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WHY SOME FIRMS DO NO STRATEGIC PLANNING

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Lucky Wilmar Cimatu

on 3 December 2014

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Transcript of WHY SOME FIRMS DO NO STRATEGIC PLANNING

WHY SOME FIRMS DO NO STRATEGIC PLANNING

POOR REWARD STRUCTURES
When an organization assumes success, it often fails to reward success. When failure occurs, then the firm may punish. In this situation, it is better for an individual to do nothing than to risk trying to achieve something, fail, and be punished.
Fire Fighting
An organization can be so deeply embroiled in crisis management and fire fighting that it does not have time to plan.
WASTE OF TIME
Some firms see planning as waste of time since no marketable product is produced.

HINDI NILA ALAM NA... "Time spent on planning is an investment."
Story of the Kings
TOO EXPENSIVE
Some organizations are culturally oposed to spending resources
LAZINESS
People may not want to put forth the
effort needed to formulate a plan.
CONTENT WITH SUCCESS
Particularly if a firm is successful, individual may feel there is no need to plan because things are fine as they stand.

Pero, SUCCESS TODAY DOES NOT GUARANTEE SUCCESS TOMORROW.
Parang BSA, Hindi porket LIGTAS ka nung nakaraang QUALI, nangangahulugang ligtas ka sa NEXT QUALI.

FEAR OF FAILURE
OVERCONFIDENCE
As individuals amass experience, they may rely less on formalized planning.

Being overconfident or overestimating experience can bring demise.
PRIOR BAD EXPERIENCE
People may have had a previous bad experience with planning, that is, cases in which plans have lon, cumbersome, impractical, or inflexible.
SELF INTEREST
When someone achieved status, privilege, or self esteem through using an old system, he or she often sees a new plan as a threat.
FEAR OF THE UNKNOWN
People may be uncertain of their abilities to learn new skills, of their aptitude with new systems, or of their ability to take on new roles.

HONEST DIFFERENCE OF OPINION
People may sincerely believe the plan is wrong. They may view the situation from a different viewpoint, or they may have aspirations for themselves or the organization that are different form the plan

DIFFERENT PEOPLE IN DIFF. JOBS HAVE DIFF. PERCEPTIONS OF A SITUATION.
SUSPICION
EMPLOYEES may not trust MANAGEMENT
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