While formulating a strategic plan requires a lot of commitment and involvement on the part of top management, success of business strategic plan requires effective coordination and communication throughout the organization. It is the responsibility of top management to ensure that all the activities listed in the plan are carried out in accordance with established business policies and procedures.
The responsibility for execution of business plan (s) is entrusted to departmental heads and process owners. Employees are involved in the execution of day to day business activities as per the guidelines provided by their supervisors.
In the absence of business strategic plan (s), it may become difficult to achieve business objectives and to track the overall performance of the organization in terms of sales revenue and profitability level.
However, it is not necessary that all strategic plans will give desired results. Many strategic plans may appear to be very attractive at the time of formulation, but it may not be possible to ensure successful execution/implementation of such plans at the time of developing such plans. There can be many reasons for failure of business strategic plan (s).
Causes For Failure Of Business Strategic Plan
Lack Of Information
One of the most important aspects of successful execution of business strategic plan is transparent and open flow of information throughout the organization. It is practically impossible to carry out day to day business activities in the absence of proper communication channels.
It is important for the top management to ensure that employees are aware of overall business objectives and are well informed on changes in internal and external business environment. Similarly, employees are required to communicate day to day business challenges to the senior management.
Lack of timely information can result in delay in important decisions (required for successful execution of strategic plan) by the management. Delay in decision making can impact the overall process of strategic plan implementation and in some cases can lead to complete failure of business strategic plan.
Absence Of Leadership
Employees execute different business activities as per the instructions of their supervisors/managers. Business managers are required to have excellent leadership skills to provide direction to subordinates and help them in their day to day business/work related issues.
In the absence of proper leadership, employees may find it difficult to carry out their duties which may impact the execution of business strategic plan. Effective leadership skills are also important to keep the employees motivated during difficult times. Similarly, effective leadership is required at top management to take critical business decisions.
Top management is often required to take tough decisions and to handle complex business issues. Without leadership skills, it may become difficult for the top management to handle such situations. Inability to motivate employees and act as effective leaders can impact the successful execution of the business strategic plan.
Lack Of Supervision
While business plan can be used as a standard against which performance of various departments, managers and employees can be evaluated, it is important to monitor the execution of activities listed in the business plan at various stages of strategic plan implementation.
Such supervision can help in identifying performance gaps and other issues. Without proper supervision, it may become difficult to identify serious deviations and to take corrective action in time. Any delay in rectification of serious business issues can affect the process of strategic plan implementation.