{"id":59570,"date":"2024-05-17T13:00:44","date_gmt":"2024-05-17T12:00:44","guid":{"rendered":"http:\/\/rb.dev.caspianmedia.com\/uncategorized\/2013\/09\/17\/10-pitfalls-in-strategy\/"},"modified":"2024-07-08T11:44:21","modified_gmt":"2024-07-08T10:44:21","slug":"10-pitfalls-in-strategy","status":"publish","type":"post","link":"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy","title":{"rendered":"10 Pitfalls In Strategy"},"content":{"rendered":"<div class='booster-block booster-read-block'><\/div><p data-pm-slice=\"1 1 []\"><strong>Writing back in 2013 for Real Business, Chris Outram, founder of OC&amp;C Strategy Consultants, and an expert in strategic planning and the strategic planning process in general, helped put together a guide exploring the pitfalls in strategy that can turn any strategic plan into a disaster. <\/strong><\/p>\n<p><strong>Strategic plans fail all the time. That&#8217;s just a fact of life. But with proper strategic analysis and working closely with key stakeholders to allocate resources, rallying behind business leaders, and taking into account the external environment and it&#8217;s potential impact on operational efficiency, you can adapt when strategies fail and ensure that the implementation process is as smooth as possible. <\/strong><\/p>\n<p>Companies struggle to get their strategic priorities in order all the time, but Chris&#8217; advice rings as true today as it did back then, so we&#8217;re refocussing our efforts in helping business leaders implement new strategic initiatives to ensure they stay ahead of the competition and avoid some of the most common pitfalls in strategy.<\/p>\n<p><em>Below is Chris&#8217; advice from 2013. Following his advice can improve your business plan, financial performance, and help align efforts of everyone in your organisation as they move towards common business goals.<\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-684fdc6d0915f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-684fdc6d0915f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#Pitfalls_To_Avoid_In_Business_Strategy\" >Pitfalls To Avoid In Business Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#Top_Pitfalls_Of_Strategic_Management\" >Top Pitfalls Of Strategic Management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#1_Short_Termism\" >1. Short Termism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#2_Ignoring_External_Trends\" >2. Ignoring External Trends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#3_Overconfidence_Based_On_Existing_Success\" >3. Overconfidence Based On Existing Success<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#4_Failure_To_Respond_To_Structural_Changes_In_The_Market\" >4. Failure To Respond To Structural Changes In The Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#5_Failure_To_Employ_The_Best_Possible_Team\" >5. Failure To Employ The Best Possible Team<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#6_Failure_To_Focus\" >6. Failure To Focus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#7_Inability_To_Foster_Belief_In_The_Strategy\" >7. Inability To Foster Belief In The Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#8_Inability_To_Translate_The_Strategy_Into_A_Corporate_Purpose\" >8. Inability To Translate The Strategy Into A Corporate Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#9_Failure_To_Instil_A_Sense_Of_Pace\" >9. Failure To Instil A Sense Of Pace<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#10_Failure_To_Create_Accountability_For_Results\" >10. Failure To Create Accountability For Results<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/realbusiness.co.uk\/10-pitfalls-in-strategy\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Pitfalls_To_Avoid_In_Business_Strategy\"><\/span>Pitfalls To Avoid In Business Strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In business, even the most robustly designed and painstakingly planned strategies can fail. Even worse, it is often the blindingly obvious that can trip you up. This is relevant for any business, of any size, in any sector.<\/p>\n<p><strong>Here are my top ten pitfalls leading to strategic failure and what senior managers need to avoid in order to make their strategy work in practice.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_Pitfalls_Of_Strategic_Management\"><\/span>Top Pitfalls Of Strategic Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Short_Termism\"><\/span><strong>1. Short Termism<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Marks &amp; Spencer fell prey to this in the late 1990s when it announced its target of becoming the first UK retailer to generate annual profits of \u00a31bn. It had the desired effect on the share price. Unfortunately, there was a high price to pay. As the company geared its operations towards profit, a lack of investment in sales and infrastructure started to erode the company&#8217;s long term hold on its markets. Value-based rivals made off with the family silver and a profit warning followed in 1999. It was 2008 before M&amp;S once again delivered a profit of \u00a31bn.<\/p>\n<p>Succumbing to short-termism is a major risk, whatever size your business. For SMEs and entrepreneurs, it can be a pressure to focus on short-term results in order to impress stakeholders, backers and prospective employees. It is essential to prioritise long-term investment over short-term margins and to stay on track.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ignoring_External_Trends\"><\/span><strong>2. Ignoring External Trends<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A failure to pay attention to short term external trends for instance, not properly tracking customer needs and understanding competitor moves\/motives, will trip up even the best strategies.<\/p>\n<p>Research in Motion, the makers of the pioneering Blackberry, failed to respond to very clear market trends. By not moving beyond their traditional corporate sector, and their failure to both innovate and understand the app market lost them their position as the market leader.<\/p>\n<p>On the other side of the coin, Zara, the fashion retailer, is a business precisely in tune with its market. Zara&#8217;s ability to divine changes in taste among its clientele and then to satisfy them in a matter of weeks is legendary. They do this by continuously tracking market trends and customer preferences, monitoring the media as well as their own sales, and delegating the right people to spot trends. All of these tactics can and should be part of a business&#8217; strategy, whatever size.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Overconfidence_Based_On_Existing_Success\"><\/span><strong>3. Overconfidence Based On Existing Success<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Even in difficult and challenging markets, companies can overestimate the value of their business model, customer base and ways of doing things.<\/p>\n<p>Blockbuster is a clear example of a business that failed to move with the times and saw its business model collapse on both sides of the Atlantic.<\/p>\n<p>The message here is simple: you need to be ruthlessly honest. Otherwise, you may wake up one day and your business is gone.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Failure_To_Respond_To_Structural_Changes_In_The_Market\"><\/span><strong>4. Failure To Respond To Structural Changes In The Market<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Refusing to acknowledge that structural changes are real can also lead to flawed strategic responses. When something new comes along, the answer is usually to move early, no matter how painful it might be.<\/p>\n<p>One of the more notable and public examples of this is Kodak a pioneer and dominant force in the photographic film market until relatively recently. In 1976 it held a 90 per cent share of photographic film, and Kodak actually pioneered digital photography technology in the mid-1990s but actively chose not to pursue this line of innovation because of the threat posed to the core photographic film business.<\/p>\n<p>The rest is history. Kodak has failed to turn a profit since 2007, and in February 2012 filed for bankruptcy. A sad end to a masterful brand.<\/p>\n<p>Kodak failed to follow one of the basic rules of strategy: if you are going to be cannibalised then it is, on balance, better to cannibalise yourself!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Failure_To_Employ_The_Best_Possible_Team\"><\/span><strong>5. Failure To Employ The Best Possible Team<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Putting up with a sub-par or mediocre team will make your strategy unachievable or sub-optimised at best. Companies should prioritise going after the best people and then motivating them to do extraordinary things. Focussing on management is usually the best place to start in any strategy.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-191771 size-large aligncenter lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-1024x554.jpg\" alt=\"get your team behind your business strategy \" width=\"800\" height=\"433\" \/><noscript><img decoding=\"async\" class=\"wp-image-191771 size-large aligncenter lazyload\" src=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-1024x554.jpg\" alt=\"get your team behind your business strategy \" width=\"800\" height=\"433\" srcset=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-1024x554.jpg 1024w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-300x162.jpg 300w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-1536x831.jpg 1536w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-2048x1108.jpg 2048w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2456186801-min-scaled.jpg 1200w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/noscript><\/p>\n<h3 data-pm-slice=\"1 1 []\"><span class=\"ez-toc-section\" id=\"6_Failure_To_Focus\"><\/span><strong>6. Failure To Focus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>However seductive proliferation and diversification are, a failure to \u2018stick to the strategic knitting\u201d will take you off course. The key to avoiding this pitfall is to learn to say no. For example, Adidas added numerous brands and product lines in the early 1990s that clouded the company&#8217;s focus on sportswear. Failing profits followed, and it took a new management team to turn the company around and return it to its core purpose and build it into the world class brand that it is today.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Inability_To_Foster_Belief_In_The_Strategy\"><\/span><strong>7. Inability To Foster Belief In The Strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A failure to passionately and consistently reinforce the strategy will undermine it and belief in it will wane. Remember: memories of strategic announcements are short, but memories of strategic failure are long.<\/p>\n<p>Getting people to buy into your strategy makes it easier to implement, and to implement well. Communication is therefore critical, and keeping it simple but convincing pays dividends.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Inability_To_Translate_The_Strategy_Into_A_Corporate_Purpose\"><\/span><strong>8. Inability To Translate The Strategy Into A Corporate Purpose<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Increasingly, enterprises need an enduring purpose to inspire and motivate their people. The whole team needs to know that what they are doing matters to the company (and increasingly, to society). But how do you get employees to &#8220;buy in&#8221; to the proposition without having to &#8220;buy&#8221; their loyalty with high pay and expensive benefits?<\/p>\n<p>Instilling a sense of purpose has an enormous commercial benefit. Take Starbucks and Gap as great examples of brands that make an effort publicly to treat their employees with respect, provide career progression and emphasise links to the community, making them appear positive places to work. All of which are cheaper than offering five-figure bonuses \u2013 and also make us buy a lot more coffee and t-shirts for double the price offered elsewhere.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_Failure_To_Instil_A_Sense_Of_Pace\"><\/span><strong>9. Failure To Instil A Sense Of Pace<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are countless examples of companies lulling themselves into a false sense of security about the speed at which they move. There is little upside, if any, in delaying once you are convinced that a certain reality is true. In terms of bad news in particular, it is usually the case that the sooner you announce it, the better. Act earlier \u2013 bad news seldom improves with age.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Failure_To_Create_Accountability_For_Results\"><\/span><strong>10. Failure To Create Accountability For Results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The heart and soul of execution is accountability it is this which motivates people to follow through on their commitments. It is essential with any plan that it is clear who is responsible for what, and that accountability is tied to results, not activities. This is essential because, while activity within an organisation is unceasing, it is only results that really matter.<\/p>\n<p><img decoding=\"async\" class=\"wp-image-191772 size-large aligncenter lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-1024x683.jpg\" alt=\"business strategy\" width=\"800\" height=\"534\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-191772 size-large aligncenter lazyload\" src=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-1024x683.jpg\" alt=\"business strategy\" width=\"800\" height=\"534\" srcset=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-1024x683.jpg 1024w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-300x200.jpg 300w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-1536x1025.jpg 1536w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-2048x1366.jpg 2048w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2013\/09\/shutterstock_2460679127-min-scaled.jpg 1200w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/noscript><\/p>\n<p data-pm-slice=\"1 1 []\"><strong><em>Chris Outram has been a strategy consultant for more than 30 years and the founder of <\/em><\/strong><a href=\"http:\/\/occstrategy.com\/\" rel=\"noopener noreferrer\"><em>OC&amp;C Strategy Consultants<\/em><\/a><strong><em>. His book, \u201cMaking Your Strategy Work; How to go from Paper to People is published by Pearson and is available now at Amazon.<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Chris&#8217; 10 pitfalls to avoid in strategic planning is the key to ensuring continuous improvement as a business in an ever-changing environment. If you want desired outcomes, then you have to ensure your strategy aligns with these outcomes and strategic goals.<\/p>\n<p>But failing to plan can lead to poor decision making. A positive attitude is always a good thing, and you ought to have confidence in your ability as a business owner and leader, but you also need to be aware that things can change in an instant in business.<\/p>\n<p>Now that we&#8217;ve discussed some of the common pitfalls of <a href=\"https:\/\/realbusiness.co.uk\/business-strategy-growth\">business strategy<\/a>, you should be able to embark on a planning session that actually yields a strong strategic plan that serves your business effectively and ensures continued success in your industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chris Outram has been a strategy consultant for more than 30 years and the founder of OC&amp;C Strategy Consultants. Here are the ten things he&rsquo;s learned in those three decades.<\/p>\n","protected":false},"author":2454,"featured_media":191773,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[11014],"tags":[2016,5569,2028],"class_list":["post-59570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interviews","tag-advice-amp-guides","tag-pitfall","tag-strategy"],"views":6158,"_links":{"self":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/59570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/users\/2454"}],"replies":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/comments?post=59570"}],"version-history":[{"count":0,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/59570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media\/191773"}],"wp:attachment":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media?parent=59570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/categories?post=59570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/tags?post=59570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}