Consultants are divided on the subject of strategic plans. Some are true believers, and others are skeptical. (For most clients, our firm is skeptical about strategic plans being of practical use.)
Strategic planning has been less-than-successful for a fair number of companies. There are several reasons for the high rate of failures:
Disappointing strategic plans
Most strategic plans are too complicated or theoretical.
Theory only goes so far.
Most CEOs are so busy keeping up with customer demands that they’re happy to escape at the end of the day. They have little time or energy left for developing a structured managerial approach.. (Of course, the entire point of this book is to help you get beyond that standard.)
When CEOs return to the real world from their strategic planning exercises, many don’t have enough energy left to transform their strategic plan into actionable form. Nor do they seem able to devote continuing energy and focus to executing the plan. And neither do their managers.
Having a strategic plan on the shelf isn’t much help when you’re facing real bullets. That’s why as the CEO, your commitment must be equal to the plan’s demands or the exercise is a waste of time, energy and money.
Over 30 years, I’ve observed that about 80% of the firms that do strategic plans just keep building a bookshelf of plans until they become bored, become alarmed at the time and money required, or are startled when someone observes: “The emperor has no clothes.”
If you don’t commit to implementing the plan, the entire process will be a disappointment, and will send the wrong message to everyone involved. It will also put wise-guy smiles on the faces of those people who weren’t invited to participate in the planning process.
Your commitment is required
As CEO, if you’re not committed to your plan, it will send the wrong message to everyone.
The process will actually be discouraging.
All of this is why we don’t do many strategic plans. But we do a great many operational plans — because we believe that a solid operational plan creates just the right amount of structure and focus for most CEOs to apply in managing their companies.