Is Department-Based Strategic Planning more Effective than Organization-Wide Strategic Planning?: Empirical Evidence from Senior Managers

Abstract

This study examines the differences in department-level and organization-wide strategic planning efforts. Although much has been written about organization-wide planning, little empirical data exist on similar efforts at the departmental level. Although some research suggests that unit-level planning may allow departments to establish more appropriate priorities or create effective solutions that then percolate up to higher levels of the organization, other studies have argued that the lack of centralized, organization-wide coordination may actually result in suboptimal planning outcomes. This study addresses this paradox by using data collected from a national mail survey and personal interviews of senior managers. It suggests that although some aspects of strategic planning are perceived similarly at both levels, differences exist in relation to perceived levels of (a) conflict and cooperation, (b) innovation and empowerment, (c) support for the planning effort, and (d) change created through strategic planning.

Keywords:

• decision-making structures
• mail survey
• organizational strategic planning efforts
• strategic planning