Strategic planning isn't dead— it changed

Abstract

Strategic planning has changed dramatically since its inception in the early 1970s. Having survived its original design flaws, it has evolved into a viable system of strategic management (or strategic thinking). In an effort to be more specific about the nature and extent of these changes, the author surveyed nearly 50 corporations in a variety of countries and industries to determine their current practices and the changes that have occurred over the past 5–7 years. Among the more notable and important changes are a marked shift of planning responsibility from staff to line managers; decentralization of strategic planning to business units (though corporate-level components retain key responsibilities); and vastly increased attention to the changing market, competitive and technological environment. Planning systems have become more sophisticated in their selection of planning techniques. There is far less reliance on a single technique (such as the growth-share matrix or the experience curve), and a greater willingness to use techniques (such as scenario planning and total quality management) that are less mechanistic in their approach and more sensitive to the critical uncertainty of many of the variables that planning must address. Perhaps the most provocative finding, however, is the growing emphasis on organization and culture as critical ingredients in the execution of strategy. This change represents a recognition that the values, motivation, and behaviour of the organization's members are critical determinants of corporate performance—and so of success or failure in implementing strategy.