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These and some other important questions will be discussed in my Strategy Development Workshop in Red Deer, Alberta this week.
80% of plans do not get implemented because of many reasons. Here I enumerate the top 5 obstacles to effective implementation.
•Management needs to ‘own’ the plan
A lot of organizations invest in planning but forget that the strategy is implementation. Management needs to own the plan, create contingencies when there is a major shift in external environment making the plans unworkable, and instill performance measurement at all points of the implementation. Management should consult the stakeholders concerned but the end of the day, it rests on management that knows the business from inside-out and are not afraid to take responsibility for its success or failures.
•Confused planning with strategy
When management started planning, they confuse it with strategy. Planning is done at the lower end of the organization, while setting strategy is primarily a management function. It cannot be delegated to staff or mere customers dictating how the company should be run. A decisive, informed, and well-represented management team should undertake their biggest function- which is to set the general strategic direction of the company. This biggest function is what creates the impetus for the company in the next 3-5 years aligning all resources, assets, culture, and processes to meet the goals, and forsaking other fruitless pursuits.
•INERTIA, ATROPHY, & FALL-BACK ON PAST PERFORMANCE
Organizations who are undergoing maturity or who are the in peak of their organizational or product success would have the mentality that they are invincible and unassailable. When in fact, past performance does not lead to future success. The market volatility and disruptive nature of businesses and megabrands call for adaptability and nimbleness that can prevent massive investment on futile and unproductive projects. Inertia is what prevents innovation from happening. When there is ego or greed or plain stupid management that does not listen to customers, clients, or stakeholders, it is on its way to its own demise. Take the case of Sears.
When companies become too comfortable with their success or good fortunes and don't have the predilection to move to the next level or raise the bar notch higher, the writing on the wall will be there pretty soon. If they are not afflicted enough to move to plan and manage risks, competitors that have faster sprint and stronger kick will rush in and eat their market share. Competition is not just the next vendor like your business, it is also the changing trends, mores, norms, and behaviors of society that may have a profound impact in your business.
(more on this, next time!)
If you're interested to deep dive into your strategy, change, and engagement issues, reach out to me at firstname.lastname@example.org. Don't wait for the perfect time, situation, or budget.Read More