Strategy processes and practices

Question 1

Who ‘Does’ strategy in a business

Answer 1

• The CEO & top management teams
• Board of directors
• Strategic planners
• Middle managers
• Strategy consultants

Question 2

What are the four strategic planning systems

Answer 2

• Formulating
• Learning
• Coordinating
• Communicating

Question 3

Formulating strategy

Answer 3

Often using analytical approaches, encouraging long-term view etc.

Question 4

Learning

Answer 4

Challenge and discovery through participation in the process

Question 5

Coordinating

Answer 5

For example business and corporate level strategies

A forum for negotiation and compromise

Question 6

Communicating

Answer 6

Plans, objectives, milestones

Hence, implementing.

Question 7

Critics argue that strategic planning:

Answer 7

• Is inflexible due to annual cycle (if run rigidly).
• Is often confused with budgeting – hence not very strategic.
• Can be detached from operational reality.
• Stifles innovation if applied rigidly.

Question 8

Planning can be dysfunctional because:

Answer 8

-Calendar-driven processes force the real decisions outside the planning process
The real decisions are left to ad-hoc processes
-Planning processes are organised by business unit
Unit managers may approach the process defensively
-Actual decisions are made by issue, not by unit