STRATEGIC PLANNING AT UNITED PARCEL SERVICES
Before the 1990s UPS had a small group in charge of formulating project plans (Garvin & Levesque, 2006, p. 3). However, as the company grew in size and the volume of projects, a formal strategic planning group had to be formed. When Eskew became CEO in 2002, the formation of a Management Committee was among the first accomplishments he made. The Committee was tasked to direct the company to its vision for 2007, its first centennial. Eskew's concern, that changes are needed in UPS's strategic planning process, is valid. If the company continues to form only ad hoc groups to focus on achieving a ...view middle of the document...
The different components of the strategic planning process tend to move in different directions based on their narrow-minded view of their part to the whole. A leader like McDevitt, who has the vision to see the bigger picture, is necessary to align the goals of each component with the main institutional goal of the entire organization. So in my opinion, UPS has what it takes to move forward and transform as they had in their 100 years' lifetime.
The managers were not thinking broadly and creating enough. Most of them were trapped in their respective comfort zones, worried about suggesting solutions that involved out-of-the-box thinking. McDevitt, who was facilitating the scenario planning sessions, described that “there is a strong tendency to go back to one's area and focus there” (Garvin & Levesque, 2006, p. 13). The managers seem to agree that they should start to think more about cross-functional concerns. But they remained, nevertheless, stuck in the issues they were used to handling. There was a lack of the sense of adventure to reach out to other functions, combine ideas, and come up with something new from synergies. About the early warning signals, the participants of the scenario-planning sessions were able to identify such signals in 2004. In particular, the participants came up with a four-quadrant future scenario of the global market in...