Redalyc.Strategic Planning and Leadership: Renewing The

Cuadernos Latinoamericanos de Administración ISSN: 1900-5016 [email protected] Universidad El Bosque Colombia

Morgan, Stacie L.L. Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración, vol. VII, núm. 12, enero-junio, 2011, pp. 9-20 Universidad El Bosque Bogotá, Colombia

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How to cite Complete issue Scientific Information System More information about this article Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Journal's homepage in redalyc.org Non-profit academic project, developed under the open access initiative Strategic planning and leadership: renewing the relationship to reclaim the rewards1

Planificación estratégica y liderazgo: renovando su relación para reclamar recompensas Planificação estratégica e liderança: renovando sua relação para reclamar recompensas

Stacie L.L. Morgan, Ph.D. 2

Abstract The growing disconnect between the characteristics of the complex, uncertain business environment and leaders’ perceptions of strategy, inclu- ding their role in developing and maintaining it, is having an increasingly large impact on organizations’ competitive advantage and overall effectiveness. The necessity for creating success in a complex environment establishes the urgency for renewing the relationship between leadership and strategic planning that is based upon leadership’s roles and responsibilities for building a base for strategic action and putting strategy and planning to work. The key to effectively surmounting today’s challenges and tomorrow’s opportunities lies in developing a strategic plan that is actually an organizational strategy and implementation plan which draws upon on the organization’s core competencies and commu- nicates the long-term value you provide to your customers, no matter how the world may change. The real power of strategy, discovered over two thousand years ago by the ancient Chinese Strategist, Sun Tzu, is that strategy is not a plan! (1991, Wee, Lee, & Hidajat, trans; 1988, Cleary trans.) Strategy is the one strength you choose to rely upon to win the relationship with your customer. Using a unique and singular strategy to focus your organization is the beginning of a renewed relationship between Leadership and Strategic Planning and is a reliable way to reclaim the rewards of thinking more strategically. Being better able to develop and deploy an effective competitive strategy and implementation plan that can focus all organizational efforts, increase the organization’s return on investments and assets; eliminate wasted time, effort and resources; as well as differentiate your organization from its competition, is a reward worth reclaiming.

Key Words: Strategy, Strategic Management, Strategic Planning, Future Planning, Vision, Environmental Scanning, Long-view, wide-view, Uncertainty, Complexity.

Resumen Resumo La creciente desconexión entre las características de un entorno A crescente desconexão entre as características de um ambiente de negocios complejo e incierto y las percepciones de los líderes de negócios complexo e incerto e as percepções dos líderes sobre a sobre la estrategia, lo cual incluye su rol como aquellas personas estratégia, o qual inclui seu papel como aquelas pessoas que desen- que desarrollan y mantienen la estrategia, está teniendo un volvem e mantêm a estratégia, está tendo um impacto crescente impacto creciente sobre la ventaja competitiva de las organiza- sobre a vantagem competitiva das organizações e sua efetividade ciones y su efectividad global. La necesidad de conseguir el éxito global. A necessidade de conseguir o sucesso em um ambiente en un entorno complejo establece la urgencia para renovar la rela- complexo estabelece a urgência para renovar a relação entre a ción entre el liderazgo y la planificación estratégica que se basa liderança e o planejamento estratégico que se baseia nos papéis en los roles y responsabilidades del líder para construir una base e responsabilidades do líder para construir uma base para a ação para la acción estratégica y para poner la estrategia y la plani- estratégica e para pôr a estratégia e o planejamento a trabalhar. ficación a trabajar. El aspecto clave para conseguir superar los O aspecto principal para conseguir superar os desafios atuais e desafíos de hoy en día y las oportunidades de mañana reside en as oportunidades futuras reside no desenvolvimento de um plano el desarrollo de un plan estratégico que está basado de hecho en estratégico que está baseado, de fato, em uma estratégia organiza- una estrategia organizativa y un plan de implantación que están tiva e um plano de implementaçao que estão sustentados sobre as sustentados sobre las competencias esenciales de la organización competências essenciais da organização e que comunica o valor a y comunica el valor a largo plazo que se genera para los clientes, longo prazo que se gera para os clientes, sem importar o quanto

Entregado en 25/03/2011 | Aprobado en 30/05/2011.

1. Artículo de reflexión elaborado por la autora en School of Graduate and Continuing Studies de la Universidad de Norwich, USA. 2. Doctora en Gestión Estratégica. Es consultora en Estrategia Empresarial y profesora de Dirección Estratégica y Liderazgo Organizacional en la Universidad de Norwich, Escuela de Postgrado y Estudios Continuos. Ella enseña en los programas MBA y MSOL. Es autora de The Leader’s Guide to Strategy in Crisis and Professional Strategy in a New York Minute (New Strategy Press). Es experta en el diseño de procesos sencillos para obtener difíciles trabajos bien hechos. Puede visitarla en www.balancedmanagement.com 10 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. The growing disconnect between the characteristics thecharacteristics between disconnect growing The 1. O Current State Current developing and maintaining it is having an increa an it having is maintaining developing and of the complex and uncertain business environment environment business complexof uncertain the and Introduction singly large impact on organizations’ competitive competitive on organizations’ impact large singly and leaders’ perceptions of strategy and their role in their and of leaders’ perceptions strategy and advantage and overall effectiveness. This impact is impact This effectiveness. overall and advantage Estratégica, Planificación futura, Visión, Análisis del entorno, entorno, del Análisis Visión, futura, Planificación Estratégica, de la estrategia descubierto hace unos dos mil años por el por años mil dos unos hace descubierto estrategia la de desplegar una estrategia competitiva efectiva y un plan de plan yun efectiva competitiva estrategia una desplegar de pensar de consecuencia como recompensas las obtener de orga su enfocar para ysingular única estrategia una de estratega chino, Sun Tzu, es que: ¡la estrategia no es un plan! un no es estrategia ¡la que: Tzu, es Sun chino, estratega Estrategia, Dirección Estratégica, Planificación Planificación Estratégica, Dirección Estrategia, clave: Palabras diferenciar logra se que tiempo mismo al yrecursos; esfuerzo la sobre retornos los incrementar consigue: se organización Liderazgo y la Planificación Estratégica y es una forma fiable forma una es y Estratégica Planificación yla Liderazgo ganar conseguir para elige se que fortaleza la es estrategia La una recompensa que merece la pena conseguir. pena la merece que recompensa una y desarrollar de capaces Siendo estratégica. más forma una el entre relación renovada una de comienzo el es nización empleo El cliente. el con yduradera estable relación una sin importar cuanto pueda cambiar el mundo. El poder real real poder El mundo. el cambiar pueda cuanto importar sin su organización de la competencia, por lo tanto se trata de trata se lo tanto por competencia, la de organización su inversión y sobre los activos; eliminar las pérdidas de tiempo, tiempo, de pérdidas las eliminar activos; los y sobre inversión la de esfuerzos los todos enfocar pueda que implantación largo plazo, visión amplia, incertidumbre ycomplejidad. incertidumbre amplia, visión plazo, largo Tzu, Sun. War & management. (Wee, Lee, & Hidajat, Trans). &Hidajat, Lee, Rea (Wee, Tzu, War &management. Sun. ginal work written century’s before the birth of Christ).1991. of birth the before century’s written work ginal Company. (Ori Publishing Addison-Wesley Massachusetts: ding, Many organizational leaders, in fact, still main still fact, in leaders, organizational Many to organizational leaders and their day-to-day their and leaders to organizational tain the impression that they don’t they impression that the to change need tain the coming of this global economy and its actual economy actual its and global of this coming the tage, and strategic planning to be successful in our our in successful to be planning strategic and tage, and distant seem may environment still global corporation, multinational organization, nment uncertainty it brings with it or what it means it or what it means with it brings uncertainty future, if not tomorrow. not if future, or non-profit organization, today’s complex and and complex today’s organization, non-profit or efforts. Whether you run a small business, gover business, a small run you Whether efforts. craft, and it will be substantially different in the the in different be substantially will and it craft, educators honed and leaders their organizational fromwhen most different very is environment today’sis, Thefact business environment. current how they think about strategy, competitive advan competitive about strategy, think how they somehow disconnected from your organization. organization. your from somehow disconnected arrival, but very little about the complexity and and complexity about the little but very arrival, that spans the globe. We’ve globe. the spans much so that heard about ur world has become characterized by an economy by an world becomecharacterized ur has 1 ------. visible until it is too late and market share is lost in lost in is share market it late too and is until visible It has therefore become evident that the way many way many the It therefore that becomeevident has what seems like the blink of an eye. In our expanding expanding our In eye. of an blink the like what seems In the fast-paced and uncertain environment in in environment uncertain fast-paced and the In which we live and work, organizations are often are work, we and organizations live which Estratégico, Planejamento futuro, Visão, Análise do ambiente, ambiente, do Análise Visão, futuro, Planejamento Estratégico, da organização, consegue-se: aumentar os retornos sobre o sobre retornos os aumentar consegue-se: organização, da e efetiva competitiva estratégia uma e realizar desenvolver de capazes Sendo estratégica. mais forma uma de pensar de esingular única estratégia uma de Ouso ocliente. com deira Palavras-chave: Palavras-chave: diferenciar consegue se tempo mesmo ao erecursos; esforço edura estável relação uma ganhar conseguir para escolhe themselves instead of others, on today at the expense expense on at today the of others, instead themselves tions have become more and more managed and less less havetions and becomemore more and managed organiza roles, leadership and terminology, tools, tegic planning is in a state of crisis. of astate crisis. in is planning tegic recompensa que vale a pena conseguir. apena vale que recompensa relação entre a Liderança e o Planejamento Estratégica e é uma eéuma Estratégica eoPlanejamento aLiderança entre relação um plano de implantaçao que possa enfocar todos os esforços esforços os todos enfocar possa que implantaçao de plano um forma confiável de obter as recompensas como consequência consequência como as recompensas obter de confiável forma organizations and their leaders use strategy and stra and strategy use leaders their and organizations success. limited of organizations’ cause strategic and of tomorrow. of strategy use Leaders’ sua organização da concorrência, portanto, trata-se de uma uma de trata-se portanto, concorrência, da organização sua a estratégia não é um plano! A estratégia é a fortaleza que se se que éa fortaleza Aestratégia plano! éum não a estratégia been using strategy and strategic planning is rapidly rapidly is planning strategic and strategy using been have way organizations the environment, business oftenbarely unfortunately, and, destructive by nature há uns dois mil anos pelo estrategista chinês, Sun Tzu, éque Sun chinês, estrategista pelo anos mil dois uns há pressured to focus on survival instead of growth, on of growth, instead on survival to focus pressured of to inconsistent use a focus, narrow too and zons planning without anyone even noticing the root the anyone evennoticing without planning operation and have devolved into tactics planning possa mudar o mundo. O poder real da estratégia, descoberto descoberto estratégia, da real Opoder omundo. mudar possa para enfocar sua organização é o começo de uma renovada renovada uma de éocomeço organização sua enfocar para investimento e sobre os ativos; eliminar as perdas de tempo, tempo, de perdas as eliminar ativos; os esobre investimento losing effectiveness. From shortened planning hori planning shortened From effectiveness. losing longo prazo, visão ampla, incerteza ecomplexidade incerteza ampla, visão longo prazo, and less lead…and therefore, less and less competitive. less and less therefore, lead…and less and › has lost its power lost its has to strategy Organizational is a supporting derivative of the larger organi larger of the derivative asupporting is unite employees and lead the way to a clear way employees to aclear leadthe unite and zational strategy, making the achievement of the making strategy, zational seldom have a strategy that is deployed is or from that seldom have astrategy and other sub-units of larger organizations organizations of larger sub-units other and divisions, units, Business future. successful and Estratégia, Direção Estratégica, Planejamento Planejamento Estratégica, Direção Estratégia, - - - - - Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 11 . - - - - - 3 4 of strategic of planning is of their of strategic planning.“The The Purpose 2 ning is done is beforehand,ning we can predict victory or defeat. With careful and detailed one planning, can with win; careless certain the From plan way defeat is if one does at all! not plan and less detailed one cannot planning, win. How much more San Francisco: John Wiley 113 p. & Sons, Inc. 2007, Kouzes, B.Z. J.M. & Posner, The leadership challenge ed.). (4th Tzu, Sun.. Op. Sun.. cit. 1991. Tzu, p.16. Sun. Op. cit., 1991, Tzu, and deploy anand deploy effective competitive strategy and imple as well as assets; eliminate wasted time, effort and ahead in time. “ ship with Leadership leaders can is how prepare for aspect leadership which of is chartto the long-term theago by Chinese ancient Strategist, Sun Tzu Sun Tzu same desires academic where and theories but intent, pressurefor or contradicttoday’s off leave other, each set tools that of will allow them assume to the critical productivityleaving organizations andtake profit over, point ispoint that time leadersmust spend thinking about happen to do it differently. differently. of And,course, it do to happen our results has the been years over lost a garbled and and is now Renewing the Relationship before Christbefore was even born, revealing the real power evidence around us says otherwise… differ We may use well. the as samevocabulary, have the diluted version of its former self. its former of organizationsdiluted Most version coursetheir for organization. This article will demys strategy,of which was discovered thousands years of may do it, we all it, we do may just it; all need we know do to may we more strategicallymore so they are better develop to able planmentation that can focus all organizational efforts, most commonly misunderstood activity in organiza uncertainty and strategic develop contingencies as well. tions of anytions of type, size, all industry, and nationality. We think they know strategy what is and does, the but tely tiedtely the to nature the future and better become themselves project to able in the with lurch both theory and practice sync. of out increasetheir return organization’s investments on its competition. Strategic Planning and its relation new to unlockto strategy of the power their for organizations tify secrets,closely held some inlost the time rubble of resources; as well as differentiate organizationtheir from in today’s world; offering world; processinreliablea them today’s and Strategic planning is the most commonly practiced and Like in the the strategy real game of telephone, of power Planning and Leadership, leaders will learn think to how 4. 3. A Revised Approach Strategic Planning to 2. Through this renewed relationship between Strategic As the Chinese ancient Strategist has stated: Sun Tzu , ------a singular, clear, memorable, and singular,a meaningful memorable, clear, about who they who about are and strength what they bring benefit of a product or productservice. of a benefit addition,In stra often often fail to consistently ourattention to draw either’s goals, either’s and therefore the overall vision or anor activity plan. creating organizations of people who aren’t clear nearly impossible. visible Some symptoms of needs and goals and is usually tactics a cluster of tegies focus to benefits tend on that are difficult substantiateto easily or imitated, demons not trating unique value. this crisis marketing include strategies that to the to greater whole. Individual strategy is virtually non-existent, Sales is too, often far strategy, customers’ from › › and contingencies for how to handle to and how the contingencies for inevitable and strategic planning the for competitive advantage successand the of long-term organizations they lead and Leadershipto a this offers solution crisis of strength that can us get we to our to vision upon rely strategyand can catapult effi levelsof new leaders to process witha solid set tools that of will finally put zations every of size, type, and industry. This is the be delegated. Leaders’ in, and role responsibilities for Purpose changes inthe market andaround the us. world This environment’s real environment’s challenges and real successes. All coming to you from today’s trenches, and proven in trenches, andcoming from proven today’s you to ciency and effectiveness. Whetherleaders born are made,or their is steer to key the role organization global local, or all private; or we public need clear a the long-term successthe your organization of long-term is intrica tion where it truly it tion where needs go. to is the leader. challenge today’s of increasingproductivity short-term while also insuring theories and practices beena proven into melded have the uncertainty and chaotic our businesscomplex of the road” with methodology in real forged organi toward a successfultoward future. in these uncertain times. ronment requiresronment the most effective of usestrategy Strategic Planning task a short-term to longer is no Strategy’s potential is seemingly power leaders on lost who arewho unfamiliar with the intricacies to how of wield it. and Our uncertain complex business envi It doesn’t matter if your organization doesn’t It is large small, or you in can seat soyou the you driver’s take your organiza This article takes“rubber leaders meetsto where the A renewed relationship between Strategic Planning “street side” of strategic of “streetside” planning and leadership, 12 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. “bothering about the best method of accomplishing an an of accomplishing method best about the “bothering “They havethe lookoutbe “They to on deve for emerging 7. This renewed relationship focuses on the way strategic theway strategic on renewed relationship This focuses Organizational leaders are tasked with the strategic strategic the with tasked are leaders Organizational varies among organizations. Schwartz organizations. among varies viewed as an “art of conjecture” or not, is often the or often not, is of conjecture” “art an as viewed view which is so critical in our uncertain global busi global uncertain our in critical so is which view However, the strategic planning process, whether whether process, However, planning strategic the 5. responsibility is to figure out how to take the orga out how totake figure is to responsibility impact the results of their strategic planning process process planning strategic of their results the impact responsibility of charting the organization’s the course. of charting responsibility in terms of their planning, necessarily have a“wide” necessarily planning, of their terms in their planning. Also to be seen is whether these orga these whether is seen to be Also planning. their or not whether in of variation degree a high is there to have an insincere or uncommitted approach to the or uncommitted insincere to have an them; understanding that leaders who think “long” “long” who leaders think that understanding them; over a view awide help take leaders will tionship nizations take a “wide” systems view or a“narrow” view systems a“wide” take nizations the organization.” the global marketplace, whether you compete globally you compete globally whether marketplace, global organizational Developing business. do nizations nization to that envisioned future. Leaders’ efforts to efforts Leaders’ envisioned future. to that nization narrow view and understand the challenge before challenge the understand and view narrow factors than just the state of the economy. of state the the just Whether than factors 8. or not leaders see these changes and plan accordingly accordingly plan and changes or not these see leaders into more consideration many takes and or locally, environment consistently over time and that it serves its innate innate its it serves that and overconsistently time has started a series of changes in the way many orga way many the in of changes aseries started has plan, or are informal and intuitive. Arenewed rela intuitive. and informal or are plan, planning is done and the leader’s done is the and role respon and planning process, focusing entirely on the resulting paper plan. paper plan. resulting on entirely the focusing process, purpose. Some, however, see strategic planning as as Some,however, planning purpose. strategic see politics, arts, and all aspects of life inside and outside and inside of life aspects all and arts, politics, lized in a planning process, result in a documented adocumented in result process, aplanning in lized self-centered view. The effects of these views greatly greatly views these of self-centered view.effects The of terms or in “short” “long” worldwide, think leaders, strategy and planning for the future is different in a different is future for the planning and strategy sibility to make sure it is performed reliably and and reliably it performed sure is to make sibility lopments in technology, demographics, economics, economics, demographics, technology, in lopments 6. antidote for the anxiety precipitated by our unstable precipitated by unstable our anxiety forantidote the accomplish organizational strategy may forma be strategy organizational accomplish The leader’s organization’s envisionthe future. and accidental result” result” accidental and the success of the organization’s of the leadership. success the and 1990, pp. 281-284 pp. 1990, Kouzes and Posner, Op. cit. 2007, Posner, cit. and Op. Kouzes p.110. A York: P.New view. Doubleday. long the of art The Schwartz, Fisher, A.B. Is long-range planning worth it? Fortune. 121(9), it? Fortune. worth planning long-range Is Fisher, A.B. Allaire, Y. & Firsirotu, M.E. Coping with strategic uncertainty. uncertainty. strategic with Y. Coping Allaire, M.E. &Firsirotu, Sloan Management Review, 30(3), 1989, Review, 7-16. pp. Management Sloan visioning process for long range planning relying on scenario scenario on relying planning range long for process visioning building.1991, p.13. building.1991, 6 . The evidence of a global economy global of a evidence .The 8 5 The leader’sahead roleis to look and have elected not have to do and or elected it, 7 has found that found that has ------“…not attending to environmental characteristics is “…not characteristics to environmental attending Although both reactive and proactive planning with with planning proactive and reactive both Although 11. 10. The Purpose of Strategic Planning Traditional strategic planning attempts to predict the the to predict attempts planning strategic Traditional For leaders to be strategic in our turbulent times, the the times, turbulent our in For strategic toleaders be vehicle for managing uncertainty. When deployed When uncertainty. vehicle for managing I cannot know or control the future than Ihave no than or future control know the I cannot which enhances their perceptions of stability—i.e., if if of perceptions stability—i.e., their enhances which Strategic planning has always been organizations’ organizations’ been always has planning Strategic Strategic planning has been used to map an to map an used been has planning Strategic 9. ronment, strategic planning must have a new purpose, must have anew purpose, planning ronment, strategic renewed approach that those who purport that stra that who purport renewed approachthose that is the only strategic option for the future that leaders leaders that option for future the strategic only the is throughout an organization. Corporate strategy can can strategy Corporate organization. an throughout responsibility or accountability for the organization’s organization’s the for accountability or responsibility the root of extinction, both for the organization and and organization for the both root of extinction, the tegic planning is not necessary because the future is future the because not is necessary planning tegic nonlinear, interconnected, and highly variable envi variable highly and interconnected, nonlinear, future. to desired its organization an direct and unite ness environment. For as Hughes et al. emphasizes, emphasizes, al. et For Hughes as environment. ness unknowable are taking a short-term, narrow view ashort-term, view narrow taking are unknowable future and know the unknowable. In the light of our light the In unknowable. the know and future for the populations at large.” at populations the for managing uncertainty and responsibly guiding the the responsibly guiding and uncertainty managing in planning, strategic that premise on the focus will writing this of Therefore,the remainder future. describes two approaches to strategic planning: approaches two to strategic describes organization’s path to an envisioned future. Kaufman envisioned future. organization’s to an path competitive in ten to twenty years. Proactive planning planning Proactive years. ten to twenty in competitive organization’s long-term future long-term organization’s be introduced, changes in the business environment environment business the in changes introduced, be standard reactive planning is no is longer option. an planning reactive standard are occurring too frequently to be reactive and still be be still and reactive to be frequently too occurring are a new place and anew style. a newand place about the future, but serve as an invaluable tool for invaluable an as but serve future, about the anxiety organizations’ form, notany relieves only

2009, p.563 2009, Hughes, R., Ginnett, R., & Curphy, G. Leadership: enhancing the the enhancing Leadership: &Curphy, G. R., Ginnett, R., Hughes, Kaufman, R. Strategic planning and thinking alternative views. views. alternative thinking and planning Strategic R. Kaufman, 1989, cit. p.8. Op. &Firsirotu, Allaire a changing world, shifting politics. Proactive planning see Proactive politics. shifting world, a changing Performance & Instruction, 29(8),1990, pp.1-7. &Instruction, Performance crises, and problems surface. problems and crises, Reactive planning, the most usual mode, responds after- usual responds mode, planning,most the Reactive the-fact to pressures and stresses. A reactive mode might mode A reactive stresses. and to pressures the-fact ks to create an improved reality—even of that involves that of involves reality—even to animproved create ks lessins of experience (6th ed.). New York: Mcgraw-Hill/Irwin. York: (6th ed.). New Mcgraw-Hill/Irwin. experience of lessins modifying organizational objectives—before pressures, pressures, organizational objectives—before modifying be triggered by competition, a problem or crisis, obstacles, 9 It is the premise of this of premise It this the is 10 . 11 - - -

Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 13 ------. . Additionally, there 16 17 thattraditional stra . If we are. If we trying the invent future, to whether 18 . If the future knowable, is then not must we 15 pp. 47-48. meets opportunity. OrganizationalDynamics. 1996, pp. 24(4), orinventing Long Range it? 1996, pp. Planning. 208-214. 29 (2), sed to August analytic 15, skills. Industry Week, 243(15),1994, Jossey-Bass.1992. Diffenbach, Op. pp. cit. 107-116. 1983, B. StrategicKinni, thinking: T. It depends onsynthesis as oppo Crossan, M.M. The improving organization: where planning Raimond, P. Two styles Two of foresight:Raimond, are P. we predicting the future 20-35. Stacey,R.D.Managing20-35. the unknowable. San Francisco:

area and prepare for it,and as has prepare for been the standard procedure. and interconnected environment isvery different are those question who whether be should trying we and uncertainty. to respond sources uncertainty. of uncer an to Such approach still learn the about patterns and boundaries our of how to realize to how either in of power it. The source case have on obtaining on have competitive advantage long-term economy, predicting-and–preparing takeseconomy, a whole on organization’s futureorganization’s dominating by eliminating or organization’s environmentalorganization’s system can so we deter operating principles of the future contingencies (part “future of planning” processes) mine the not predictable future, the but guiding or from the market analysis that used suffice to in this new purposenew planner. thefor long-term must use manage to the knowledge develop to power uncertainty.response This creating involves power an unknowable and/or indomitable tions have alwaystionshave relied In upon. light the of complex, nizations’ which patterns are power demonstrated of tegic planning in efforts has employed to cope with tainty those is by contested believe who the future be to to predict to the future inven on should concentrate or ting it tegy of low price). The predict-and-prepare The response tegy price). low of responsethe would then power focus determining on the most achievable desirable or future and planning their the directions each relationship to other, you is the type strategic of planning organiza approach becomes moot. use A new is not knowableit or for is knowledge—understanding and play the at forces through strategic contingencies, strategic planning isunlike the power response we must gather intelligence aswe as much it possible on Ifthe future is knowable, astheorists some question, gathering variable intelligence a complex on However, want take, to and action. your platform for Like orga variable and interconnected nature our global of The patterns The strategic developing of that power 15. 16. 17. 18. ------, leaders with 13 . Whether they 12 purport that strategic planning 14 dominating eliminating or sources uncer of the predict-and-prepare response; response:the create your future power by the structural response: build in a capacity for tainty; and flexible response and adaptation.

porations. Long Range Planning, 16(3),1983, pp.porations. 107-116. Long Range Planning, 16(3),1983, the future San 2. Francisco: Jossey-Bass. xi. p. Allaire and Firsirotu, Op. 8. p. cit. 1989, Hesselbein, F. & Goldsmith,Hesselbein, (2009). The M.(Ed.) organization F. of Diffenbach, Corporate J. environmental analysis in large cor U.S. 3. 2. 1.

a tactical a chosen strategy to reply maintaining (i.e., a small staff and inexpensivelocale which uses the at theat relationships each planning has approach a long-term approach will approach a long-term use this information to their adjust organizational capacities the for possibili are tryingpredict to the and prepare for future, create and seen yet see is what not visible but structural the response develop to tactickeeping of selves from the historic planning short-term horizon organization’s experience uncertainty. effectsof their current strategy. only briefly discuss structuralthe response to uncer explores these three coping with ways of uncertainty, organizational seek leaders to intelligence prepare to focusing on how leaders acquirefocusing knowledge how and on apply must include threemust include organizations ways for cope to nuancebetween future planning and strategic plan ning, both which of will be addressed in as this ning, long-term/future planners but twenty to ten look ning that their is of own design. tainty. The structural response,important, however is supporting a stra low, overhead the organization’s to the to reality organizational today’s of life and how ties the of future business environment, while leaders think will unfold, a future or which they for are plan the future and make to as plan or Peter happen, how it to theto act strategy of The scope will development. themselves strategyfor development renewed approach to strategic to approach renewed planning is revealed. Drucker has suggested, the out window look simply with view a short-term will data the on only for look with uncertainty: with Future planning, example, for can be strategic plan years the into future often wantto differentiatethem (typicallyof strategic years) five planning. look Let’s To renew our approach to strategic to our approach renew planning must we To The The difference inthese signifiesapproaches two the The natureThe of business the environmentrequires 13. 14. 12. Allaireand Firsirotu 14 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. Allaire and Firsirotu and Allaire 19. 21. 20. Integrated into this renewed approach to strategic renewed approach to strategic into this Integrated sense, ideal its in planning, strategic that said be It can will imbue, as: imbue, will is a discernible, sequential pattern in consistently consistently in pattern sequential adiscernible, is upon leaders’ foresight notis based the but just that tegic planning integrates the concepts and practices of practices and concepts the integrates planning tegic of one mustbe new purposes of that the process this follow considered to be foresighted: of strategic planning, which this renewed approach this which planning, of strategic planning are Ohmae’s are planning process itself generates an amount of foresight. amount It generates an is itself process successful, foresighted strategic decision-making. decision-making. foresighted strategic successful, There existence. foresight into leaders’ daily strategic renewed approach This stra to planning. strategic

1. 1. 4. 4. 2. 2. 3. 3. 5. 22(5), Sept.01,pp. 1994, 30,31,44. Ohmae, K. The mind of the strategist: The art of Japanese busi Japanese of art The strategist: the of mind The K. Ohmae, 1989, cit., 7-16. pp. Op. Firsirotu, and Allaire Nadler, D. A. Collaborative strategic thinking. Planning Review, Review, Planning thinking. strategic Nadler, Collaborative D. A. ness. New York: McGraw Hill. 1982, Hill. York: 242-243. pp. New McGraw ness.

questioning the organization’s the of ways thin questioning the most likely scenario must be stated simple stated mustbe scenario likely most the to its resources rather than going all out to going all than rather to resources its according strategy companyits must pace the unite organizational members; organizational unite ness, only afew may only chosen; be ness, from a variety of perspectives avariety from facilitating organizational learning and the the and learning organizational facilitating development of team spirit, learning about the about the development learning spirit, of team defining and choosing among alternatives and alternatives among andchoosing defining operating principles of the future and develo and future of principles the operating coordinating actions among relevant players. relevant among actions coordinating of the many strategic options open to the busi options open to the strategic many of the as to hypothesis and a logical effect, and cause of basis on the future into the environment forces business at the work the in extrapolate domain; the business define clearly consensus around specific decisions and decisions specific around consensus helping it assert control overhelping destiny; its it assert providing a charter for the organization and and for organization the a charter providing ping one organizational strategy to inspire and and to inspire strategy oneping organizational structuring discussions and building building and discussions structuring king, managing and operating; and managing king, and succinctly; and achieve too much too soon; too achieve as a social process gleaning strategic insight insight strategic gleaning process asocial as planning strategic emphasized which actions, 19 21 describe the ideal the describe five-steps that leaders must five-steps 20 and and purposes purposes - - - - - The first step of clearly defining the business domain domain the business defining step of clearly first The This is an example of an equal and opposite reac equal an example of an is This 22. Organizations still experience a type of cause and and of cause a type experience still Organizations with step two is its out-dated its is two reference step logic to the with Leaders study trends to understand forces that may forces that to understand trends study Leaders where in this example, the economy is good and an economy an the and good is example, this where in Nonlinear dynamics accounts for “illogical” cause cause for accounts “illogical” dynamics Nonlinear Sun Tzu, referred to ask Knowing the Terrain the Tzu,Sun Knowing referred to ask Step two involves actually studying the business business the studying involves actually two Step Step three is simple, and Sun Tzu when Sun it simple, best is and said three Step impact the organization directly (i.e., economy, the directly organization the impact The problem future. the in organization the impact the study of trends which could be obviously seen to seen obviously be could which of trends study the contingencies. order in to developtrends strategic recounting that when you have one strategy you when have you have that onerecounting strategy tion—consumers have money,tion—consumers spend it. they so that a major shift in values occurred, making the making occurred, values in amajor shift that ness environment. In this hypothetical example, example, hypothetical this In environment. ness busi of region the adistant happened in unforeseen market share ratings, etc.). Nonlinear dynamics dynamics etc.). ratings, Nonlinear share market ment of which their organization is a part, which is is which apart, is organization ment their of which follows that if the economy for the strong, example, is if follows that mers don’t something product buybecause the direct effect on organizational performance performance (i.e., on organizational effect direct traditional The proves inaccurate. to be dynamics can be described as what the famous Chinese strategist, strategist, Chinese famous what the as described be can cause and effect approach to trend analysis involved analysis approachtrend to effect and cause thescience of nonlinear which effect, and of cause analyzing and activities byenvironment scanning of life, telecommuting and virtual organizations). virtual and telecommuting of life, consumers will most likely buy an organization’s buy an likely most will consumers purview leader’soutside the organizations’ or the occur can however, and/oreffect, effects causes organization provides quality and value yet consu value and provides quality organization organization’s product undesirable overnight. undesirable product organization’s consumers of many so hearts touched the country believed. The traditional logic of cause and effect andeffect cause oflogic traditional The believed. products (providing they offer quality andvalue). offer quality they (providing products he espoused the benefits of selecting one strategy, by onestrategy, selecting benefits of the he espoused shows that trends and events in seemingly distant distant seemingly events in and trends shows that sociocultural trends involving pursuit of quality of quality pursuit involving trends sociocultural elements. its and system dynamic about the learning step requires leaders to map out the business environ to leaders map business out the requires step an indirect effect on the organization yet have yet a the organization on effect indirect an having environment of the areas and/or unrelated and are not equal and opposite as previously previously as opposite and equal not are and and effect where effects are not equal or opposite,are not equal where effects effect and a news report on a small child in adeveloping in child on asmall report a news

5. Tzu, Sun. Op. cit., 1988, p.Tzu, 1988, 143. cit., Op. Sun. tions underlying its original strategic choice as strategic original its underlying tions management must adhere to the basic assump basic to the must adhere management long as those assumptions hold. assumptions long those as 22 . This . This - - - - - Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 15 ------. Strategy is a deli 26 . This“pattern” is based 28 Strategy’s focus the on 29 . Notice that. Notice strategy the is not plan 27 mentation. Harper New York: Publishers. Collins Higgins, J.M. & national security processes and problems. Maxwell Air Force M. Porter E. Strategy: (Eds.), Seeking and securing competitive Book Mintzberg, Co.; H. Crafting strategy. In A. C. Montgomery Base, Alabama and Washington, DC: Air University Press. 1988. do, FL: Harcourt Brace Jovanovich College Publishers. advantage.1989, pp. 3-9. Boston: Harvardadvantage.1989, Business Review. Boston: pp. 403 - 420. Harvard advantage. Business 1987, Review. zational strategy, structure, and process. McGraw-Hill New York: Vincze, J.W. (1993). Strategic management text (1993). andVincze, cases. J.W. Orlan Byars, L.L. (1991). Strategic managementByars, formulation L.L. and imple (1991). Henderson, The B. D. origin of strategy. In A. C. Montgomery & & M. Porter E. Strategy: (Eds.), Seeking and securing competitive

a rapidly changing business and environ complex and compound it advantagethey successfullyupon must rely take the leaders must no longer look for a “play book” a “play a for or look longer leaders must no strategy and planning work. to seeminglyall around, strategy theprovides focus for leaders’ selectleaders’ the job” “right their or strategy. Reclaiming the Rewards the Reclaiming berate search a plan action of for that will a develop business’ currentand futurecompetitive advantage organization’s vision and mission clear they where of idea are strength what or going or organization its vision. toward are concerned Tactics dailyactivities and keeps each individual, and there future fulfilling path. is an for It approach the for buildingfor strategic a base for actionand putting strategyYet is veryment. often confused with tactics, mission—its competitivemission—its advantage. When chaos is fore the entirefore organization, the on path its toward future. is the It strategic knowledge from your “base as action” previously which for mentioned, helps upon a singular,upon strength representative advan or tionship between strategic planning and leadership, tegy determines the trajectory the of organization’s tage. It istage. this It advantage that be must maintained in thus providing organization with things no but do, to tether that connects an organization its vision to and the path a successful to future itself. strategy Using creates a pattern in a stream of important decisions that focus organization effortson with while doing the strategy “right,” job is concerned with doingthe “right” job In order to reclaim to In order therewards rela a renewed of The Importance of Strategy 27. 26. 28. Miles & Snow, 1978 Miles, R. E. and Snow, C. C. (1978). Organi Miles, 28.R. (1978). C. and C. E. Snow, Miles 1978 Snow, & Making D.M. & Snow, Drew, D.M., 29. strategy: An introduction to “game plan”; leaders need to put strategy leaders need put to Stra work. to plan”; “game “right job”“right achieving to best or approach an is the end ------to do the job, the do to job, . . 24 23 to help guide help to the organization and seek 25 job should be done. If a leader’s focus is If a leader’s be should done. job what porations. Long pp. 107-116. Range 1983, Planning, 16(3), Diffenbach, Corporate J. environmental analysis in large cor U.S. Kouzes and Posner, Op. cit. 2007. p.110. Kouzes Op. and cit. Posner, 2007. Tzu, Sun. Op. Cit.,1991, p.85 Sun. Op. Cit.,1991, Tzu,

accumulate daily and they noticing to how related a high chance succeeding, of two stra have you when approaches to planning to approaches a traditional to refer phase of and-predict and power responses of strategic planning scanning process which has the into evolved real vehicle planning. is this It process assessing of the business help organizationshelp cope with uncertainty. Both these of blishes the urgency renewing for the relationship between leadership and strategic planning which eachother out untapped competitive out advantage. necessity The order to plan for the long-term future the plan to for long-term order environment, however, requires a much broader scan requires broader much a environment,however, constantly questioned and evaluateddetermine to if obtain and maintain strategic long-term advantage on currenton resources, then the visioningprocess is constrained.either on absent strategy A has nothing evolved into an into evolved analysisthe of organizations’ stra environment and aligning strategy that characterizes for creatingfor success environment esta in a complex for strategyfor nature The of business the development. much, too little,much, too fast too slowly. or gaps ingaps that knowledge as the means for prepare to uncertainty launching before the into action plan of ning goals and objectives. Leaders are charged with ning critical scope more and a much analysis in events of underlying their original strategic must be choice not ginguncertainty and thepurpose new strategicof tegic knowledge and the ability identify to and close tegies your are twice as likely fail to is based upon leadership’s roles and roles responsibilities isbased leadership’s upon the planning process: environmental scanning. is this It those assumptions still This hold. is goal the of mana to theto issues this of discussion. If leaders are to to do with do to the doing resources anything for too the style new strategic of planning in our turbulent times.processplanning of The becomes the valued in the midstuncertainty, of the basic assumptions is a tactical concern focusing how on rummaging through the and bits bytes data of that resources uses planning to a narrow approach that result as opposed the to documented plan. Stepfour; pacing yourstrategy keepto withup your 25. 24. 23. The environmental The scanningyesteryear of has The long or long wide The of view futureplanning and prepare- the And step five, is a valid point speaksthat directly 16 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. The purpose of strategy is to unite groups unite peopleof is to strategy of The purpose is aforementionedThe strategy of description When in doubt in about strategy. what toyour When co, check 30. Crisis is a harsh work that implies dire consequences consequences dire work implies that aharsh is Crisis If your actions support the strategy, continue with continuewith strategy, the support actions your If while competing to win in today’s in marketplace to win competing while Leaders, charged with the strategic direction and long- and direction strategic the with charged Leaders, Leaders need a far-reaching view of many different different of many view afar-reaching need Leaders Strategy in Crisis in Strategy Strategy’s Purpose Strategy development uncer the mustcontendStrategy with Strategic management is the name given the challenge challenge the given name the is management Strategic requires a full awareness of events and trends in the the in trends of events awareness and afull requires is an important, difficult and encompassing challenge challenge and encompassing difficult important, an is in-effect purpose of strategic management. In such a In such management. strategic of purpose in-effect multiple change, rapid complexity, where world tain tinue those actions. This use of strategy is applicable strategy use of This actions. those tinue don’t they discon if strategy, your and support them life makes of strategy Such use “right path. the taking process the is Strategy a common vision. to achieve increasingly important. that has befallen organizations’ use of strategy. The of strategy. use organizations’ befallen has that the predicament is That dilemmas. fatal to near terize the marketplace. Managing uncertainty is the the is uncertainty Managing marketplace. the terize to be promoted primarily on their tactical success and and success tactical on their promotedto be primarily however, appear organization, of still their viability term tainty of the business environment in order in to environment business of the tainty the need for managing organizational strategy is strategy organizational for need managing the global business environment. Strategic management management Strategic environment. business global for organizational members clear and meaningful. meaningful. and members clear for organizational marketplace, strategy is the organization’s the lifeline. is strategy marketplace, down through individual strategy. Using strategy, Using strategy, strategy. individual through down options and an over abundance of information charac of information over abundance an options and develop viable strategies in the midst of uncertainty of uncertainty midst the in strategies develop viable higher abilities strategic have the do not necessarily of focusing effort and performing the “right” job the or “right” andperforming effort of focusing of how foundationfor to lay tomorrow’s the success because an organization’s an long-term short-termbecause and Developing and ManagingStrategy however, developingstrategy. different form very is has left the use of strategy in a period crisis. of period in a strategy use of the left has produce and maintain an effective or viable strategy. viablestrategy. or effective an produce maintain and success must be achieved and maintained in an uncer an in maintained and achieved mustbe success leadership positions require. Leaders’ inability to to inability Leaders’ require. positions leadership simplistic by intent. The use of strategy is bystrategy use of intent. The simplistic strategy. As change becomes more becomes commonplace, change As strategy. at all levels of an organization form corporate strategy strategy form corporate organization of levels an at all areas impacting their business in order in to develop business their impacting areas

York: John Wiley &Sons.1994.York: Wiley John Fahey, L., & Randall, R. M. (Eds.).Portable MBA in strategy. New New strategy. in MBA (Eds.).Portable M. R. Fahey, &Randall, L., simple. simple. 30 . This . This - - - - We try to control change in orderWe of to in control tocost control change the try We have seen examples of dramatic change in the field the in change We of dramatic have examples seen 32. 31. Change effecting strategy is happening everywhere. everywhere. happening is strategy effecting Change Organizations’ strategic focus is not necessarily on a not is necessarily focus strategic Organizations’ which organizations, such as the United Nations the must suchas organizations, which rent in organizations’ and advertising campaigns that that campaigns advertising and rent organizations’ in into a relaxed and imprecise understanding and and understanding imprecise and into arelaxed propensity to the and ofimproper strategy use international arena we have seen economic strength we have arena economic strength seen international UnitedWe States. the in have in major seen changes it the most. it the of levels leaders’ current between incongruity the is It foresighted strategy. and for need clear increased this phenomenon: this the field of energy with deregulation inspiring the inspiring deregulation with field of the energy ness environment that has put the effective use use of effective put has the that environment ness no not make sense and leave the viewer of media and and of media viewer leave and the sense no not make usurp military strength as the rising power to base rising the as strength military usurp trans gas suchas services, of energy unbundling change or our fear of what is unknown. Formulating Formulating of unknown. what is or fear our change decline. Actually, the complex and changing nature nature complex changing the and Actually, decline. confuse it with tactics has led organizational leaders leaders led organizational has tactics it with confuse of new energy alliances, and now the push for energy nowfor push and energy the alliances, of new energy evolution Care the of Managed with Care of Health of the expanding global marketplace has created an an created has marketplace global expanding of the organizational strategic plans. The use of too many many use of too The plans. strategic organizational print campaigns in a quandary over what is being sold over being what is aquandary in campaigns print portfolios with a variety of renewable sources. In the the of In renewable sources. avariety with portfolios formation the and conduits, and distribution, port, strategy has reflected this desire to control. Leaders Leaders control.to desire this reflected has strategy strategy in danger at a time when organizations need need when organizations at atime danger in strategy busi changing of the demands and acuity strategic strategies or inappropriate strategies is equally appa equally is or inappropriate strategies strategies learn to respond to learn and why they shouldbuy it. why they and apparent in advertising campaigns all the way up to the all campaigns advertising apparent in is strategy clear Thelack of application of strategy.

Morgan, S. P.The united nations’ transition in the post cold war war cold P.The S. post the in Morgan, transition nations’ united & Sons, Inc.1994,& Sons, p.3. York: Wiley New John change. strategic Creating W.A. Pasmore, era: Time for change? Magyar, K.P. ed. In United States Post-Cold change? for Magyar, K.P. Post-Cold era: Time States United In ed. Macmillan. 2004. Macmillan. War Defense Interests: A Review of the First Decade. Palgrave Palgrave Decade. First the of AReview Interests: War Defense change the way we do things, or the way we think about think way we about the or things, do way we the change Most of the time, of the however,Most isn’t change managewe if as things, and that can be expensive or difficult. or expensive be that can and things, thatreally and is that change happening, admitting time again. We have ahard patterns into old the back thinking to force try we expect, we what form deviations that force occur things didyesterday, we changes same the when and happening or doesn’t matter very much. We much. keep doing very doesn’t or happening matter it matters. Change that matters means that we have that means we to Change that matters matters. it 31 . Pasmore . 32 eloquently describes eloquently describes - - - Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 17 - - - - : 35 bethreatened. Know and the know terrain, the weather, your victory be will complete. Know your enemy, knowKnow yourself, and your your enemy, victory not will Tzu, Sun. Op. cit., 1988,Tzu, p.82.

andare an integral part your final of results: the ability singular, a clear, develop to effective strategy planand that implementation will allow leaders to and tomorrow’s opportunitiesand lies tomorrow’s in a developing and the terrain permeates this relationship renewed a process involves thatapproach has been developed strategic plan that is actually an organizational stra lead their organizations purpose, levels new of to thanso, the resulting plan. is this It revised approach sizes organizations, of which is specifically designed leaders need to have withleaders need have to strategic planning. This business Thisfocus environment, trends and events). customers, no matter how the world may change. may customers, the matter no world how effortsprocess of simple involves the framing the competition for business, competitionfor resources, market share leaders, as individuals, yourselves (as etc.), and as an organization), and the terrain/weather dynamic (the knowingon yourself, competition, or the enemy effectiveness, competitiveand advantage.process The future and finding it! to their way management account for themanagement account for seemingly illogical and nicates the long-term value you provide to yournicates to value provide theyou long-term ning and Leadership is designed leaders make help to tegy plan and that implementation draws on upon tegic planning and reclaiming the rewards their of their organizations victorious through an approach that can increase your ability know to (your the enemy through years research,work, of experienceand field strategic to planning that is used in all types and all the combat to uncertainty organizations are faced in business.process The phases build on othereach is a lesson in itself; which is as important, if more not interconnected world ininterconnected which findourselves? world we with today. Renewingwith relationship with leaders’ today. stra Renewing the relationship between StrategicPlan My process isMy described below: your organization’s core competencies and competencies commu core your organization’s 35. The ancient The Chineseancient strategistTzu, Sunsaid The keyThe to effectively surmounting challenges today’s - - - - . 33 . This latterapproach 34 chusetts: Harvard Business School.1994. orinventing Long Range it? 1996, pp. Planning. 208-214. 29 (2), Hamael, G. & Prahalad, C.K. Competing for the future. Massa

and smaller staffs as attempt to control an theirlong- and management.With the majority companies of attempt to control short-term activities short-term control to attempt and the long- and business practices. Organizations are focusing are likely drive to and shape the market and then and white thinking based the on theory immediate of shopping mallshopping jewelry in stores the mid-western predictive strategists try use to traditional cause and has borne two distinct strategy to approaches appli Finding an Effective Approach to but to be to created. to strabut This approach inventive on becomingon productive with more resources fewer organizationdesires be dominant,to thenfinding of Lewis Carroll’s (1951) Alice where in Wonderland, Lewisof Carroll’s (1951) cause but a getandy. to effect—to apply z, through or controllingor strategy. to In approach both approaches complex and variable business environment. effectmethods, such downsizing,as to cope with develop the appropriate strategic thedevelop appropriate plan prepare for to cation. The first isthe traditional ofapproach trying focusing creating on the markets and industries of for it. Strategy for is being misused as and an more more forces in externalforces the organization’s environment nothing is as What seems? it if birth rates impacted term future, actually avoiding strategy development term futureso they fit existingproducts, services, these trends. seeksapproach The second to invent the future and is based the on belief that the future the dominance create to way tegy focuses selecting on key industries in which an tomorrow, it is clear it that strategytomorrow, has been in crisis try predict to the future and prepare to in plan order tional strategic planning began like look to the world to strategy,to there is a static and linear plan black of thein nontraditional the work at increasingly forces is not something isnot be to forecasted and predicted to predict to the future, seeking varioushow foresee to in a smallAfrican country affectedyour chainof rushing downsize to and very organizations few Strategy Both these of seem taketo approaches domineering a what ifwhat otherfactors impacted What z? if to your road your manufacturing firm religious and in-fighting United States? Does States? our currentUnited strategic of concept 33. 34. Raimond, P. Two styles Two 34. of foresight: Raimond, are P. we predicting the future The struggleThe withformulating and using strategy 1,2,3 intersected And a,b,c? tradi if what of the world , however, is givenlittle attention as the, however, traditional, 18 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. This strategic planning process relies upon funda upon relies process planning strategic This Before you can even consider a new strategic planning planning evenconsiderBefore anew strategic you can the philosophy the the power of strategy for organization. your powerthe of strategy mental tenets of how people function as individuals individuals as of tenets howmental people function process such as this one, however, this such as process you to unlock need systems, the strengths of having a strategic focus, and and focus, astrategic of having strengths the systems, and in groups, the nature of complex nature chaotic and the groups, in and Testing Strategy Analyzing Strategic Strategic Analyzing Knowedge Gaps Developing Strategy Preparing for Uncertainty Your Way® Your Framing the Future and Finding Finding and Future the Framing of creating win-win outcomes win-win creating of The Second Phase of the process process the of Phase Second The process the of Phase First The The fourth phase of the process process the of phase fourth The is process the of Phase Third The sure the strategy you choose choose you strategy the sure offe organization’s your of ses develop an effective strategy strategy an effective develop competitive simulation. competitive with contact first withstand can stra organizational effective an Indeveloping. to order develop organization in a formal plan. aformal in organization your focus to strategy chosen your orga choose contingencies; strategic determine offerings; and competencies organizational determine critical success success critical determine uncertain business environment environment business uncertain understanding of the dynamic dynamic the of understanding mine the strengths and weaknes and strengths the mine ment and the organizations’ re organizations’ the and ment environ business the of nature systemic the address must they mentation plan in a safe, yet yet asafe, in plan mentation imple and strategy your tests phase This competition. the nizational strategy; and use your your use and strategy; nizational rings and your major competitors’ key tegy, must identify leaders tive advantage. tive the of complexity and chaos the the gaps in their organization’s in their gaps the terrain, the of knowledge nal for your organization’s competi forces. They then analyze gaps gaps analyze then They forces. driving at look and factors phase focuses on harnessing harnessing on focuses phase This future. the of scenarios pare prior to strategy development. to strategy prior your strategy’s deployment, be be your strategy’sdeployment, knowledge that must be closed closed be must that knowledge is preparing. Before leaders can can leaders Before is preparing. phase, this In is analyzing. is testing. Before investing in in investing Before is testing. in the organization’s strategic strategic organization’s the in long-term customer value; deter value; customer long-term business environment and pre and environment business close to order in it to lationships gather allleaders organizatio . ------A strategic leader is all about leverage, so here about so how leverage, is to all leader is A strategic Vision, Strategy, Goals, Mission, Objectives, and Tactics. Tactics. and Objectives, Mission, Vision, Goals, Strategy, These are the strategic planner’s primary tools. I never I never tools. planner’s thestrategic primary are These The power of strategy dates to the time before Christ before Christ time the dates to powerThe strategy of Whether you are developing organizational strategy, strategy, you developing organizational are Whether Vision you can use a coin, akey, acoin, driver use orscrew you aflat head can the one strength you choose you choose strength one the is Strategy trans.) Cleary veness of their strategic planning. My analogy is simple; simple; is My analogy planning. strategic veness of their My favorite question to ask organizational leaders and and leaders My organizational favorite to ask question Leaders need to reclaim the reward of consistent, reliable of reliable consistent, reward the to reclaim need Leaders was discovered over two thousand years ago by the by ago the years over thousand discovered two was power which Thestrategy, of real evenborn. was to rely upon to win the relationship with your customer with relationship the to rely to win upon results that can only be achieved through precise, precise, through achieved be only can that results refined through twenty years of application in every every in of application twenty years through refined screwdriver! head aPhillips is example this in which it, response for which I am looking. “Strategy” is what what is “Strategy” looking. for Iam response which increasing each other’s ability to provide organizational to provide other’s organizational each ability increasing screw, head but you aPhillips have much to unscrew results. and process organization’s planning their tegic planning tools, which are also the building blocks blocks building the also are which tools, planning tegic type of organization, every size of organization, and and of organization, size every of organization, type is not is (1991, a plan! 1988, Wee, trans; & Hidajat, Lee, get new leverage from some very familiar tools. These These tools. familiar some from get very new leverage tegy, product/service strategy, the definition is the is definition the strategy, tegy, product/service more leverage when you use the appropriatemore when the leverage you tool use to do functional definitions are designed to workare designed together, definitions functional makes a plan strategic! I also ask everyone beginning a a beginning everyone ask Ialso strategic! aplan makes Unlocking the Power Strategy of the Unlocking cease to be amazed at how people no everhave two the amazed to be cease of strategic management. These definitions have been been have definitions These management. of strategic continuous, successful, integrated application. These These application. integrated successful, continuous, proven, tools and techniques for maximizing the effecti the forproven, maximizing techniques and tools same definition of these terms, in over twenty years of of twenty in years over terms, these of definition same leverage if used precisely in the described manner described the in precisely used if leverage strategic planning session to define the following terms: terms: the following to session define planning strategic asking, and it is easy to imagine the impact this has on on has this impact the to imagine it easy is and asking, strategic?” I get all kinds of answers; but never the but never of the answers; kinds Iget all strategic?” aplan makes “What is, participants planning strategic it too! is for process determining the and same subunit strategy, market strategy, sales account stra account sales strategy, market strategy, subunit are what I call the “Functional Definitions” of key stra key of Definitions” “Functional the what Icall are ancient Chinese Strategist, Sun Tzu is that strategy Tzu strategy Sun that is Strategist, ancient Chinese › › Example: Example: your thevalue A long-term of Definition: picture the “Expediters” with our ability to speed up any up to speed ability our with “Expediters” the mechanical process with our widgets our with process mechanical from the customers point of view. customers the from organization provides now and in the future future the providesnow in and organization We will be known across the globe as as globe the We across known be will . - - - . Strategic planning and leadership: renewing the relationship to reclaim the rewards Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 19 - - Increase employee productivity incentives objectives. Definition:youThe steps your to take achieve Example: Refine widget surfacetexture Example:

› › › and strategy perceptions leaders’ of and their in role a reliable way to reclaim to a reliable way the rewards thinking of more an effective competitive strategy and implementation assets; eliminate wasted time,effort resources; and as well as differentiateorganizationyour its from although start some with goals, developing objectives, know where and if don’t then you tactics. However, are as applied defined. strategic contingencies as well. ship between Leadership and Strategic Planning and is strategically. Being better and develop deploy to able plan that can focus all organizational efforts, increase how leaders can uncertaintyhow prepare for and develop between leadership and strategic planning can help of the complex and the uncertainof complex business environment can be a thing the of past. relationship A renewed likecompetitors the blink an of eye! educators honed their honed educators craft, it and will substanbe anddeveloping maintaining competitive advantage competitionis rewarda worth reclaiming. Strategic differentorganizationalmost when from leaders and organization is the beginning relation a renewed of competitive analysis, singular and clear, strategy, your not meannot competitive advantage your grasp. is beyond makes the difference yourin futuresuccess. tially different does in the future,tomorrow, not if uncertainty, functional future, vision the of long-term goals,objectives, take and tactics very It you far. won’t their return organization’s investments on as well as the foundation of strategic knowledge, preparation for that allows theses functional definitions work to and tomorrow. Here are theHere mundane tasks tomorrow. that have if create legends to the these power functional tools is the thinking that goes your into planning process Conclusion Planning and its relationship new with Leadership is you increaseyou marketshare in seems what your to Of course “tactics” many where organizations begin, are going,you any will road take there. you Without Using a uniqueUsing and singular strategy focus to your Just because today’s business becauseJust environment is today’s very Tactics are theTactics every day activities that tie today to Tactics The The growing disconnect between characteristicsthe - - - - - To increase widget – gadget connectiTo To implement a 75% employeeimplement educa a75% To At Wadget Co., our mission Co., is deliver to Wadget At faster. Our widgets make our customers’ gadgets go stones toward your vision. realistic and time-bound activities that support holders worldwide. tion reimbursement 2012. by program January 1, which a unique represents and unchanging value. vity 10% by March 31, 2012. 31, by March vity 10% your goals. you do it. do you widgets that increase the productivity gadget of Example: Example: Definition:Specific, measurable, achievable, Example: make our widgets effective more To Example: increase employee satisfaction To Definition: General “targets” that steppingare Definition: whom for do, you you are, Who what Example: Definition:one The thingyouto upon rely can win Example: Speed

› › › › › › › › › › action and how what you do today can do action you what and take how a to you and work toward your vision, toward and relyingwork yourstra upon are working and right time. change on may now over Mission owner who is responsible for making for isowner who responsible sure the objec customers/the world cancustomers/the truly world never inspire. fact keep to everyone reminded your purpose. of tive is completed on time. on tiveis completed This is accountability in tion to thinktion to they when of think you? of tegy. Eachtegy. a single objective must have individual thing your organization. about What thing one do the organization always wants provide to be to able Objectives Goals Strategy very specific tomorrow! Objectives are how you actuallyObjectives you arehow achieveyour goals you want everyone you inside your organiza and outside Whyin are of you business? This statement simple a is The human The mind can one only reliablyremember Vision statements that focus statements the not on do Vision value Very different objectives, from goalsVery are the areasyou 20 Cuadernos Latinoamericanos de Administración » volumen VII » número 12 » Págs. 9-20 Stacie L.L. Morgan, Ph.D. References An introduction to national security processes and and processes security to national introduction An Y. with Coping M.E. &FIRSIROTU, ALLAIRE, A. Montgomery & M. E. Porter (Eds.), Strategy: Porter (Eds.), MontgomeryA. E. & M. Strategy: 1994. Week, 243(15), 15. 47- 1994,August 48. Washington, DC: Air University Press. 1988. University Press. Air DC: Washington, (6 29(8), 1-7. 1990 Sept., 30(3), 1989, 7-16. 1989, 30(3), 3-9). Boston: Harvard Business Review.1989. Business 3-9). Harvard Boston: CROSSAN, M.M. The improving organization: improving organization: The CROSSAN, M.M. wonderland. New York: in Alice L. CARROLL, KOUZES, J.M. & POSNER, B.Z. 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