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STRATEGIC PLAN - Major Steps, Determinants of Successful
Strategic Planning

Many strategic planners have discovered that the ease with which strategic planning can be implemented is a function of five important factors:

  1. Performance problems: Firms with significant operating and financial performance problems tend to reach for strategic planning as a potential problem fixer
  2. CEO role: Successful strategic planning requires commitment; the initial commitment and the staying power of the CEO are crucial
  3. Resource imbalance level: The smaller the imbalance in existing resources among key managers (and thus the smaller the degree of reallocation required), the lower will be the resistance to strategic planning
  4. Prior planning experience: Firms with prior planning experience are more likely to embrace strategic planning
  5. Previous management-by-objectives (MBO) experience: Managers who are familiar with MBO management systems more readily embrace strategic planning with its qualified goals and objectives.

 

 

 

 

Items 1-5 above when overlaid on the process below, will lead to a much higher probability of the development and execution of a successful strategic plan.

 

 

 

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