Strategic planning is an essential process for the success of a company. However, it is common for companies to make mistakes in their strategic planning by leaving out several aspects that contribute to its success. This can lead to unsatisfactory results and a significant lack of productivity. In this article, we look at 5 common mistakes in strategic planning and offer tips on how to avoid them.
1. Not involving key stakeholders
One of the most common mistakes in strategic planning is not involving key stakeholders. These typically include employees, customers, suppliers and business partners. Not involving them could lead to a strategic plan and action plans that do not take into account the needs and expectations of these different groups.
To avoid this mistake, it is important to involve stakeholders early in the planning process. Stakeholders may have different perspectives and can contribute to the success of the organization. By involving them, organizations can gain valuable insight into the needs, expectations, and concerns of these stakeholders, which helps in the development of effective strategies. Their input can help guide management and ensure that goals are aligned with the company's vision.
Who are the stakeholders of an enterprise?
A company's stakeholders are those groups or individuals who may be affected by the company's activities, or who may have an impact on the company's activities. The following is a list of key stakeholders:
- Employees
- Customers
- Suppliers
- Shareholders and owners
- Business partners
- Creditors
- Governments
- Interest groups or organizations
2. Not setting clear and measurable goals
Another common problem is not setting SMART objectives. Unclear or vague objectives can lead to misuse of resources, wasted time, and a lack of understanding of the steps to be taken to achieve the strategic vision.
To avoid this problem, it is important to establish clear and achievable goals. The objectives must be aligned with the company's mission and vision and take into account the needs and expectations of key stakeholders. Goals should also be monitored regularly to ensure that the company is headed in the right direction and to avoid non-value added work.
To learn how to properly define an objective so that it is specific, measurable, achievable, attainable and time-bound (SMART), visit our article How to formulate effective SMART goals?
3. Not considering risks
Risks can include changes in the market, economic or political problems, or internal challenges such as the loss of key personnel. If the company does not consider these risks, it may be caught off guard and ill-prepared to deal with them.
To avoid this mistake, it is important to identify and assess risks early in the planning process. Plans should be developed to address potential risks and to ensure the continuity of the company's operations.
4. Not allocating enough resources
Whether in terms of time, budget, or required skills, when an organization does not devote sufficient resources to strategic planning, it can lead to all sorts of gaps, including strategic thinking, unclear direction, and inadequate implementation. This can lead to poor quality work given insufficient resources to accomplish ongoing projects.
That is why it is important to understand that this is an ongoing process and that resources must be allocated on a regular basis to ensure effective implementation and monitoring. The organization must be prepared to re-evaluate the resources allocated to strategic planning as needs change.
5. Failing to monitor plan implementation
Finally, a common mistake in strategic planning is not monitoring the implementation of the strategic plan and work plans. Once the strategy has been developed, it is important to have a monitoring process in place to ensure that actions are implemented effectively and that results are in line with expectations. If implementation is not closely monitored, it is easy to deviate from the original plan and lose sight of the objectives.
To avoid this mistake, it is important to establish clear tracking mechanisms such as KPIs to monitor the implementation of the plan. Goals should be monitored regularly and plans adjusted as needed on an ongoing basis. To achieve this, there are tracking tools that can help you do this.
Our planivore solution allows you to access an overview of the progress of each of your strategic and operational orientations as well as the concrete actions that need to be carried out in order to reach your strategic objectives.
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