Well, how many times have you heard the word strategy? Innumerable times, right?
Strategy, “they,” say, is what you need to get from Point A to Point B. However, one of the most common complaints we hear from managers in big and small companies is the failure of their strategic plan.
Many studies have concluded that most strategic planning fails, up to 67 percent actually.
Why?
A company’s strategy is that glossy document which is considered important always, yet, it still remains something that is assessed just once a year!
When planning, it sounds good and everybody thinks the organisation is going to get there.
However, to implement brilliantly, the strategic plans need to adapt in real-time to the ultimate vision to be realised.
For example, McDonald’s salads failed to sell!
Wait, what? McDonald’s is a quite flourishing corporation, how is that a failed strategy example?
In 2005, McDonald’s decided to launch a range of healthy salads because it was facing increasing pressure about their high-fat meals. This seemed like a smart idea but the customers didn’t enjoy the salads as much as they did fries and burgers.
McDonald’s reacted to this by adding the flavors to the salads – sauces, dressings, fried chicken meat, etc. However, it increased the sales by around 1% only! Thus, the salads were unlikely to be a major source of revenue for McDonald’s.
Reason for McDonald’s strategy failure: Their goals were not clear and also ! They didn’t really focus on why they were doing it, and what problem they were trying to solve
If you’re noticing a continuous failure of your strategic plan, here are the top 3 mistakes to avoid while planning one!
Failure is nothing but a “Chance to Revise” the Strategy.
Top 3 mistakes to avoid while crafting a strategic plan
(1) A long wish list of goals
Plans are made to achieve a long wish list of company goals, ranging from pie-in-the-sky to mundane. However, too many goals can make things unclear.
- The issue to narrow down prioritised goals to a manageable and achievable level
- Poor execution of plans
- The increased pressure of work on employees
Statistics : Based on Survey of 300 Organization and Over 3000 Employees by Nielsen (International Market Research Firm), Only 5.7% of Employees could speak up the GOAL of Organization, 3 Months later from setting up the GOALs.
Instead of ten, try to focus on five smart goals because i’s easy to see how a long list of goals can inhibit implementation success.
(2) Lack of enrolling conversations
No matter how good your strategic plan is, a lack of communication between management and employees can hinder its success.
Statistics says, Only 5% of employees are aware of and/or understand their company’s strategy.
Otherwise, Manier GAPs are there in this domain e.g
- The team is not aligned with the company goals
- No regular conversation with various business stakeholders
- Employees feeling left out
- Lack of accountability
- Job descriptions not aligned to desired strategic outcomes
Your interactions will collectively determine the ultimate success of the strategic plan.
(3) Avoid Building Strategies based on your Gut feelings
Gone are the days when Entrepreneurs used to create strategies on New year opening based on past experience and gut feelings.
Statistics: Over half (61%) of senior executives acknowledge their organizations do a poor job bridging the gap between strategy formulation and day-to-day implementation.
Strategy is not a Strategy if
- It is not based on a clear set of choices
- It does not tell you what you are going to do
All in all, you should avoid the “Trial and Error” method of planning
Trial and error is the downfall of many managers who think that simply testing a variety of tactics can lead them to success.
The trial and error method seems compelling when:
- The objectives are unclear
- Not having the right participants to guide
- Lack of sustaining a strategy
How costly can your strategic planning mistakes be?
- It may inadvertently benefit competitors, maybe they outpace you
- Fail to resonate and influence the target audience
- Increased expenses
- Waste of time and resources
- Lower productivity and decreased employee engagement
Quit the old way of strategic planning with Stratefix Consulting
So how can you increase the likelihood of your strategic plan succeeding?
There are many blunders that can bring a good strategy down. However, at Stratefix Consulting, we can help you turn those ideas into an implementable plan!
Have a Successful Strategy!
