Strategic Management: Formulation and Implementation

The Place Of Strategic Planning

Strategic planning is not all of planning process, but it can be a major component. In his 1979 book, George Steiner developed the conceptual model of the structure and process of systematic corporate planning. The model consists of the following elements:

* A plan to plan. This plan is contained in a detailed manual. It sets forth a statement of top management commitment to planing, a set of term definitions to head off communication problems, a statement of required information and documentation, a detailed time schedule, and so on.

* The four components of the situation audit. At the top of the stacked boxes are "expectations of major outside interests" and "expectations of major inside interests". They are fundamental premises in any strategic planning system. The last two boxes, "the data bass" and "evaluation of environment" include information that is essential in helping managers doing the planning to identify alternative courses of action and to evaluate them properly.

* A corporate plan: master strategies and programs strategies. It consists mission, purpose, objectives, policies.

* Medium-range plans. These focus primarily on major functions or programs - marketing, production, employee levels, research and development, facilities and the like.

* Short-range plans. Short-range plans can vary a wide spectrum. Their grade gradually into implementation.

* Implementation.

* Review and evaluation.

"Implementation" and "review and evaluation" include everything I considered to these points. In addition, Steiner divides the planning process into two parts: strategic and tactical; certain types of planning in the strategic are and others in the tactical.

The major contributions of Steiner's model are: "the plan to plan" and the four boxes dealing with substantive information needed in the development and implementation of plans.