Who Shall Follow? factors affecting the adoption of succession plans in Taiwan

Succession planning is widely believed to help business organizations with internal resourcing, reduce attrition of the work force caused by job-hopping high-fliers, and prepare qualified candidates for appointment to senior management positions. It is further known that when organizations fail to treat their succession plans as living documents, they may not only threaten their own continuity but also lose the opportunity to revitalize themselves. Even so, succession planning has been slow to take root in traditional Chinese businesses, which have been noted for their informal organization, top-down decision making, and emphasis on personal ties and relationships. However, rapid growth and increasingly tougher competition may force these firms to change their style of management. This study assesses the extent to which formal succession planning has taken hold among Taiwanese business firms, and identifies factors underlying the decision to adopt a formal plan. For those local firms that have not introduced formal planning, it seeks to determine the concerns that have inhibited or prevented them from doing so. Finally, this paper attempts to detect differences that may exist between Chinese- and foreign-owned firms in the tendency to adopt succession plans.     

Planning for strategic decision support systems

The emergence of Strategic Decision Support Systems has opened up new vistas for the true integration of formal models into the strategic planning process. However, with these new opportunities also come the need to develop planning mechanisms that will permit these sophisticated systems to achieve their potential. The process of strategic planning for Strategic Decision Support Systems that is described in this article serves to cast the organization's overall plans, strategies and strategic attributes into a framework that can be used to develop formal SDSS plans.     

Strategic planning in government-dependent businesses

As the role of government has expanded in various countries, standard distinctions between the public and private sectors have become blurred. This paper explores the special context within which strategic planning must take place in organizations with a very high dependence on government. Four types of government dependency are considered: ownership dependency (public enterprises); regulation dependency (private, regulated firms); input-dependency (e.g. non-profits dependent on state funding); and output-dependency (e.g. defence contractors who sell a considerable portion of their output to governments).Despite their seeming differences, all four types of government-dependent organizations (GDOs) experience five distinctive problems that seriously limit the relevance of traditional planning models (or what are often referred to as ‘rational, comprehensive models’). They are: fragmented strategic decision-making authority; heightened goal ambiguity; politicization of strategic decision-making; short-term orientation and internal bureaucratization.The concepts of strategy and strategic planning are as relevant to Government dependent organizations (GDOs) as they are to other kinds of firms, although the planning system has to be designed somewhat differently. Six tentative guidelines for designing the planning system in GDOs are presented in the paper: (1) plans must be ‘negotiated’ rather than ‘formulated’ in GDOs; (2) outsiders must be involved in the planning process; (3) socio-political issues must be integrated with technoeconomic tissues; (4) top management must play an active role in running the system, especially in managing interfaces with government; (5) the planning system should emphasize flexibility over discipline or rigor and (6) plans must be written up with the expectation that much of their contents could become public knowledge.The paper concludes with the view the GDOs may have a lot to learn from one another despite superficial differences in institutional status (public vs private) and nature of goals (for- profit vs not-for-profits).     

Strategic Planning in the Malawi Public Sector: Potential Tool for Progress or Regression?

The process of developing strategic plans in the public sector is regarded as one indicator of positive reform in the system. The assumption is that strategic planning ensures that (just like in the private sector) public sector organizations’ operations should cost less but deliver better service. Ultimately the argument is that public sector institutional governance and responsiveness to the citizenry is not only seen but felt. However, strategic planning has to be done in an appropriate manner for it to deliver. For instance an analysis of the underlying motives, the role of leadership in the process as well as the relevance or viability of the guiding strategic planning model significantly affect the nature of expected results. In the early 2000s, the Malawi public sector embarked on a serious drive towards strategic planning process as part of its reform package. In order to ascertain it’s potential to transform the Malawi public service, this paper focuses at critically analyzing the strategic planning process in the Malawi public sector by among other things asking: who initiated and led the process? What approach determined the process? What is the possible potentiality of the adopted strategic planning approach in enhancing the reform agenda in Malawi? Based on interviews with senior officers in key Malawi public sector institutions, the paper concludes that the strategic planning process is ‘transitional and fluid’ hence lacks the clout to effectively enhance reforms in this sector. Another finding is that lack of effective leadership has largely contributed to the status quo.     

Planning Implications of the Information Systems Strategic Grid: An Empirical Investigation

In recent years, information systems (IS) planning has come to represent a key IS management tool to practitioners and researchers. Concurrently, there has been increasing recognition by organizations that their IS can be viewed as a strategic resource. This research is an attempt to explore the relationship between these two aspects of IS. It analyzes, in an empirical setting, the contingent nature of some IS planning-related variables in the context of the strategic relevance of an organization's IS. The basis for the empirical test is the IS strategic grid framework developed by Cash, McFarlan, McKenney, and Vitale [6]. A questionnaire survey method is employed to elicit information on the strategic orientation of IS and IS planning issues within respondent organizations. The difference in emphasis on various planning aspects in organizations with different IS environments is analyzed. Results of the analysis indicate that there is empirical support for the strategic grid framework and that there are differences in planning aspects among organizations, depending on their location in the grid. The implications of these findings for IS and IS planning are then discussed.     

Designing innovative systems

Some current authors of management theory suggest that formal systems and procedures are inconsistent with innovative behaviour in organizations. Yet many organisations are developing increasingly formal strategic planning and control systems to assure organisational change and responsiveness to dynamic environments. In this article, the author suggests that these trends are not as paradoxical as they initially seem. However, formal systems design—to assists the innovation process—must exhibit different characteristics from the traditional design methods used by systems analysts, industrial engineers, or writers of policies and procedures.     

Strategic Information Systems Planning: Planning System Dimensions,Internal Coalignment,and Implications for Planning Effectiveness

Improving strategic information systems planning (SISP) remains a critical concern of both practitioners and academics. To date, a rather large number of studies have examined or proposed analytical techniques, frameworks, and tools for developing strategic plans. As a direct consequence of this emphasis, methodologies have often become the basis for characterizing the entire process of SISP within the information systems literature. Recent theoretical work suggests that such characterizations are unnecessarily narrow and that planning activities within organizations can be more accurately conceptualized as systems of behaviors, agendas, or process dimensions. Working within this contemporary theoretical perspective, the findings of this study suggest that SISP can be operationalized along distinct dimensions of comprehensiveness (extent of solution search), formalization (rules and procedures to guide activities), focus (creativity or control), flow (top down, bottom up), participation (number and variety of planners), and consistency (frequency of planning cycles). Similar to previous theoretical work and case studies, higher order factor modeling of these dimensions suggests that planning systems that exhibit aspects of rationality (high comprehensiveness, high formalization, control focus, top-down flow), and adaptation (high participation, high consistency) are positively associated with planning effectiveness.     

The components of strategic planning

What is the current level of strategic planning in the United States? What objectives are quantified in the strategic plans? What kinds of environmental factors are identified in the planning process? What areas are planned for? How often are the strategic plans reviewed? These are among the questions which were raised in a recent survey of 323 companies whose results are summarized in this paper. It is hoped that this study will permit practitioners to compare their planning with planning being performed in their industry.Suggested improvements in the stategic planning process include more frequent monitoring of performance against the plans, more comprehensive environmental surveillance, and greater emphasis on organizational structure plans. The strategic planning process was found to be constantly evolving and cyclical. The strategic planning activity expanded during adversity and contracted when business prospects were good.     

Strategy implementation and organizational change: How formal reorganization affects professional networks

Strategy implementation is difficult, particularly as it often requires changes in formal organization structures. Prior research has shown that change in the formal structure may affect employee networks. Yet, we know relatively little about how such changes affect different network ties. This paper considers how formal structural change affects senior managers’ ability to maintain their intraorganizational networks. The hypotheses are tested on sample of 884 work-related relationships of 96 partners in a global professional services firm. This firm had recently implemented a new strategy, which led to a change in the product-market focus and the resulting formal structure. Our findings reveal that the characteristics of a specific network tie determine whether it is affected by formal structural change. In particular, we find that network ties that are highly embedded in the social structure are more likely to be affected by change in the formal structure. In contrast, ties that are relationally embedded are less likely to be affected by change in the formal structure. We discuss the theoretical and practical implications of these results. In particular, the findings may have consequences for the success of strategy implementation and strategic transformation efforts.     

Business planning in successful small firms

Strategic planning has been widely publicized during the last decade, but what has been accomplished by this management activity in smaller, high-growth firms? Business plans have been widely recommended for start-up funding, but we have noted additional uses for business plans in pratice. This article reports methods and results of strategic planning and written business plans in high-growth ‘INC. 500’ firms. In spite of a variety of obstacles, over half of the firms conduct strategic planning on a regular basis. Results of this study show that fast-growth firms develop written business plans as a product of strategic planning, mainly by five key management personnel. Written business plans are used more for internal management purposes than for start-up funding. Finally, the completion of strategic planning is positively associated with a firm's profitability. Based on survey and interview data, this article describes a four-phase model to help ensure effective integration of strategic planning processes and the resulting written business plans.     

Public Knowledge of and Involvement with Metropolitan and Local Strategic Planning in Australia

Despite academic and practitioner debate surrounding public involvement in planning, little is actually known about the extent to which the public is aware of the planning process. The focus of this paper is the examination of the underlying, latent public knowledge of the planning system in Australia. This latent knowledge (or more accurately, the absence of this knowledge) emerges as a barrier to public involvement. This paper examines public perceptions of the importance of metropolitan and local strategic plans, knowledge of these plans, the main sources of this knowledge, and the extent to which the public is likely to become involved with strategic planning process. The paper concludes that despite large segments of the population viewing strategic planning as important, only a small proportion is actually aware of the plans themselves, while an even smaller proportion is likely to become involved in the planning process.     

Strategic planning in large firms—some guidelines

Some argue that a foundation for planning has been achieved when a firm can state its strategic plan in terms of products and markets. (This is referred to as the ‘business form’ in this article). If this statement is true, what factors will aid a firm in achieving the business form in its strategic plans? In this article, details of strategic planning in over 50 large firms taken from an empirical research sample are examined to illustrate which factors seem to lead to the business form of strategic plan in these firms.     

Managing strategies incrementally

When sophisticated large organizations make significant changes in strategy, the approaches they use frequently bear little resemblance to the rational-analytical systems so often touted in the planning literature. Such systems are rarely the source of overall corporate strategies. Instead, the processes used to generate major strategies are typically fragmented and evolutionary with a high degree of intuitive content. Although one usually finds imbedded in these fragments some very refined pieces of formal analysis, overall strategies tend to emerge as a series of conscious internal decisions blend and interact with changing external events to slowly mutate key managers' broad consensus about what patterns of action make sense for the future. Based on a multi-year study of how large companies change their strategies, this article summarizes why strategic managers do proceed incrementally and how they manage the complex process of generating an overall strategy.     

Organizational processes as determinants of information value

Research on the determinants of information value has not explicitly considered whether the type of organizational process participated in by a decisionmaker has an effect on his/her evaluation of information on which the decision is based. Much important managerial activity in organizations is carried on through formal or informal processes such as budgeting and strategic planning. If process differences are significant determinants of the way in which information is valued, the inclusion of this element into the framework for thinking in this area might add considerably to our ability to prescribe appropriate managerial processes as well as to our understanding of differences in the outcomes of decision processes. This empirical study suggests that organizational process type does have a significant effect on the determination of information value in the context of two generic process types (individual, group) that were evaluated in a strategic decisionmaking context.     

Environmental scanning for Social Services

This article describes the development of a process of systematic regional environmental scanning as part of strategic planning in the Ministry of Social Services (MSS) in British Columbia, over the 1987-1990 period. Social Services, a large regionalized social service organization, adopted a formal strategic planning process in early 1988. Ministry services are delivered in ten regions with widely varying characteristics. To ensure that this diversity is reflected in the planning process, it is essential that regional environmental information receive consideration. A simple format was developed and regional directors asked to consult with their staff and to scan their regions for issues that may impact the ministry over the medium term. The information obtained was presented by regional directors at a Senior Management Committee meeting and included in the ministry's annual Business Plan, a document which informs staff, contractors, stakeholders, and the community at large of the ministry's values, objectives, and operational goals. The inclusion of regional analyses adds useful information to the Plan. A second output of the planning process is the ministry budget. The systematic regional scans were found to be extremely useful to regional staff, other directors, and to the ministry executives while setting priorities.     

How corporate planning responds to uncertainty

This article is based upon an SSRC research project into the influence of computer methods on decision making. During this research, information on the planning systems of a cross-section of British industry was obtained.The paper illustrates how managers in these firms were coping with planning in the present conditions of extreme uncertainty about the future, combined with adverse economic and business conditions. Conventional planning theory, together with some modern observations on it, are briefly described and then the paper shows how, in the firms visited, the structure of planning was more complex than this theory.It goes on to show that today's critical conditions were not leading to management putting aside their plans and computer models and “muddling through’. They were actually leading to an acceleration in the adoption of formal planning and decision making methods but in a somewhat different manner to conventional planning theory.Seven different modes of planning were identified with integrated operational planning being the most common, possibly the most essential to survival and sometimes the only planning possible into today's conditions. A trend to extend the operational plan to 2 to 3 years and to reduce the firm's long range plan from 5 to 3 years was also observed.Long range plans were being considered as planning and decision making tools and not as blue-prints of the firm's future, as accurate long range forecasting was impossible. Three types of strategic planning were identified with that carried out at intervals probably being the most appropriate for medium sized firms in today's conditions.     

Aggregate production planning using spreadsheet software

Firms can benefit by developing and using aggregate production plans. However, reports of ongoing production planning applications are rare. The complexity of production planning models has been cited as one of the reasons that firms do not develop formal production plans. This study was conducted to determine if a simple model, trial-and-error on a spreadsheet, could be used to produce cost-effective production planning solutions. Results indicate that good solutions can be obtained using this method. Furthermore, solutions tend to improve as the knowledge of the production planner increases and as time spent developing solutions increases. In addition, experience at producing spreadsheet-based solutions can translate into lower cost solutions for more complex problems while using less time for analysis. These findings indicate that spreadsheets can be effective decision aids for developing production planning solutions. By coupling the power and simplicity of a spreadsheet modelling package with the trial-and-error approach to production planning, model complexity should no longer be cited as a reason for not developing and using formal aggregate production plans.     

Strategic planning and participation: A contradiction in terms?

This article deals with the role of strategic planning in organizations. The authors consider it of decisive importance that internal participation should be given more substance, for the particular purpose of reducing demotivation and alienation problems, especially in the field of strategic planning. The authors maintain that strategic planning should be embedded in the organization in such a way as to maintain flexibility and alertness and ensure that it can be controlled and managed. They present a framework for the organisational arrangement of strategic management.     

The benefits of planning with normative and heuristic approaches

The effectiveness of planning groups that used normative planning approaches and heuristics were investigated. The quality and innovation in plans developed using each planning approach were compared. Two studies were carried out in three organizations. In the first study, a ‘behavioral’ planning approach and a heuristic were used in a single organization. In the second study, a ‘systems’ planning approach and the heuristic were applied in two organizations. The field experiments demonstrated that the normative planning methods produced plans with superior quality and higher information levels. No differences in plan innovation were observed. Some guides for practice were derived from these findings.