Approach Three: Reason-Based Planning
The third approach to strategic planning is most often associated with 20th Century organizational management. It begins with a focus on the domain of information—and, in particular, identifying the internal strengths and weaknesses of the organization, as well as the external opportunities and threats. Typically, this approach to planning is placed not in the hands of the upper level executives in the organization (as is the case with the command and symbolic approaches) but in the hands of a planning office, planning committee, the Management Information Systems office, or the Finance and Budgeting department of the organization.
The rational approach to planning can be very effective if used in an organization that is very large and in an organization that resides in a stable marketplace (or often a marketplace that this organization strongly influences or even controls). We are particularly likely to see this third approach embraced in an organization that is highly bureaucratized—in which change occurs slowly and with considerable deliberation. One of the strengths associated with the rational approach to strategic planning is that it tends to reduce failure—at least failure of major proportions. Failures are reduced not only because this approach emphasizes the formulation of realistic plans, but also because rational planning usually closely links the strategic and tactical planning of the organization. All of the tactics (often directed toward the achievement of specific objectives linked to specific initiatives) emerge from and are compatible with the strategic plan (often directed toward the achievement of programmatic goals).
While the command or symbolic leader may be out of touch with the reality of the workplace in their organization, the rational planner and leader is “in touch”—though this connection may be mostly in the form of numbers and statistics rather than actual, direct experience in the workplace. There is a tendency for rational planners to devote too much attention to calculations and not enough to commitment. This, in turn, points to one of the weaknesses of the rational planning approach. It too often leads to a plan that never gets implemented because it is not inspiring (the symbolic approach) or leads to results that are not very impressive given that the plan is not terribly innovative (the command approach).
The strength of the rational planning approach has already been noted—it is not very risky. More often “failure-avoidant” than either the command or symbolic approaches (which are more likely to be “success-oriented”), the rational approach makes sense if mistakes or failure would be very costly for the organization and its customers or clients. Rational planning makes sense in the design and construction of a new airplane or in the treatment of a seriously ill patient. You can’t afford any mistakes when flying 200 passengers across the Pacific Ocean or when treating a patient who might die if a mistake in diagnosis or treatment is made.
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