Failure Of Planning

Failure Of Planning

                                                                                                                     

Business planning is a key to success. The old adage is

True; failing to plan is planning to fail.

Writing a plan does not guarantee success. Many plans

never get implemented. They become bookends or

Paperweights.

Business plans fail because entrepreneurs only focus on

Strategy; they ignore the other six elements of their

Organization

è Communications
The number two response to our question about strategy failure should be familiar to all: Communications. Since we can't get it right at home -- with one in two U.S. marriages ending in divorce -- what makes us think we're going to get it right at work?

Poor communications seems to take many forms. Apparently, some groups like to develop strategic plans, and then hide them under a rock. But they don't do it on purpose. "The failure to communicate the vision and strategic objectives to stakeholders" may mean that the developers of the strategy aren't getting out enough information for folks to understand what they're supposed to do with it. "New initiatives or objectives are outlined but not communicated throughout the organization as to how the new objectives should look and feel, what steps to take, time-frame, etc." "Poor communications among team members responsible for decisions in implementation. Expectations and opinions are not shared openly, thoroughly, and effectively."

"Every tactical action supporting the strategic objectives needs to be included in an overall communication plan so that the strategy is reinforced." There's an interesting idea: an overall communication plan. Other responses also indicate that lack of communications routinely allows plans to die out after their launch. "No regular internal press to generate momentum." "Lack of better marketing efforts." Apparently all goes quiet, kind of like a mausoleum after the entertainment goes home. This contributor didn't hold anything back: "The communication sucks! Organizations become introverted in their communication strategies, whether the group is a large company or a small team."

Communication is also much more than words and pictures. Communication is also delivered through demonstration. "The management team does not follow the strategy themselves." We all know about the hypocritical "do as I say, not as I do" admonition. What does that scream about the value of the strategy? That behavior will raise eyebrows faster than a cook who won't eat his own cooking!

è Leadershipwhich brings us to leadership, which was the fifth most popular category. From these responses we can learn that leadership is much like fly-fishing -- when you're up to your waist in it, it's suddenly much harder than it looks! "Most leaders grossly underestimate what it takes to lead effectively." "Failing of leadership starting and ending at the top." "Lack of a true motivating leader." This contributor offered some specificity: "Weak leadership. This results in improper resource allocation, lack of buy-in, poor follow-through, inadequate checks, misaligned goals/ strategies/ actions, inefficient rewards and punishments, cover-ups, etc."

This respondent noted that there was enough blame to go around: "Not a lack of leadership from the main person in charge but from either a lack of ability or the lack of 'willingness' from other personnel who are needed to step up and truly lead the effort to bring the strategies from paper to production." The message here is that we are all called to lead from wherever we are, even if we're not at the top.

Not all management teams are blessed with skilled leaders. "Management team and/or owner not experienced/skilled enough to carry out the strategy." Some have titles associated with leadership, but not the authority: "No assigned champion/true owner of each project who has the authority to implement." I was taught that you must delegate authority at the same time you delegate responsibility. Lastly, we have leaders who are just plain stubborn, kind of like a mule with a good parking space at the mall: "...'rogue' links in the management chain that distort the plan to suit their OWN vision, thus subverting the directive from the top without authorization." Now I'm thinking fly-fishing is actually easier.

Success can be a trap in and of itself. Miller found that consistent success tends to reinforce leaders' world views and ties them rigidly to the strategies and processes that brought about past successes. This causes, in turn, these same leaders to become:

·         overconfident

·         prone to excess and neglect

·         prone to shape strategies based on their preferences rather than what data, changing business circumstances, customers, and technological shifts dictate

·         conceited true believers in the adulation heaped upon them by the press, subordinates, shareholders, and other admirers

·         obstinate one to resent challenges to their way of thinking

·         isolated from the reality of the marketplace

The impact of those tendencies on strategy making is very negative when strategy is developed from ego, preconceptions of what causes success, stubbornness, and old, worn conceptual models.

è No Plan behind the Idea
The third most popular category is named, "No Plan Behind the Idea," captured in this summary: "Most great plans aren't. They are just nice, high-level ideas." Those of you that have attempted to execute plans that were as thin as the soles on Newman's shoes may easily relate to this: "'Strategic initiative?' No, it wasn't 'strategic' and it wasn't an 'initiative'. Calling something a strategic initiative doesn't make it one."

It seems that many of our strategic planning sessions stop halfway, before there is a plan. "Very little planning, if any, goes into the implementation process." "Undeveloped intentions." Maybe you know some of these people: "Frequently the person with the great idea is not an execution giant." While no one is advocating using masking tape on a paint-by-numbers picture, how about this example of how to do it right: "the Microsoft of today NEVER rushes in ... they wait to see how things shake out, steal some early ideas, perfect them, then smash everybody they can and conquer the world."

Inquiring minds want to know what a strategy document is really for. "A strategy document almost NEVER actually states what is to be done from day to day and a way for employees to track their actual progress. Most strategies stop at the 'conceptual stage' rather than actually give very SPECIFIC tasks to be done." "Concept not cascaded throughout the organization so that individuals know how it applies to them and their job." "Unable to break the project down into doable actions." If all this sounds like a lot of work, perhaps this says it all: "Ideas are easier to talk about than do."

è Unwillingness or inability to change. 

Your company and your strategic plan must be nimble and able to adapt as market conditions change.

è Passive Management
In fourth place is a category I call "Passive Management." This is characterized by assuming that things will run themselves after we get them started, which is about as likely as being hit by lightning while being eaten by a shark. Instead, I suggest that implementing strategic plans is more like keeping plates spinning atop a number of pointed sticks. If we don't put forth a regular effort to keep them spinning, the plates will fall down and the sticks will end up in uncomfortable places. "When the implementation phase begins there is not enough follow-through -- or follow-up for that matter -- from senior management." "Poor and inexperienced management to execute the plan."

Notice the subtle difference here from leadership. While leadership is expected to communicate the vision and support it with demonstrable actions, management is expected to know how to execute the individual tactics. "All talk and no action, failure to assign and hold individuals accountable for delivering on the assignments." "No one takes total charge and follows up when someone doesn't meet commitment dates." "The objective. is written down on paper ... and

nicely filed away." Here is what seems to be missing: "... this is the objective, this is how we're going to get there, here is your part in the plan and you will be held accountable."

Like leadership, management is not easy either: "It takes a special person to be able to define strategies and to plot out and manage others in how to achieve those strategies. Most fail because they assume their team has the wherewithal to pull it off and they therefore do not manage the process." I must say, I was surprised to learn that people want more management -- at least where implementing strategic plans is concerned!

è Vision and strategy are about embracing change

Just because an organization understands the need to envision the future does not necessarily mean it will create one. To truly vision the future, to craft strategies that will lead to desired changes down the road, and to paint an inspiring picture of the future, organizations need to embrace change as part and parcel to tomorrow’s success.

è Motivation and Personal Ownership
Our last category is actually our first category. This most popular category of Motivation and Personal Ownership contains responses focused on the question, "What's in it for me?" This is not to imply that we're all a bunch of selfish, greedy, self-serving individuals -- although recent headlines could certainly make that case successfully! -- it's really that people are looking for the meaning in what they do. In other words, they want to show up for more than just a paycheck. People want to build something, make a difference. "Don't understand the purpose, goal is minimized, vision disappears. No enthusiasm to make it happen. The bottom line, how will it affect ME?"

More effort is needed to help people understand how getting behind the company's goals can support their personal goals. "The I/me mentality that is so prevalent today. If it works for me -- it works for me! Let everyone else deal with it." "You must have some kind of desire or necessary will to implement the plan. You must have some kind of image of the outcome." The message here is that you -- personally -- must desire the outcome. Perhaps that lack is what causes, "lack of buy-in from the entire group." "Typically the initiative fails because the people responsible for implementing it are not convinced of its value."

What are the symptoms when there is no motivation/personal ownership? "Employee resistance." "Lack or no sense of urgency." "Inability of individuals to view strategic planning an important and exciting part of their job." "Lack of employees' support." "Lack of better sales efforts." "Lack of initiative at the lower levels of implementation, the 'front lines'." "Lack of ability to arouse enthusiasm." In summary is this prediction: "The project will never succeed if there is no emotion or passion involved."

è People/Culture - 

Knowing what to do in the abstract is usually the easy part.  Knowing what YOU can do based on the unique skills and mindset of your team is an entirely different matter.   Understanding your people, the culture and sub-cultures within your organization, and shared vision/values are essential to developing a plan that stands a chance of success.   Failure to do so is a recipe for disaster.  Dave Logan’s research on “tribes” in his book Tribal Leadership offers a practical framework for understanding and working with your culture to achieve what Peter Senge describes as the difference between apathy/compliance and commitment/enrollment.

è . Lack of Flexibility

While it’s helpful to have all the right systems in place to track your progress, it’s all for naught if you lack the will, the flexibility, and the triggers necessary to make adjustments along the way.   Over time, and presented with solid evidence, you can’t be afraid to depart from the original plan.   Keep the goal; change the plan – not the other way around!

è . Bad Plan – 

 Sometimes plans fail because they are simply bad plans, and I would argue that they are often bad plans because we don’t tend to get everyone involved that we should.  We either fail to tap into the collective talents and dedication of our people or we misjudge the external environment and the response of our stakeholders.  It can make employees feel isolated and the leadership looks out of touch.

è The difference between Strategy and Planlet’s start with what I suggest are some fundamental misconceptions about strategic planning. The biggest misconception is that strategy and planning are one in the same. How often, for example, do you hear people equate strategic planning with a “blueprint” or a “roadmap?” While those words are good metaphors for the word, “plan,” they fail substantially in capturing the meaning of “strategic” or “strategy.”

è Strategy is not a blueprint or a roadmap“Roadmap” is also an inadequate metaphor. It simply shows the connections between locations and the various ways to get around from one point to another. A roadmap says nothing about strategy or vision.  In fact a roadmap is ultimately rather useless without one’s desire or intention to go from one point to another. Once the destination or destinations (i.e. the vision) are determined, then the road map becomes an excellent tool.

So, one of the reasons way strategic planning fails is that organizations fail to differentiate between “strategy” and “plan.” More often than not in my experience, this results in people giving short shrift to visioning the future, thinking strategically, and exploring ideas that challenge the status quo. Instead, they move quickly to figuring out how to do something even before they really understand what it is or why they should do it.

That would be like identifying a simplistic vision of a house as having a kitchen, living room, bathrooms, and bedrooms and then setting out to build it without having thought about what results and outcomes you want from your home. Do you want to entertain your friends, have a place that your kids will want to share with their friends, or do you need a home that can accommodate you later in life? What’s the strategy?

è Concentrate on being strategic
Organizations might be better served if they thought less about what strategic planning model or exercise to deploy and focused more on having meaningful dialog throughout the organization about the future, how to innovate, what results to aspire to achieve, and how to create and sustain a nimble, risk tolerant, and outcome-focused team of people.

In the nonprofit sector, the blessing of volunteerism can sometimes cause confusion or slow the pace. Over the years I have seen board members impose their view of how to do strategic planning on the organization.  Sometimes the rationale is that what worked for “my business” should work for the nonprofit organization. Other times board leaders are simply sharing what they know and have experienced. The problem is that planning models and processes undertaken by large retail chains, telecommunications companies, oil companies and the like often do not translate well into the nonprofit arena.

Board members’ desire to help would be better served on working with the CEO to facilitate and animate strategic thinking. That’s what boards should focus on: strategy – not on whether or not the model should include a SWOT analysis, issues management, stakeholder analysis, or follow the tenets of experts like Mint berg, Porter, Bryson, Ducker, or Collins.

Find the strategy. That’s the most important thing. Then pick a model that fits your organization, your culture, and the strategy you want to bring to life.

è Writing the plan and putting it on the shelf. 

This is as bad as not writing a plan at all. If a plan is to be an effective management tool, it must be used and reviewed continually. Unlike Twinkies or a fine vino, strategic plans don’t have a good shelf life.

è Ignoring marketplace reality, facts, and assumptions.

Don’t bury your head in the sand when it comes to marketplace realities, and don’t discount potential problems because they have not had an immediate impact on your business yet. Plan in advance and you’ll be ready when the tide comes in.

è No accountability or follow through. 

Be tough once the plan is developed and resources are committed and ensure there are consequences for not delivering on the strategy.

è Unrealistic goals or lack of focus and resources.

Strategic plans must be focused and include a manageable number of goals, objectives, and programs. Fewer and focused is better than numerous and nebulous. Also be prepared to assign adequate resources to accomplish those goals and objectives outlined in the plan.

By avoiding these pitfalls, you can create an effective planning process, build a realistic business direction for the future, and greatly improve the chances for successful implementation of your strategy.

è Lack of Planning
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.

It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

Components may include:

·         Description of the business, vision, goals, and keys to success

·         Work force needs

·         Potential problems and solutions

·         Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast

·         Analysis of competition

·         Marketing, advertising and promotional activities

·         Budgeting and managing company growth

In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.

è Unwillingness or inability to change. 

Your company and your strategic plan must be nimble and able to adapt as market conditions change.

è ConclusionPay attention to Motivation and Personal Ownership, Communications, No Plan Behind the Idea, Passive Management, and Leadership, and you'll be ahead of the strategic planning game. These observations and insights can help you improve your success rate with implementing strategic plans, so it doesn't feel like doing the splits over a case of dynamite.

If you have had "great plans" fail -- I've lost personal count! -- take what we have learned here and embrace a new plan for those "high-level ideas." Let's also learn from Napoleon Hill: "The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those which fail." Braced with this knowledge, you'll do clearly better this time, and without need of bullets or amphetamines!