Aug 22, Despite the hours invested in developing strategic plans, all too often they don't work.
According to a survey, there are five main reasons that they fail. Learn what they are and improve your own success.
That's how one of our survey respondents answered our question, "What are the top three obstacles that prevent great plans from reaching effective implementation? And based on the spirited responses we got from the generous folks who answered our survey, it seems that many click here been involved in a strategic plan that failed.
Two reasons companies fail -- and how to avoid them
Of course, we all know it's not YOUR fault! If it's any consolation, even the big boys can't here to get it right. Arthur Andersen had a great strategy, except for the one little loose thread that allowed the entire company to unravel. And what happened at Kmart, Xerox, and Polaroid?
These are organizations that all had the wind at their backs at one time or another, and now you have to wonder if their management could lead a dogsled team to a meatpacking plant. OK, so no need to affix blame; let's focus on fixing the problem! The purpose of the survey was to identify key contributors to strategy failure so raised awareness could guide our clients to proactively avoid them.
What follows is a recap of the responses from the top five categories in no predictable order, I'll warn you! These five categories reflect the most popular -- although not necessarily the Reasons Why Business Plan Fails significant -- responses we received, out of approximately 25 categories. Their pervasiveness certainly warrants our attention. By addressing these five obstacles, you can expect to more successfully implement the plans you devise and participate in, even if a past experience felt more like a do-it-yourself read article. Communications The number two response to our question about strategy failure should be familiar to all: Since we can't get it right at home -- with one in two U.
Poor communications seems to take many forms. Apparently, some groups like to develop strategic plans, and then hide them under a rock. But they don't do it on purpose. Expectations and opinions are not shared openly, thoroughly, and effectively. Other responses also indicate that lack of communications routinely allows plans to die out after their launch. This contributor didn't hold anything back: Organizations become introverted in their communication strategies, whether the group is a large company or a small team.
Communication is also much more than words and pictures. Communication is Reasons Why Business Plan Fails delivered through demonstration.
What does that scream about the value of the strategy? That behavior will raise eyebrows faster than a cook who won't eat his own cooking! Leadership Which brings us to leadership, which was the fifth most popular category. From these responses we can learn Reasons Why Business Plan Fails leadership is much like fly-fishing -- when you're up to your waist in it, it's suddenly much harder To Write Easter Wishes How it looks!
This respondent noted that there was enough blame to go around: Not all management teams are blessed with skilled leaders. Lastly, we have leaders who are just plain stubborn, kind of like a mule with a good parking space at the mall: They are just nice, high-level ideas. Calling something a strategic initiative doesn't make it one. It seems that many of our strategic planning sessions stop halfway, before there is a plan.
Inquiring minds want to know what a strategy document is really for. Instead, I suggest that implementing strategic plans is more like keeping plates spinning atop a number of pointed sticks.
If we don't put forth a regular effort to keep them spinning, the plates will fall down and the sticks will end up in uncomfortable places. Notice the subtle difference here from leadership. While leadership is expected to communicate the vision and support it with demonstrable actions, management is expected to know how to execute the individual tactics.
Like leadership, management is not easy either: Most fail because they assume their team has the wherewithal to pull it off and they therefore do not manage the process.
Motivation and Personal Ownership Our last category is actually our first category. This most popular category of Motivation and Reasons Why Business Plan Fails Ownership contains responses focused on the question, "What's in it for me?
In other words, they want to show up for more than just a paycheck. People want to build something, make a difference. No enthusiasm to make it happen. The bottom line, how will it affect ME? More effort is needed to help people understand how getting behind the company's goals can support their personal goals. If it works for me -- it works for me! Let everyone visit web page deal with it.
You must have some kind of image of the outcome. Perhaps that lack is what causes, "lack of buy-in from the entire group. These observations and insights can help you improve your success rate with implementing strategic plans, so it doesn't feel like doing the splits over a case of dynamite.
If you have had "great plans" fail -- I've lost personal count! The survey referenced above was conducted by e-mail between July 15th and August 1, Ninety-four respondents from a variety of business environments and roles contributed individual responses.
Those responses have been categorized and form the basis of our observations and analysis. Paul Johnson of Panache and Systems LLC consults and speaks on business strategy for winning against bigger, stronger, better-financed competitors. Subscribe to Our Free Newsletter Enter your primary email address.
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