Chief Reference: Strategic Management: Concepts and Cases: Arab World Edition
Chapter 1: The Nature of Strategic Management
Topic: Pitfalls in Strategic Planning
General Overview
Strategic Planning is a process of making decisions taken by the management in order to achieve the company’s goal and objective. It takes the organization on a journey and offers a framework for addressing questions and solving problems. However, there are some Pitfalls that ruin the process of planning that should put a lot of attention and must avoid because it prevents the success of every strategic planning. ‘Being aware of potential pitfalls of strategic planning and being prepared to address them is essential to success.’
Content Review
There are some pitfalls to put a lot of attention and avoid in strategic planning. Using strategic planning to gain control over decisions and resources. Top managers use strategic planning to manipulate people in the company for his/her own benefits. Others use this opportunity as a key to get the full control of the companies over decisions and resources.
Doing strategic planning only to satisfy accreditation or regulatory requirements. Companies always need a certification for accreditation and one of the requirements therein is strategic planning. In order the management to satisfy their accreditation, they compose strategic planning without proper process, procedure and strategies. By that, it compromised the company’s goals and objectives.
Too hastily moving from mission development to strategy formulation. One of the reasons is having a lack of material time which results to failure of proper strategic planning.
Failing to communicate the plan to employees, who continue to work in the dark. In every strategic planning, you have to consider first your employees or subordinate. You should ask their suggestions, recommendations or opinions which can contribute for the success of every strategic plan of the company, so that, your employees will never work in the dark , instead, it will lead them to the right path. ‘Always remember that understanding your employees’ perspective can go a long way towards increasing productivity and happiness.’ ‘ Kathryn Minshew.
Top managers making many intuitive decisions that conflict with the formal plan. Making intuitive decisions by some top managers that conflict with the formal plan are one of the problems that affect strategic planning. Some decisions are made for their own benefits or without any considerations to the formal plan.
Top managers not actively supporting the strategic planning process. Strategic planning needs full support and attention of every employee as well as managers of the company. However, some top managers are leaving their works or decisions to their trusted employees or sometimes, they’ll just contribute few suggestions without personally attending to it. Like he will just send his ‘dummy’ or representative on his behalf while his full support is very important in the plan.
Failing to use plans as a standard for measuring performance. One of the subjects of the strategic planning is to assure better performance, hence, failure to implement plans will result a downfall of the company. Using plans for measuring company’s performance is very important to assure the quality and integrity of company’s policy.
Viewing planning as unnecessary or unimportant. Some managers do not consider the planning important in the company, which also result a failure of strategic planning. Top managers, instead, are making on their own decision based on the company’s performance without sticking on the plan.
Delegating planning to a ‘planner’ rather than involving all manager. Because of pile of works, some top managers are just sending their representatives or a planner to take in-charge of the planning activities. They just let the planner to decide and plan for the company’s better performance without giving the plan much attention which causes lack of information and strategy.
Failing to involve key employees in all phases of planning. Top managers sometimes do not consider their key employees in planning; instead, they just create their own strategic planning without the involvement of the same which is more important in planning process. Their opinion can have a great help to achieve the better performance of the company. It enhances the possibility of successful strategic planning.
Failing to create a collaborative climate supportive of change. Strategic planning are consists of queries, suggestions, decisions and evaluating procedures and recent strategies. In view thereof, some fails to adopt suggestions and fails to support all the changes of company. To be successful, working all together will be easier for the company to plan on decisions with regard to the success of the company.
Becoming so engrossed in current problems that insufficient or no planning is done. Problems of miscommunications always exist while doing strategic planning between top managers and their subordinates. Others do not accept ones suggestions or decision until no planning is done. Do not concentrate so much on things that went wrong, instead, focus on what to do next. Learn on how to move forward in order to solve current problems.
Being so formal in planning that flexibility and creativity are stifled. In planning, lots of suggestions, strategies, decisions are being done. However, being so formal can compromise the flexibility and creativity of the strategic plan.
The purpose of preventing pitfalls in strategic planning is very essential for the success of every strategy. Challenge yourself on how to prevent those impediments in order to achieve a successful planning.