Showing papers on "Strategic planning published in 1994"

The rise and fall of strategic planning

Abstract: Acknowlegdements xv A Note to the Reader xvii Introduction: The "Planning School" in Context 1 1.Planning and Strategy 5 2.Models of the Strategic Planning Process 35 3. Evidence on Planning 91 4. Some Real Pitfalls of Planning 159 5.Fundamental Fallacies of Strategic Planning 221 6. Planning, Plan, Planners 323 References 417 Index 445 About the Author 459

Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal

Abstract: Based on a ten-year examination of control systems in over 50 U.S. businesses, this book broadens the definition of control and establishes a critical bridge between the disciplines of strategy and accounting and control. In addition to the more traditional diagnostic control systems, Simons identifies three new control systems that allow strategic change: belief systems that communicate core values and provide inspiration and direction, boundary systems that frame the strategic domain and define the limits of freedom, and interactive systems that provide flexibility in adapting to competitive environments and encourage organizational learning. These four control systems, according to Simons, will provide managers with the basic levers for pursuing strategic objectives.

The Fall and Rise of Strategic Planning

Abstract: When strategic planning arrived on the scene in the mid-1960s, corporate leaders embraced it as “the one best way” to devise and implement strategies that would enhance the competitiveness of each business unit. True to the scientific management pioneered by Frederick Taylor, this one best way involved separating thinking from doing and creating a new function staffed by specialists: strategic planners. Planning systems were expected to produce the best strategies as well as step-by-step instructions for carrying out those strategies so that the doers, the managers of businesses, could not get them wrong. As we now know, planning has not exactly worked out that way.

Management theory and total quality: improving research and practice through theory development

Abstract: We introduce this theory-development forum by comparing total quality and management theory at both global and topic-specific levels. Our analysis suggests that management research could be enhanced by incorporating some insights of total quality into management theory. We also conclude, however, that management practice could be improved by incorporating insights from management theory into total quality efforts, and that, in fact, total quality has already incorporated many such insights. Finally, we suggest some directions for theory development and research on total quality.

How new top managers use control systems as levers of strategic renewal

Abstract: This research is a longitudinal study of 10 newly-appointed top managers; the research focuses on understanding (1) their business vision and strategy and (2) how they use formal control systems as levers of strategic change and renewal. The results reported in the paper are based on data collected over a period of approximately 18 months following the appointment of each new manager. Analysis of the data suggests that control systems are important levers used to manage both evolutionary and revolutionary change. In situations of strategic change, control systems are used by top managers to formalize beliefs, set boundaries on acceptable strategic behavior, define and measure critical performance variables, and motivate debate and discussion about strategic uncertainties. In addition to traditional measuring and monitoring functions, control systems are used by top managers to overcome organizational inertia; communicate new strategic agendas; establish implementation timetables and targets; and ensure continuing attention to new strategic initiatives.

Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research

Abstract: Building on previous contingency frameworks, we developed an encompassing contingency model that might explain the inconsistent planning-performance findings reported in previous research The model was empirically tested using meta-analytic data drawn from 26 previously published studies Results suggest that strategic planning positively influences firm performance and that methods factors are primarily responsible for the inconsistencies reported in the literature The substantive contingency factors that we examined, some of which have been frequently cited as important by previous researchers, did not have a large impact

The effect of strategic technology alliances on company performance

Abstract: Strategic technology partnering between firms has become a growing subject of interest to both companies experimenting with this mode of economic organization and researchers from a wide variety of academic disciplines. In this study an effort is made to measure the effect of strategic technology partnering on companies engaged in such joint efforts. A study of the relevant literature on interfirm cooperation generates some basic understanding of this phenomenon, after which the empirical analysis is expanded with linear structural modeling of a number of relevant explanatory variables setting strategic partnering in a more complex environment.

International-Business Political Behavior: New Theoretical Directions

Abstract: Alternative assumptions are advanced regarding the political nature of international business and the role of government as a factor of production, which firms must manage in their international value-added chains. Based on a model of business political behavior, various propositions are developed regarding the interactions among firm, industry, and nonmarket factors as well as the impact they have on various forms and intensities of political behavior, as affected by strategic objectives. Finally, the strategic-theorizing implications of such behavior are discussed in the context of the recent emphasis on resource-based models of strategy management.

Fundamental Issues in Strategy: A Research Agenda

Abstract: How do firms behave? Why are firms different? What are the functions of the headquarters unit in a multibusiness firm? What determines success or failure in international competition? In Fundamental Issues in Strategy, twenty-two prominent scholars collectively address these four fundamental questions to examine strategic management's intellectual roots and to strengthen the field's theoretical foundations. They take a comprehensive look at the "intellectual backbone" of the field of strategy, raising important issues that demand further research. The result is a compelling reexamination of strategic management that urges scholars to refocus their efforts now - and sets a research agenda for the coming decade. The editors, Richard P. Rumelt, Dan E. Schendel, and David J. Teece, organized this project specifically to encourage focus on fundamental questions of strategy; call for a significant increase in the sophistication, rigor, and scholarly quality of strategy research; demonstrate a fruitful interaction between strategy researchers and discipline-based scholars; and show the tremendous potential of the intersection of basic disciplines and strategy for gaining new insights and improving management practice and organizational performance. Indeed, by focusing on fundamental questions, the contributors reveal that disciplines like economics, organizational sociology, and political science as well as research on strategic management can - and should - shed new light on this important field. Fundamental Issues in Strategy is the product of a conference jointly sponsored by the Alfred P. Sloan Foundation through its consortium "Competitiveness and Cooperation, " The John M. OlinFoundation, UCLA Center for International Business Education and Research, and the Strategic Management Society. It frames a complete and original statement about the future of strategic management - and establishes a foundation for future growth and development in the field of strategy.

The rise and fall of strategic planning : reconceiving roles for planning, plans, planners

Abstract: In this definitive and revealing history, Henry Mintzberg, the iconoclastic former president of the Strategic Management Society, unmasks the press that has mesmerized so many organizations since 1965: strategic planning. One of our most brilliant and original management thinkers, Mintzberg concludes that the term is an oxymoron -- that strategy cannot be planned because planning is about analysis and strategy is about synthesis. That is why, he asserts, the process has failed so often and so dramatically. Mintzberg traces the origins and history of strategic planning through its prominence and subsequent fall. He argues that we must reconceive the process by which strategies are created -- by emphasizing informal learning and personal vision -- and the roles that can be played by planners. Mintzberg proposes new and unusual definitions of planning and strategy, and examines in novel and insightful ways the various models of strategic planning and the evidence of why they failed. Reviewing the so-called "pitfalls" of planning, he shows how the process itself can destroy commitment, narrow a company's vision, discourage change, and breed an atmosphere of politics. In a harsh critique of many sacred cows, he describes three basic fallacies of the process -- that discontinuities can be predicted, that strategists can be detached from the operations of the organization, and that the process of strategy-making itself can be formalized. Mintzberg devotes a substantial section to the new role for planning, plans, and planners, not inside the strategy-making process, but in support of it, providing some of its inputs and sometimes programming its outputs as well as encouragingstrategic thinking in general. This book is required reading for anyone in an organization who is influenced by the planning or the strategy-making processes.

Testing a Model of Organizational Response to Social and Political Issues

Abstract: This study developed and tested a conceptual model explaining variability in the organizational structures firms develop to identify, analyze, and respond to their social and political environments...

Personal and Structural Determinants of the Pace of Strategic Decision Making

Abstract: A model of the determinants of strategic decision-making pace that incorporates the role of individual differences among executive decision makers, organizational structural characteristics, and industry effects is developed. Drawing on data from 151 firms, we found that chief executive officers' cognitive ability, use of intuition, tolerance for risk, and propensity to act associated positively with speedy decisions. Decision pace appeared to be faster in centralized organizations and slower in formalized organizations. Our results also suggest that the construct of comprehensiveness has both cognitive and organizational structural aspects, with cognitive comprehensiveness relating positively and organizational comprehensiveness, negatively, to strategic decision-making pace.

Improving service quality in America: Lessons learned

Abstract: Executive Overview Delivering excellent service is a winning strategy. Quality service sustains customers' confidence and is essential for a competitive advantage. Yet many companies are struggling to improve service, wasting money on ill-conceived service programs and undermining credibility with management rhetoric not backed up with action. Are there guidelines to help managers chart a service-improvement strategy for their organizations? We think so. In this article ten lessons from an extensive ten-year study of service quality in America are presented—lessons that we believe apply across industries and are essential to the service-improvement journey.

Stage of the organizational life cycle and competition as mediators of problem perception for small businesses

Abstract: An empirical study based upon a sample of 645 small businesses assesses the relationship that life cycle stage and level of competition exhibit with the problems perceived to constrain small business strategic planning. Problems have been identified as either internal (cash flow) or external (competition); they have further been classified as either situational or core problems. Among the most prevalent problems reported by decision makers are customer contact, market knowledge, marketing planning, location, and adequacy of capital. A total of 16 problem areas were identified. Traditional wisdom offers the scenario where problems faced will vary as the organization progresses through the life cycle. Much of this research refutes conventional wisdom in that level of competition was determined to have more of an impact on problem perception.

A Neglected Factor Explaining Family Business Success: Human Resource Practices

Abstract: Over 600 family firms were involved in this examination of the impact of human resource management (HRM) and professional governance practices on family business success and survival. Our findings identified some of the most prevalent family firm HRM practices and found significant positive correlations among HRM practices, gross firm revenues, and CEO personal income levels. The results support prior arguments for competitive advantage in the marketplace gained through effective use of HRM practices. An interesting additional finding was that while boards of directors, strategic planning, and frequent family meetings were correlated with business longevity over multiple generations, succession planning was not. Such practices are important. for current competitive advantage and may also be crucial to the longevity of the business.

Strategic management of health care organizations

Abstract: This fifth edition of the classic text, Strategic Management of Health Care Organizations, introduces strategic thinking, strategic planning, and strategic momentum to advanced undergraduate and graduate students as well as practitioners in the field of health care It demonstrates how strategic managers can become strategic thinkers with the crucial skills to evaluate the changing environment, analyze data, question assumptions, and develop new ideasSwayne, Duncan, and Ginter present methods to develop and document a plan of action through strategic planning and illustrate how, as managers attempt to carry out the strategic plan, they evaluate its success, learn more about what works, and incorporate new strategic thinking into future planning, strategy formulation, and situational analysis They demonstrate how strategic management "maps" can provide the direction needed for successful implementationIn this new edition, all chapters have been revised and contain new or updated Introductory Incidents and Perspectives Appendix A has been revised to match the new model of strategic thinking, planning, and managing the strategic momentum Twenty real-life case studies, including nine new cases and three updated classics, present diverse strategic situations in an accessible manner that enhances the applicability of the concepts for students and professionalsThe text is supported by PowerPoint slides and an Instructors' Manual

Field research methods in strategic management: contributions to theory building and testing*

Abstract: This article discusses the contributions that field methods have made to the theory-development process in strategic management Field studies drawn from the literature are classified according to their research goal (description, explanation, or prediction) and according to whether they built or tested theory the overall conclusion is that field research methods will continue to be used heavily to develop strategy theory However, certain conditions must be met to maximize the contribution of field methods to strategy research These conditions include a balanced research agenda, multifaceted research approaches, innovative datagathering techniques, and an applied futuristic orientation

Resolving the paradox of conflict, strategic decision making, and organizational performance

Abstract: Strategic decision making influences organizational performance. However, close examination of this relationship reveals a subtle paradox. It appears that the products of strategic decision making, all of which are necessary for enhanced organizational performance, do not peacefully coexist. Conflict seems to be the crux of this conundrum. As such, a better understanding of conflict's effects on strategic decision making is needed This paper integrates a multidimensional conceptualization of conflict Into a model of strategic decision making and organizational performance and develops propositions to guide empirical study of the effects of conflict on strategic decision making.

Organizational Characteristics and Information Systems Planning: An Empirical Study

Abstract: Information Systems IS planning has gained considerable interest among researchers and practitioners in recent years because of the large investments that firms have made in IS and the increasingly strategic nature of the impact of information systems on organizational performance. Since IS planning is performed in an organizational context, characteristics of the organization may have a significant influence on the quality and effectiveness of the IS planning process. A research model is developed that links two major dimensions of IS planning-the quality of the planning process and planning effectiveness-with a set of eight organizational factors derived from contingency research in IS planning, strategic business planning, organizational studies, and technology innovation. The model is validated using data collected from a field survey of 249 senior IS executives. Canonical correlation analysis is used to test the research hypotheses and validate the model. The results of the study indicate that the two planning dimensions respectively reflecting the "means" and "ends" of IS planning are equally important. The results also indicate that planning resources, the intended strategic impact of IS on future business operations, the quality of facilitation mechanisms, the quality of implementation mechanisms, and the quality of strategic business planning are significantly associated with the quality and effectiveness of IS planning. The implications of the results to further research and to managerial practice are highlighted.

Innovation in Public Management: The Adoption of Strategic Planning

Abstract: State governments have undergone tremendous changes in the last 15 years. Reagan's New Federalism devolved more program responsibilities upon the states through new unfunded federal mandates, leading to large increases in required state revenues (Fix and Kenyon, 1990). The economic recessions of 1981-1983 and 1991-1992 sent many state budgets into the red. State governments responded by cutting services, enacting lotteries, and even raising taxes, despite the tax revolts of the late 1970s which sent a clear message that taxes were reaching unacceptably high levels in many states. Given the intense budget pressures and the ideology of the Reagan Revolution, state government leaders looked to the private sector for answers through contracting out, private-public partnerships and management techniques such as strategic planning and Total Quality Management. The 1980s also saw the election of a new breed of governors, many of them social activists, but fiscally conservative with agendas focused on education and economic development (Osborne, 1988) and interested in thinking strategically and planning for the future. Many governors and state agency directors embraced strategic planning processes to better manage agency missions with limited resources. Between 1980 and 1991, at least 264 state agencies, in nearly every state, initiated strategic planning according to the survey described in the grey box on page 323. Despite the growing popularity of strategic planning, no empirical study has yet tried to assess the conditions under which strategic planning is adopted. In this study, I will address this topic by testing several explanations for strategic planning innovation by state leaders, using data for nine types of state agencies from 1970 to 1991 drawn primarily from the National Survey on Strategic Planning in State Government Agencies (referred to hereafter as the National Survey, see grey box on page 323). Based on the findings, I make concluding observations about how managers can facilitate the diffusion of a management innovation designed to "reinvent" government operations to better meet high service demands and fiscal constraints. Strategic Planning in the States Strategic planning is a relatively new innovation to government, and according to some observers, part of a quiet revolution underway in public sector management (e.g., Bryson, 1988; Osborne and Gaebler, 1992; Denhardt, 1993). Recent research suggests that the best public sector managers have been creating strategic management processes to address the unique features of public sector organizations (e.g., Rainey, 1991; Bozeman and Straussman, 1990, Denhardt, 1993). In doing so, managers have been moving away from traditional, hierarchically managed agencies towards a management style that highlights responsiveness to citizens, excellent quality services, employee empowerment in the workplace, and an ongoing strategic planning process emphasizing the organization's mission and values. As part of the growing literature on strategic planning in the public sector (e.g., Eadie, 1983; Bryson, Freeman, and Roering, 1986; Bryson and Roering, 1987 and 1988; Carr and Littman, 1990; Wechsler and Backoff, 1990; Miesing and Andersen, 1991), Bryson (1988, 118) defines strategic planning broadly as a disciplined effort to produce fundamental decisions and actions that define what an organization is, what it does, and why it does it. More specifically, this article defines strategic planning as a management process that combines four basic features: (1) a clear statement of the organization's mission; (2) the identification of the agency's external constituencies or stakeholders, and the determination of their assessment of the agency's purposes and operations; (3) the delineation of the agency's strategic goals and objectives, typically in a 3- to 5-year plan; and (4) the development of strategies to achieve them. Viewing strategic planning as an innovation also ties this study to an extensive literature on innovation by individuals and organizations; Everett Rogers (1983) has documented more than 3,000 studies, and recent studies have highlighted public sector innovation specifically (e. …

Implementing strategic missions: effective strategic, structural and tactical choices

Abstract: This article describes a study of the impact of strategic mission on the relationships between firm performance and selected strategic, structural, and tactical variables. Moderated regression analysis and subgroup analysis were used to analyse data collected from 91 advanced technology manufacturing companies. Results indicate that firms with build-oriented strategic missions, relative to those with more hold- and harvest-oriented strategic missions, performed better when they: (1) adopted entrepreneurial strategic postures; (2) had organic organization structures; (3) offered relatively low product prices; (4) employed relatively large sales forces; (5) offered relatively generous customer credit; and (6) offered relatively broad product lines. On the other hand, firms with hold- and harvest-oriented strategic missions, relative to those with more build-oriented strategic missions, performed better when they emphasized R&D activity geared toward the development and refinement of existing products. Strategic mission did not moderate the effectiveness of the firms’advertising expenditures or their new product development activity.

Formalized Planning in Small Business: Increasing Strategic Choices

Abstract: Research shows a rather consistent, positive relationship between the extent of planning activities and the performance of small businesses (Robinson and Pearce 1984). This relationship is found despite differing definitions of small businesses, ways of assessing formality of planning, and types of performance measures utilized. However, Robinson and Pearce (1984) called for increased study of the relationships among planning formality, strategy content, and firm performance, thereby encouraging a more complex view of strategic management processes and results in small firms. The primary purpose of this study is to examine the relationship between planning formality and three other elements--the process by which the strategic decisions are made, the content of small firm strategies, and firm performance. It is proposed that small firms which do more formal planning will also have a more comprehensive strategic decision process and adopt a wider variety of alternative strategies than will non-formal planners. This increased attention to the decision process and the consideration of more strategic options may be associated with higher levels of growth and profitability for the formal planners. MEASURING THE FORMALITY OF PLANNING PROCESSES In previous research dealing with the formality of planning in large businesses, the typical approach has been to: a) define the planning system elements; b) measure the formality of the elements; c) develop a formality scale; and d) categorize firms based on their scores on the formality scale. Formality has been measured by assessing such things as the degree of planning manual usage, the amount of emphasis on developing written plans, and/or the existence of specific schedules for formulating plans (Wood and LaForge 1981; Grinyer, Al-Bazzaz, and Yasai-Ardekani 1986; Rhyne 1986; Ramanujan and Venkatraman 1987; Fredrickson 1984). Previous research on small businesses has concentrated more on identifying broad, formalized, planning categories rather than on measuring differences in formality in terms of one- or two-point differences on a planning formality scale. Bracker and Pearson (1986) identified eight planning components: objective setting; environmental analysis; strengths, weaknesses, opportunities, and threats (SWOT) analysis; strategy formulation; financial projections; functional budgets; operating performance measurement; and control procedures. Based on the presence of these components in small firm planning, they developed four levels of planning sophistication including structured strategic planning, structured operational planning, intuitive planning, and unstructured planning. Then they compared financial performance between structured (formal) strategic planners and the other groups. Similarly, Robinson and Pearce (1983) grouped small firms into broad planning categories based on the extent of written documentation and inclusion of various planning steps. This broader definition of planning formality is important in order to reflect the entrepreneurial thought processes and actions that permeate the small organization. The direct application to smaller firms of planning formality measures developed in large, bureaucratic companies is inappropriate. Therefore, in this study, planning formality is conceptualized and measured in a manner relevant to small businesses so that the formal structuring of their long-term plans as well as the thoroughness of their planning system is captured. STRATEGIC DECISION PROCESS Fredrickson (1984, 1986) argues that planning formality does not represent what actually occurs during the strategic decision process. Following his argument, planning formality and the decision process utilized may be two separate constructs. It is possible to have a highly formal planning system that is not associated with comprehensiveness in the decision process. Therefore, while each of these constructs can be studied separately, the relationship between them may also be the focus of study. …

Strategy: Process, Content, Context: An International Perspective

Abstract: This is the highly anticipated new edition of the market-leading introduction to strategic management from Bob de Wit (Maastricht School of Management) and Ron Meyer (TiasNimbas Business School). Widely acclaimed for its ability to foster creative, non-prescriptive and global strategic thinking amongst students, "Strategy, 4e" builds on the major international success of the prior edition. Developed from wide-ranging market feedback, all of the short and long cases have been replaced or wholly updated with dozens of new cases crafted by the authors and several international contributors. From Google to KPMG, ING Direct to the Metropolitan Opera, the text now features an unparalleled range of organizations with rich settings for students to develop key strategy skills and understanding. New readings, including coverage of hot topics like Blue Ocean Strategy, ensure the theory remains cutting-edge, while a boosted set of lecturer resources makes this the complete package for 21st century strategy courses.

Strategic Planning in Higher Education: Who Are the Customers

Abstract: The Education Reform Act 1988 brought about a number of radical changes in the structure and funding of UK higher education institutions particularly within the “new university” and college sector. As a result, they now operate within a much greater competitive context and need therefore to incorporate a greater market orientation into their strategic planning process in order to acquire a competitive advantage over their rivals. Reports on exploratory research undertaken to assess the degree to which these higher education institutions are aware of the complexity of the student′s role and whether this complexity is considered in the development of an institutions mission statement. Assesses the degree to which institutions display an awareness of the various types of customer that need to be taken into consideration when formulating their strategic plans.

Strategic Purchasing and Supply Chain Management

Abstract: 1. Introduction / Part 1: Environmental Change and Strategic Requirements: Changes in environmental conditions and their impact on businesses Approaches to strategic management From corporate strategy to purchasing and supply chain management strategy The content of supply chain Management strategies. Part 2: The Implementation of Purchasing and Supply Chain Management Strategies: Strategic management of quality Strategic management of material flow Strategic management of costs and added value Strategic management of supplier relationships Strategic management of human resources in relation to the supply chain Strategic opportunities of information technology Conclusion.

As the Left Foot Follows the Right? The Dynamics of Strategic and Structural Change

Abstract: This study empirically tested the contingency relationship between strategy and structure proposed by Chandler and others with hypotheses linking the probability, timing, and magnitude of changes i...

Business Process Re‐engineering: An Example from the Banking Sector

Abstract: Investigates the current literature surrounding business process re‐engineering (BPR). Defines BPR and distinguishes between re‐engineering and other change programmes. Sets out a general approach to BPR and outlines the results from the application of this approach to the bank. This analysis of results includes an assessment of the applicability of the ICAM definition method, IDEF0, in helping companies implement BPR programmes.