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Where Plans Work
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Where Planning Works
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Where Planning Works

The success of good planning is limited by an organization's span of control. The most valuable strategic planning takes place within the organization, not on its competitive frontiers.

Strategic planning is only possible where people are working together. It is also necessary. Planning allows organizations to duplicate their internal processes and perfect them. Planning allows different organizations to work together efficiently.

Sun Tzu's strategic perspective is useful in strategic planning, but planning requires other skills as well. Planning requires developing a series of steps to produce a well-defined result. You plan for what you can control. Planning requires people working together. It assumes control of resources, tools, and raw materials. In the science of strategy, we call this "a controlled environment." Factories, offices, and supply chains are controlled because everyone agrees on the goals and responsibilities.

Planning in controlled environments is not only useful but necessary. In controlled environments, plans are shared to eliminate waste and improve efficiency. People working at one stage in the process know what to expect from earlier stages. Each stages input and output can be measured. The planned steps results in a predictable outcome. Control means that production meets prediction as planned.

Planning for controlled environments is so predictable that it would be nice to think that everything can be controlled. Unfortunately, even in a perfect world, as plans extend outside of the organization, planning works less and less predictably.

We try to plan for environments that are outside of our control. We have marketing plans, sales plans, purchasing plans, and so on. We base our plans on past results and our future hopes, and, when working with large groups of people, past results have a certain momentum going into the future. However, if we are wise, we still plan for the worst as well as the best.

This is boundary beyond which an organization's and each individual's strategic reflexes become more important. Read on...

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