Strategic Management: Formulation and Implementation

Alternative Approaches To Planning

All managers need to be effective planners. However, some managers do not like to spend time planning.

Taylor and Hussey (1982) features seven different approaches to planning:

* Informal planning takes place in someone's head, and the decisions reached may not be written down in any extensive form.

* Extended budgeting is rarely used as it is only feasible if the environment is stable and predictable. It is primarily financial planning based on the extrapolation of past trends.

* Top-down planning relates to decisions take at the top of the organization and passed down to other managers for implementation.

* Strategic analysis/policy options uses planning techniques, and involves the creation and analytical evaluation of alternative options.

* Bottom-up planning involves managers throughout the organization, and therefore ensures that people who will be involved in implementing plans are consulted.

* Behavioral approaches can take several forms, but essentially the behavioral approach requires that managers spend time discussing the future opportunities and threats and areas in which the organization might develop.

* The strategic review was developed to take the best features of other six approaches and blend them together into a systematic and comprehensive planning system.