TOP 5 Mistakes Every Board Misses About Strategic Planning

In almost every modern company, a number of actions are being developed, in the implementation of which the organization expects an increase in the level of performance relative to competitors.

Strategic Planning Analysis as a Crisis Management Instrument

Strategic management in an unstable environment can both help to ensure more efficient functioning of the company and increase the negative impact of crisis phenomena. The article classifies the main mistakes of the strategy, reveals their consequences for the company’s activities, and proposes a step-by-step procedure for identifying strategy mistakes. It is concluded that it is necessary to analyze the company’s strategy for identifying errors as an anti-crisis management tool at all stages of its life cycle.

In most large companies, strategic planning is considered an indispensable item in the management system, which is developed several times over the entire life of the enterprise, while not helping in the least in the work and activities of the company. Probably, one of the reasons for this ballast is that to develop the most important strategy, the enterprise outsources external people – consulting partners from outside, who have only a superficial understanding of the enterprise’s activities, and its purpose of existence is briefly described by top managers.

In general, the effectiveness of the strategic planning system is determined by the fact that it:

  • provides a comprehensive view of the enterprise and its external environment;
  • facilitates the adoption of strategic decisions based on the use of special concepts, methods, and approaches to the collection and processing of information;
  • ensures coordination and communication;
  • helps to implement strategic choices and implement the strategy;
  • makes it possible to foresee business development trends.

However, the administrative and junior staff, who also submit ideas for the development and promotion of the company, will be much more enthusiastic and interested in working, understanding what they are doing and towards what global goal they are moving, contributing their ideas, skills, and abilities to the common contribution. No strategy can be considered effective if it is handed down as yet another directive to top-down implementation.

What Are the Top 5 Mistakes Every Board Misses About Strategic Planning?

In modern conditions, strategic planning is an integral part of the management process, which is recognized not only by scientists but also by heads of companies around the world. A documentary reflection of the strategic management process is a strategy, which is a system of long-term development goals and ways to achieve them (activities, programs, and projects) agreed by the owners and managers of the company.

Take a look at the top 5 mistakes every board misses about strategic planning:

  1. Goals instead of strategy. The leader should separate the strategy as such and the goals set for your company.
  2. Comfort zone instead of strategy. By strategic planning comfort zone, we mean striving to adhere to a strategy that is convenient for the leader or the team, but not really necessary for the business.
  3. Fuzzy goals. In addition to replacing the strategy with multiple goals, the goals themselves are blurred. They do not correspond to the conjuncture and market forecasts, the dynamics of the company’s development, and the environment.
  4. Authoritarian leadership. The lack of constructive dialogue with the team turns the leader from a leader into a “boss”.
  5. Combining marketing with sales. Another mistake that I consider strategic is the combination of the functions of the marketing and sales department.