The Fall and Rise of Strategic Planning

The Fall and Rise of Strategic Planning
by Henry Mintzberg

The Fall and Rise of Strategic Planning
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Book Summary Information

Author: Henry Mintzberg
Edition: Digital
Format: Download: PDF
Published: 1994-01-01
ISBN: N/A
Number of pages: 11
Publisher: Harvard Business Review

Book Reviews of The Fall and Rise of Strategic Planning

Book Review: The Fall and Rise of Strategic Planning
Summary: 5 Stars

Strategic Planning came on the scene in the mid-1960s and was embraced by organizations as the most effective way to draw up and implement strategies. However, it fell from the pedestal it once occupied. According to Mintzberg, this fall was due to confusing strategic planning with strategic thinking. Planning is concerned with analysis, which entails breaking down goals into steps and formalizing the steps to enable implementation. Strategic thinking, on the other hand, is about synthesis which involves intuition and creativity, the outcome of which is an integrated perspective of an organization and an articulated vision of direction the firm should take.

Mintzberg argues that strategic planning is rooted in a grand fallacy that analysis encompasses synthesis, therefore strategic planning is strategic thinking. He states that this grand fallacy arise from three fallacious assumptions namely that prediction is possible, that strategy formulation can be separated from implementation and that strategy making can be formalized. The result, according to Mintzberg has been disappointing corporate performance and hence the decline in managers faith in strategic planning.

Mintzberg is right that "we think in order to act, but we also act in order to think". We experiment with things and we take what works and these "converge gradually into viable patterns that become strategies". According to Mintzberg, this is the essence of strategy making as a learning process.

This article is very interesting and is in contrast to some views of another strategic planning guru, Michael Porter, who favour analytical techniques for developing strategy. Having read the article, I recommend that one reads the book by the same author "The Rise and Fall of Strategic Planning, Free Press, 1994" for a more in depth look into this subject.


Summary of The Fall and Rise of Strategic Planning

Strategic planning has fallen from the pedestal it occupied when it came on the scene in the mid-1960s. Strategic planning failed because it is not the same as strategic thinking. Planning is about analysis--about breaking a goal into steps, formalizing those steps, and articulating the expected consequences. Strategic thinking, in contrast, is about synthesis. It involves intuition and creativity. The outcome of strategic thinking is an integrated perspective, a not-too-precisely articulated vision of direction that must be free to appear at any time and at any place in the organization.
Strategic planning has fallen from the pedestal it occupied when it came on the scene in the mid-1960s. Strategic planning failed because it is not the same as strategic thinking. Planning is about analysis--about breaking a goal into steps, formalizing those steps, and articulating the expected consequences. Strategic thinking, in contrast, is about synthesis. It involves intuition and creativity. The outcome of strategic thinking is an integrated perspective, a not-too-precisely articulated vision of direction that must be free to appear at any time and at any place in the organization.

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