Preview 4 What is strategic planning? 4 Brief history of developments in strategic planning 4 An overview of the strategic planning process 4 Strategy as an emergent process

Overview Why do some firms succeed while others fail? Strategy Defined Strategic Management Process

Strategic Planning – a Short History * In the 60s & 70s, planning by Top Management, Corporate Planning Depts * Evolution from Corporate Planning to Strategic Management in the 80s and early 90s * Now, Strategic Leadership – concept of learning organisation & ownership of strategy * Emphasis has moved from top down to bottom-up (whole organisation) * Strategic Planning now has to deal with change; it calls for an entrepreneurial view of the uncertain future

Figure 1.1: Basic Planning Process Missions and Goals External Analysis - Opportunities and Threats Internal Analysis - Strengths and Weaknesses Selection of Appropriate Strategies Implementation of Strategies Strategic Planning A Basic Planning Model A Basic Planning Model

Deliberate Strategy The model discussed above gives rise to deliberate (quantum) strategy However, Mintzberg (and others) now believe that in practice, strategy develops incrementally (emergent) in response to fast changing circumstances Strategy thus develops in an informal way with decisions emerging Above model still useful as framework for developing strategy

Strategy as an Emergent Process Strategy Making in an Unpredictable World Strategy Making starts from Lower Level Managers, and works upwards Involvement and ownership of all

The Strategy Mix A combination of deliberate and emergent strategy Both have advantages and disadvantages

Emergent and Deliberate Strategies Intended Strategy Realized Strategy Deliberate Strategy Unrealized Strategy Emergent Strategy

Strategic Management Process for Intended Strategies Missions and Goals Strategic Choice Organizing for Implementation Internal Analysis External Analysis INTENDED STRATEGY

Strategic Management Process for Emergent Strategies Missions and Goals Internal Analysis External Analysis EMERGENT STRATEGY Strategic Choice Does It Fit? Strategic Choice Does It Fit? Organizational Grassroots

Strategic Planning In Practice * Planning Under Uncertainty * Ivory Tower Planning? * Too Busy Fighting Fires? * Others?