Pitfalls to Strategic Planning

Strategic planning is a process being done by an organization to define its strategy or direction, and at the same time make decisions on allocating its resources to pursue this strategy.

The techniques that are used to accomplish this include SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PEST analysis (Political, Economical, Social, and Technological).

In order to determine where the company is going, it needs to know exactly where it stands, then determine where it wants to go and how it will get there. It also gives its people the feeling that they belong in something bigger than themselves, and at the same time know what bigger things they are part of.

However, a lot of organizations fail to implement their supposed strategic plan over the years, and it is said that these are caused by falling into the following mistakes.

Failing to update directions – Considering that you belong in a fast-moving, fast-changing industry, your organization needs to put up with the business environment and create an overall compass for your direction.

Putting too much specifics – A simple yet implementable strategic plan involves coming up with operational plans and goals. However, if your company begins to set sales prospects, unnecessary competitive analysis, upgraded products, and other tasking directions make your plan ineffective.

Putting everything into priority – If all goals are needed to be accomplished at almost the same pace, you end up making baby steps instead of creating giant leaps into finishing one goal before leaping into the next.

Leaving strategic planning into the hands of consulting companies – These consultants usually recommend and request about 50 to 60 pages of research about competitors, markets, and current market measurements. Although it may sound impressive, companies rarely have all of this data collected nor do they have the ability to utilize it effectively in planning. This makes all the effort meaningless.

Lack of drive to execute the strategy – Your company may make great plans for the future, but do not even have the specific framework necessary to follow-up these strategic plans.

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