MSG Team's other articles

10220 Management Practices in Product Leader Organizations

Organizations that have become synonymous with product leadership and innovation have not reached such a position by chance. Rather it is by design that these Organizations continue to innovate and offer new products and services to the customers. Managing creativity and managing innovation is a part of the Organizational culture and value system that these […]

9357 5 Factors in Selecting an Affiliate Program

As an affiliate, one of the first major decisions that need to be made is selecting an affiliate program. This program then forms the basis of all the time and money that the affiliate would spend trying to generate a sustainable income. You cannot win too often if the playing field is unfavorable! Choosing the […]

8736 International Retailing – Meaning and Important Concepts

International trade and commerce has existed for centuries and played a very important part in the World History. However International Retailing has been in existence and has gained ground in the past two to three decades. The economic boom in several countries, coupled with globalization have given way to Organisations looking at setting up retailing […]

12834 Competition Strategy – Dealing with the Competition

Consumer and business markets have distinct characteristics by which they function. Earlier, importance was given mainly in understanding customer and their business. But in this age of technology and globalization companies cannot afford to ignore competition. Many companies are lowering their cost by outsourcing production to Asian countries. Companies must keep an eye on strategies […]

12506 Brand Identity – Definition and Concept

Brand identity stems from an organization, i.e., an organization is responsible for creating a distinguished product with unique characteristics. It is how an organization seeks to identify itself. It represents how an organization wants to be perceived in the market. An organization communicates its identity to the consumers through its branding and marketing strategies. A […]

Search with tags

  • No tags available.

It needs to be remembered that strategic management and strategic planning are intricate and complex processes that take the organization into unchartered territories. Hence, they do not provide a readymade prescription for success nor do they promise instant solutions to all problems that the organization is facing.

Instead, strategic management and strategic planning are processes that take the organization through a journey that involves providing a framework for solving problems and addressing questions.

Some of the pitfalls to be avoided in strategic management and strategic planning are listed below:

  1. The first and foremost pitfall relates to using strategic management and strategic planning only to satisfy accreditation and regulatory requirements instead of adding value to the firm’s processes.

  2. Getting into solution mode without thinking through the complex problems that 21st century organizations face. It needs to be remembered that many problems that businesses face need “slow fixes” rather than quick and easy solutions that are attractive at first glance but fail over the longer term.

  3. When the top managers do not support the strategic management process because of intraorganizational politics, any strategy however good would fail because of the lack of buy-in from key interests in the organization.

  4. When the planning is delegated to a “planner” instead of all the managers getting involved, there are issues to do with lack of information and lack of execution, which results in the strategy going haywire.

  5. When firms are bogged down by too many internal problems that sap the energies of the managers, strategic planning and strategic management become futile, as the managers are engrossed in firefighting and solving the internal problems rather than focusing on the external aspects.

  6. One of the pitfalls of strategic planning happens when organizations become so formal and structured in their approach that they neglect the creative and flexible aspects.

    The point to be noted here is that out of the box thinking and non-linearity are important for firms to succeed in today’s business landscape.

  7. On the other hand, too much reliance on intuition can cost firms dear as after all strategy is a series of steps that need to be actualized and hence, there is a need for a well thought out and detailed plan.

While these are the some of the pitfalls of strategic planning, there are other aspects like not working to a plan and being too much bureaucratic.

Since the organizations of the future need to be agile and flexible with the ability to be malleable according to the changing market conditions and yet at the same time, have a core structure that is consistent with core competencies, a mix of formal and informal planning is needed for effective strategic management.

Closing Thoughts

Strategy is formal and emergent at the same time meaning that there needs to be formal planning as well as elbowroom for spontaneous evolution of the strategic planning process. This is the overriding imperative that organizations must follow if they are to actualize strategies that make them market leaders.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Cutting Costs Strategically

MSG Team

Corporate Governance – Definition, Scope and Benefits

MSG Team

Strategic Management: Core Competency Theory of Strategy

MSG Team