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Why Business Plans Fail and What You Can Do About It

The first step to successful execution of a plan is the existence of a clear, concise one in the first place—whether it be a strategic plan, an action plan, an annual operating plan, or any other plan variation.

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If a plan is well communicated and a leader gives credit to the team or individuals for successes, supports when there are failures, and delivers on any commitments they made, the team becomes excited to perform.
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In a recent ProFood World article by FSO Institute, we focused on the importance of developing a robust strategic plan to help manufacturers create direction clarity in their organization. The premise is simple: if you don’t know where you’re going, any road will take you there.

So, the first step to successful execution of a plan is the existence of a clear, concise one in the first place—whether it be a strategic plan, an action plan, an annual operating plan, or any other plan variation. That article provided guidance from FSO Institute’s Manufacturing Health Roundtable (MHRT) on just how to develop such a plan.

During their recent monthly virtual meeting, the MHRT followed up on their plan creation discussion by sharing some of their thoughts on why these plans often don’t get executed and what can be done about it. What follows are the highlights of the discussion and some color commentary and operational insights by FSO Institute Chief Manufacturing Coach Dan Sileo, formerly of Procter & Gamble, Sunny Delight, and Sugar Creek Foods.

FSO INSTITUTE: Some of the reasons why plans don’t get executed include no alignment at the top (no direction clarity), frequent direction changes (shifts in clarity), top team is aligned but no one else knows, no effort to share plans throughout the company to get buy-in, ownership and advocacy (BOA), no connection to individual roles (no role clarity), employees already too busy and no common processes and procedures for optimizing plans.

In your experience, how does this list sound to you and which are the most significant? Are there reasons you’d add that are not included in this list?

SILEO: You have an extensive list of which there is usually more than one factor in play. The only addition I would make, which is perhaps one of the most important ones, is when leadership actions and communications in the day-to-day operations do not match the stated plan. Even if the plan is well communicated, people at the point of execution adjust to the daily feedback they receive and will view the plan as just another “program of the month” to be managed somehow. Leadership needs to be self-aware of how they are impacting their people and intentional in supporting them in delivering the plan—they have to walk the talk.

FSO INSTITUTE: It seems that there are some standard responses to these challenges – rounding up the usual suspects, if you will – that include focusing on the fewest, most important tasks; developing scorecards, KPIs, RACI charts; and working on the most important issues first – addressing the burning platforms and working on cultural change.

No doubt these are extremely important, but since they are people-dependent couldn’t they all benefit from better leadership, better teamwork and better individual performance?

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