By Bill Morrow

Strategic planning is a crucial process for organizations aiming for long-term success. When not done right, though, the result is often wasted time and resources. But perhaps the most costly part of not doing strategic planning right is the missed opportunities.

Over the years, our team at Empirical Consulting Solutions has worked with many different firms. In this blog I’ll share what we've identified as possibly the five worst practices in strategic planning. Read on so you can avoid these mistakes.

A Disengaged Firm Leader: Top-Down Direction without Employee Input

One of the most detrimental approaches to strategic planning is when a firm leader fails to engage employees and instead provides top-down direction throughout the process. This autocratic style not only stifles creativity and innovation, but also leads to a lack of buy-in from the very people responsible for executing the plan.

When the team is excluded from the planning process – or doesn’t have their input taken seriously – there is a disconnect from the firm's goals, and the team may struggle to understand its role in achieving them. This reduces motivation, lowers productivity, and increases resistance to change. Employees often have incredibly valuable insights and a needed perspective. If their voice is not heard, a strategy will be out of touch with operational realities, and there will not be a sense of ownership and commitment among team members.

The Fix: Firm leadership must ensure it fosters an inclusive environment. During the strategic planning process, employees at all levels must be encouraged to contribute their ideas and feedback.

DIY Facilitation: It Just Doesn’t Work

When firms attempt to moderate and run strategic planning sessions themselves instead of bringing in a skilled outside facilitator, things can get messy. It may seem cost-effective to take a DIY approach, but too often it leads to suboptimal results and a strategic plan that doesn’t cover the areas it should.

Internal facilitators, no matter how skilled, typically lack the objectivity and neutrality required to guide discussions effectively. They may inadvertently steer conversations based on their own biases, history, or existing power dynamics within the firm. Additionally, internal facilitators often struggle to challenge long-held assumptions or ask difficult questions that an external expert would be comfortable tossing out to participants.

The Fix: Firms should tap an experienced outside facilitator who brings a fresh perspective, specialized expertise, discussion management capabilities (meaning someone who can keep the discussion on track), and objectivity. This person will ensure that all voices are heard and help ensure the discussion ends successfully with actionable (and trackable) plans.

Flying Blind: Lack of Metrics and KPIs

A strategic plan without metrics and key performance indicators (KPIs) is like going on a trip without a map or GPS. There have been many a firm that invests time and resources into developing a strategic plan only to not have the plan drive needed results due to a lack of clear, measurable objectives.

Without well-defined metrics and KPIs, it is nearly impossible to track progress. It also makes it incredibly hard to identify areas for improvement or make data-driven decisions. Without quantifiable goals there is ambiguity in performance evaluation. The result is a disconnect between strategic objectives and day-to-day operations.

The Fix: Establish a set of metrics and KPIs that align with strategic goals. These should be specific, measurable, achievable, relevant, and time-bound. (Many of you may be familiar with this SMART basis.) The regular monitoring and reporting of these metrics ensures a firm will stay on course and make timely adjustments when necessary.

For the Love of Tactics: When Planning Isn't Strategic

One of the most frustrating scenarios that can arise is when strategic planning sessions devolve into discussions about day-to-day operations, losing the focus on long-term, big-picture thinking. This "tactical myopia" results in plans that are merely extensions of current activities. To be blunt, these are NOT strategic plans.

Strategic planning is about envisioning the future. It identifies opportunities for growth and innovation and will help a team make important decisions that will shape the firm's direction for years to come. Strategic planning sessions should not get bogged down in operational details. When they do, they fail to address critical questions that drive long-term success.

The Fix: The facilitator must ensure that participants understand the difference between strategic and tactical thinking (and reroute the discussion when needed). Clear guidelines for strategic discussions should be established, and participants must be guided to think beyond immediate challenges and consider broader market trends, emerging technologies, and potential disruptors.

When Strategic Planning Doesn't Happen at All

The most egregious error we've witnessed is when firms neglect strategic planning altogether. Some companies operate under the (misguided) belief that they can succeed through reactive decision-making alone, without a clear long-term vision or plan.

When there is no strategic planning, there is a lack of direction from leadership, there are missed opportunities, and there is an inefficient use of resources. Firms without a strategic plan are more likely to be caught off guard by market changes and will struggle to adapt to new challenges.

The Fix: Firm leadership must recognize the critical importance of strategic planning and make it a priority. It should not only include the development of the strategic plan, but there also should be a commitment to regular reviews and updates.

When done, and done correctly, strategic planning is a process that will propel a firm toward its goals and work to ensure long-term success. By avoiding the above pitfalls – disengaged leadership, internal facilitation, lack of metrics, tactical myopia, and the absence of planning – companies can develop robust, actionable strategies that drive growth, innovation, and success.

Bill Morrow is managing partner at Empirical Consulting Solutions in Narberth, Pa. If you have questions on how to best conduct a strategic planning session, Morrow can be reached bmorrow@thinkempirical.com.

Would you like to hear more from Empirical Consulting? PICPA members can attend a free one-hour town hall with Empirical Consulting on Dec. 17. Empirical's panel of branding and business leaders will take a dive into how to develop a brand that ultimately drives business. Sign up today!

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^{Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.}