{"id":67246,"date":"2022-06-01T06:21:46","date_gmt":"2022-06-01T10:21:46","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=67246"},"modified":"2022-06-03T08:45:01","modified_gmt":"2022-06-03T12:45:01","slug":"organizational-planning","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/organizational-planning\/","title":{"rendered":"Organizational Planning: Why Strategic Plans Fail"},"content":{"rendered":"\n<p>Do you use organizational planning for your business? Why will it ultimately fail your business in the long run?<\/p>\n\n\n\n<p>In a typical company, senior leadership comes up with a strategic plan for success and then communicates it to their direct reports. The message is then passed down until it reaches the execution team, which makes its own plans based on the directives from the higher-ups.\u00a0The problem with this dynamics is that plans made by higher-ups tend to disregard the daily struggles of their employees who make the magic happen.<\/p>\n\n\n\n<p>Here&#8217;s why strategic plans often fail.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-don-t-have-a-strategic-plan\"><strong>Don&#8217;t Have a Strategic Plan<\/strong><\/h2>\n\n\n\n<p>Organizational planning allows senior leaders to chart the future of their company. However, high-level strategic plans are largely ineffective because the senior leaders who make them tend to be out of touch with the real world. They aren\u2019t exposed to the daily issues that your team faces, so their plans are based on assumptions and second-hand information about things that have already happened. As a result, their plans quickly become obsolete and irrelevant to the team tasked to implement them.<\/p>\n\n\n\n<p>(Shortform note: Planning from the top-down can be such a long, drawn-out process involving out-of-touch senior leaders that companies sometimes end up acting too late or launching ill-considered projects. Case in point: In 1955, <a href=\"https:\/\/www.shortform.com\/app\/book\/business-adventures#big-egos-can-make-people-feel-invincible\">Ford planned to introduce a medium-priced car<\/a> to meet a rising demand for vehicles in that price range. By the time the company released the Edsel two years later, the economy had taken a turn for the worse and\u2014unknown to management\u2014consumer preference had shifted to compact cars. Due to dismal sales, Ford stopped manufacturing the Edsel in 1959 and lost $250 million on the project.)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-instead-have-an-agile-system\">Instead, Have an Agile System<\/h2>\n\n\n\n<p>The authors contend that instead of organizational planning, <strong>businesses should have an agile system that relies on real-time, on-the-ground information<\/strong>. This allows the company to respond quickly, decisively, and appropriately to change. To create this system, the authors say freethinking leaders should:<\/p>\n\n\n\n<p><strong>1) Make as much information as possible available to your team<\/strong>, and <a href=\"https:\/\/www.shortform.com\/blog\/how-to-encourage-team-members\/\">encourage team members<\/a> to do the same. (Shortform note: Providing team members with as much information as possible has several benefits. In <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\"><em>No Rules Rules<\/em><\/a>, Reed Hastings writes that this kind of <a href=\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace\/\">organizational transparency<\/a> <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/part-3\">builds employees\u2019 trust in the company and its leaders<\/a> and <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-7\">empowers them to make decisions<\/a> without needing their higher-ups\u2019 approval, which then enables them to respond quickly to change.)&nbsp;<\/p>\n\n\n\n<p><strong>2) Observe your team to see what kind of data is most helpful to them. <\/strong>Then, find ways to supply them with the information that can best help them make decisions. (Shortform note: While Netflix believes in <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-7\">empowering its employees to make decisions by giving them information<\/a>, Hastings emphasizes that this method won\u2019t work in every workplace. It\u2019s only feasible in an organization that <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-7#condition-1-a-high-concentration-of-talent\">has a high concentration of talent<\/a> and that <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-7#condition-2-emphasis-on-innovation-over-error-prevention\">values innovation over error prevention<\/a>.)<\/p>\n\n\n\n<p><strong>3) Have short, weekly conversations with each team member<\/strong> to check on their priorities and progress, determine if they should recalibrate their tasks based on any changes, and ask if they need your help. The authors stress that quantity is better than quality when it comes to these conversations\u2014the more you check in with your team members, the more engaged they become.&nbsp;(Shortform note: Even informal, 10-minute conversations can revamp your interactions with your team members and transform your team, as long as you have them regularly. In <a href=\"https:\/\/www.shortform.com\/app\/book\/the-coaching-habit\/1-page-summary\"><em>The Coaching Habit<\/em><\/a>, Michael Bungay Stanier outlines <a href=\"https:\/\/www.shortform.com\/app\/book\/the-coaching-habit\/1-page-summary\">seven questions that you can ask your team members<\/a> for a quick coaching session, depending on the situation. These questions include, \u201cWhat\u2019s the central challenge for you?\u201d and \u201cHow can I support you?\u201d)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you use organizational planning for your business? Why will it ultimately fail your business in the long run? In a typical company, senior leadership comes up with a strategic plan for success and then communicates it to their direct reports. The message is then passed down until it reaches the execution team, which makes its own plans based on the directives from the higher-ups.\u00a0The problem with this dynamics is that plans made by higher-ups tend to disregard the daily struggles of their employees who make the magic happen. Here&#8217;s why strategic plans often fail.<\/p>\n","protected":false},"author":14,"featured_media":66304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14,30],"tags":[627],"class_list":["post-67246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","category-work","tag-nine-lies-about-work","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Organizational Planning: Why Strategic Plans Fail - Shortform Books<\/title>\n<meta name=\"description\" content=\"High-level organizational planning is important, but it could backfire if done wrong. 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