Over time I have become concerned about using strategic planning. It is not to say that planning is unimportant. Instead, is it genuinely strategic, and has the process overtaken the value of producing a fundamental strategic analysis and foresight-driven outcome?
Many of the so-called strategic plans do not engage the makers in a foresight-driven process but rather one of creating a few goals and a list of operational objectives. Still, many such projects end up on a shelf and are never implemented or resourced.
Many lack stakeholder involvement: Strategic planning often involves a small group of senior managers and directors, which can lead to a lack of buy-in and engagement from other stakeholders. Outside stakeholders and broad global trends are rarely considered, resulting in resistance or lack of commitment to implementing the plan.
The future is always uncertain, and strategic planning requires making assumptions about the future. Unforeseen events can disrupt or invalidate the assumptions, making the plan irrelevant or impractical. Few put in place a review process to evaluate the direction or new events that result in necessary revisions to the plan.
Resource constraints: implementing a strategic plan requires significant financial, human, and technological resources. Allocating resources in pursuit of the direction is a considerable problem. Social and political considerations are sidetracked. Organizations may not have the resources needed or refuse to reallocate resources, which can create tensions and conflicts.
Strategic plans often lack clear accountability for implementation, which can lead to a lack of ownership and responsibility. Without clear accountability at the Board and managerial levels, ensuring that the plan is executed and progress is made toward the goals can be challenging.
Organizations may become overly focused on the strategic planning process to the detriment of implementation, foresight learning, and execution. I believe in the process, but not as a deterrent to getting things done.
A foresight-driven board is essential. Without it, this can result in a lack of action and progress and frustration and disillusionment among stakeholders. Boards of Directors are not well trained to see the differences in oversight, implementation, and foresight-driven board accountability.
Organizations that engage in strategic planning need to be aware of these problems and take steps to mitigate them to ensure the success of their planning efforts.
Feel free to comment.