The Practice and Process of Delivering Integration Through Strategic Planning

This paper explains how strategic planning is able to deliver strategic integration within organizations. While communication and participation within planning processes are perceived to have an integrative effect, we argue that these effects are unlikely to arise simply from bringing people together. Rather, we suggest that, given the varying interests of actors in different business units, integration will only arise from active negotiations and compromises between these actors. The paper is based upon a case of strategic planning in a multinational that was attempting to develop greater strategic integration across Europe. Drawing upon an activity theory framework, we examine how a common strategy emerges over time through modifications to the planning process and to different actors' roles within it. The findings are used to develop a process model that shows how different business unit characteristics of planning experience and relative power shape different experiences of communication and participation activities and different processes for achieving integration. The paper concludes with a discussion of how this process model contributes to the literature on strategic planning, political processes of strategy-making, and strategy-as-practice.

[1]  G. Lynn,et al.  Marketing and Discontinuous Innovation: The Probe and Learn Process , 1996 .

[2]  Steven W. Floyd,et al.  Middle Management’s Strategic Influence and Organizational Performance , 1997 .

[3]  J. Kotter Leading change: why transformation efforts fail , 2009, IEEE Engineering Management Review.

[4]  F. Blackler KNOWLEDGE AND THE THEORY OF ORGANIZATIONS: ORGANIZATIONS AS ACTIVITY SYSTEMS AND THE REFRAMING OF MANAGEMENT* , 1993 .

[5]  Robert A. Burgelman,et al.  Strategic Dissonance , 1996 .

[6]  Steven W. Floyd,et al.  Strategic process effects on consensus , 1989 .

[7]  Saku Mantere,et al.  On the Problem of Participation in Strategy: A Critical Discursive Perspective , 2008, Organ. Sci..

[8]  Y. Doz,et al.  Strategy process research: Focusing on corporate self‐renewal , 1992 .

[9]  Frank Blackler,et al.  Organizing Processes in Complex Activity Networks , 2000 .

[10]  Veronica Hope Hailey,et al.  Managing Change across Boundaries: Boundary-Shaking Practices , 2005 .

[11]  H. Simon,et al.  On the concept of organizational goal. , 1964 .

[12]  Victor Kaptelinin,et al.  Acting with technology: Activity theory and interaction design , 2006, First Monday.

[13]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[14]  Julia Balogun,et al.  Three Responses to the Methodological Challenges of Studying Strategizing , 2003 .

[15]  J. Dutton,et al.  THE CREATION OF MOMENTUM FOR CHANGE THROUGH THE PROCESS OF STRATEGIC ISSUE DIAGNOSIS , 1987 .

[16]  S. Floyd,et al.  The Middle Management Perspective on Strategy Process: Contributions, Synthesis, and Future Research , 2008 .

[17]  David Marginson,et al.  Management control systems and their effects on strategy formation at middle‐management levels: evidence from a U.K. organization , 2002 .

[18]  Julia Balogun,et al.  From Intended Strategies to Unintended Outcomes: The Impact of Change Recipient Sensemaking , 2005 .

[19]  Rune Lines,et al.  Influence of participation in strategic change: resistance, organizational commitment and change goal achievement , 2004 .

[20]  A. Langley Strategies for Theorizing from Process Data , 1999 .

[21]  Andrea Omicini,et al.  Coordination And Collaboration Activities In Cooperative Information Systems , 2004, Int. J. Cooperative Inf. Syst..

[22]  T. Andersen Strategic Planning, Autonomous Actions and Corporate Performance , 2000 .

[23]  P. Jarzabkowski,et al.  Strategizing: The challenges of a practice perspective , 2007 .

[24]  T. Clark,et al.  Within and Beyond Communities of Practice: Making Sense of Learning Through Participation, Identity and Practice , 2006 .

[25]  Nicola Beech,et al.  Strategy, strategists and fantasy: a dialogic constructionist perspective , 2011 .

[26]  K. Eisenhardt,et al.  Politics of Strategic Decision Making in High-Velocity Environments: Toward a Midrange Theory , 2007 .

[27]  L. Melin,et al.  Strategy as Practice: Research Directions and Resources , 2007 .

[28]  Barbara Austin,et al.  The Rise and Fall of Strategic Planning , 1994 .

[29]  Laura B. Cardinal,et al.  Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research , 1994 .

[30]  Nalaji S. Chakravarthy,et al.  Managing the strategy process : a framework for a multibusiness firm / Balaji S. Chakravarthy, Peter Lorange , 1991 .

[31]  D. Schweiger,et al.  Building Commitment, Attachment, and Trust in Strategic Decision-Making Teams: The Role of Procedural Justice , 1995 .

[32]  J. Balogun,et al.  Three responses to methodological challenges of studying strategising , 2002 .

[33]  P. Adler The Evolving Object of Software Development , 2005 .

[34]  C. Hardy,et al.  Discourse as a Strategic Resource , 2000 .

[35]  S. Floyd,et al.  The strategy process, middle management involvement, and organizational performance , 1990 .

[36]  R. Grant Strategic planning in a turbulent environment: evidence from the oil majors , 2003 .

[37]  A. Michael Huberman,et al.  An expanded sourcebook qualitative data analysis , 1994 .

[38]  Ian Wilson,et al.  Strategic planning isn't dead— it changed , 1994 .

[39]  Peter J. Lane,et al.  Strategizing Throughout the Organization: Managing Role Conflict in Strategic Renewal , 2000 .

[40]  Kirsten A. Foot,et al.  Pursuing an Evolving Object: A Case Study in Object Formation and Identification , 2002 .

[41]  Frank Blackler,et al.  Power, mastery and organizational learning. , 2000 .

[42]  S. Floyd,et al.  RESEARCH NOTES AND COMMUNICATIONS STRATEGIC PROCESS EFFECTS ON CONSENSUS , 1989 .

[43]  F. Blackler Knowledge, Knowledge Work and Organizations: An Overview and Interpretation , 1995 .

[44]  Manuel Boutet Acting with Technology. Activity Theory and Interaction Design, Victor Kaptelinin, Bonnie A. Nardi. The MIT Press, Cambridge (2006). 333 pp. , 2008 .

[45]  Utz Schäffer,et al.  Strategic Planning as a Learning Process , 2003 .

[46]  P. Jarzabkowski Strategy as Practice: Recursiveness, Adaptation, and Practices-in-Use , 2004 .

[47]  Wanda J. Orlikowski,et al.  Using Technology and Constituting Structures: A Practice Lens for Studying Technology in Organizations , 2000, Theory in CSCW.

[48]  E. Guba,et al.  Naturalistic inquiry: Beverly Hills, CA: Sage Publications, 1985, 416 pp., $25.00 (Cloth) , 1985 .

[49]  P. Béguin,et al.  Instrument mediated activity: from subject development to anthropocentric design , 2005 .

[50]  R. Miettinen,et al.  Epistemic Objects, Artefacts and Organizational Change , 2005 .

[51]  J. Lave,et al.  Understanding Practice: Perspectives on Activity and Context , 1996 .

[52]  Leif Melin,et al.  The promise of the strategy as practice perspective for family business strategy research , 2010 .

[53]  L. Melin,et al.  Micro Strategy and Strategizing: Towards an Activity‐Based View , 2003 .

[54]  A. Pettigrew Longitudinal Field Research on Change: Theory and Practice , 1990 .

[55]  C. Bartlett,et al.  Managing across Borders , 2003 .

[56]  Robert A. Burgelman A Process Model of Internal Corporate Venturing in the Diversified Major Firm , 1983 .

[57]  R. Evered,et al.  Alternative Perspectives in the Organizational Sciences: “Inquiry from the Inside” and “Inquiry from the Outside” , 1981 .

[58]  J. McCann Strategies for Change: Logical Incrementalism , 1980 .

[59]  J. Driscoll Trust and Participation in Organizational Decision Making as Predictors of Satisfaction , 2011 .

[60]  A. N. Leont’ev,et al.  Activity, consciousness, and personality , 1978 .

[61]  F. Westley Middle managers and strategy: Microdynamics of inclusion , 1990 .

[62]  Liam Fahey,et al.  The Micro-Politics of Strategy Formulation1 , 1982 .

[63]  P. Jarzabkowski Shaping Strategy as a Structuration Process , 2008 .

[64]  Darrell Rigby,et al.  Management tools survey 2003: usage up as companies strive to make headway in tough times , 2003 .

[65]  P. Lorange,et al.  Strategic Planning in Diversified Companies , 1990 .

[66]  Paula Jarzabkowski,et al.  Strategic Practices: An Activity Theory Perspective on Continuity and Change , 2003 .

[67]  J. Duberley,et al.  *Change, Change or Be Exchanged: The Discourse of Participation and the Manufacture of Identity , 2007 .

[68]  I. MacMillan,et al.  Strategy implementation versus middle management self-interest , 1986 .

[69]  J. Liedtka Strategic planning as a contributor to strategic change: a generative model , 2000 .

[70]  R. Suddaby From the Editors: What Grounded Theory is Not , 2006 .

[71]  Xavier Castañer,et al.  Strategic Planning as an Integrative Device , 2004 .

[72]  Y. Engeström,et al.  Perspectives on activity theory: Play, learning, and instruction , 1999 .

[73]  J. Balogun,et al.  Organizational Restructuring and Middle Manager Sensemaking , 2004 .

[74]  Saku Mantere Role Expectations and Middle Manager Strategic Agency , 2007 .

[75]  Y. Engeström,et al.  Developmental studies of work as a testbench of activity theory: The case of primary care medical practice , 1993 .

[76]  M. Beer,et al.  The Silent Killers of Strategy Implementation and Learning , 2000 .

[77]  Wanda J. Orlikowski,et al.  Improvising Organizational Transformation Over Time: A Situated Change Perspective , 1996, Inf. Syst. Res..

[78]  Peter J. Brews,et al.  Learning to plan and planning to learn: resolving the planning school/learning school debate , 1999 .

[79]  Barbara R. Bartkus,et al.  Mission statements: Are they smoke and mirrors? , 2000 .

[80]  Linda Rouleau,et al.  Micro-Practices of Strategic Sensemaking and Sensegiving: How Middle Managers Interpret and Sell Change Every Day , 2005 .

[81]  R. Whittington Completing the Practice Turn in Strategy Research , 2006 .

[82]  L. S. Vygotskiĭ,et al.  Mind in society : the development of higher psychological processes , 1978 .

[83]  Alex Kozulin,et al.  Vygotsky's Psychology: A Biography of Ideas , 1990 .

[84]  Richard Whittington,et al.  The Crafts of Strategy: Special Issue Introduction by the Guest Editors , 2008 .

[85]  T. Andersen Integrating Decentralized Strategy Making and Strategic Planning Processes in Dynamic Environments , 2004 .