First Do No Harm: A Test of the Determinants of Negative Planning Outcomes

Abstract

Although planning is widely accepted as an important element of every human endeavour and as such the very often the starting point of any decision in the business world, the value of strategic planning systems (Spas) has been debated for over three decades. It is still not clear how planning practices, processes and content are related to organizational effectiveness. This paper presents empirical evidence that some dimensions of planning practices can result in negative outcomes (inflexibility, compliance and resource depletion) that may actually impede organizational effectiveness. Conclusions regarding planning theory are described and recommendations for designing planning systems that minimize negative organizational outcomes and enhance potential benefits are provided.

Keywords: Strategic Planning Systems and Planning Outcomes

JEL Classification: M10