Developing a planning culture for more effective strategic planning

The literature of long-range planning is replete with justifications of the need for strategic planning and admonitions concerning its critical importance. However, both the literature of planning and its practice, as manifested in a variety of organizations as diverse as industrial firms, educational systems and law enforcement agencies, are deficient in specifying proven techniques and methodologies for marshalling organizational resources to effectively implement strategic planning.Over a period of years, the authors have consulted with a variety of business organizations and public agencies in the development and implementation of long-range planning processes. From this work has come an empirically-tested conclusion that the success of long-range planning in an organization is less sensitive to the parameters of the planning techniques that it is to the overall culture within which the planning is accomplished. Since most of the non-pontifical literature of planning focuses on planning techniques and specifications for planning processes, these conclusions suggest a critical void in planning methodology.     

Cutting back bureaucracy in a public service

The British public service is respected for its efficiency and objectivity. But it has a music hall reputation for bureaucracy and lack of initiative. As with many long-acquired reputations, nothing nowadays could be further from the truth. A revolution has swept through the corridors of Whitehall and the many other places throughout the UK where the public service is alive and well. This revolution has been described in Morley,¹ and other articles² have shown how strategic planning and management have been adopted by individual parts of the public sector. Having set the scene in ‘Building a New Organization for Nature Conservation’,² the author now describes how English Nature moved on to reflect its new strategic approach in a different organization structure which broke many of the traditional mores of the public sector.     

An Examination of IT Planning in a Large,Diversified Public Organization*

The conduct of information technology (IT) planning processes has been of dominant managerial concern in public and private organizations. Yet, current IT planning research offers little guidance on the types of planning actions and behaviors that are appropriate to organizational contexts. We focus on the conduct of the IT planning process by describing an exploratory research project. The project empirically examined a number of issues associated with managing IT planning within a single large public enterprise, particularly identifying actions and behaviors related to producing quality IT plans. The results of the study yield some useful set of guidelines; most interesting is the importance of building IT infrastructure based on IT sophistication and innovativeness for large agencies to improve plan quality. Other recommendations include having a focused, balanced technology and business planning orientation that incorporates a strategic outlook, support of top management, attention to business planning, and early consensus among planning members.     

A Rational Theory of Mutual Funds' Attention Allocation

The question of whether and how mutual fund managers provide valuable services for their clients motivates one of the largest literatures in finance. One candidate explanation is that funds process information about future asset values and use that information to invest in high‐valued assets. But formal theories are scarce because information choice models with many assets are difficult to solve as well as difficult to test. This paper tackles both problems by developing a new attention allocation model that uses the state of the business cycle to predict information choices, which in turn, predict observable patterns of portfolio investments and returns. The predictions about fund portfolios' covariance with payoff shocks, cross‐fund portfolio and return dispersion, and their excess returns are all supported by the data. These findings offer new evidence that some investment managers have skill and that attention is allocated rationally.     

Planning for a professional association

Strategic planning for non-profit organizations presents special problems, both in concept and in application. The problems are particularly acute when the organization is a voluntary one, with highly heterogenous membership. This paper describes a multi-year effort to develop a member-needs based strategic long-range planning system for National Association of Realtors in the U.S.—a complex organization of 700,000 members, which combines the traditional functions of a trade association, an educational system, and of several professional societies. Problems, approach, and special techniques are described and discussed, with implications for senior managers and planners in both the public and private sector.     

Ist Ethik ein Erfolgsfaktor? Unternehmensethik im Spannungsfeld von Oxymoron Case,Business Case und Integrity Case

For a number of years now, public awareness of the social and ecological consequences of the drive to make profit in business—a goal pursued in some cases by radical means—has become increasingly acute. Accordingly, business endeavors nowadays face a full-blown legitimization crisis. This development is accompanied by a flourishing debate on business ethics, or Corporate Social Responsibility (CSR), the main objective of which is to evolve perspectives for a business management culture that is ethically legitimate,—or from a social viewpoint quite simply better. A prominent place in the debate on business ethics is currently occupied by what is referred to as the business case for CSR, whose credo is: Ethics is a success factor! At first sight this approach appears persuasive—after all, it promises more profit for profit-oriented businesses along with more ethics for an ethically sensitized society. But a more careful look lays it open to criticism. On the one hand, this is because—in pragmatic terms—it presupposes a business-specific sanction mechanism that in today’s real world works rudimentarily at best; on the other hand, it is because—in programmatic terms—it demands only a moralization of the markets, but not a moralization of management. In other words, the way in which the business case goes about solving the problems of business ethics relies on the very same exclusive (radical) profit orientation on the part of management that can be regarded as the root cause of the problems in the first place. In contrast to this position, we argue that an ethically better management culture presupposes a moralization of management, which in turn implies a legitimization of profit.     

Critical Dimensions of Strategic Information Systems Planning

Strategic information systems planning (SISP) is the process whereby an organization establishes a long-range plan of computer-based applications in order to achieve its goals. A number of problems can potentially impede information systems planners as they carry out the process. A survey of 80 firms who completed the SISP process revealed that the problems constitute five factors: the organization, implementation, database, hardware, and cost. A discriminant analysis showed that three factors—the organization, implementation, and database—best distinguished satisfied from dissatisfied information systems planners. A research application of the five factors suggested that organizations with more sophisticated business planning endure significantly less severe hardware and implementation problems.     

Strategic planning for the armed forces

The author points out that in most countries the defence department is a very large ‘business’. He claims that, although long-range planning in the Canadian Department of National Defence may not be perfect, it does follow the stages of traditional strategic planning. He describes these stages, pointing out some innovations which he feels could be of value to other government departments in other countries as well as to large corporations in the private sector. He emphasizes the importance of feedback and describes ‘capability components’ which have been developed in the Canadian defence department to replace the traditional thinking in terms of ‘Army, Navy, Air Force’. Each capability component focuses on the required output/result and has a sponsor who is responsible for developing plans for the long-term ‘state of health’ of his capability component. Overall, the author makes a strong case for forward-looking and results-oriented strategic planning.     

Are environmental scanning units effective?

Many authorities have urged companies to set up environmental scanning to assist corporate planning. Some advocates have recommended a unit at corporate level. This would give breadth of view and penetration into the future. It would arm decision makers with accurate forecasts. The information would be broad in scope and future directed. It could provide also assumptions for long-range planning. The Fahey and King study produced a model of corporate scanning types. The data showed that environmental information was built into the plan. Though the political environment was important, scanning was inadequate. The best location for scanning was not at corporate level and most firms used irregular methods. The Thomas study concluded that effective environmental scanning was permanent and multi level and that 'best practice' was continuous scanning. In 1978 the sample organizations were revisited. Five of the twelve have not changed their practice. The factors which encouraged a continuous model were the attitudes of academics and business media, demonstrated success of the units, the right kind of personnel. Contrary influences were changes in top management, decentralization moves, resource cuts, defining the environment and its significance, the availability of scanning competent personnel, surprise itself, and the availability of alternatives e.g. external forecasts.     

Organization for long range planning—A survey of German companies

Whilst much is written about the theory of long range planning it is a fact that unfortunately, the organization of long range planning of business strategy within companies, has not proved to be an attractive object of research for business theorists. This paper is the exception. By an examination of more than 200 companies residing in the Federal Republic of Germany, long range planning is shown to be gaining more importance as a tool for company management. The organizational design of the planning system and its integration into the overall company structure is, according to this analysis, shown to be one of the most central problems of the implementation of corporate planning systems. This paper presents a theoretical framework and the empirical findings on structural and procedural aspects of long range planning, systems. The empirical study was carried out by means of interviews and a questionnaire survey. The survey results show some interesting and important features of the problems engendered by corporate planning and some of the advantages accruing from its successful implementation. Additionally, the analysis provides an interesting backcloth against which to view the implementation of planning and the relationships between the different levels of planning.     

Tackling the human problems in planning

This article presents findings from the first phase of a research program on the management of long-range planning systems. The initial focus is on behavioral problems encountered by those using planning systems and solutions for dealing with them. Both the problems and solutions were identified by chief planning officers during a university sponsored workshop. Some observations are offered about the way in which managerial thought processes affect the potential for resolving complex behavioral problems in organizations.     

Formal planning in major U.S. corporations

As the world about us changes, managers in all types of institutions try to cope in a variety of ways. In the early 1960s, many corporate managers realized they could not make sound decisions about future business activities in an expedient, reactive manner because their firms were growing very large and complex with new technologies, products, markets and competition to deal with. As a result, formal planning techniques which had been used in narrow functional applications were introduced on a much broader scale and formal long-range planning became popular. New corporate planning functions appeared in many companies, as well as new staff planning specialists and planning executives. The author conducted a field study on the design of these systems in the mid-1960s and he argues that they showed great promise for improved management.With this history in mind, we might ask why such subjects as ‘planning techniques’ and ‘problems of implementation’ are still topics of concern. It would seem that such techniques would be well known and established in most firms after 10–15 years. However, this is not the case, for during a second field study of corporate planning systems which was completed in 1976 the author found that many corporations, including some of the largest ones, had redesigned their planning systems in the early 1970s, essentially making a fresh start at formal long-range planning. (See Table 1).From his recent field study the author concludes that all corporations experience problems in implementing and using a formal planning system. The nature of these problems and some possible remedies are the subjects upon which this article focuses.     

The future of forms of data communications

The first section of the paper is a review of current and planned data communications services. This covers the current state of the art in these services, identifies the need for change and surveys what plans have been made for new services. It looks at what forms of data communications have been established in various countries including the U.K., Germany, U.S.A. and Australia. The second part of the paper poses some key questions. These are broadly similar to those involved in planning other major new investments in utilities or public transportation involving a high degree of technical innovation. They cover the problems of designing a new technology, the pricing of data communications utilities, how to evaluate new services and what the role of the monopoly supplier should be. The paper does not set out to answer these questions but to expose them as areas where controversy is centred, and new research work required.     

Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success

Academics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some “rational” elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.     

Sustainability as the lynch pin of public policy and industry initiatives

Does managed care have a sustainable future? So far, managed care has not lived up to its promises and potential. Admittedly, the health care system prior to managed care was a non-system. But its features included committed health care professionals, caring local institutions, freedom of choice, and laws reflecting public confidence. And it was based on the assumption that needed health care services are a customary, moral, and implied legal right of U.S. citizens. In contrast, today's version of managed care is characterized by financial and legal manipulation, "choice" constricted by provider selection of physician panels, and laws reflecting lack of public trust. Managed care can survive its initial foolish years, if it heeds the voices of those urging that two priorities be reflected in public policy, legislative efforts, and business practices. One of these priorities is accountability for today's actions. The other is preserving this country's health care resources. This article explored the concept of sustainability--the need to strike a balance between seeking immediate profit and preserving available resources.     

The new academic health center hybrids: part business, part academic

Academic health centers have flourished since the 1960s and even managed to survive the shift toward prospective payment. But in their current quest to expand the number of managed care patients and compete with the private sector, they often must price services below cost and reduce the number of faculty members and other personnel. Unless their prices are competitive, managed care companies will not do business with them. AHCs that cannot compete find they are overbedded, underused, and in turmoil. This article explores what successful AHCs are doing to stay healthy in the managed care era.     

Performance planning and control in virtual business structures

It could be argued that the development of new business models has occurred at such a pace that many of the important considerations accompanying their development have been overlooked. It is interesting to note that due to the shift away from traditional business structures such as vertically integrated, closely controlled organizations, towards virtual organizations, for which coordination is more important, we have not paid sufficient attention to the important issues of planning and control needs for these new structures. This contribution reviews recent discussion on the structure of new business models and identifies some of the attempts at introducing planning and control into these organizations. The article proposes an approach to this problem by considering the components of the new business models, their stakeholders and their objectives and offers a model which forms the basis from which research can commence.     

Strategies for growth: Intervention in a church

This article is a case study of a small, local congregation, and reports the results of an intervention aimed at evaluation and change of existing organizational strategy. It presents both a summary of one applicable business model, and the techniques and procedures employed in assisting both the general membership and church leaders in self-evaluation and long-range planning. The intervention resulted in increased awareness of organizational problems and needs, and provided a basis for future choices involving pastoral leadership, programme development and institutional needs. The events occured while the author served as temporary, interim pastor during 1980 and 1981.     

Operations in Financial Services—An Overview

We provide an overview of the state of the art in research on operations in financial services. We start by highlighting a number of specific operational features that differentiate financial services from other service industries, and discuss how these features affect the modeling of financial services. We then consider in more detail the various different research areas in financial services, namely systems design, performance analysis and productivity, forecasting, inventory and cash management, waiting line analysis for capacity planning, personnel scheduling, operational risk management, and pricing and revenue management. In the last section, we describe the most promising research directions for the near future.     

The new marketing—Developing long-term interactive relationships

This article places emphasis on relationships and interaction in marketing, an emphasis which has developed out of new theories of services marketing and industrial marketing and also out of practical experience. Building and maintaining relationships have significant long-term implications and therefore affect the strategic and long-range planning of the firm's marketing. In the author's view, the present Marketing Concept, as it appears in research, textbooks and seminars, is unrealistic and needs to be replaced. One reason is its inability to absorb new developments in marketing and its rigid attachment to traditional consumer goods marketing. The conclusions can be seen as part of a progress report from an ongoing research project which aims at developing a New Marketing Concept, that draws both on theory and on the views of practitioners.