The planning perspective
Strategic planning is perhaps the most traditional view of how strategic decisions
are made in organisations. The perspective indicates that strategy formulation is a
distinctly intentional process involving a logical, rational, planned approach to the
organisation and its environment. Further it implies that through the application of
appropriate analytical and systematic techniques the ‘right’ decision can be taken.
The strategies which develop are the outcome of sequential, planned and deliberate
procedures and are often the responsibility of specialised departments. Clear and well
defined strategic goals and objectives are set by the senior members of an
organisation.“ As a goal or strategic issue is defined, the organisation and its
environment (both internal and external to the organisation) are systematically analysed in terms of (for example) strategic position, the position of competitors, organisational strengths and weaknesses, and resource availability. The information
collected is assessed and strategic options capable of attaining the goal or resolving
the strategic issue are generated.
These strategic options, or courses of action, are systematically assessed against the
criteria of the strategic goals and objectives to be achieved. This evaluation incorporates an assessment of both the estimated consequences of the alternative courses
of action, for example in terms of risk versus return, and the value of these consequences. Similarly the long-term potential of the options are estimated. The option
which simultaneously is perceived to maximise the value of outcomes, best fits the
selection criterion and presents competitive advantage is chosen. The selected option
is subsequently detailed in the form of precise plans and programmes and is passed
from the top downwards within the organisation. Throughout this process strategies
are determined and guided by those decision-makers in senior management positions
and are implemented by those belowlz who act on but are unlikely to decide on
strategy.”
In line with the systematic development of the strategy, the resources required for
implementation are determined and appropriately allocated, and similarly the systems
for monitoring and controlling the new strategy are determined. It is argued that strategies developed through this planned, sequential routine should be implemented fully and in a ‘surprise free’ manner. This formalisation of strategic planning, though
appealing, is problematic, and indeed has inherent dangers. In particular it lacks consideration of the less ‘objective’ aspects of the organisation and their critical influence on strategy development. However, regardless of the problems, the discipline and techniques of planning approaches can be useful because they may provide a framework
for strategic thinking; and if managers also address the problems of managing strategy
within the social, cultural and political world of organisations, then such thinking can
be very helpful.