As per the report of business strategy experts, 90% of companies fail to execute their strategic plans successfully. Even if some of their plans are practical, this abrupt failure rate may cause numerous businesses to the downfall of their goals or aim always and be unable to predict their performance accurately. Mostly leadership teams need to improve at planning because they spend most of the time in development brainstorming and require extra time mapping out projects and problem-solving. Strategic planning is an important business activity that helps an organisation gauge the state of its business, market, and resources. It helps in determining the priorities, recognising operational gaps, and building alignment around the fundamental processes that move an organisation forward. All these components are critical to business growth. Strategic planning creates people that indicate the organisation’s progress in getting where it wants to go. Further, it requires a great deal of collaboration and focuses on ensuring that the right people are engaged and that the correct information is used to inform thinking and decisions. This article covered the strategic planning, their benefits and the mistakes that every company should avoid while building a plan. What Is Strategic Planning? Strategic planning is when an organization describe their vision for the future and determines its organization's goals and objectives. The process of strategic planning includes establishing the array in which those goals will be comprehended so the organization will reach its stated vision. The theory of strategic planning became famous in the 1950s and 1960s and enjoyed favour in the corporate world as far as the 1980s when it somewhat fell out of favour. Additionally, enthusiasm for strategic business planning was encouraged in the 1990s, and it is remains admissible in today's era. Benefits of Strategic Planning Helps formulate better strategies using a logical, systematic approachEnhanced communication between employers and employeesEmpowers individuals working in the organizationIt helps organization to be proactive rather than reactiveOrganization operational efficiency will increase What Are The Common Mistakes While Strategic Planning And How To Avoid It? Avoiding the key mistakes mentioned below will help the organization get the most out of the strategic planning process. Time-Period of the Plan Should Be Brief. The business strategies should be expected to be constant and relatively unchanged for particular periods; strategic plans must remain focused on promptly accomplishing strategic priorities. The plans also need more frequent changes to keep them from becoming mouldy and to keep the organization energized on plan execution. Long-term planning certainly has its place in the corporate world. Still, shorter operational plan horizons allow organizations to utilize valuable present information and remain engaged in delivering the plan milestones. The short-term plan updated every quarter offers more value to the organization in many ways. As long-term plan goals are partially or fully met, the operational factors of the plan moving forward. It is modified with more accurate and updated details for the coming 12 months. Setting Unclear Objectives With clearly declared objectives and a well-defined structure for proceeding, strategic planning sessions can be smooth and leave participants satisfied and fully engaged. When everyone understands from the beginning what is expected of them and the intended end results of the strategic planning sessions, the likelihood of staying engaged and on task to accomplish those objectives is much higher. Strategic Plan Is Not Distinctive Distinctive refers to the plan explaining how the new strategy is distinct from the current or an old one. This is essential. As the study on strategy execution shows, the frequent issue is that the new strategic planning is reinterpreted in the old ways of working. Additionally, due to their confirmation bias, people generally look for what they expect and look only at what they already know. As a result, when analysing the plan, many people may ask: what’s new in this? We are already doing the same. To avoid this, the company must elaborate on the difference between them. A person should focus on where and how the new strategy is distinct from the previous or current strategy or what the organization is doing. Being solid bits of help because the company are concrete about its strategy, it is relatively easy to explain how it is distinct from the previous one. Lack of Focus on Competitors In business, there is always competition for customers. Unfortunately, numerous strategic plans fail to measure the competition's effectiveness on growth plans. This absence of focus on their competitors can develop a strategic plan that dwells in a vacuum without consideration for the big national and international markets. Even if all the competitor analysis data doesn’t fit into the plan, those charged with building it should have a strong understanding of vital competitors, where they have expanded or cut back in the previous year, how they communicate to customers, and so on. Employees Are Unaware Of the Goals If the company don't tell their employees about their strategies, it can be a massive problem in many organizations. When the company fails to consider the person who will implement the plan while making the strategies, the breakdown will happen, and the expected result will be affected. Detailed execution plans are required for initiative. For better outcomes, the company must communicate their goal and strategy throughout the organization, so everyone perceives and understands the "Strategy" and what is clearly expected of them. The Strategic Plan Is Not Convincing At their core, strategic planning are made for one crucial reason that is change. They describe where an organization should go in the upcoming years and the goal to change people's frame of mind and attitude so that the planned strategy is executed. It means that strategic plans should convince people of the importance and meaning of the strategy and why confident choices are made and not others. Ignoring Seasonality Every industry has ups and down, in the case of national holidays, fiscal calendars, weather patterns, etc., that impact sales and work attendance. Suppose the company not considered the seasonality while creating strategic plan. In that case, a company faces more difficulty. The simplest way to understand how seasonality affects every business, the company should analyse their monthly outcomes from past data and see the trends in the low and high months. Once the company knows its most robust and weakest months, it can incorporate them into its strategic plan with the help of past metrics as baseline goals or allocate extra resources to the low months to lessen the impact of seasonal components. Not Knowing the Numbers When engaging in strategic planning, company must get the financials of the present and past data. The company place their revenue and profit goals and ensure adequate amount of cash flow to protect the company ongoing costs. Make sure company have the plan to finance the business that will allow the company to grow. This might involve venture capital and loans. Another essential aspect of knowing the financials is ensuring that the company have the budget to deliver on their plan, including recruiting new talent and investing in new technology. Conclusion When engaging in strategic planning, these common mistakes are avoided. The strategy always is concrete, distinctive, coherent, convincing, and actionable. It is a type of strategic plan that survives for a long time with high expectations of a written strategy. The strategic plan is a valuable device which can offer entity attention and a path for the upcoming years. The strategic plans also apply in highly dynamic contexts. While the basic strategy contemplated in the plan may be familiar in the next few years, the plan gives back a shared point of reference. It helps clarify what is changing and how the organization will diverge from its past intended direction. Read Our Article: What is the Process for Strategic Planning Services?