How did strategic planning help during the economic crisis?

Abstract

Purpose

The purpose of this paper is to understand the extent to which organizations were prepared for the economic crisis, the nature of responses, and factors that might explain preparedness and modes of response.

Design/methodology/approach

The survey conducted in July 2009 and sponsored by the Association for Strategic Planning, sampled 190 US managers involved in strategic planning within organizations. The survey assessed the role strategic planning played during the recent financial crisis.

Findings

Key findings include: organizations that used strategic planning to make critical decisions were better able to pursue growth opportunities during the crisis; and organizations that relied on strategic planning during the crisis are more confident about their prospects for near‐term growth.

Research limitations/implications

Repeating this protocol for a sample of executives who have not taken a particular interest in strategic planning as a discipline would create more confidence that the conclusions can be generalized.

Practical implications

The paper suggests to organizations that an embrace of strategic planning in the form of having a regular process, a senior leader in charge, and involving the entire leadership team makes a significant difference in optimism and future outlook.

Originality/value

The results suggest that an organization's trust and confidence in strategic planning as a decision‐making discipline is a stronger indicator of potential success than the adoption of any particular strategic planning technique or principle.

Citation

Wilson, J.W. and Eilertsen, S. (2010), "How did strategic planning help during the economic crisis?", Strategy & Leadership, Vol. 38 No. 2, pp. 5-14. https://doi.org/10.1108/10878571011029000