In my last blog, I introduced the two components of strategic planning, vertical and horizontal, where ‘vertical’ represents the long-range perspective and ‘horizontal’ represents the linkage and alignment of the organizations objectives, plans and resources.

In my first Strategic Planning segment, I mentioned that I often provide an overview of strategic planning to a client before I actually begin providing these types of services.

 While there are many different methods for undertaking strategic planning, most can be grouped into two categories - ‘Rational’ and ‘Emergent’.

 Rational design methodologies typically rely heavily on quantitative data analysis. They are also usually employed in a ‘top-down’ approach, but are amenable to both ‘bottom-up’ and hybrid methods. examples include:

SWOT Analysis

Five Forces Strategic Analysis

Strategy Mapping

Balanced Scorecard

Scenario Planning

 

The strengths of rational design methodologies are their more objective approach to gathering and analyzing data and developing choices for action. Those who favor these approaches cite the formula-driven and quantifiable techniques that produce sound and defensible decisions.

Critics argue that these approaches do not take into consideration the emotional and motivational elements of the wider array of stakeholders who may be affected by the subsequent actions of the organization.

 Emergent design methodologies typically rely more heavily on qualitative analysis, usually employing a ‘bottom-up’ approach and frequently including a wider array of stakeholders. Examples include:

Search Conference/Future Search

The 7-S Model

The Galbraith Star Model

Real Time Strategic Change

Open Space Technology (OST)

Appreciative Inquiry (AI)

 The strengths of emergent design methodologies are openness to a wider variety of data sources (stakeholder groups) who have an interest in the future of the organization as well analyzing data in ways that consider human factors rather than just economic criteria.

 Critics don’t like the subjective nature of gathering and analyzing data and discount the value that non-management groups can bring to the strategic planning process.

 Depending on the objectives, as well as the anticipated challenges, of the strategic planning process, an organization will use the methodology that best suits its needs. And occasionally, a hybrid approach is developed to meet a complex array of challenges.

 For followers of this blog who would like to learn more about any of these strategic planning methodologies, I will be happy to provide more detail or direct you to on-line resources to explore on your own.

 A future blog on strategy will focus on strategic thinking – how to strengthen strategic thinking capabilities for yourself and others as well as how to apply strategic thinking in your organization.

“You have to be fast on your feet and adaptive or else a strategy is useless.”S

- Lou Gerstner, Jr.