Criticize the use of strategic planning as a means to achieve organisational
Strategic planning is the process by which managers of the firm analyze the internal and external environments for the purpose of formulating strategies and allocating resources to develop a competitive advantage in an industry that allows for the successful achievement of organizational goals Rothaermal (2012).
Strategic planning cannot provide a precise and detailed picture of the future. Method of describing in detail the future of an organization is not a detailed description of its internal state and the situation in the external environment, but rather a mixture of qualitative wishes towards ...view middle of the document...
Unless strategy is clearly communicated within an organisation, its utility to achieve organisational objectives will be limited. The is need to develop a strategic fit between the strategic plan and the human capital resources at the exposal of the organisation
Conway (2005) states that traditional strategic planning models are increasingly viewed as not producing strategy that can deal with complexity, uncertainty and rapid change in the external environment. The apparent failure of corporate strategy even after extensive planning, and the inability of many organisations to read signals of change in the external environment, suggests that there is something missing from existing planning models. ‘It may well be that the typical strategic planning exercise now conducted on a regular and formal basis and infused with quantitative data misses the essence of the concept of strategy and what is involved in thinking strategically’ (Sidorowicz, 2000).
Strategic planning is now a routine part of business, with an accompanying set of beliefs and protocols that underpin day-to-day practice. Yet, as Mintzberg (1994) indicates, ‘planning lacks a clear definition of its own place in organizations’. While the need to plan is accepted, the resulting plans are often not successful in driving implementation of organisational strategy. Indeed, ‘while the need for planning has never been greater, the relevance of most of today’s planning systems and tools is increasingly marginal’ (Fuller, 2003). The challenge with strategic planning is basically underpinned on the execution of the plans. In many instances strategic plans are created and formulated by top management who then fail to align the organisations plans with the rest of the operations in the organisation. For instance, if an organisation like Econet Wireless is inspired to change the world of its customers, if its engineers and customer care agents are ill informed of the company’s mission. Their possibility to assist in fulfilling the company’s strategic plan will be very limited.
Due to its complexity and heavy commitment to strategic goals, strategic planning is rarely implemented successfully. Often, the poor implementation is the reason for failure, although it is more often the case of misaligned...