Okay, before you get started on your annual planning session, let’s talk about the big problem: Errors in planning and execution We’ll go over some of the most common mistakes made during the annual planning process so you can avoid them like a boss in this section.
- Stakeholder engagement is lacking: A siloed plan that is not in line with the capabilities, requirements, and priorities of the organization can result from a lack of participation from important stakeholders in the planning process.
- Absurd objectives: Make sure your planning is based on the facts of your situation and takes into account the resources, skills, and timelines of your organization. Therefore it’s significant that you talk with different partners while arranging and executing your methodology. Check out OKRs (Objectives and Key Results) if you need a framework for setting goals. Alternately, these five best strategic planning models can assist you in setting SMART goals.
- Inadequate adaptability: Be prepared to adjust as the business environment changes, and think of your plan as a flexible road map rather than a set of strict rules. There isn’t a “perfect plan” out there. You need to be prepared for the unanticipated because 76% of leaders in corporate strategy report that significant pivots in strategic plans happen more frequently.
- Resources are scarce: You won’t see any tangible results from an annual plan that doesn’t take into account the knowledge and skills of your team members. Also, make sure your company has the resources it needs and that your annual plan won’t cause a cash flow problem.
- Communication difficulties: Success depends on open and honest communication, so share plans with all stakeholders and make sure they know the goals and how they fit into the organization’s overall strategy.
- Inability to follow through: If your teams aren’t reaching their goals and your strategy is just a document that sits around collecting dust, no one wins. Less than 20% of team members, as stated in Cascade’s Strategy Report, review progress weekly. Establish regular progress reviews and take any necessary corrective actions. If you ignore this error, your strategy will be doomed to failure.
- Misalignment between team objectives and business strategy: Executing a strategy requires everyone to be on the same page because it is a team sport. Your team leaders and the members of their teams should be aware of the annual business objectives. Give them feedback, let them set their own team goals, and make sure everyone buys in early.