Strategic Planning: Establishing Direction & Chaotic Strategies - Research Paper

Introduction

Strategic planning entails the element of establishing the direction of the company or a particular work unit. The process entails a complex and ongoing process of organizational change. According to Fatima, Teixeir, & Canciglieri, (2019) planning is normally aimed at producing an articulated result and is normally required when the future state the organization desires entails a set of interdependent decisions. Strategic planning entails two overarching concepts which include chaotic strategic planning and dynamic strategic planning. The following essay examines the two concepts of strategic planning, their effects, and technical definition as well as application.

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Chaotic Strategic Planning

According to Hacker, (2015) chaotic strategic planning entails moving from a region of the unknown towards the known end. Such systems are known to exhibit sensitive dependence on the initial conditions that render long-range planning as well as prediction impossible. Such a system is random, fragmented and unpredictable in nature and at times may fail but most times hails the best outcomes. Chaos theory carries the potential of contributing valuable information into the nature of the complex system in the business world. The application of the chaos theory in the management pattern tends to go against the normal practice of many organizations because many of them prefer a properly collected system.

According to Lidow, (2015) it is essential to establish the significance of the independence of the smallest parts of a system process. The components of complex systems have the tendency to fluctuate unpredictably and randomly within the context of the same system. The guiding principle of the system allows the different parts to cohere into predictable and definite forms over time. This is in contrast to what many believe in the chaos theory as that which has no order. Chaotic movements normally contain limited boundaries that control the capacity of the infinite possibility.

Dynamic Strategic Planning

Jones & Harris, (2014) posit that dynamic strategic planning entails continuous change, is non-linear in nature and contains emerging patterns. The traditional approach to strategic planning has generally become obsolete in the modern world because the business has quickly become a fast-paced endeavor (Lanier, 2014). Formulation of a dynamic plan allows the organization to respond rapidly and creatively to new and emerging trends in business and also helps in solving everyday challenges within the organization. Soularda et al., (2018) posit that traditional approaches to strategy do not work because few of the employees understand their roles and duties on the workplace and know how to go about attaining the goals of the organization.

Overall, dynamic strategic planning and chaotic strategic planning are two methods of planning that go against the norms of strategy creation and execution. Whereas chaotic is random, fragmented and unpredictable, dynamic remains non-linear, has emergent patterns and supports continuous change. Both strategies go against the traditional forms which are orderly, predictable, linear and follow the methods of cause and effect. Some companies can select both methods depending on the type that best works for them and also depending on the model of the organization.

References

Fatima, G., Teixeir, G., & Canciglieri, O. (2019). How to make strategic planning for corporate sustainability? Journal of Cleaner Production, 230(1), 1421-1431. doi.org/10.1108/SD-02-2017-0038

Hacker, S. K. (2015). The power of a reference marker as a leadership strategy. The Journal for Quality and Participation, 38(3), 4. doi.org/10.1108/17515631111185950

Jones, M., & Harris, A. (2014). Principals leading successful organizational change: Building social capital through disciplined professional collaboration. Journal of Organizational Change Management, 27(3), 473-485. doi:10.1108/JOCM-07-2013-0116

Lanier, J. (2014). Innovative simplicity in strategic planning for lower middle-market private equity portfolio companies. Leadership Advance Online, 26, 1---17.

Lidow, D. (2015). Creating a personal leadership strategy. Leader to Leader, 2015(75), 37-42. doi:10.1002/ltl.20164

Soularda, J., Knollenberg, W., Boley, B., Perduea, R., & Gard, N. (2018). Social capital and destination strategic planning. Tourism Management, 69(1), 189-200.doi. 10.1016/j.tourman.2018.06.011