Where exactly are you now and what measurable point do want to be at in 1 year, 2 years, 3 years?

Ask yourself whether your business is truly driven by last year's strategic plan, or whether it's gathering dust on a shelf. If the latter, you might want to think about modifying your process so that future efforts can have a real impact.