The problems of strategic plan implementation
A survey of our client base found that before we started working with them, only 15% of our clients made it a regular practice to go back and compare their business results with the performance forecast for each of their business units in its three-to-five-year strategic plan. Furthermore, when they did make the comparison, they found that performance rarely matched the previous year’s projections.
Implementation is the most difficult part of the strategic planning process. It involves achieving the objectives set out in the plan while remaining alert and flexible to new opportunities as they unfold.
How to implement the strategic plan effectively
For successful implementation, the strategic plan has to be robust in the first place. In other words, it must be realistic and solidly grounded in the underlying economics of the organisation’s markets. (For guidance on drawing up a high quality strategic plan, see the TCii White Paper Strategic planning.)
What constitutes effective implementation?
Effectiveness can be measured by how well the business meets the financial projections set out in the strategic plan.
To achieve effective implementation, a business must ensure that any changes initiated by the strategic plan are reflected in areas such as budgeting, rewards schemes and information systems. The overall goal is to integrate the results of strategic planning with daily, weekly and monthly routines.
The goals articulated in the strategic plan should drive marketing and sales efforts, human resources practices and research and development. These goals become a central part of the business by guiding daily operational activities.
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