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  • Jun 24

    3 Common Mistakes of Strategic Planning

    Author: Bruce Lifka

    A specialty pharmaceutical device company with a better mousetrap, seeking investors and a commercial partner.  A new division in an emerging pharmaceutical company, trying to identify and establish its strategic role in the larger company.  A hospital system, enveloped by strong competition in an evolving health care environment, striving for “break-out” growth.

    These aren’t healthcare company classified ads.  They’re snapshots of companies we’ve been privileged to work with, developing strategic plans that have reoriented business focus and will lead to step change success.

    CRT/tanaka’s whatcanbeSM planning process can help organizations turn a tedious annual process into a game changing opportunity, re-focusing and energizing the organization.  But a poorly done strategic plan can have the opposite effect, de-motivating managers and diffusing efforts.  Here are three common mistakes that can derail efforts:

    Lack of mission clarity:  Companies do a good job communicating annual numbers they need to achieve, and perhaps over the next several years.  But do managers know if the company is designed to provide a steady dividend stream to retired schoolteachers or, aggressive growth in a high risk environment?  Is the division’s role in the company one to lead growth or, to optimize revenues from another division’s technology?

    Different answers lead to very different strategies and actions.  It’s critical to gain alignment and point the organization in the same direction.  This seems intuitive, but it can be challenging, as most managers have their own interpretation of strategic direction. 

    Priority #1 - align mission and role.

    More is not better.  Most organizations can do only a few things really well at the same time.  Further, a good up-front situation analysis should be able to identify the two, perhaps three, factors that will lead to success.  Yet, the instincts of most managers are to add as many initiatives as possible in the hopes that one or two may have traction.  Each extra initiative lowers the probability of delivering against your two to three core drivers.

    Priority #2 – get laser focused, stay focused.

    Follow-up:  My bet is that nine out of 10 readers have had an employee review when they’ve set personal goals at the start of the year; the next and only time the goals were reviewed was at year-end.  Did you even remember details of your goals, and were your activities over the year consistent with delivering them?  For most, the answers are “no” and “not really.”

    The “game changing” strategic plan is relegated to the dusty binder shelf – unless it comes to life within the organization’s day to day operation.  Every manager’s goals must drive toward delivering against the plan.  Establish simple but clear metrics for evaluating progress.  Develop milestones to ensure progress is steady and meets timelines.  Review progress monthly to sustain awareness and make needed course corrections.

    Priority #3 - drive strategic planning down through every level of the organization and at every opportunity.

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