Advantages ND Disadvantages of Strategic Planning

By far the most general model of how strategies atomic number 18 developed in organisations is based on the caprice that strategies ar systematically and orchisly planned adjacent a set of relatively hard move and procedures. Some refer to this notion of strategy development as a instauration view of strategy. Most text books and courses on strategicalal management and homework gestate adopted and promoted the design view of strategy. on that point are a number of claimed advantages of develop strategies through highly organized and stately homework systems and steps in an organisation.The chief(prenominal) advantages are as follows First, globised intend provides what many would full term a perspicuous and certainly a structured sum of out notation and thinking about analyzable strategic problems. There is no suspect that strategy development is complex and noble cookery systems attempt to help close and deal with this complexity by hobby a series of d istinct steps and stages which the manager gutter follow in this complex area. Secondly, it is argued that formal provision systems military group managers to take a longer term view of strategic options and directions than would otherwise shed been the case.In set forthicular, the stages of environmental and competitor analysis which form a key part of most hold corporate plan systems encompass planning horizons of three old age at the minimum, and in around cases up to 20 years. Formal planning systems in any case tend to facilitate the process of take for and evaluation. So, for example, because objectives in formal planning systems are ingestd to be specified and because strategic direction is determined in advance, the measuring of performance against these is facilitated. Another claimed advantage is that co-ordination in the midst of different functions and managers throughout the organisation ignore be increased with formal planning systems. This is because very often a formal planning system will require the different functions/managers to work together towards the acquirement of corporate objectives in a modal value specified in the corporate plan. Finally, formal planning is claimed to help to motivate individuals towards the acquisition of strategic objectives particularly where they are nvolved in the planning process and feel, therefore, that they have some degree of deliverership and commitment to the process.On the other hand there female genitals be disadvantages to formal planning as follows Firstly, formal planning can destine that strategies may not adequately ring the people and cultural elements of the organisation. Individual managers may feel absolved from any strategic planning responsibilities, these being left to the specialiser strategic planners. As a result, line managers may not feel they own strategic plans. Formal strategic planning can also sometimes be restrictive and inflexible, particularly where th e environment is changing rapidly. This may result in preoccupied opportunities and a gradual loss of strategic fit. Formal strategic planning can become very cumbersome and over-detailed requiring striking amounts of analysis and culture, often resulting in information overload. Finally formal strategic planning can become a vary for in that it can become an application in its own right disjoint from the actual activities and plans of the organisation.We can see that formalised strategic planning has both advantages and disadvantages. Although the design model of strategy development is thus far the most prevalent model in text books and most organisations, it is increasingly prize that, particularly because of an increasingly dynamic and irregular environment, highly formalised and structured nuzzlees to exploitation strategic plans are becoming little appropriate and effective.Planning systems now shoot to be more ideas-based and flexible with less(prenominal) form alisation and adherence to strict procedures and steps. In addition, and related to this, is the increasing emergence of strategies from non-homogeneous levels of the organisation rather than the top-down approach to strategic planning which tends to accompany the highly formalised and structured approaches. Probably the beat approach is to have some structure to the planning process whilst remaining flexible, and preceding(prenominal) all not allowing the strategic planning process to become an end in itself.