The pitfalls of strategic planning

By: Ranulfo P. Payos |12:07 AM October 16, 2016

Is strategic planning important? The answer is, of course, yes. Is strategic

planning successful in many organizations? No. The root cause is failure in
execution. I am saying this based on my experience and observation.

Though the discipline of strategic management had its origins in the 1950s and
1960s, with the management guru, Peter Drucker, as one of its influencing
contributors, it gained more adherence in the late 70s. I recall right after taking
my management course in 1980 at our home office in the US, the newly-
appointed head of strategic planning, came to the Philippines to immerse us
senior executives with the new discipline.

The executive briefing covered the crafting of our vision, mission and core
values, SWOT analysis with action plans to enhance our strengths, overcome our
weaknesses, take advantage of our opportunities, and address our threats.

We were also taught how to align our strategies, goals and action plans with the
companys vision and mission and factor these in our Performance Management
System.

Like the practice of Management by Objectives (MBO) in the early 70s, strategic
planning caught like wildfire in all organizations, profit or non-profit. It even
spread throughout the government bureaucracy. I know of government
departments and bureaus going out to the best watering places outside of Metro
Manila, far from the madding crowd, to engage in strategic planning.

Like a mantra, vision, mission, and values are writ large on the walls and other
conspicuous places of some LGUs and government agencies. But given the
mediocre performance in the government bureaucracy, it is obvious that their
strategic Plans remain just plans long in planning, short in execution. Like the
famous refrain of Mona Lisa song, plans in the government, just lie there, and
they die there. The new administration of President Duterte though a lot of
cynics doubt it may yet change this lethargy in government.

With some notable exceptions, the private sector is not far behind in its
lackluster performance. The precious time spent by directors and executives in
formulating strategic plans, if quantified in money could reach millions of pesos.

This does not include the actual costs of transportation, food, lodging (if held
outside of the office), materials and handouts, and facilitators fee. The problem
is, lack of execution, follow up, and honest-to-goodness performance review.

There are two major processes in strategic planning: Formulation and

Implementation. Formulation of strategy involves analyzing the environment in
which the organization operates, then making a series of strategic decisions
about how the organization will compete. Formulation ends with a series of goals
or objectives and measures for the organization to pursue.
Implementation involves execution of the goals or objectives and action plans
within the agreed time line. It deals with the mobilization of all resources to
achieve results. This is where the strategic Plans bog down. The inertia loses
steam either due to lack of political will or ningas cogon affliction.

Political will is the strong commitment of management to achieve the goals,

objectives and action plans as agreed. I find this kind of commitment and zeal to
execute lacking among many companies. This is one major reason why strategic
plans fail.

Another culprit in implementation of strategic planning is the bibingka attitude

among us Filipinos. Lets do it because others are doing it. strategic planning
becomes a flash in the pan, the flavor of the month. It starts with a bang and
ends in a whimper. We simply dont finish what we started.

I just wonder how many of you could claim 80% achievement of your strategic
Plans. I suggest you look back in your business organization or even in the non-
profit professional organizations where you belong. How far have you achieve
results in your plans? Ill be darn surprised if your organization has achieved 80%
positive results of your plans.

Implementation seems to be the hardest part in strategic planning. There is one

more cause in failure of strategic planning: Lethargic top leadership. It is
axiomatic that for strategic Plan to be successful, it must be actively led by top
management itself; anything less than this, its bound to fail.

Strategy is about the future. It is looking at a time frame that we call strategic
Horizon. To get there, one has to go through the hassles of developing a vision,
mission, setting goals and objectives, crafting a strategy, executing and
evaluating performance. And it must be CEO/COO-led. Short of these, it remains
a strategy and a plan, an illusory dream.

Source: Payos, R. (2016, October 16). The pitfalls of strategic planning. Retrieved
from http://business.inquirer.net/216787/the-pitfalls-of-strategic-planning
Synthesis:

According to the article, strategic planning is not successful in many

organizations and the root cause of this is failure in execution. Like a mantra,
vision, mission, and values are writ large on the walls and other conspicuous
places of some LGUs and government agencies. But given the mediocre
performance in the government bureaucracy, it is obvious that their strategic
plans remain just plans long in planning, short in execution. There are two
major processes in strategic planning: Formulation and Implementation.
Formulation ends with a series of goals or objectives and measures for the
organization to pursue. Implementation involves execution of the goals or
objectives and action plans within the agreed time line. It deals with the
mobilization of all resources to achieve results. The article stated that strategic
plans bog down either due to lack of political will or ningas cogon affliction.
Political will is lacking among many companies. This is one major reason why
strategic plans fail. Another cause of the failure of implementing strategic
planning is the bibingka attitude among us Filipinos. Lets do it because others
are doing it. We simply dont finish what we started. Lethargic top leadership is
also a cause in failure of strategic planning.

According to Zarate (2011), Strategy formulation involves the

development of company strategies. Competitive strategies should support
overall corporate strategies which solidify all the other strategies that will result
to overall organizational performance. Strategy implementation should arrest
potential hazards like communication of the strategies should be implemented
because failure to do so can lose the ability of the organization to implement the
strategies.

I think in order for the organization to be successful in their strategic

planning, there must be an action led by the top management and what is
started should be finished. They should have a consistent enthusiasm in doing
things and should have an important reason on why they are planning things and
not just because others are doing it.

Sources: Payos, R. (2016, October 16). The pitfalls of strategic planning.

Retrieved from http://business.inquirer.net/216787/the-pitfalls-of-strategic-
planning

Zarate, C. (2011). Basic Concepts in Business Policy and Strategy. Business

Policy and Strategy. Metro Manila, PH: Rex Publishing House