The strategic process promulgated by ‘traditional strategic planning’ (‘Planning School’ according to Mintzberg’s classification (1990)) is characterized by:
– Strategic process:
The strategies come from a controlled and conscious process of formal planning, divided into clear stages, each of them supported by a series of checklists, tools and techniques. The stages of this process are: objective setting, external and internal analysis, strategy formulation, evaluation and selection, and planning (preparation of the strategic plan: detailed decomposition of each selected strategy into a hierarchy of objectives, strategies, programs and budgets). These stages are carried out according to an established program, normally on an annual basis (annual strategic planning cycle). Finally, the selected strategies are implemented in accordance with the strategic plan and their implementation is monitored or controlled.
– General characteristics of the strategic process:
This is a deliberate, top-down, linear or sequential, highly formalized process.
– Participants in the strategic process:
In theory, responsibility for this process rests with the top manager, but in practice it is usually the strategic planners who are responsible: The top manager does not usually design the strategic plan, but merely approves it, with the planners being the main actors in the process.
– Result of the strategic process (type of strategy generated):
Strategy as a ‘Plan’. Strategies appear completely finished, ready for implementation, with careful attention to the objectives, programs and budgets that underpin them.
The following table and figure describe and represent this strategic process.
Table. Description of the strategic process enacted by ‘traditional strategic planning’
Figure. Representation of the strategic process enacted by ‘traditional strategic planning’
NOTE: In the book “The strategic process of the firm: Theory and cases” (Roch, 2024) there are more case studies than those included in this blog.
If you are interested in going deeper into the strategic process, allow me to recommend you: - Book: "The strategic process of the firm: Theory and cases" (Roch, 2024). - Courses and consulting program on the strategic process.
