Page 54 - PRAGMATIC STRATEGY

Limitations of the Corporate Planning Process

The corporate planning model is to a great extent initiated and used by the
top management of the organisation. Consequently, it is open to criticism
that strategy formulation is developed from the general to the specific. That
plans are based on examination of the whole in relation to its environment
rather than from the standpoint of the individual functions or divisions.
Planning may therefore, be unrealistic as there may be a tendency to
ignore details that may be critical in making decisions operational. There
is, therefore, a potential to minimise the difficulties of implementation.

Moreover, most campaigns fail because they don’t have an exit strategy.
The players don’t think far enough ahead. The end game is the boring bit,
the mopping-up operation, without the glamour and excitement of the
principal challenge. Therefore, people get frustrated and only plan so far.
From then on they imagine winging it, confident in their ability to master
their retreat as skilfully as their advance.

The model describes the step-by-step process used in strategic planning.
However it does not explain the procedures or methods necessary to carry
out each step.

The model as presented is non-political. It takes little or no account of the
‘political’ hidden agendas inherent in most human decision making
processes.

Conclusion

The corporate planning process is an iterative process. It is a process
which allows the organisation to respond and adapt to change whether
that change is caused by internal or external factors. It will not however,
guarantee success for the organisation but it will help to avoid gross errors
of judgement.