Research into the factors leading to strategic planning failure in business reveal a myriad of reasons why some companies struggle to survive in the marketplace. But the more conspicuous statistics relate to development versus implementation. Reports such as the Bridges Strategy Implementation Survey indicate that 80% of team leaders feel satisfied with their development plans, but only 44% are happy with its implementation. Spectacular strategic failures like Kodak grab headlines for all the wrong reasons, but in truth many companies suffer the same fate with business leaders failing to innovate, or senior managers failing to implement the business plan. With her extensive experience in strategic planning, Maureen Grealish outlines 5 reasons why some strategic business plans fail, and why companies struggle with this critical issue.
1. Lack of Alignment Between Strategy, Objectives, Vision and KPIs
“Some businesses develop Visions, Strategy, Objectives and KPIs independently of each other, not understanding that they should be linked. Even though they may focus on each area, the fact that they are not aligned results in lack of focus, direction and impact. The idea is to fix on a vision first, then identify a strategy that will get the business there. Once the strategy has been agreed, 5/6 Key Business Objectives for the next 12-18 months can be agreed, and with them the measurements that will measure the progress (or otherwise) towards the achievement of the objective.”
2. Lack of Discipline
“Lack of consistency in discipline will affect the outcomes from any Strategic Development Programme. A lot of discussion, time and effort can go in to developing the strategic plan of a business. The biggest reason that they fail is that the action elements are not applied, monitored regularly or refined when required. This results in lack of focus and direction. It also results in lack of energy…if actions aren’t being completed then nothing can be achieved.”
3. Lack of Accountability
“As part of the strategic plan development, actions will have been identified. Each action will have a deadline and an owner. If the MD does not encourage accountability for completion of the actions, then people will realise that there are no consequences for lack of action and the drive to complete them will be pushed to the background when other, often immediate, challenges arise.”
4. Lack of Head Space
“When managers, leaders and team members are so busy that they cannot ‘lift their heads’ away from the immediate requirements of the business, it is difficult for them to get the head space to address the medium and long-term elements of the business. It is human nature to focus on the immediate, however, it does not help a business progress towards the completion of an objective, which makes it impossible to successfully realise a vision. It takes practice and discipline to give some time to the future, and to ensure that decisions made and actions taken will assist with getting the business to where it wants to go.”
5. Lack of Courage
“It is easier to focus on the elements of our responsibilities that we know we are good at. The natural tendency is to achieve NOW. It can be more difficult to spend some of our time focusing on the future – that may be uncertain, may have risk and may be uncharted territory. We all need to be courageous to challenge what we are doing now, what is comfortable for us, and to adapt to changes which may be difficult in the short term, but will have greater impact in the longer term.”
Interview by Des Kirby
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The report by AIB/ Amarach Business 2020 provides an overview of how Irish business leaders and decision makers feel about opportunities in the coming years regarding ‘working, selling and succeeding.’ You can download the report from the Amarach landing page.
For more information contact:
Maureen Grealish Director at LEAP
Sonja Stevens Business Development
T: 091 755736