Updating strategy for a high-tech world: constant change from the bottom up and the outside in

Abstract

PurposeThe purpose of this study is as follows: update the 1983 survey to determine the strategic practices being used in 2020, draw conclusions on major organizational changes since the original 1984 study and recommend how leaders could use these findings to plan for strategic change.Design/methodology/approachThis research updates an earlier study to learn how strategic planning and foresight are changing to cope with today’s high-tech world. The first author’s 1983 General Motors survey of “Strategic Planning in the Fortune 500” was updated by surveying 68 managers from 40 organizations to assess the current state-of-the-art. Results outline the leading edge of strategic practices today, illustrated by comments – from the respondents. Findings show a striking change from the earlier survey. Where strategic planning was formerly restricted to a top management function, respondents strongly think it should now include all units across the organization to form a bottom-up system. They also think it should extend to active participation from employees, customers, suppliers and other outside stakeholders. The main conclusion is that leaders should be developing the sophisticated systems that have been anticipated for many years but have rarely been practiced – strategic change from “the bottom up and the outside in.”FindingsThese results provide a rough assessment of the current state-of-the-art in strategic foresight.Research limitations/implicationsThis study is limited because the sample was not randomly selected to provide a rigorous study that permits accurate statements for a well-defined population and the sample size is modest.Practical implicationsThe first conclusion affirms that the strategic planning cycle remains the primary theoretical framework guiding strategy. However, the planning cycle is increasingly elaborated by new practices summarized in the second two conclusions described above. As noted, the need for strategic change now cuts across all organizational functions and levels. With massive change a constant, there is a move to decentralize strategy to agile units able to move quickly and hierarchical structures are being replaced with adaptive systems and innovative cultures. Managers are also broadening their methods to facilitate planning with stakeholders. Sound sources of information are considered a must and include direct communication with diverse and dissenting voices.Social implicationsWhile bottom-up systems and stakeholder management have been discussed endlessly, the time seems right to move these powerful concepts from the leading edge that remains marginalized and into the mainstream of strategic foresight and management practice. Scholars and researchers should evaluate the level of participation in these models, their effectiveness and possible improvements. Strategic managers should start implementing these changes carefully, rather than introducing emerging technologies, advanced products and other organizational changes.Originality/valueThis study replicates a landmark survey of Strategic Planning in the Fortune 500. Results show that organizations should now implement crucial changes to operate from the bottom up and the outside in.