Have you wondered why strategic plans come and go? Well, after 20 years of working for or with 
Fortune 500 companies, mid-sized firms, and small companies, I have come to see some patterns. 

There appear to be five reasons why strategic plans fail. 

1. Too Internally Focused

Many organizations focus the strategic planning process on collecting and analyzing internal 
data and initiatives and not enough on the external environment. It's more about where the 
company has been and not enough about where the market is going and how the customers' needs 
are changing. It's also about making the tough calls on which market segments to pursue.

2. Too Heavy on Vision and Too Light on Strategy

Some organizations become enthralled about creating a vision statement. Don't get me wrong, I 
believe vision casting is a powerful tool when done right. However, some firms get so caught up 
in wordsmithing a statement that it includes every nuance of the company and becomes vague. This
can leave very little time to devote to developing an overarching strategy. This strategy is an 
important lynchpin to link your vision to action. It needs to detail which markets or segments 
to pursue and the strategic approach that will be used to win in the marketplace. (See my 
article "Sure You Have a Vision For Your Company, but What Will Your Staff Do on Monday 
Morning?")

3. Too Light on Objective Analysis

Other firms go into the planning process very light on objective analysis of both the internal 
and external situation. They tend to base their strategic plans on current thinking or historical
tradition with prevailing politics of the companies current operations. This is why sound data 
should be collected before any discussions of strategic direction. It provides for an objective 
view of the companies' strengths and weaknesses relative to the marketplace.

4. Too Complex

Developing a strategic direction for your company can become complex, but if the finished 
outcomes include too many goals that aren't harmonious, the organization will fight within 
itself. Many times, this is a sign the organization lacks a clear vision and mission, which 
answers the questions, where are we going and why do we exist?

5. Too Few Resources 

Early in my business career, I learned the principle of aligning the objectives, strategy, and 
action. Resources create the vertical alignment of objectives at the top, strategy in the middle,
and action at the bottom. If resources are not sufficient to fund the strategy and action to 
meet the objective or goal, then the strategy is going to fall apart, like a house of cards. 

Developing a strategic plan should provide meaningful direction for your company's growth. So 
make your next strategic plan a success by avoiding these pitfalls.

Ed Lahue, President and Sr. Consultant of The ELM Group (www.elmgrp.com). Ed Lahue is an 
accomplished business professional with over 20 years experience in identifying new growth 
opportunities for his clients. He has successfully marketed several brand name consumer products
as well as developed winning business strategies for major businesses and industry.1