Strategic planning mistake #1: The generic mission statement

There are few things more painful or dreaded than the development of a company’s mission statement. (Followed closely by budgeting).

Typically, mission statements are developed by committee (big mistake). A team of people crowds around a table or a whiteboard debating the inclusion, exclusion, and nuances of every word. The very thought of it is enough to drive the hardiest soul to drink (or at least to pop a few aspirin).

When strategic plans are “frustratingly vague”

Getty Museum Example

As the new year starts, many companies are beginning to prepare for their annual strategic planning efforts. Too often, though, the results of these efforts fall within the “too vague to execute” realm or the “too specific to be flexible” when the inevitable challenges and opportunities emerge during the plan’s execution.

An example of the detrimental effects of “too vague to execute” strategic plans is illustrated in a Los Angeles Times story on the resignation of popular Getty museum director Michael Brand, and his dispute with his boss, J. Paul Getty Trust President James Wood.

Strategy at-a-glance: Why less is more

from the JPMorgan Chase Investor presentation - December 8, 2009

f you ever want to evaluate a company’s ability to execute on their stated strategy, try this simple test: ask 10 people within the company (at different organizational levels) what the company’s strategy is. If you come up with substantially different answers, you know you are looking at a company in trouble. Succinct and clear communication on strategic direction is so rare (and so vital), we’ll take this opportunity to laud JPMorgan Chase’s recent presentation of their corporate strategy at an investor conference.