Top 4 strategic planning mistakes
Has your business ever designed what it thought was a flawless strategy, only to see it barely get past the execution phase?
Chances are it committed an innocent but costly mistake at some point in the planning process.
Getting all the cogs in a business strategy to line up correctly can be difficult, especially if you don’t have a strategy mapping system in place to track its progress.
So next time you’re implementing a new strategy for your business, make sure it’s not making one of these common mistakes.
1. Not having a clear vision
Your company’s vision statement should serve as the foundation of each strategy it designs.
A number of strategies may be required to deliver on your business’s overall vision, and it’s best to take a top-down approach. Therefore, you should start with your vision statement and break it down into component strategies, each of which will be delivered by a series of objectives. Finally, the tactical projects at the bottom will help activate your strategy.
The company’s vision should be made clear to each and every individual who will play a role in enacting the strategy. An effective strategy planning software such as StrategyBlocks can help communicate it throughout the organisation.
2. Too much or too little detail
Your strategy shouldn’t try to achieve too many things at once. Cramming it with little technicalities will only muddle your overall vision and confuse your staff.
Instead, break your strategy down into ‘blocks’ which provide team members with a clear direction statement, such as ‘Open 10 new stores to increase revenue’. This block – revenue growth – can then be measured by a KPI or ‘output’. In essence, one guides while the other measures.
3. Confusing strategy with tactics and objectives
There is a clear difference between these two – a strategy covers the long term direction your business wants to take, while tactics are the day-to-day operations that will help take it there.
Make sure you’re not mixing them up and basing your strategy around your tactics, for example.
4. Not monitoring your strategy
Don’t underestimate the importance of comprehensive follow-up after strategy execution.
Always keep tabs on the progress of your strategic execution to make sure it stays on track.