In general, strategic plans can fail for two types of reasons: inappropriate strategy and poor implementation.
Inappropriate strategies may arise due to:
· Failure to define end states (objectives) correctly
· Incomplete SWOT analysis with respect to the desired end state
· Lack of creativity in identifying possible strategies
· Strategies incapable of obtaining the desired objective
· Poor fit between the external environment and organizational resource infeasibility
Poor implementation of a strategy may happen due to:
· Over- estimation of resources and abilities
· Failure to coordinate
· Ineffective attempts to gain the support of others or resistance
· Under-estimation of time, personnel, or financial requirements
· Failure to follow the plan
The planning process can be viewed as a somewhat circular flow of topics and action steps, where the results from one step initiate study and action in the next step. However, the process does not necessarily always flow in one direction. Issues that arise in a particular step may cause the planning team to go back to an earlier step to do additional work. If desired, the order of the steps can even be altered to suit the particular needs of the planning team. The implementation step also does not end the planning process.
Analysis of results could easily result in additional analysis or a change in strategic direction. The plan should be reviewed on an annual basis to verify that all the base assumptions are still valid and that the implementation plan is progressing according to expectations.
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