Strategic Planning: 7 Reasons Your Small Business Plan Might Fail

‘Designing Strategies’ Newsletter

November – December 2013 Volume 10 – Issue 56

This is the time of year when businesses of all sizes and types focus on developing strategies for the coming year. Year-end reviews take place to determine how successful – or unsuccessful – their strategic planning for the current year was. Analysis comes into play to identify which goals and objectives were successfully achieved, on budget and on schedule. Consideration is given to whether those goals and objectives provided desired results.

It is time to determine what didn’t work as expected. Decisions are made about what should be dropped from the strategic plan for the coming year. Decisions focus on which goals clearly achieved success or the potential for success, and merit continuing for another year. Were the time, effort and resources invested worth the results? In a nutshell – what was right on target and what totally missed the mark?

Too often, companies and their leaders find their strategies simply did not work. They may have worked a bit, but not to the extent hoped for. Perhaps sales strategies were far off the mark set in their plan. Maybe marketing strategies did not reach the new customer groups they targeted. Customers were not interested in new products or services rolled out.

There are so many elements that can affect your planning in positive or negative ways. The type of business model you are operating under can be a major factor in the success or failure of your strategy. Types and numbers of products or services, pricing strategies, targeted customer bases and even competitors all factor into the success or lack of success your strategies achieve.

Why strategic planning can fail

There are a number of reasons that strategic planning might fail. As noted above, there are a variety of elements and factors that can affect the success of any strategy. Customers, products, and business models are just a few. Some of the factors listed below play significant roles in the success or failure of a strategic plan.

Strategic planning is not an event; it is an on-going process.
Strategic thinking is a critical part of the planning process, day-in and day-out throughout the year.
An in-depth diagnosis of the world that exists in which the plan will be implemented is an important facet of any planning effort. Having a clear awareness of outside influences eliminates surprises during implementation.
A strategic plan must take into account the competitive world in which your firm operates. Know your competition.
Implementation of the plan is critical to it’s success – who is in charge, who is responsible for each tactic? You need to allocate important resources – people, funds, equipment – any one of which can make or break your plan.
Company culture is a critical factor to any strategy. Commitment to changes in the plan is crucial, as is being flexible and willing to adapt when necessary.
Buy-in by all stake holders and clear communication from top to bottom are key to a successful plan. Every one of your staff, or any outside consultants you bring on board, need to be aware of their place in ensuring the success of your plans.

Strategic planning is important for keeping your business on track and focused on your vision of Success. Success means different things to different people and companies. Take the time to do the job and do it right. We are at that time of year when we need to be wrapping up phases of our business, making sure all necessary year-end duties are done by the time The Ball drops on Times Square.

As you work on your plans for 2014 and beyond, be aware of situations that can scuttle your efforts. Sabotage can come from within your firm or from the outside. It can be deliberate or unintentionally caused by circumstances beyond your control. If your company culture is not the type that you can count on to all work together on your strategy, make the necessary changes. Not sure what’s gone wrong with your past planning efforts? Or, you’re just starting on a strategic track with your company? Let’s set up a time to talk about how to get you strategically focused on growth and success for your firm. Give Maurer Consulting Group a call at 330.666.0802 or email directly to Terri L Maurer, FASID at: tlmaurer@maurerconsultinggroup.com .