AROW is no longer maintained. Content is not updated and technical problems may not be fixed.
Click here for current publications by Ian Hughes

Strategic Management
Further Reading

Strategic Planning is not a theoretical pursuit. It is application in the implementation of the plan is the test of good planning, not whether an academic or senior manager likes the paper product. The decision to turn the strategic plan into reality is the important issue.

All organisations have strategies but they are often implicit and not fully and thoughtfully examined. Strategic Management involves execution of an explicit strategic plan that has the commitment of people to execute it. The plan is consistent with the values, beliefs and culture of these people. The plan has been developed for the people who have the capacity and competence to execute it.

In many organisations, strategic planning is separated from organisation’s operation. Reasons for the separation include:

• Decision makers and their subordinates have been left out of the planning
• Planning process is considered as unrelated to the operation of the organisation, and looked at it as semi-academic exercise.
• Planning did not stimulate strategic thinking.

To evaluate a strategic planning process we must know what impact it has on the ongoing behaviour of the organisation. Good strategic planning takes time because it is a process increase the probability of change in the way an organisational acts. The planning process is itself action for change. It is not simply a plan that comes before the change, but must prepare for the actuality of change, and that preparation is in itself a change in the organisation. It is essential that managers and staff feel ownership of the plan, so ownership of the plan needs precede implementation.

In a complex organisation initiation of several action plans at various level, and their integration at the top of the organisation, is necessary for the implementation. Therefore different but concurrent plans must be initiated in various levels and segments in a coordinate and integrated manner. These changes need to be monitored and managed at the top level of organisation. This may require changes in the management control system, organisational culture, and the management information system.

A key challenge is to have the strategic planning team interested in the implementation, but not taking over the management of the organisation. The line of authority (decision making) between the strategic planning team and management team must be clear, well understood and agreed upon. It is important for managers and other organisational members to integrate the strategic plan into their daily management decision-making and actions.

• Stages in Implementation
• Publicity through various means
• Commitment by the management
• Setting up the strategic plan
• Aligning staff
• Allocation of resources (budget) to strategic plan
• Development of Critical Success Indicators
• Formulation of CSI relating to quality
• Inclusion of the strategic plan in the performance indicators of management and staff
• Setting up an accountability system involving each member of the organisation
• Acknowledgment, recognition and celebration of the services rendered by the employees.
• Monitoring the inner and outer environment
• Creation of action plan
• Communicate and reinforce strategic plan to the stakeholders
• Modification management control system as needed to support the strategic plan.
• Modify the motivation and reward system to support the strategic plan.
• Modification to the information system
• Training staff in strategic planning
• Implement action plans
• Evaluate

Goodstein, L. D., Nolan, T. M., & Pfeiffer, J. W. (1993). Applied Strategic Planning: A Comprehensive Guide. Amsterdam: Pfeiffer. Chapter 14.