Stumbling blocks that get in the way of strategic planning.
Corporate strategy is of key importance. Yet executives seem to struggle with strategic planning. How does that come?
Many think strategy is the product of endless research and modelling. That is a misconception. It is a natural reaction to spend weeks preparing a plan on how to invest in assets, capabilities, or increase shares in a market with projected revenue and costs. However, unrealistic expectations, wrong planning models and fixation on budget parameters are typical traps to fall into.
A detailed plan ≠ strategic planning. Strategic planning is a responsive process of continual anticipation: it is a set of ideas that evolve along the way.
True strategy is the result of a process of thinking through what it would take to hit target and assessing whether it is realistic. It is not about eliminating risk, but increasing the odds of success.
