We’ve all heard it: “Failing to plan is planning to fail.” It sounds wise. And sure, some planning is better than none. But what if too much planning—or planning the wrong way—actually makes your business perform worse?
Researchers have been digging into this. One study called The Multiple Effects of Business Planning on New Venture Performance found that the value of planning depends entirely on the situation. If you’re in a stable market where things don’t change too much, or in a large firm, planning can help. But in fast-moving, unpredictable markets? Smaller businesses with limited resources? Overplanning can slow you down, make you inflexible, and blind you to better paths forward.
This gets even more interesting when you look at entrepreneurs. Another study—a meta-analysis by Brinckmann et al.—looked at dozens of research papers and came to a similar conclusion: planning is only helpful when it's paired with action. You need to plan, yes—but you also need to do, learn, and adapt. Just sitting on a perfect plan gets you nowhere.
Here’s a favorite idea of mine: strategy as “simple rules.” Professors Kathleen Eisenhardt and Donald Sull wrote a brilliant piece in Harvard Business Review arguing that in chaotic environments, companies do better when they ditch long, rigid plans and instead follow a few clear, flexible rules. This keeps you focused and agile—ready to react to change instead of being paralyzed by it.
Another powerful approach comes from Discovery-Driven Planning, a method designed for high uncertainty. Instead of pretending we know everything upfront, it encourages testing ideas in small steps, learning quickly, and pivoting when needed. Think of it as “planning for learning” instead of “planning for control.” It’s the feedback—those very first hints—you can discover and acknowledge, learn from, and use to gauge whether your new product, service, or chosen market segment is giving you the results you hoped for. Always look for feedback, especially the informal, verbal and nonverbal kind.
So what’s the takeaway? Planning isn’t bad. But too much planning, or the wrong kind, can hurt—especially in fast-moving industries. What works better is learning as you go, testing your ideas, and staying flexible.
If your plan doesn’t leave space for surprises, feedback, or new opportunities, it’s not helping you. It’s holding you back.
Add a comment