Effective implementation of strategic planning process does not require only the allocation of resources to accomplish goals.
It must also be backed up by strategic ideas, which include having an appropriate organizational structure, an effective management information system, a system of budget facilitating the achievement of strategic goals, and a reward system that supports the strategy.
The following are some of the important factors supposed to cause the failure of strategic planning;
- Inadequate preparation for strategic planning for managers,
- The information for preparing the plans is not enough to prepare subsequent plans for action,
- The objectives of the organization are too vague to be of any use,
- The business units (divisions, sub-divisions etc.) are not clearly distinguished or identified,
- Reviewing of the strategic plans of various business units is not done in an effective way,
- The linkage between strategic planning and control is inadequate.
Strategic planning is especially the job of those line managers who sit at the top of the organization.
To assist them, particularly in large firms, staff planners may be employed. But line managers must be trained if they are to do their job effectively.
The overall strategic plan development and implementation also require specific action plans to support and supplement it.
This usually needs contributions of line managers from various functional departments like research and development, engineering, production, marketing, financing, and personnel to develop action or working plans in their respective areas to implement the broad strategic plan.
If organizations are very large they are quite often broken down into strategic business units (SBUs). They are supposed to run in relative independence.
But it is important to see that this relative independence does not result in conflict and competition among different units.
It is for the top executive to harmonies and integrates these unit-level strategic plans into a single and positive whole serving the overall interest of the company.
Without a plan no control is possible. The plan provides the basis for control. Quite often it is found that strategic plans and budgets are in conflict.
This happens because in most cases budgets are based on the previous budgets, ignoring requirements of the strategic plan. Budgets are also often prepared without a definite action plan to carry out the strategy.