Thursday, September 1, 2011

Strategic Planning Versus Strategic Intent

Do you agree with Mintzberg's assertion that strategic planning can actually hamper an organization? Do you think that an organization can begin to operate with strategic intent without having experienced all of the phases of strategic planning?

Strategic planning can be an obstacle for some organizations, in some socio-economic environments and I think Mintzberg's view offers the “Level-ZERO” of strategic thinking and is ultimate/universal, flexible and evolutionary level in Strategic Management. It can be very useful in environments that Strategic Planning may be a redundant and obsolete process for the mentioned reasons.

Some organizations use this model in countries where market is challenging, unpredictable and unstable or contrary to their vision and mission.

Though this level can be an alternative intermediary option while organization needs time to transit from one level to another or sleep on its decision which level is needed, such a theory can be more useful for new organizations that are exploring new areas, ideas and products where the strategic planning can be a premature process while the firm is in its “sniffing” phase. And yes, therefore, I do think that an organization can begin to operate with strategic intent without having experienced all of the phases/levels of strategic planning as the uncertainties are significant or the organization plans to grow rapidly and become an industry leader in a short time.

3 comments:

Sarah said...

Hi Sergey. Over the years I've become less and less a fan of strategic planning. I feel the time and resource (human and financial) investment is oftentimes much greater than the quality of the results. In the rapidly changing environment in which most organizations operate, the plan is not a living document, as it can rarely keep up with the pace of change.

Nice to see your blog!

Sarah

Sergey H. said...

Hi Sarah. You are absolutely right and I know many people that vote either strictly for Strategic Planning and other - the Strategic Intent. I was lucky enough to work for the same organization in one country where the Strategic Intent was more effective and essential, and another country where it was very vital to have. You have rightly noted that rapidly changing environments (market demand, technology etc.) the Strategic Intent is the most optimal as the organizations are in a "sniffing" stage whether it's a "change sniffing", "start-up sniffing" or other. Some bigger organizations working in a defined market environment where they are the "change initiators" and the "market shifters" having a at least 3/5-year strategic plan is very important.

Scenario Planning is one of the remedies for good Strategic Planning to make it live process and i will be posting my thoughts and will be sharing my experience in my future posts.

Stay tuned and thanks for paying a visit to my new blog and posting your comment.

Sergey

Hye Shin said...

Most of the organizational models are obsolete over time. Now, effective strategic planning are done with tools such as humanconcepts.