Why Management Planning/Strategies Fail?

Challenges are a part of every step you take in corporate life. However, one should know to smartly and effectively dodge these challenges.

When it comes to planning, many issues arise. However, if the enterprise does not understand the need for the plan and show some dedication, the issues will remain intact. Therefore, the first part of acting on any issue is to understand what is the actual base behind it and then move on to the solution.

Why Do Organizations Need a Strategic Plan?

It is important to acknowledge why any organization needs a strategic plan, before moving on to the issues and why they fail most of the time. A strategic plan is focused on the mission and vision of the company. It basically sets the path for the company to walk-on for the future. It defines how your organization will achieve its success and work on its goals. Ultimately, defining the goals and plans for the future increases the engagement and dedication of the employees to the company and brings everyone on the same page. Every department has their own plan but they all are focused on one point: the success of the company. Moreover, it simplifies decision making processes and increases the alignment of every employee’s responsibility in the context of the defined goals. However, there are many problems arise which ends up in making the strategies and plan fail. Following are a few issues that arise:

Need of Strategic Plan

Unrealistic Goals

The first and foremost reason why most of the plans fail in any organization is that their goals are based on unrealistic goals. Unrealistic goals are any goals that sound good to hear but are impossible to achieve if the organization is not on that level. Every goal or objective that you set should be SMART. SMART is an acronym, which stands for specific, measurable, achievable, realistic and timely. Your goals should be specific and well-defined. They should include any additional information that is of no use. They should be measurable.

When an employer decides to make measurable goals that mean that goal can easily be measured towards the accomplishment of the goal. Besides being specific and measurable, they should be possible to achieve and relevant to the purpose of the business. Finally but most importantly, they should have a defined timeline. The timeline should include when they were formed and until what data can they be achieved.


With the marketplace continuously fluctuating, it has become really difficult for any company to follow its plans effectively. They make plans based on the current state of the market but since the market is so unpredictable, these plans fail. If any business wants to design a product, its main features should be focused on the changing preferences and needs of the customers. If they do not focus on it, they will most likely fail as a business. Many businesses neglect the realities of the marketplace and take the risks. As a result, their product fails miserably and they face major losses.

The potential problems might not have any impact on your product right now but in the future, they will. Hence, it is necessary for every enterprise to consider these problems and plan accordingly.


Any goal or plan is achieved efficiently if the company has adequate resources. However, if the company does not have funds to finance that plan, then it fails. Prior to such a dynamic marketplace, financing any activity in the form of debt or investment was easy. Now, business owners have to put a lot of emphasis on financing if they want to succeed. Getting a loan from a bank or any other intermediary is not that easy as it was before. Even financial intermediaries consider all kinds of aspects and possibilities of failures before financing any organization. Hence, before corresponding with any bank or investor, make sure you have researched all about them. It is important to analyze the platform before putting your foot on it.

Technological Issues

21st century is all technology. If your enterprise is not accustomed to technology yet, chances are all your strategies and plans for success are going to fail. No doubt, companies who have aligned themselves with the rapidly evolving technology are touching the skies of success. Business owners think that utilizing technology does not benefit their business and only costs them money. However, that is not true. The only thing that they will lose if they do not emphasize technology in their strategies is their customers.

On the other hand, organizations that have entered the technological world already are really slow catching up with the more advanced technology that already exists or yet to come in the future. This also influences the failure of the plans greatly. Perceptive business owners make sure that they keep an eye on all the trends of the technology. Make sure to get on board early with future technologies so that you can have a competitive edge over competitors who are still struggling in this sector.

Legal Issues

Political and legal uncertainty has existed for years. Nevertheless, in 21st, like everything else, this matter has also been intensified. Legal issues, such as, health care, customer protection and property intervention and many more have arisen and companies who do not make schemes keeping these issues in mind collapses. Many corporations who work on the legal and political matter have made sure to keep all of these companies under their eye so there is no chance to hide. You have to do everything according to them. Hence, if you develop any scheme without their approval, then you should also be ready to face some serious consequences. According to persuasive essay writing service, it is better if you make goals and schemes that abide by all laws. It will not only protect you but also give you a competitive edge, as people will prefer you more than your competitors.

No Accountability

Any strategy does not involve creating it. That is only the initial stage of starting something new. Once you have created a strategy, it is essential that you stay consistent and stick to it. Companies fail in this matter because they generally have a perception that it is only about the developing. Make sure that all your resources are committed to achieving what you have set. This incorporates all the employees working in the organization and all the other physical assets. Set serious consequences for anyone who does not stay consistent. Any hurdle in your path to success should be eradicated.

Wrong Leaders

Wrong Leaders

A leader is an individual who makes sure that the strategy is implemented smoothly in the organizations and followed throughout. If the leader fails to connect with people working with him, there is no use of having a plan. Any plan can only be implemented if there is teamwork. Therefore, it is important for the management to only hire the right people for the top leadership position. They should ensure that the individual they are hiring is authoritative, friendly, understanding and dedicated to his work. That individual should know how to get his way around with people working together with him. In tough times, he should also know what right steps to take. Most of the strategies fail because the management does not pay enough attention to this aspect and hire the wrong people for the top leadership position.

Inefficient Team

If the leader is efficient but the team is not, then nothing is possible. Success is all about the teamwork. Mostly business fails in this regard because they do not carefully consider who to make a part of their new scheme. Any new project requires every person to be efficient, creative and hard working. Even if one person lacks any of these qualities, the whole team can fail. Hence, it is imperative that management gives clear consideration to the people they are making part of the project. The personality of each individual should be beneficial for the project.

Not Focusing on the Environment and the Results

Every time any corporation decided to initiate a new project, they first consider the results of it. Numerous corporations initiate things without considering the end results and the risks involved with respect to the environment. The planning management should pay close attention to the working environment, set meaningful priorities and they should understand the importance of the results on their work. Until and unless they will not understand the benefits of the project, they cannot act on it.

Incomplete SWOT Analysis

A SWOT analysis can be defined as a clear analysis of the strengths, weaknesses, opportunities and threats. Before initiating anything new, every business should consider these four aspects and conduct a clear and detailed analysis of it. Most people do not perform this action and directly execute the plan which later on results in failure. If you consider the strengths, weakness and the opportunities it has to present you can easily find out if this strategy is really worth for you or not.

Partial Commitment

Every process is tough when the people involved in it only show partial commitment. Everything requires full commitment or it fails. Creating and just implementing it just for one-time exhibits partial commitment. Presidents, owners and CEO’s should not only implement but review it every month to check its regularity and to make it a consistent part of the enterprise.

Having a Plan Simply for the Plan’s Sake

Working with no Plan

It is a general perception that every successful and good organization already has a plan. Nevertheless, like many perceptions, this is not true. Due to this perception, other enterprises decide to make plans and strategies that are of no use and only costs their time and money. One should have a clear goal in mind before they start on anything new and then act on it. Otherwise, they should not because this can have a huge negative impact.


Due to the multifaceted nature and changes, organizers and managers don’t have complete information on all the variables affecting the choice. However, they need to settle on choices in spite of their absence of data based on the ecosystem for which their choices and decisions have definite results and consequences.


Unique, and frequently clashing, qualities and point of views are generally engaged with resource allocation and use choice. Organizers and directors are frequently faced with strife circumstances and need to perceive and intercede between the clashing sides. This is related to the intergenerational and intra-generational value suggested in the term manageability.

Failure to Interpret Competitors Reaction

Finally but most importantly, when any enterprise decides to execute a scheme, they fail to predict their competitors reaction. You never know what your competitors are holding inside. They can have something huge and fascinating that steal your spotlight, hence, it is important that goals should be based keeping your competitors in mind.


To sum up, the above-mentioned points are some of the problems and challenges that arise by managers in decision making and forming plans. These points include unrealistic goals, the uncertain marketplace, legal issues, funding issues, inefficient team members or leaders, fewer resources and many more. However, all of these issues can be solved, if the enterprise considers them attentively and instead of taking the easy way out, they try to act rationally.

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