Stumbling Blocks That Get in the Way of Strategic Planning – Part 1

Based on an article by Graham Kenny, published by HBR on April 28, 2022.

I’ve always believed in strategic planning for businesses—large or small—but I keep my expectations realistic. A strategic plan isn’t a foolproof roadmap that guarantees success. Too often, in my corporate experience, strategic plans are extensively reviewed during the planning process, then quietly ignored until the next cycle.

According to Graham Kenny, I’m not alone in this experience. Strategic planning is sometimes branded the “big lie” because what unfolds in a business rarely matches what’s laid out in the plan. Day-to-day operations take over, and bold strategies get lost in the noise.

This reminds me of working in the U.S., where we’d often talk about making a “big swing” or hitting a “grand slam” to propel our business forward. Often, we ended up watching and hesitating instead of acting. Why? Because corporate risk-reward structures often discourage bold decisions.

I once had an opportunity to buy land for a plant at half the market price. It was a great deal but carried some risk—if the seller reneged, we’d struggle to recover our deposit. My local partner couldn’t understand my hesitation, but I explained: if the deal succeeded, my employer reaped the rewards. If it failed, I’d be the one fired. Ultimately, we took the risk, and it paid off handsomely for my employer. But, as expected, no one ever shared those gains with me.

The Value of Strategic Planning

Despite my experiences, I remain committed to strategic planning—not because it guarantees success, but because it forces you to step back from daily firefighting and think about the bigger picture. Where do you want to be in 3–5 years? Are you working on your business, or just in it?

Strategic planning can be improved, and Kenny highlights three major stumbling blocks that get in the way.

Stumbling Block #1: Unrealistic Expectations

A strategic plan isn’t a perfect, step-by-step guide to success. Take Mitch, a CEO facing low-cost competition from China and India. He expected his strategic plan to hand him the perfect solution. But reality rarely unfolds as expected.

General Dwight Eisenhower once said, “In preparing for battle, I have always found that plans are useless, but planning is indispensable.” In other words, things won’t go exactly as planned, but without a plan, you’ll be even less prepared to react to change.

The Right Mindset for Strategic Planning

Rather than seeking a rigid plan, embrace what psychologist Carol Dweck calls a “growth mindset.” A fixed mindset assumes talent and intelligence are static, leading to rigid plans based only on current capabilities. A growth mindset, however, acknowledges that skills and resources can evolve over time.

What does this mean for strategic planning? Plans should be adaptable. Too often, companies do strategic planning once a year, leading to dusty documents instead of living strategies. Instead, treat your plan as a framework that evolves with your business environment.

The Limitations of Scenario Planning

Many consultants advocate scenario planning, but I’ve never been a strong supporter. You simply can’t predict every possible outcome. In early 2020, when I was overseeing Asia Pacific operations for a U.S. multinational, I had to navigate:

• The outbreak of COVID-19 near our plant in Ezhou, China (just an hour from Wuhan).

• Devastating bushfires in Australia, disrupting deliveries from our Sydney and Melbourne plants.

• The eruption of the Taal Volcano in the Philippines, forcing evacuations near our Canlubang facility.

No amount of scenario planning could have foreseen that perfect storm. However, because our strategic plan included a clear understanding of our regional capacities, we were able to quickly pivot and adjust supply chains.

I am always happy to connect with my subscribers. If you would like to discuss your strategic plan, please schedule a time for us to talk using this link: https://calendly.com/3-continents-consulting/open-discussion-how-can-i-help-you?back=1&month=2025-04

In Q3 2025, I will be launching a program to help folks improve their strategic planning skills. To learn more, please go to my3cc.com

Strategic Planning: A Tool for Focus

As an entrepreneur, you likely see endless opportunities for growth. Even as a solo consultant, I can list dozens of ways to expand my business. A strategic plan helps you narrow down these options, focusing on the most viable paths given your available resources.

Stay tuned for Part 2, where we’ll explore the next major stumbling blocks in strategic planning—and how to overcome them.