In my conversation with a CEO I’ve worked with for years, we dove into a pressing issue: why do strategic planning processes often fail? This CEO, an experienced leader and part of a thriving CEO group, raised a concern many leaders share: despite using proven methodologies like Scaling Up, success can still feel elusive.
After years of working with leaders and organizations, I’ve identified four key reasons why strategic planning fails. Here’s what we uncovered and how to address each challenge to ensure your company stays on the growth track.
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Too Complex
One of the biggest pitfalls is overcomplicating the plan. Many companies create intricate, visually stunning plans that are impossible to implement. These plans often attempt to capture every idea generated in a brainstorming session, but complexity hinders alignment and engagement.
The Fix: Simplify. Strip the plan down to essentials—ensure even a 12-year-old could understand it. A clear, actionable strategy aligns your team and drives results.
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Not Focused on the Core Drivers
Another common issue is missing the core growth levers of the business. Strategic plans should focus on the engine of growth—the fundamental activities or processes that drive success. Without this, you risk spreading your efforts too thin.
The Fix: Use tools like Jim Collins’ flywheel to identify and emphasize the key drivers of your business. Build your plan around what truly matters and fuels growth.
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Too Distracted by Shiny New Things
Curiosity is valuable, but too much can derail focus. Leaders often get caught up in exciting new opportunities that fall outside their company’s core competencies. This can dilute energy and resources, pulling the organization in too many directions.
The Fix: Stay in your lane. One CEO I worked with used to say, “That’s a great idea—for a different company.” Focus on your core strengths and resist the urge to chase distractions.
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Too Compassionate or Complacent
When goals aren’t achieved, it’s easy to fall into a pattern of complacency or excessive compassion. While empathy is important, high-performing organizations hold themselves accountable. Missed goals should spark a conversation, not excuses.
The Fix: Create a culture of accountability. Like athletes reviewing game tape, evaluate why a goal wasn’t met and iterate for improvement. Celebrate wins but maintain a relentless focus on getting better.
Keeping It Simple and Focused
To build a successful strategy:
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- Simplicity is key.
- Focus on core growth drivers.
- Avoid distractions by staying in your lane.
- Hold yourself and your team accountable for results.
At our quarterly meetings, we celebrate successes but immediately shift to “iterate mode,” asking, “How do we perform better next time?” This balance of celebration and iteration fosters continuous improvement and keeps us on the path to growth.
The Challenge
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- Which one of the above points could you apply to make your strategic planning much more impactful?
Other Blogs
Older Podcasts
- The 7 Mistakes Leaders Make at Annual Strategy Meetings
- Get the Most From Your Strategic Planning Framework
Lawrence & Co’s work focuses on sustainable and enhanced growth for you and your business. Our diverse and experienced group of advisors can help your leaders and executive teams stay competitive through the use of various learning tools including workshops, webinars, executive retreats, or one-to-one coaching.
We help high-achieving leaders to have it all – a great business and a rewarding life. Contact us for simple and impactful advice. No BS. No fluff.