If you have stopped by this blog before, you already know Why Strategic planning is an important business activity and critical to business success.
Particularly most of small businesses do not have a proper strategic plan as they might not seem much sense to do a lot of long-range strategic planning. Here are 7 reasons why some businesses do not engage in strategic planning:
1. Poor Reward Structures: When a reward structures fails to provide reward for the success, and at the same time a punishment for the failures, it encourage managers to do nothing instead of taking risk to achieve goals, failing and get punished.
2. Waste of Time and Expensive: Strategic planning is all too often hugely expensive and time consuming as no marketable product is produced thus results in an unused activity.
3. Laziness and overconfidence: People who have lot of experience they count less on planning also may not want to extend the effort needed to formulate a plan.
4. Fear of failure: Due to the fear of failure individuals avoid planning since through not taking action, they certainly have less risk of failure unless a problem is immediate and demanding.
5. Prior Bad Experience: People may likely avoid planning who are having poor experience with planning, where plans have been long, improper, or inflexible.
6. Tasting Throughout Success: When a firm is running successfully throughout management may experience there is no need to plan since things are fine as they stand.
7. Self-Interest and Fear of the Unknown: A new plan often seen as a threat as one has achieved status, privilege, or self-esteem through effectively using an old system and individuals are usually uncertain of their abilities or aptitude to take on new systems.