What Causes the Failure of Strategic Plans?
Running a business successfully requires a higher level of efficiency, appropriate strategic planning and strong awareness of what’s happening in the global economic scenario. If any of these three things goes mayhem, there will hardly be any profit. Generally speaking, a lot of confusion occurs in the strategic planning process which is why strategic plans fail to succeed in most cases. But, why does this happen? What are the factors behind the crash of most strategic plans? Let’s find them out in the following paragraphs.
Lack of achievable goals – You can set a number of business objectives, but all of them should be realistic and easily attainable within a convenient span of time. The goals need to be clearly defined. In case, any employee faces difficulty in comprehending and accomplishing the objectives, he or she should be given proper and prompt guidance in solving the problems.
Too much focus on internal operations – A major fault that many firms commit is stressing more importance on internal operations than on the external processes. Equal amount of attention should be offered to both these aspects. For example, if you are ignorant about the varying requirements of your target customers and the changing market trends, will you be able to cater to your niche audience successfully?
Lack of resources – Resources form the topmost tier of planning a project. Setting business goals, building strategies and applying the tactics – all must be based on the amount of resources you need to pull out the project and the amount you can manage to gather. For instance, if you are not able collect the required funds; you need to plan your project according to the sum you can afford to spend. Crossing the budget and going out of money in the middle of the project is the most horrible experience a company can have. This affects its reputation and reliability in the market. Trust and repute once lost are hard to gain once more.
Not much emphasis on resource planning – Resource planning is a vital part of planning a project. But, the fact is that some are not aware of it and some ignores it even knowing about its significance. Before getting started with a project, it is essential to decide on the
- Number of professionals required to work on the project
- Skill sets needed for the efficient execution of the project
- Types of roles and responsibilities assigned to each of the professionals working on the project
- Appropriate project timeframe
Whether strategic plans will succeed or not depends a lot on those who materialize them.
Lack of flexibility in project scope – To be precise, the scope of a project may undergo changes due to various reasons. That is why a backup plan is necessary. When you have a Plan B, you can save the time required to perform new planning according to the new project scope. Also, there is no hard and fast rule that project activities should go on just like the way they have been planned. If a team member pops up something really innovative and viable, there should not be any problem in implementing that.
These are the five reasons that result in the failure of strategic plans. If you wish to venture into business, you should make efforts to steer clear of these pitfalls for savoring success.