Planning for Next Year – Why Are Growth Targets So Often Missed?
As planning begins, the current strategy might be pulled out for review. Sound familiar? But let’s ask directly: will this approach genuinely lead to the desired outcomes?
Strategic processes in companies typically follow the same pattern: set goals for the next 3–5 years, refine them annually based on market and environmental analysis, evaluate impacts on the company and customers, identify necessary capabilities and investments, and establish growth and profitability targets. The outcome is often a list of strategic initiatives assigned to the company’s trusted go-to players.
In theory, this approach works well—hence its widespread adoption.
So why are growth targets often missed?
A key reason is the disconnect between traditional strategy work and daily operations. Common challenges include:
- Leadership-driven focus: Strategic planning largely relies on leadership’s vision, often without a connection to real-world operations. The larger the company, the wider the gap.
- Lack of communication: Strategy is not communicated adequately or clearly, so the importance of change doesn’t resonate throughout the organization.
- Under-resourcing: Critical long-term initiatives are added to the already full plates of trusted employees, who are ultimately measured on short-term results.
- Lack of follow-through: Monitoring strategy implementation and making agile adjustments are not on anyone’s agenda.
- No incentives: Change isn’t incentivized. Leaders may prioritize safe but declining revenue streams over new, labor-intensive strategic actions that introduce uncertainty into their personal earnings.
How Can Strategy Be Simplified and Brought Closer to Everyday Business Reality?
What changes are needed to ensure that short- and long-term company goals become genuine and actionable, naturally integrating into operational plans and budgets?
How can initiatives be transformed from top-level “necessary burdens” into inspiring change journeys and motivating goals for leaders?
Let’s discuss and share ideas! At Growth Agency IHME, we grapple with these questions daily and are happy to bring our expertise to support your growth. Together, we can make your strategy a clear, actionable framework that drives annual planning and helps you achieve your goals!
