Executives seem to be frustrated by the lack of impact that strategy planning has on the final result. However, strategy planning plays a crucial role in defining the direction to head in as an entity e.g. an organization. Without direction, it is almost impossible to achieve the business objectives. By identifying the key issues, involving not just the business executives but also people executing the strategy and building a flexible and adaptive plan, strategists can improve the effectiveness of a strategy in the planning phase. Understanding which factor does your business weighs more to define its success e.g. revenues, customer base or market share, etc., forms the foundation of the plan.
I think that one of the key challenges in strategic planning is predicting the uncertain future and deciding which possibilities to consider and which to eliminate. While planning, it is important to identify nature of the industry and the phase the business is in. Based on these, the organization can use the one of the four styles specified in the article “You Strategy needs a Strategy”. A lot of times well thought strategies may fail because a low probability event occurs and the developed strategy was designed to support only high probability events. All factors must be weighed while planning a strategy in today's competitive, fast, dynamic markets. A measurement model must be created during the planning phase and KPIs must be used to evaluate it.
Another key take away from the reading was that the same tried and tested strategy may not work always. Businesses must plan to develop mechanisms for adaptive and flexible strategies. Businesses must also be able to identify if they are planning the correct strategy that will be effective to suit the current market. Their models must be capable to develop corrective action plans. Concluding, I think planning a foolproof strategy is crucial for business success.