Can you tell planning myths from truths?
Here's a list of a dozen statements about strategic planning. Can you tell the myths about strategic planning from the truths (or at least what I know to be the truths as a certified strategist who has been involved in planning for decades)?
Myth or Truth?
If it isn't going to produce strategies that are implemented, then don't start.
Strategic planning should be an annual process.
Your previous plan is not where to start.
Group think and the leader's view are your enemy!
Effective strategic planning requires leaders to commit substantial time to the effort.
Look for the unspoken obvious.
The payoff from strategic planning is questionable.
The process is not the point. Strategies are.
A facilitator with a good process can get you there.
A SWOT analysis is at the heart of successful strategic planning.
Most organizations don't engage in strategic planning.
Strategic planning is outdated.
Here's my take on these statements:
1. If it isn't going to produce strategies that are implemented, then don't start.
Truth. Part of the reason strategic planning gets a bad rap is that planning initiatives are conducted to "get a plan" to have and show, not to produce a fundamental road map for organizational success. If the clear intent is not actionable strategies with an implementation plan and the will to follow the plan, then why waste the time?
2. Strategic planning should be an annual process.
Myth. While it is logical to plan before before setting the budget for the next year (and certainly better to do that rather than not plan at all), planning should occur whenever new strategies or new action steps to continue implementing existing strategies are needed. Because action steps are typically laid out for a 12-month period, that's what drives annual planning. But recognize that significant events can and do happen "off cycle" and call for more timely re-planning. Think 911, the emergence of a significant new competitor, a piece of legislation that changes the future landscape, etc.
3. Your previous plan is not where to start.
Truth. The crux of strategy development is to get out of the box you have been in and take a new look at the world, your direction and assets, and your options. Start with assessing the environment, getting input from stakeholders and assessing assets and liabilities. Ignore the old plan to start.
4. Group think and the leader's view are your enemy!
Truth. Indeed, the sway of the group and of the leader in biasing the assessment of situations and the determinational of courses of action are well documented. That's why a skilled and unbiased outside facilitator is so helpful in the development of strategies and action steps that are most likely to address the real issues and opportunties that the organication faces.
5. Effective strategic planning requires senior leaders to commit substantial time to the effort.
Myth. While added time can be used to consider implications of possible strategies, in reality in this planner's experience planning consumes the time allocated to it with not a great differential in result. Certain planning processes do take more time than others (the balanced scorecard is an example of a tool when fully executed that can consume leaders' time), but for most planning processes many days and hours of meetings involving senior leaders are unnecessary. Better that the process is distilled to discrete and time-limited phases; for example, here's my streamlined process: 1) Review and adopt process, and provide input for environment scan and stakeholder survey; 2) Receive and process results of scan and survey, review assets and opportunities, and craft draft vision; 4) Review liabilities and threats, and identify strategic gaps; 5) Create strategies to close the gaps and action steps to implement the strategies, with timelines, measurements and accountabilities; 6) Review, adjust and adopt the plan. For smaller organizations, this can happen in three meetings, the first over several hours to a half day for step 1, the second a full day or so for steps 2-5, and the third over several hours to a half day for step 6. More time will be needed for larger organizations. The tedious, long and involved planning processes that some consultants advocate can drive leaders away from re-planning in the future.
6. Look for the unspoken obvious.
Truth. I have facilitated many planning sessions where a big issue, question, opportunity or threat seemed obvious to me but was not being raised by the participants. Be it the competitor that is discounted and yet by all measures is a threat, the critical lack of staff skills, the erosion of a long-standing market or something else that is fundamental to the future course or success of the organization, there are often unmentioned and sometimes even taboo things that need to be voiced, acknowledged, assessed and dealt with in the planning process. A good facilitator can keep directing attention to these unspoken realities until the group finally admits them and deals with them.
7. The payoff from strategic planning is questionable.
Myth Research shows that planning pays off. Organizations that create and implement strategic plans have higher profits and greater return, have doubled odds of survival, have less risk, are more likely to achieve their goals, and derive other real, material benefits. It's documented here.
8. The process is not the point. Strategies are.
Truth. The only reason to engage in a strategic planning process is to develop actionable strategies that will move the organization to a better place, closer to its vision of an ideal future. Do whatever it takes to find and form the key strategies. Any process with this outcome is fine, as long as it is timely in its result. Not that one process does not have virtues versus another. But if you need a car to get somewhere, get a car. The make and model matters little.
9. A facilitator with a good process can get you there.
Truth. Experienced facilitators know how to work with groups to achieve desired outcomes. A facilitator with a tested planning process can work with the planning group to develop the necessary vision and strategies in a timely fashion, with flexibility and transparency in the process being key. Strategic planning is not "command and control," nor is it "open discussion." It's a tailored and focused exercise in high-level thinking, analysis, questioning and decision making. Look for the facilitator who knows this and whose process enables this.
10. A SWOT analysis is at the heart of successful strategic planning.
Myth. A strength, weaknesses, opportunities and threats analysis is only a tool in the strategic planning tool kit. In this planner's view, the traditional method of doing a SWOT analysis before creating the vision can be limiting and even depressing. Rather than highlighting weaknesses and threats out of the box, better to understand the organization's strengths, assets and opportunities, and then work to see the bright future to which these positives can lead the organization. Making decisions from weaknesses and threats can lead to a highlly risk averse organization and overly defensive strategies. The weaknesses and threats should come into play when the vision is in place; then the question is, how do we remedy the weaknesses and defend against the threats through strategies that move us close to the vision.
11. Most organizations don't engage in strategic planning.
Truth. Research suggests only 23% of companies use a formal strategic planning process to make important strategic decisions. The lack of effective planning and its consequences are evident in the research.
12. Strategic planning is outdated.
Myth. Strategic planning defined as developing actionable strategies to move the organization to its ideal future vision is timeless in its value. However, planning processes and systems become out-dated as the environment changes and new tools and techniques are created. Blue ocean, balanced score, rapid planning, virtual planning and so on - all are approaches and methodologies that offer benefits in adaptation to and success in the changing environment.
