Is strategic planning still valid and effective for contemporary organizations?

Fischmann, A. A; Almeida, M. I. R. . (2018). Planejamento Estratégico na Prática (3a ed, 155 p.). São Paulo, SP: Editora Atlas. ISBN: 9788597016260.

Keywords:
Strategic planning; Strategic programming; Strategic thinking

About thirty years ago, Mintzberg (1994) pointed out that a strategic plan could not be the only foundation to an organizational strategy. Some scholars mistakenly interpreted that the author had speculated on the extinction and obsolescence of strategic planning. However, Mintzberg argues that, when intending to have strategic planning, stakeholders “[...] cannot enter a room and leave with a ready strategy”, because this is called “Strategic Programming” and not planning (Teixeira, 2012, p. 31). In this case, Mintzberg is not the only one. George, Walker, and Monster (2019) advocate that strategic planning has been criticized for inhibiting strategic thinking on many occasions and organizations. Based on this, would the book reviewed be a counterpoint to the ideas advocated by Mintzberg and other authors?

About the authorship of the reviewed work, Adalberto Americo Fischmann is graduated, Ph.D. and full professor in Business Administration from FEA-USP, where he works as a Titular Professor and has already worked there as a director and general controller. Martinho Isnard Ribeiro de Almeida it is also a master and doctor from FGV EAESP and full professor in Business Administration from FEA-USP. He works at this institution as an Associate Professor, holding positions as coordinator of the Professional Master’s Program and president of the Postgraduate Commission of FEA-USP. The book is divided into thirteen chapters and an annex with recommendations for professors on possible work, teaching cases and exercises to be used in the classroom.

Strategic planning, as an organizational tool, seems to be a facilitator, guide, and accelerator of changes in business management (Teixeira & Canciglieri, 2019). This perception appears in the work reviewed, from beginning to end. In order to better understand it, a possible criticism of the work is that it could have been elaborated from the perspective of four sections. These sections considered here do not appear in the original book.

In section 1, which brings together chapters 1 and 2, the characters of the story are presented, which involve the reader, in order to generate interest in the continuity of the reading. They are: José, the owner of Atacado São Jorge; his two sons, João and Antonio, who start to increasingly occupy relevant roles, with greater decision-making with the application of concepts on the subject, which, consequently, favors the maturation of the business; and Dr. Carlos, the business consultant and university professor, hired to collaborate and awaken in the owner the desire to promote professional management, with a focus on training and the long term. This section brings the main concepts used on Strategic Administration in the academic and professional fields, highlighting the importance, for an organization, of carrying out a long-term planning. Business strategy, regardless the organization type, is presented as a factor for greater effectiveness and expressiveness of results (Magalhães & Paes-de-Souza, 2018).

In section 2, from chapters 3 to 9, the characters’ dilemma begins to be explored: (i) the natural resistance to the new; (ii) the concern with changes and with new ways of positioning itself in its environment and how to lead the company itself; (iii) how to establish the steps of the tool suggested by the consultant and change the mental model of the current management. As a suggestion, the book discusses the realization of an inventory and activities, with its listed steps and detailed descriptions of its execution. It invites the reader to think about risk perspectives and circumstances in which any company is inserted: strengths and weaknesses; threats and opportunities, factors that figure between the control and lack of mastery of the entrepreneur. From chapters 7 to 9, the steps that precede the implementation of strategic planning in a company are discussed: evaluations, environments, strategic direction, determination of objectives and organizational goals.

Section 3, perceived in chapters 10 and 11, begins with the characters’ concern about the implementation of a Strategic Plan. At this point, the authors themselves clarify that “[...] in order to carry out a strategic plan, the previous tasks must have already been worked on” (Fischmann & Almeida, 2018, p. 113), aiming that the document can be properly accepted. Above all, it inflates the fact that it is the change in attitude about previously entrenched habits that will allow the adoption of strategic thinking, not the tool itself. The authors clarify a common academic doubt among students: the difference between Strategic Management and Strategic Administration (Fischmann & Almeida, 2018). This section ends with the encouragement of the reader to reason about the use of the content present in the previous sections for the promotion of strategic management and administration.

Finally, section 4 indicates some particularities of companies that use this management tool and timely recommendations so that, in practice, the student and/or the reader can introduce and apply the concepts brought in the work, to the reality of a company. This content is found in chapters 12 and 13.

There is a beneficial attribution of the book in bringing, at the end of each chapter, a theoretical outline after the characters’ story and a series of inquiries, in question format, as a recapitulation resource for the reader or for the application in the classroom by the professor and /or facilitator. The book seems to fit more as a complementary reference in undergraduate or graduate studies, including technical courses or organizational training.

Would strategic planning be an obsolete tool that would tend to be eliminated from the business environment, according to the initial provocation in this text? Neither Mintzberg (1994) himself defended this argument, nor the growing academic (Rubenstein, Callan, Ridgley, & Henderson, 2019) and professional (Rigby & Bilodeau, 2018) interest point to it. Mintzberg preserves the thought that “[...] strategy does not come from a formal planning process”, but from “[...] a learning process” (Teixeira, 2012, p. 31). Since 1970, as a process, strategic planning has been disseminated, widespread, institutionalized and presented as one of the models of greater organizational application, despite presenting “a rupture with management standards” (Machado-da-silva & Vizeu, 2007, p. 98), which can be proven by the Management Tools & Trends ranking, promoted, and edited by the consulting firm Bain & Company (Rigby & Bilodeau, 2018). George, Walker, and Monster (2019) signal, above all, that strategic planning is a successful practice in public and private organizations and that it has positive consequences for organizational performance. Therefore, the ideals of Mintzberg’s work, other international authors and Fischmann and Almeida (2018) complement each other. All described visions focus on the applicability and validity of the implementation of strategic planning, in the attitude and capacity of the entrepreneur and/or manager to involve employees and other stakeholders. First of all, it is a tool that can be an opportunity to change the mental and progress model to define what is relevant to organizations and people who are in it for a long term (Calvosa, 2020).

The main theoretical contribution of the book to the reader and to the scenario of micro and small companies is the view that administrative theories may not be far from being applied in their entrepreneurial initiative, in their business or in their management. The reader does not need, specifically, to be a student of Administration to follow the script suggested in the book and apply the concepts to their reality. A part of the current generation of undergraduate students or young readers, under 25, according to Putriastuti and Stasi (2019), do not inspire themselves, do not feel sheltered or do not believe that they are understood by theories that represent them or reproduce their professional aspirations and their existential conflicts. Thus, the work, as it is not impregnated with theories, attempts to label stereotypes or genre classification, can achieve greater representation and establish more timely communication.

In my critical analysis, the book’s main practical contribution to the Strategic Planning topic is the use of the storytelling narrative, merging important theories and concepts of Strategic Administration, with events, characters, conflicts, and interests that bring the reader close. I believe it is the only book on the subject, in Portuguese at least, with this much-desired teaching strategy in dynamic educational environments, which allows a better reflection of the student and improves the learning process. The use of stories and reflection through self-applicable metaphors may stimulate the desire to act and attitude changes in the professional training of individuals (Moller-Skau & Lindstol, 2022).

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• [Translated version] Note: All quotes in English translated by this article’s translator.

Publication Dates

• Publication in this collection
  08 May 2023
• Date of issue
  Mar-Apr 2023

History

• Received
  19 Jan 2022
• Accepted
  14 Mar 2022