Are strategic plans overrated? The answer is often ‘yes’ because they are created and implemented poorly. The better question is whether strategic planning is a waste of time, and that answer is ‘no.’ Every organization needs a written consensus on what is good for the integrated whole. This article covers more on the topic and distinguishes between strategic and operational activities. As Mike Tyson is attributed to saying, "Everyone has a strategic plan until they get punched in the mouth."
New Job: "Strategy is Overrated"
A professional colleague changed jobs a few years ago. We worked closely for about a decade and I knew his key skills were setting strategy and closing deals. I ran into him at a national conference (actually in a bar) and the conversation went something like the following.
"So, what do you like least about the new job?" I inquired. He knew me well enough that I wouldn't brush through a generic question and then listen to a lot of BS.
“I am having to adjust to their lack of strategic planning,” as he started to gaze in search of the right words. “You know that setting a strategic plan is one of my strengths. Executing a well-thought plan is just how my mind works.”
“That’s odd," I replied as I started to look for the bartender. Refocusing again, “How do you know a big organization like that doesn’t like strategic plans?”
“Because my boss told me so,” came a somber reply. “He said that he thought strategy was over-related and we needed to focus on tactics. His boss was in the meeting and agreed.”
Pitfalls of Strategic Plans
The quote from Mike Tyson about everyone having a plan until they get punched in the face reminds us that all strategy in the world will not help us when our brains are getting beat in. in the fight, there is only the fight.
But the quote doesn’t really tell you why strategic plans are flawed.
I’ll save the textbook discussions on too much complexity, lack of post-plan communication, lack of implementation ownership, too many strategies, underfunding, and lack of confusing planning with a strategic plan.
The greatest pitfall of Strategic Plans is organization leadership creating a politically correct communication piece instead of meaning something to front-line staff. Remember, strategic means “of great importance within an integrated whole.” Most leadership teams forget about the integrated whole.
Benefits of Strategic Plans
According to 'the book,' all organizations need direction, focus, resource allocation, performance management, and a communication framework. I'll bet the Mike Tyson organization had a strategic plan, even if Iron Mike didn't think it meant much when he was in the fight.
Arguably, tiny organizations, tech startups, and companies in extreme crisis may not need a strategic plan. They are in the fight, and tactics matter most.
Nearly all organizations need a strategic plan. My top three reasons are that we benefit from the exercise, align the top of the organization with the front line, and create a communication framework for the future. The value of a strategic plan comes down to how well it is done.
Real Stories
State Department of Transportation
“We can’t buy toilet paper,” said the District Administrator, “And you consultants show up with your handlers from the state capitol.”
Clearly, he had been punched in the mouth and was already in the fight. The buy-in of the state strategic plan from the districts was not forthcoming.
Someone at the top of the organization should have included front-line staff at the start of the process. I am sure the district administrator believed for the rest of his career that strategic plans are overrated.
Shaking It Up
Mount Pleasant Waterworks General Manager Clay Duffie wanted to shake up his annual board retreats. My suggestion was to integrate front-line staff in several active ways.
He agreed and went one step further–he banned all PowerPoint presentations from the two-day event. Everyone had to interact as humans with each other.
We wrote papers and did conference presentations on how well it worked. More importantly, it created a bond between staff and the Board that severed the organization well when Clay retired a few years later.
Using the Plan as a Communication Tool
Joe Mantua inherited a newly developed Strategic Plan for Beaufort Water and Sewer Authority. Although he wasn't a big fan of it, as the new General Manager, he used it as a communication framework for his remarks at all of the Board meetings.
A few years later, Joe and I put together a survey when we embarked on developing a new strategic plan. I wasn't surprised when front-line staff said they hated it. However, I was surprised when the Board almost unanimously said they liked or loved it.
Why the divide? Joe had effectively used the plan as a communication tool, at least to the Board. The Board was shocked when they discovered the disconnect between the strategic plan and front-line staff. The Board had not been punched in the mouth, but the staff was fully engaged in a tactical fight with day-to-day issues not covered by the plan. The real value of the plan was in the planning effort.
Are Strategic Plans Overrated?
Strategic plans may be overrated, but strategic planning certainly is not. Neither is overrated when done well.
JD Solomon Inc. provides solutions for program development, asset management, and facilitation at the nexus of facilities, infrastructure, and the environment. Sign up for monthly updates related to our firm.
JD Solomon is the founder of JD Solomon, Inc., the creator of the FINESSE fishbone diagram®, and the co-creator of the SOAP criticality method©. He is the author of Communicating Reliability, Risk & Resiliency to Decision Makers: How to Get Your Boss’s Boss to Understand and Facilitating with FINESSE: A Guide to Successful Business Solutions.
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