Download this business plan manual as an e-book!


 

Causes of Failure

 

The purpose of this section is to look at the weak spots, the points where you

and I are likely to fail to be forewarned is to be forearmed. Learn from the mistakes of others - there is no need for you to make any of your own!

Always break big problems into smaller ones and then take care of each small problem first - never take on the whole problem at once. Never be afraid to ask the help of your colleagues or staff - your in this together.

We will see some of the common causes of planning failure: no plan at all, halfway commitment, overdone, over-engineered, overly complex, ambitious, rigid, or precise plans.

  1. No plan simply means either no awareness of or just no consideration of the planning process. It may also mean  the lack of a key component of the plan.
  2. Only partial commitment to the plan. Plans are created investing time, money and other resources if what follows is poor commitment the plan however perfect is bound to fail.
  3. The over-engineering or overly complex program is possibly the most costly error of all. American managers have the habit of moving from one extreme to the other: either no planning is done or too much is done. Here a large dollar investment is made most often too large. The plan becomes so complex that no one understands the plan. The program gets hopelessly grid locked. It becomes too big too expensive and more trouble than its worth. Not much happens but a lot of money is spent. Managers become disillusioned the n angry and soon look for someone to blame.
  4. Often a mistaken belief creeps in, that a highly developed mechanical method is somehow so brilliant that it will operate all by itself.
  5. Overly ambitious, unrealistic goals often suffer the tragedy of excessive expectations no matter what good results come out of the planning process these are never enough
  6. Plans that are too rigid almost always fail. Plans should be short, simple, understandable, and practical. They should allow for management to speed up or slow down. Use the plan simply as a tool be prepared to change it whenever the situation demands.
  7. Another frequent error is expecting all parts of the program to work out exactly as anticipated. They seldom do. Few wars, business ventures, poker games come out exactly as planned. Accept this and work for the best plan that you can achieve with available information.

 

Causes of Failure Checklist

ErrorsSteps taken to avoid error
Low commitment 
Incomplete plan 
Low communication 
Low delegation 
Low team acceptance 
Poor schedule 
Low planner status 
Low monitoring 
Low follow through 
Low adjustment 
Low results 
Too complex 
Expect automation 
Overly ambitious 
Too rigid 
Too precise 

 

Format - Preventing Problems

Tactical StepsHow we plan to do it
Communicate 
Get involvement 
Keep involvement 
Key people 
Proportion invest 
Get feedback 
Stay flexible 
Respond to tests 
Focus on results 
Stay practical 
Common sense 

Items that do not apply to your business can be left blank or marked n/a. Any other items that are not mentioned but are relevant to your business should be included.