Before moving to the final approach to planning, I will identify the major leadership challenge associated with the transaction-based approach to planning. This challenge concerns the value inherent in the involvement of all members of the organization (or at least all members of the planning group) in reflective practice. This type of analysis and organizational learning requires a level of cognitive sophistication that may not be found in all members of an organization. Is the transactional leader simply naïve in assuming that people really want to learn from their mistakes and are willing to redo their carefully prepared action plans if the actions that are eventually taken reveal a flawed plan? In some ways the fourth (transaction-based) approach to planning is a postmodern, 21st Century version of the third approach—it pushes the envelope with regard to creation of a learning organization.
Approach Five: Generative-Based Planning
The fifth and final approach to strategic planning can be considered a 21st Century, postmodern version of a command-based approach to planning (Approach One). While the fourth approach requires a relatively stable environment and works best in a fairly large organization, the fifth approach is quite entrepreneurial (like the first) and works most effectively when the environment is unstable (a common phenomenon in the 21st Century) and when the organization is relatively small or at least very nimble. There is a strong emphasis in this approach, as the name implies, on generativity—producing something, learning by doing, trying it out, “letting it all hang out.” Risk-taking and pilot-testing reside at the heart of this approach. It truly challenges the internal courage of the postmodern leader. Rather than spending much time talking about or conceiving an idea, or spending much time clearly articulating desired outcomes (intentions), or conducting a needs assessment or conducting a market survey (information), generative leaders try something out in a small, controlled setting. This pilot test can produce substantial and highly tangible information for them about the real needs and interests of the market they are surveying and a much clearer sense of what they can realistically expect with regard to desired outcomes.
As in the case of the fourth approach, attention is given in the fifth approach to learning-after-implementation. An idea is tried out and careful attention is given to what occurs. Rather than devoting a substantial amount of time up front to planning, a generative leader spends time after the initial offering or pilot test in determining what worked, why it worked and what modifications need to be made in the near future to make it work more effectively, more efficiently or in a more attractive manner (given the market to which this product or service seems to appeal). It is critical when the fifth approach is engaged to create or find a safe place in which the new idea can be pilot-tested. Newly-designing airplanes are tested out in wind tunnels. Something equivalent to a wind-tunnel must be created when testing out a new product or service under generative planning guidelines.
This highly entrepreneurial approach is simultaneously action-oriented and quite reflective (after the initial action). It makes sense in a highly turbulent environment, for one must act quickly and learn quickly to keep up with the shifting conditions. It is not enough to create a learning organization (as is the case with the fourth approach), one must create a fast-learning organization—which is even more challenging in terms of cognitive flexibility and willingness to learn from mistakes (as well as successes). This ultimately is the major leadership challenge of the fifth approach: how to create this fast learning climate in the organization.Download Article 1K Club