5 Steps Planning

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

 

Summary
5 Steps Planning

What is 5 Steps Planning? Meaning.

5 Steps Planning is is a Formal (Deliberate) Planning Process used for strategic planning.


The concept of the Five Steps formal strategic planning process has been developed by J.S. Armstrong in his 1982 article “The Value of Formal Planning for Strategic Decisions”, Strategic Management Journal, Vol. 3.

The author started examining the efficacy of well-known planning approaches such as Porter’s 5 Forces, SWOT Analysis, Ashridge Mission Model, Experience Curve Model, Scenario Planning, BCG Matrix, McKinsey Matrix, beside performing a review of management literature on corporate planning.

While Armstrong found that many companies of all sizes are using such tools, he did not find much evidence of a guaranteed success with their use of a formalized approach to Strategic Planning. After having carried out research on many companies, and having completed 28 validation studies to evidence his early hypothesis, Armstrong explained his simple approach to formal strategic planning and underlined under which circumstances it might work well.


The five process steps are:

  1. Set Objectives for the long run.

  2. Generate Alternative Strategies.
  3. Evaluate alternative strategies by comparison.
  4. Monitor strategies implementation and results.
  5. Obtain a high level of commitment among the Stakeholders during each step of this process.

In order to be effective, any formal planning approach requires certain circumstances or situations, as evidenced by Armstrong:

  1. Major changes in a company structure such as Mergers or Acquisitions, big marketing changes or New Product Development.
  2. A period of strong Uncertainty such as when companies are faced with a relevant Crisis, or during important economical or political changes.
  3. Companies competing in highly inefficient markets.
  4. Projects characterized by a high level of complexity, where a synergic collaboration is required from different parts of an organization.

According to Armstrong, only under such circumstances a formal approach to strategic planning can be effective for a company success. In all other situations it is advisable to adopt a Flexible or Emergent Strategy.


Special Interest Group

Join

5 Steps Planning Special Interest Group.



Special Interest Group (3993 members)

Forum

New Topic

Forum about 5 Steps Planning.


MONITORING in 5 Steps Planning
The 4th step, Monitoring, requires having control and being able to move to reinforce what is working and adjust what is (...)
9
 
3 reactions
The Need for Planning Alternative Strategies
This could include a "Contingency Plan" or a "Plan B" (in case plan A goes wrong). Also there should be a "cushion" fac (...)
6
 
0 reactions
🔥 NEW Give 'Equal' Commitment to All Stakeholders in Strategic Planning Process
In all steps of the strategic planning process, the stakeholders' commitments not only need to be high, but also be give (...)
5
 
3 reactions
Best Practices

Sign up

The top-rated topics about 5 Steps Planning. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Sign up

Advanced insights about 5 Steps Planning. Here you will find professional advices by experts.


Information Sources

Sign up

Various sources of information regarding 5 Steps Planning. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Top 5 Strategy Pitfalls

Strategy Errors, Strategy Traps, Strategy Barriers, Strategic Planning, Strategy Process
Strategy is complex and companies are making many mistakes while working on it. Stuart Cross identified 5 frequent strat (...)

Introduction to Strategic Planning and The ABCDE Model

Strategic Planning, ABCDE Model, SWOT Analysis, Corporate Mission, Strategic Vision
Good overview presentation that also describes a 5-step strategic planning model (ABCDE). Following the steps in this st (...)

7 Steps for Creating a Strategic Business Plan

Strategic Planning, Strategic Management, Business Planning, Business Plan
Presentation about strategic planning and business planning, including the following sections: 1. What is a business pl (...)
NewsVideosPresentationsBooksMore

Special Interest Group

Are you interested in 5 Steps Planning? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:

 
 

Return to Management Hub: Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our 5 Steps Planning summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.7 - Last updated: 28-1-2021. All names ™ of their owners.