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Keywords Strategic planning, Business process re-engineering, Implementation
Abstract The literature contends that the lack of strategic business planning is a major drawback in the implementation of business process initiatives such as total quaW management. In addition, it is evident that strategic planning firms achieve better performance than other firms. However, strategic planning often Jails due to problems or barriers encountered at the implementation stage. It is unclear from the limited research carried out to date what actions, if any, firms can take to minimise or eliminate these barriers. This paper examines the concept of strategic planning and identifies the barriers to its implementation. It considers the suitability of formal strategic planning as the key to eliminating or reducing implementation barriers by comparing the extent to which the barriers are experienced in formal and non-formal planning firms. Die paper also examines the extent to which the barriers are experienced by high and low performing firms.
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Introduction
Today's business environment is dynamic, complex and continually changing. In order to gain, retain or regain sustainable competitive advantage, many small firms have considered a range of efficiency or improvement related initiatives. While the rationale for these initiatives began with the need for operational efficiency, it has now evolved to include business process management (see Table I).
A clear pattern can be seen: firms began with long range planning techniques which coincided with a period of expansion, and continued with the corporate planning techniques of the 1960s-1970s. The 1980s represent the decade of organisational positioning, which was followed in the early 1990s by a period of concentration on competitive advantage, based on the maximisation of internal strengths. The balance has now moved on from efficiency based measures to a greater emphasis on meeting customer needs and ensuring customer satisfaction. However, the plethora of initiatives presents a confusing picture to small and medium sized organisations. While the majority of firms may have an interest in only one or two initiatives, it is doubtful if greater efficiency is enough in today's business environment. In any event Jarrer and Aspinwall (1999) suggest that initiatives such as...