Strategy and change: what are the benefits and limitations of using a strategic planning model?

Thèmes abordés

Strategy, Change, benefits, limitations, use of a strategic planning model, planification process, Mintzerg, firm's strategy

Résumé du document

Using a strategic model is usual in company. Among the distinctive models of strategy, I chose to focus my work on strategic planning.
But what are the benefits and limitations of using a strategic planning model? We will see in a first part that using a strategic model provides a lot of benefits to organization (with the model of strategic planning and deliberate strategy) and in a second part we will see how too much strategic planning give barriers and limitations to performance, and what are the solutions to this issues.

Extraits

[...] Managers have to find a strategy who let anticipate market evolution with more flexibility. There is the emergent strategy. It is a strategy builds during the action. There is no planification here, the interaction between key planners creates consistency when operations are being implemented. So this strategy provide more importance to the macro environment of a company. For example, the drop of a price of a share can change a fusion between two companies. Or when new comers go in a market with very innovative products, it can change company strategy. [...]

[...] This combination allow to anticipate issues and be more flexible in front of markets evolutions. So managers have to create strategic alignment between this types of strategies. This is one of the key role of top managers and middle managers in the hierarchy chain today. References: - Fayol, H. (1916). Administration industrielle et générale. Paris: Dunod. - Robbins, S. Judge, T. (2006). Organizational Behaviour. 15th edition. Boston: Pearson. - Mintzberg, H. (1994). Rise and Fall of Strategic planning. Prentice hall: Financial Time. [...]

[...] Strategy and change: what are the benefits and limitations of using a strategic planning model? Using a strategic model is usual in company. Among the distinctive models of strategy, I chose to focus my work on strategic planning. But what are the benefits and limitations of using a strategic planning model? We will see in a first part that using a strategic model provides a lot of benefits to organization (with the model of strategic planning and deliberate strategy) and in a second part we will see how too much strategic planning give barriers and limitations to performance, and what are the solutions to this issues. [...]

[...] Thus, with a strategic planning, managers use deliberate strategy. Companies constructs deliberate strategy to positioning themself on the market. More important here is create her own competitive advantage and struggle against competitors. Deliberate strategy provide anticipate market evolution and respond efficiently to this problems. For example, when companies do benchmarking and try to identify what are competitor's forces. So there is a strong link between thinking and act: There is a plan and a plan B. So it's a formalized process, very useful in finance for example. [...]

[...] - Faulkner, D. (2002). Critical Perspectives on Business and Management. Routledge. - Lake, N. (2012). The strategic planning workbook. Kogan Page. - Randolph, W. Cook Smith, D. (1999). Strategic Choices and Environmental Uncertainty: The Impact of Executive Knowledge about the European Union on Strategic Choices. Revue Gestion. Vol 21. P145. [...]