Integrating Middle Managers in Strategic Planning Processes through Formalization

Abstract

This study identifies antecedents to the strategic role performance of middle management in strategic planning systems. We are looking at upward and downward strategizing activities (e.g. Floyd & Wooldridge, 1997) as part of middle manager's strategic role expectations and argue that the engagement in these strategic activities is affected by role ambiguity and role conflict as experienced by middle management. Our insights from a multiple case study suggest that the formalization of strategic planning processes reduces issues of role ambiguity and role conflict and therefore positively influences strategic role performance. Based on the case insights, we distinguish between two dimensions of formalizing strategic planning -- namely by formalizing outputs of this process and formalizing characteristics of the process itself. Organizations with higher formalization (especially in the process dimension) seem to be more successful in encouraging middle managers to engage in their strategic roles. In summary, our findings suggest that formal strategic planning opens the way for middle managers to have a more substantive influence on strategy development.