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Strategic planning
  Strategic planning was first introduced to corporate leaders as “the one best way” to make the strategies in the 1960s. Planners were supposed to make the best strategies and instructions. They programmed strategies and made sure that the strategies were communicated clearly. But in practice, it fails to meet people’s expectations. Henry Mintzberg reminds us of the difference between planning and strategic thinking. He pointed out that the most successful strategies are visions, not plans.
(Henry Mintzberg, 1994)The companies should first acknowledge the difference between planning and strategic thinking. Planning aims to break down a goal into steps and formalizes these steps so that it can describe the consequences of each step. Planners should do their jobs around strategic making rather than inside it. This will help managers broaden their considerations of issues involved in the strategy-making process. In other words, planning is defined as a set of analytical techniques. (Michael Porter, 1987)
According to Henry Mintzberg’s opinion, strategy making needs to function beyond the established categories to make new perspectives and combinations. But formal planning prohibits the strategic changes within the organization. Managers should be aware of the adverse effect of formal planning on creative organization changes.
The fallacies of strategic planning:
The fallacy of prediction implies that the assumption of the stable world during the planning time is not realistic.
The fallacy of detachment indicates that strategies can not detach from strategists.
The fallacy of formalization suggests that systems can not replace human beings intuition. Formal systems are able to process more information, but they can not comprehend and synthesize it.
Many research reports show that strategy making is enormously complex process which needs the most sophisticated elements of human thinking.
Learning plays a vital role in the development of strategies. In other words, the strategic making can be viewed as a process of learning. Only human has the capacity of learning. Strategy making is not the task of planning.
So it is appropriate to use strategic programming to replace strategic planning, which better conveys its role.
Planning as a strategic programming.
Compared with managers, Planners have more time and inclination to analyze. Their roles are to pose the questions rather than find the answers.
Given a variety of feasible strategies, planning can program strategies and make them operational.
There are three steps involved in strategic programming: codification, elaboration, and conversion of strategies.
Codification is to classify and express the strategies in clear terms.
Elaboration is to break down the strategies into sub-strategies.
Conversion is to assess the effect of the changes on the organization’s performance.
The strategic programming can make sure that all people involved in the organization pull in the same direction to fulfill the overall goal.
Planners can help managers find the strategies the importance of which may not be recognized by the managers. And they also study hard data to ensure managers reconsider the strategy making process.
Now there are two types of planners: the conventional planners and the less conventional planners described above. They are both necessary in the business cycle.
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