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Why has business planning failed in many organizations ?

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Question ajoutée par Gurjit Singh , Global Sales and Business Development Manager- Actively looking for change , Saudi Rubber Products Co.
Date de publication: 2016/06/01
Rami Assaf
par Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Why Planning Often Fails 

Planning attempts fail when they are not integrated into the day-to-day operations of the organization. A strategic plan without an implementation strategy is not likely to be used. Sometimes planning fails because there is poor understanding of the planning steps or planning concepts. Planning is also unlikely to be successful if the process is shunted to a staff person and does not involve management and board leadership, sponsorship, and commitment. It also should not be undertaken if it is unlikely to be implemented or if the cost to engage in planning outweighs the anticipated benefits.

Remember that the plan can only be as good as the assumptions it is based on, which are gathered during the initial environmental scan. This is often the area where nonprofit organizations shortcut the process. Without this initial assessment, there can be no strategic planning. The plan must build on critical issues that face the agency. These cannot be known without gathering the necessary information.

Mohamed Helal
par Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

Thanks for invitation....I endorse answers given by colleagues &Experts

Ghada Eweda
par Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

In simple sense, Business planning is a key to organizational success. While the old adage is true; so failing to plan is planning to fail!  Meanwhile writing a plan does not guarantee success as such many plans never get implemented and become bookends or paperweights. I think that, business plans might fail because entrepreneurs and leaders only focus on strategy; they ignore the other six elements of their organization.

The 6 Elements of an Organization, those are :

1-Strategy

 It is the approach a leader takes to reach and accomplish goals. Your strategy involves the key performance areas that will enable the company to reach its financial goal. Strategies are within the three major functions of business: Marketing, Operations and Organizational (Legal & Fiscal).

2-Systems

 Are the precise processes (policies & procedures) required to fulfill the marketing, operations and organizational strategies. Systems also include the necessary checks and balances to insure that the policies and procedures are being followed.

3-Structure

 It is individuals assigned to carry out the processes; how people are teamed and how their work is organized. Is work going to be completed by the owner/employees or outsourced to a contractor? Are consultants going to be used to assist?

4-Skills

Are the capabilities of the groups of people in the organization, both internal and external.

5-Culture

It is  norms, values, beliefs and assumptions that shape the organization.

6-Budget

 an itemized allotment of funds for a given time period.

 

 

I suggest that, if you won't your business plan to fail , bear in mind those all six elements which need to be aligned altogether for the business to successfully operate.

OSAMA ALHEEH
par OSAMA ALHEEH , PMO and Governance Director , Magnetar

i think this is big question which really need big answer, but always the planning to be successful there are some factors to be considers, like project management standards, powerful sponsor and good resource who you can depend on them to execute your plans. 

Omar Saad Ibrahem Alhamadani
par Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

I agree with the answer given by Mrs. Ghada

sunita bidichandani
par sunita bidichandani , HUMAN RESOURCE MANAGER , REAL ESTATE

Business planning is a key to success. Proper planing and Proper implementation  is required to achieve success in business  

Reasons for Failure

1 Lack of planning:-The right plan will include specific to-do lists with dates and deadlines. Failure to plan will damage your business.

2 Leadership- The most successful entrepreneurs learn, study, and reach out to mentors to improve their leadership skills.

3 Ignoring customer needs – Every business will tell you that the customer is #1, but only a small percentage acts that way. Businesses that fail lose touch with their customers

4 Poor management – Examples  poor communication, and lack of feedback.

5 Lack of capital – It can lead to the inability to attract investors. Lack of capital is an alarming sign. It shows that a business might not be able to pay it’s bills, loan, and other financial commitments. 

6 Wrong partner – It’s no secret that it is easier to succeed in business with the right partners. The wrong business partner will, at the very least hurt, or, at worst, destroy your company.

7 Poor location – Poor location is a disadvantage that might be too much to overcome

Motivation and Personal Ownership

Our last category is actually  first category. This most popular category of Motivation and Personal Ownership contains responses focused on the question, "What's in it for me?" This is not to imply that we're all a bunch of selfish, greedy, self-serving individuals -- although recent headlines could certainly make that case successfully! -- it's really that people are looking for the meaning in what they do. In other words, they want to show up for more than just a paycheck. People want to build something, make a difference. "Don't understand the purpose, goal is minimized, vision disappears. No enthusiasm to make it happen. The bottom line, how will it affect ME?"

 

More effort is needed to help people understand how getting behind the company's goals can support their personal goals. 

 

Pay attention to Motivation and Personal Ownership, Communications, No Plan Behind the Idea, Passive Management, and Leadership PLAN WORKS AND BUSINESS GROWS

 

Farhana Siddique Fari
par Farhana Siddique Fari , Coordinator , Coordinator at DFA, Dr Fazeela Abbasi, Advanced Skin, Laser & Hair Institute, Islamabad.

I agree with the Experts' answers. Thanks

Sathish Prabhu.V
par Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

One of the main reason for business planning failure is Unrealistic target without proper analysis of maarket or inhouse capacities along with few reasons like

1. Non- reactive to market trend

2. Non-flexible to marketing & plans

3. Stubborn decisions against business plan

4. No Plan B or C incase of Business plan failure

4. No Alt

mohammed negm
par mohammed negm , مدير مبيعات , مؤسسة أطياف لتجارة المواد الغذائية

Thanks invite. ........ I agree answer Ghada Eweda 

 

yaseen akram
par yaseen akram , Computer Operator , Master Jee

A strategic plan without an implementation strategy is not likely to be used. Sometimes planning fails because there is poor understanding of the planning steps or planning concepts.

I leave the answer to the experts .

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