The roles of formal strategic planning

Abstract Although opinion concerning the value of formal strategic planning is far from unanimous, there seems to be no doubt that many managers find it extremely useful—even essential. But what is it useful for? Based on three case studies, this paper suggests that formal strategic planning can play a variety of important and useful roles peripheral to the strategy development and implementation process—roles which we label ‘public relations’, ‘information’, ‘group therapy’ and ‘direction and control’. On the other hand, planning on its own cannot produce strategic vision and direction in an organization where this is lacking.