Reasons Why Strategic Plans Fail
Strategic planning ought to be carried out by a planning team. In essence, the chief executive of an organization should be involved in the planning, driving and implementing the plan.
There ought to be clear guidelines for the membership (McNamara 2012). This includes those directly involved in the planning, those involved in providing key information, those involved in reviewing the plan document, as well as the people involved in authorizing the document. When it comes to the process of planning, a variety of members may be required at different times. For instance, a powerful board involved in determining the strategic direction of the organization may be required (McNamara 2012). The staff should also be involved in determining the strategic analysis of the organization in order to determine its existing issues and goals.
Eventually, the most important staff ought to address the strategies required to examine the issues and meet the goals (McNamara 2012). Generally, it is always appropriate to involve people irrespective of whether there are doubts concerning their involvement (Bryson 2011, pp.79-85). This is because it is worse to exclude useful people than it is to have extra people. This is always the case where he board members of an organization are not endowed with expertise about the organization as well as its products and services (McNamara 2012). In line with this, it is appropriate for an organization to involve board as well as staff planners in the entire process of planning.
Combining the board and staff in the process of planning assists board members to understand the day-to-day issues of the organization. This also assists the staff to understand the top-level issues of the organization (McNamara 2012).In some cases, many companies develop strategic plans which eventually end up gathering dust on shelves (Allison & Kaye 2005, pp. 187-93). It is, therefore, important for organizations to develop monitoring and evaluation activities that ensure that the organization follows the direction outlined by the strategic plan. A strategic plan document is generally supposed to specify the responsible parties involved in implementing the plan.
The document is also supposed to articulate who is responsible for achieving each and every goal and objective (McNamara 2012). On the basis of decisions made in connection with the results, the plan must also specify who is responsible for monitoring the implemenntation of the plan. For instance, the board of an organization might expect the managing director report to the full board on the status of the plan implementation on a regular basis (McNamara 2012). This may be inclusive of the progress towards each of the overall strategic goals. In turn, the managing director might also expect reports from the middle managers with regard to the status towards the achievement of goals and objectives that are assigned to them.
Poor planning is one of the major reasons why strategic plans fail. This is mainly because people who are supposed to be in the planning process are deliberately excluded. Most companies fail to tap into the combined talents and ardor of the employees. At times, they underestimate the peripheral environment as well as the responses from the stakeholders.Additionally, some companies fail to monitor the strategic plans as well as the unintended effects. This hampers the success of the plans.
Lack of proper communication is another reason why strategic plans fail. In spite of a plan being thoroughly planned and executed, it is appropriate to clarify the expectations of the management. In this way, the employees will be in a better position to work towards the set goals.