The Problem With Strategic Planning

Posted by Jim Connolly on 6 July, 2010  Email This Post -  Print This Post

Most strategic planning efforts fall far short of their objectives.  And, most of the time, it’s human behavior that get’s blamed.  “We just let the plan collect dust on the shelf.”

The reality is that most strategic planning processes are flawed.  I don’t get much fan mail from strategic planning consultants, but after having studied the results of strategic planning efforts for years, I’ve concluded that most planning processes are flawed.  Flawed processes result in flawed results.  Here’s what I mean. 

Most planning processes start with establishing mission and vision.  “Who are we and where are we going?”  Then comes strategies, goals, objectives and action plans to support achieving the mission and working toward the vision. 

However, this process only works if the marketplace wants what the company has declared it will provide.  What if no one wants the products/services that the company provides?  The planning process will fail to deliver the promised results. 

Further, what if many other companies are already providing similar products and services?  There may be a demand for your products and services, but there will also be competitive pressure to lower prices and erode margins.  

We recommend a process that starts with gathering external data about what the market wants and who’s currently providing those products and services.  The risk is that you may end up with data that suggests that your current products/services are missing the mark.  The upside is that you’ll discover prime opportunities to win in specific market niches.

I clearly understand why many companies avoid strategic planning.  But, done right, there are phenomenal opportunities to improve your organization’s performance.  Remember, if you keep doing what you’ve been doing, you’ll continue to get the results you’ve always had in the past.