STRATEGY > Reasons why strategic plans fail


Reasons why strategic plans fail

There are many reasons why strategic plans fail, especially:

  • Failure to understand the customer
    • why do they buy
    • is there a real need for the product
    • inadequate or incorrect marketing research
  • Inability to predict environmental reaction
    • what will competitors do
      • fighting brands
      • price wars
    • will government intervene
  • Over-estimation of resource competence
    • can the staff, equipment, and processes handle the new strategy
    • failure to develop new employee and management skills
  • Failure to coordinate
    • reporting and control relationships not adequate
    • organizational structure not flexible enough
  • Failure to obtain senior management commitment
    • failure to get management involved right from the start
    • failure to obtain sufficient company resources to accomplish task
  • Failure to obtain employee commitment
    • new strategy not well explained to employees
    • no incentives given to workers to embrace the new strategy
  • Under-estimation of time requirements
    • no critical path analysis done
  • Failure to follow the plan
    • no follow through after initial planning
    • no tracking of progress against plan
    • no consequences for above
  • Failure to manage change
    • Inadequate understanding of the internal resistance to change
    • Lack of vision on the relationships between processes, technology and organization
  • Poor communications
    • Insufficient information sharing among stakeholders
    • Exclusion of stakeholders and delegates



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