| So many books with numerous case studies have | | | | Once collected, that is not the end of the road. |
| been published on the subject of strategic | | | | Information should not be let to expire in databases or |
| management with the goal of helping organisations | | | | storage files. For example, if you have collected data |
| implement winning strategies, yet still so many | | | | on previous quarter sales, you need to analyse that |
| businesses fail to realise their goals and objectives | | | | data to find insights for better decision making. |
| because of horrendous strategic failures. A countless | | | | Business Intelligence (BI) or business analytic tools can |
| number of IT, new product development, mergers and | | | | play an important role here by helping you sort and |
| acquisitions and new market entry projects have failed | | | | analyse your data. |
| to live up to their expectations. For example look at the | | | | Poor execution of the strategy: One of the reasons |
| dismal failure of the acquisition of HBOS by Lloyds | | | | why some strategies fail is not because they were |
| TSB and also that of ABN Amro, the Dutch bank by | | | | wrong in the first place, but because of poor execution. |
| the Royal Bank of Scotland (RBS). In the UK, IT | | | | Some managers spend hours and hours of time |
| projects are among the government's biggest failures | | | | planning the direction and destination of their |
| and still, year after year businesses continue to lose | | | | organisations and only to get it wrong at the |
| millions and billions of money. | | | | implementation stage. Lack of leadership and direction |
| In today's dynamic market environment, fast-paced | | | | from senior personnel to see the strategy through can |
| technological advancements, new regulations, | | | | actually influence the strategy implementation process. |
| globalisation and constantly changing customer needs | | | | Constant monitoring is essential to ensure there is no |
| and wants are reshaping the future of a number of | | | | or minimal diversion from the main route. Also, some |
| organisations. As a result, businesses need to step up | | | | employees require the support, guidance and |
| their game and adapt quickly to the changing | | | | encouragement of their managers to sail through. |
| environment and circumstances in order to survive. | | | | Lack of prioritisation of objectives: Success is not |
| New technology, especially the internet, is allowing vast | | | | achieved overnight. The mistake some businesses |
| amounts of useful information that could enhance the | | | | make is having more goals than their resources can |
| strategic position of the organisation to be exchanged | | | | support. As a result, instead of being fully committed to |
| across the markets at the click of a button. Getting | | | | one or two causes, resources are wasted trying to |
| hold of this information, carefully analysing it and | | | | balance the efforts. It is better to prioritise and hit |
| obtaining meaningful insights from it to aid decision | | | | fewer targets than to fail a wide range of objectives. |
| making should be one of the most important priorities | | | | This also helps employees to become conscious of |
| for any business. The competitive environment has | | | | the most important goals at any particular time. |
| become so dependant on the availability of valuable | | | | The plans are too rigid: When managers make |
| information, without which, a business will not be able to | | | | business plans, they are normally based on certain |
| compete at full potential. | | | | assumptions. However, the market environment |
| Deciding on which product or service to offer, which | | | | changes from time to time, hence the need to alter the |
| markets to enter or exit, which business line to sell or | | | | plans to suit the new environment. Problems arise |
| maintain, which supplier to use and not to use, whether | | | | when the plans are not flexible enough to be changed. |
| to offer a price discount or not, which delivery channel | | | | If that is the case, the business will be bound to suffer |
| to use for product or service delivery etc. all require | | | | at the expense of competitors who are able, quickly |
| information in order to make sound judgements. It | | | | and not hesitant to make any meaningful strategic |
| should also be noted that availability of information is | | | | changes. |
| not all that it needs to execute a successful business | | | | The plans are too vague for employees to understand |
| strategy, there are also other factors that contribute to | | | | them: The organisational strategy needs to be clearer |
| the success or failure of your organisational business | | | | to everyone within the business. Everyone should feel |
| strategy and these are: | | | | at ease and comfortable when asked to describe the |
| Not knowing what to do with available information: As I | | | | position of the organisation now, where it is heading |
| have mentioned above, having the necessary | | | | and how it intends to get there. |
| information at your finger tips to aid decision making is | | | | Cultural factors: Sometimes strategies fail because |
| crucial. However, the problem some organisations | | | | they are inconsistent with the current organisational |
| make is going on an information gathering spree. By all | | | | culture. It might be that your competitors are really |
| means, they try to get their hands on every piece of | | | | doing well and then you imagine that by implementing |
| information out there, whether useful or not, and store | | | | the same strategies you will reap the same or greater |
| it in their databases. That same information will remain | | | | rewards. If there are cultural differences between the |
| under storage for months and months untouched and | | | | workforce of the organisations involved, the risk of the |
| more will be getting added to the list. | | | | strategies succeeding are very low. It might also be |
| It is crucial to make sure that before you go on an | | | | that you are still using the same old tried-and-tested |
| information gathering spree, you have assessed your | | | | strategies that were useful in the past but are no |
| organisational information needs. Only collect that which | | | | longer valid in today's market. You need to be updated |
| is useful to your organisation and meet your needs. | | | | on the new developments happening in your industry |
| Remember collecting information can be very timely | | | | or your sector. |
| and costly and you don't want to create a heavy | | | | What else can cause business strategies to fail? |
| burden on your financial and human resources. | | | | Comments and questions are welcome. |