Strategic Direction

Better strategic planning: Managing change and planning for the future require both vision and strategy

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, (2012),"Better strategic planning", Strategic Direction, Vol. 29 Iss 1 pp. 30 - 32
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Mott Linn, (2008),"Planning strategically and strategic planning", The Bottom Line, Vol. 21 Iss 1 pp. 20-23 http://
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Robert Jonas, (2000),"STRATEGIC PLANNING: The Real Meaning of Strategy", Handbook of Business Strategy, Vol. 1 Iss 1 pp. 141-143
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Better strategic planning

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Managing change and planning for the future require both vision and strategy

Introduction
It would be very difficult to find a company CEO or a department manager who did not
acknowledge the need for strategic planning when making major decisions about company
policies or when contemplating large-scale directional change. However, the problem with
strategic planning is that it is not always very effective. The reasons for this range from the
fact that sometimes it is not strategic enough, or robust enough, to the use of strategies
developed to meet the needs of very different industries.

Different strokes for different folks

Reeves et al. (2012) compare the oil industry, which changes in a fairly predictable manner
to the highly volatile internet software industry. They point out that very different types of
strategic planning are needed in such dissimilar industries and that the mistake planners
often make is to adopt strategies that are not specifically designed for their industrys
requirements.
So how can businesses ensure that they have effective strategic planning in place? Parke
(2012) suggests that what he terms brutal honesty is needed before any strategies are
selected. This means that companies need to clearly identify their strengths and
weaknesses, and also that they make a realistic assessment of the market. A strategy that
works well in times of financial ease may not be as effective during a recession, for example.
Another piece of good advice is to limit areas for strategic planning. As planning on this level
requires time and resources, it is not efficient use of either to attempt to fix everything at
once. Therefore, companies that focus on the key areas for change and continue to manage
other aspects of their business will be more likely to succeed.

Knowing your strengths and weaknesses

Identifying strengths and weaknesses will help managers to identify the type of strategy they
require. Reeves et al. (2012) divide strategic planning into four broad categories: classical,
adaptive, shaping and visionary. The classical strategic style is the one most often taught in
business schools so it is familiar to most managers. This style depends on stability because
it makes long-term predictions designed to optimize efficiency. The gas and oil industry is an
example of an industry that uses classical strategic planning effectively. However, industries
experiencing rapid changes, such as the fashion industry, need to use an adaptive style of
strategic planning that builds in flexibility and allows for short change cycles. If even greater
flexibility is required, such as in the internet software industry, a shaping strategy allows for
continual planning cycles while attempting to mold the unpredictable environment to the

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STRATEGIC DIRECTION

VOL. 29 NO. 1 2013, pp. 30-32, Q Emerald Group Publishing Limited, ISSN 0258-0543

DOI 10.1108/02580541311285410

companys advantage. The final strategy style is visionary. This shares the goal of altering the
environment with the shaping model, however it otherwise has more in common with classic
management style because it plans for long-term goals. Visionary strategic planning
requires a clear picture of what the future could be like. UPS used this style of strategic
planning when top managers in the firm had a vision that they could become the enablers of
global e-commerce. UPS realized that e-commerce was the way products would be bought
and sold in the future and that their long-term development depended on being able to
provide a delivery service used by online retailers.

Strategy testing

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Whatever strategic planning model is used, an important aspect of the planning process is
strategy testing. This involves trying out a strategy in a small area before using it to plan
major changes. Strategies can appear effective on paper but be tripped up by unexpected
pitfalls in practice. Testing the strategy can identify these problems and alter practice before
big losses are incurred. This may involve adapting the strategy, or even changing it
completely. However, if the strategy is seen to work well in small areas, this can be a powerful
tool to convince traditionalists that change is not only needed but will be effective.

Social strategy
This highlights the social aspects of strategic planning. Even the best plans can be inhibited
or even sabotaged if not accepted as beneficial by key players within an organization. Using
social strategy initiatives encourages collaborative strategic planning which can prevent
dissent when change is introduced.
Sibony (2012) suggests that part of the problem with strategic planning is that it is not
strategic enough. So-called strategic planning meetings are often taken up with issues such
as planning budgets rather than with real strategy development. This may be because
managers are concerned with issues such as confidentiality or because they have other
fears about opening up the strategic planning process to a wider group of employees. One
problem is how to generate genuine debate rather than slipping into a groupthink
mentality that confirms the status quo rather than generating change. Managers need to
think carefully about what they are trying to achieve and facilitate the process effectively.

Realistic assessment of the business environment

In addition, effective strategic planning is dependent on being able to assess the
environment in which business is conducted. This has implications for the initial decision to
make changes, the type of strategy selected to drive the change, and the effectiveness of
change implementation. Assessing the business environment should be second nature to
executives. Their ability to do this is one of the factors justifying their high salaries. However
Reeves et al. (2012) state that 80 percent of executives in a recent study overestimated their
own ability to influence the environment in which their businesses were operating.
Furthermore many continued to rely on strategic planning styles that did not match the

Testing the strategy can identify these problems and alter

practice before big losses are incurred. This may involve
adapting the strategy, or even changing it completely.
However, if the strategy is seen to work well in small areas,
this can be a powerful tool to convince traditionalists that
change is not only needed but will be effective.

VOL. 29 NO. 1 2013 STRATEGIC DIRECTION PAGE 31

needs of their industry. This wastes both time and money, which could be saved by adapting
strategic planning more closely to an industrys requirements.

Auditing change
The final stage of any change cycle should be an audit of its effectiveness. This is the only
way to demonstrate whether strategic planning has been effective or not. Surprisingly,
closing the loop is often neglected by executives who are good at forecasting and less
effective at systematically reviewing the effectiveness of their predictions.

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Conclusion
Strategic planning is the key to creating change efficiently and effectively. While strategic
planning is a skill taught in business schools perhaps too much emphasis is placed on
classic methods of planning change. Todays executives must include adaptability and
flexibility to their change management tool kit. Executives also need to have the ability to
assess the business environment accurately and to be realistic about their own affect on this.
Gaining support from other managers and employees in their companies by developing
more collaborative change management strategies may also be an operational method for
creating lasting change.
Keywords:
Vision,
Strategy,
Future,
Collaboration,
Flexibility,
Adaptability,
Strategic planning,
Organizational planning

Comment
The three articles listed in the references all make a substantial contribution to the discourse
on strategic planning. Reeves, Love and Tillmanns writing in the Harvard Business Review
provide a clear explanation of the most common strategic planning styles and discuss how
and where these should be used. Siboney, writing in The McKinsey Quarterly offers three
observations about strategic planning. Parke, writing in Industrial Engineer emphasizes that
those who do not plan for the future will not arrive there.

References
Parke, C. (2012), Preparation meets strategic planning: organizations without a vision for the future
wont get there, Industrial Engineer, Vol. 44 No. 1, pp. 44-8.
Reeves, M., Love, C. and Tillmanns, P. (2012), Your strategy needs a strategy, Harvard Business
Review, September.
Sibony, O. (2012), Collaborative strategic planning: three observations, The McKinsey Quarterly,
No. 2, pp. 94-7.

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