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Rise and Fall of Strategic Planning

2017-07-25 
In this definitive and revealing history, Henry Mintzberg, the iconoclastic former president of the
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Rise and Fall of Strategic Planning

In this definitive and revealing history, Henry Mintzberg, the iconoclastic former president of the Strategic Management Society, unmasks the press that has mesmerized so many organizations since 1965: strategic planning. One of our most brilliant and original management thinkers, Mintzberg concludes that the term is an oxymoron -- that strategy cannot be planned because planning is about analysis and strategy is about synthesis. That is why, he asserts, the process has failed so often and so dramatically.
Mintzberg traces the origins and history of strategic planning through its prominence and subsequent fall. He argues that we must reconceive the process by which strategies are created -- by emphasizing informal learning and personal vision -- and the roles that can be played by planners. Mintzberg proposes new and unusual definitions of planning and strategy, and examines in novel and insightful ways the various models of strategic planning and the evidence of why they failed. Reviewing the so-called "pitfalls" of planning, he shows how the process itself can destroy commitment, narrow a company's vision, discourage change, and breed an atmosphere of politics. In a harsh critique of many sacred cows, he describes three basic fallacies of the process -- that discontinuities can be predicted, that strategists can be detached from the operations of the organization, and that the process of strategy-making itself can be formalized.
Mintzberg devotes a substantial section to the new role for planning, plans, and planners, not inside the strategy-making process, but in support of it, providing some of its inputs and sometimes programming its outputs as well as encouraging strategic thinking in general. This book is required reading for anyone in an organization who is influenced by the planning or the strategy-making processes.

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Truly, Minztberg's work is one of those if you're interested in the history, evolution, and critique of strategic planning, you must read this. Mintzberg begins with identifying three schools of thought on strategy formation which are the subject of this book:
a) Design - sometimes called SWOT (strengths, weaknesses, opportunities, and threats);
b) Planning - process is informal and the chief executive (leader) is the key person; and
c) Positioning - focuses on content of strategies such as differentiation, diversification, etc.
His point/cynicism is that there must be other ways (than planning) to develop strategies (pp. 2-3).

Content:
1 Planning and Strategy
2 Models of the Strategic Planning Process (basic planning model; decomposing the basic model; sorting out the hierarchies of objectives, budgets, strategies, and programs)
3 Evidence on Planning
4 Pitfalls of Planning
5 Fallacies of strategic Planning
6 Planning, Plan, Planners

This is probably not the book for a practitioner interested in practical how to's related to strategic planning methods. It's about theory, critique, framework, and historical evolution of strategic planning. A must-read for a serious student of this topic.

This book was once described as "the final nail in the coffin of strategic planning"! It takes strategic planning, as envisioned about 15-20 years ago, and carefully cuts it apart, removing all its pretensions to being strategic in any real sense. But it is not a book that only bashes; it shows the way to make the most of the resources that 'strategic planning' can bring to the organization, while maintaining a jaundiced eye on potential shortcomings.

The critical issue is that planning is fundamentally analytical, while strategic thinking and strategy development is synthetic. As was discovered many years ago, you cannot use one to substitute for the other. Each has their place. But most strategic planning operations seem to have a black box for 'Develop Strategy,' and otherwise ignore it. This is like building a Formula 1 race car, but leaving a black box for the engine, and never discussing how it might be obtain or how it would fit.

Recommended if you have to deal with strategic plans, planning and planners.

1. You will learn what it is not a strategy,
2. You will learn what it is planning,
3. You will learn the errors of planning,
4. Finally, you understand what is the difference between the various schools of strategy,
5. Because the world changes, but not the rules,
6. Because this is Henry Mintzberg.

It doesn't matter how hard we try to render the world trough analytical and reductionists models, reality always proves much more elusive and qualitative leaps follow rules completely different to those we render in such deterministic models.

Luckily this means that corporate world is going to become more joyful and exciting. Story telling and emotions are going to predominate over numerical analysis and structured plans.

Henry Mintzberg provides a panoramic overview of the history of strategic planning. He uses this backdrop to offer powerful insights into strategy development.

Mintzberg carefully examines the vexing question of how strategy is formed. His clear differentiation between strategy formation and strategic planning are helpful in understanding the actual creation of strategies vs. the planning for those strategies. He contends strategic planning should be called strategic programming based on the fact that it has little if anything to do with the formation of strategy. He clearly delineates the difference between deliberate and emergent strategy formation while explaining the need to respect both methods. His "black box" of strategy creation, where human intuition works in yet unknown ways, provides insights in how to support and improve a process one cannot hope to fully understand.

Mintzberg creates useful and memorable constructs which help sort out strategy's key aspects. First he addresses how strategy is actually formed in the real world, as opposed to how planners think it should be formed. On that foundation he reviews the pitfalls and fundamental fallacies of planning, such as assuming strategy will appear spontaneously out of a planning process not specifically equipped to create strategy. Lastly, he proposes remedies for how strategy creation can actually be fostered to improve results and be integrated into strategic planning.

Mintzberg's constructs and perspectives will help business leaders make sense out of the flurry of strategy information which continually bombards them.

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