Here are the 7 most common reasons given for not doing
strategic planning. You can see why
these could be considered to be false reasons and just stand in the way of the
company’s success. The lessons from Procter & Gamble show how these may be false.
1 The CEO believes
they already have a plan in their mind.
Too often the CEO believes that there is already a strategic
plan because they have a rough plan in their mind. The difficulty is that this plan is generally
not data based and worse still is not communicated well or understood by the
rest of the organization. As a result,
the organization does the best that they are able but seldom in line with the
CEO’s vision or plan. Valuable resources
in people and finances are not focused and wasted. If you want the plan to work, write it down
and share it broadly. This only makes
sense!
2 A belief that funds for planning are not
available.
3 Focusing on too
many other projects.
One of the reasons that there are too many other projects is
that there is no well-known and followed plan.
A strategic plan is not only what the company will do but what it will
not do. Focused effort leads to fewer
false starts with less wasted effort and rework. Productivity increases. The employees are happier and have less
stress, thereby reducing turnover.
4 A Belief that the market
will change
Many companies put off strategic planning because they
expect the market will change. Of course,
the market will change! But the purpose
of the plan is to manage that change and not be managed by it. The right plan can help companies to take
advantage of market changes and gain a competitive advantage over competitors
who have done no planning. Develop the
plan and review it, altering it to capitalize on market changes.
5 Not sure how to
proceed
Executives at companies are smart. They clearly have the intelligence to do
strategic planning. However, in many
cases they just don’t have the training in strategic planning and should be
active participants instead of facilitators.
Having a simple process like the one that we use at Moon & Stars
allows the executives to lead the planning without disrupting the daily
business.
6 Team doesn’t want
to do it
Teams generally do not get involved in strategic planning. They are just provided with new ways of doing business and of course there is always a resistance to change. They need to be “pulled” into executing the plans. At Procter & Gamble, all are involved and so they believe that they have a vested interest in the plans and an understanding of the benefits.
7 Takes too much
time/ Waste of time
Actually, the strategic planning process can be built upon
current data and knowledge and accomplished within normal work effort. Almost immediately, it will become clear as
to the activities that can be eliminated due to negative or low returns. This frees up the time to do the planning and
the activities which will have a long term positive effect.
Conclusion
Strategic planning is generally misunderstood and as a
result these and other false reasons are held that prevent companies from
getting the benefit of the planning. We
at Moon & Stars have had the opportunity to learn, not only how to do
strategic planning, but to assist clients to develop plans that are
specifically tailored to their situation.
The time and investment are minimal and the results are
significant. Procter & Gamble makes
this process a common activity in which everyone participates.
What is holding you back from getting the business results
that you might achieve?
Founder and Managing Director of Moon & Stars Consulting
President Maver Management Group
(925) 648-7561
Maver Management
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