Decision Making Typologies in Strategic Planning

Most companies have ambitious plans for growth and few ever realize them. According to Zook and Allen, it is reported that between 1988 and 1998, seven out of eight companies in a global sample of 1,854 large corporations failed to achieve profitable growth. That is, these companies were unable to deliver 5.5% annual real growth in revenues and earnings while earning their cost of capital. Yet 90% of the companies in the study had developed detailed strategic plans with much higher targets. It is widely agreed that the rate of change in many industries is faster than ever before. Strategic planning claims to be the most significant element for the growing uncertainty in corporate all around the world. Strategic decisions are, in addition to strategy maker plans, made on a day-to-day basis closer to the companies markets. In order for the decisions made by individual employees to be strategically coherent it is necessary that the employees develop a shared understanding of some of the basic assumptions and concepts affecting their business environment. The way strategy decisions are made throughout an organization has vital consequences for vision or achieving profitable growth. Dynamic strategic planning tools provide a discussion and decision environment for strategy makers and strategy planners.