Strategic planing essay on: Innovation and strategic planning in organizations
Globalization and fierce competition has led to increasing emphasis on NPD (New Product Development). Projects related to NPD can increase the performance of the firm. For NPD projects to succeed, it is required by the organization to make the use of strategic planning in such a way so as to attain competitive advantage in the market. Strategic planning is important for innovation and strategies for the new product (Reid and Hinkley 2007).
When an organization does formal strategic planning, it not only enables the company to set the level and direction of resources for the which are required to be devoted for acquisition and integration of new product development knowledge from both outside and inside of the organization, but also enhances the positive synergy effect between the skills and the resources that are expended for activities of new product development (Kuhn and Marsick 2005).
Moreover, strategic planning helps in reduction of uncertainty and risk associated with decision making of NPD projects because it compels the organization to review the decision alternatives in light of various business environments. In strategic planning, there are well organized routines and frameworks under which NPD projects have to carry on their work. It leads to reduction of time consuming as well as wasteful activities in NPD projects. Thus, the firm can initiate more NPD projects with enhanced cooperation (Song et al 2011).
However, there are certain factors in strategic planning that may reduce the number of NPD projects. Firstly, planned strategies cannot handle unexpected jolts and shocks that happen during the process of NPD. Secondly, it prevents employees from being innovative as there are rigidities and less flexibility in the structure and routines set under strategic planning. Thirdly, there can be no precise planning in advance entrepreneurial and innovative initiatives in the NPD projects.
However, strategic planning can be positive for large sized firms which have abundant research and development resources. When a firm has abundant R&D resources, and they are deployed for NPD projects, it acts as a motivating factor for employees for acquiring, collecting and gathering data and information related to technical knowledge and customer knowledge. Therefore, despite the fact that there is adverse relationship between the strategic planning and number of NPD projects, management of strategic planning for generating NPD ideas is beneficial to the organization in terms of ultimate outcome of increased performance of the firm (Song et al 2011).
Organizations do effective strategic planning for innovation out of two models for innovation. First model is the conservative model which states that innovation occurs only out of necessity. When there are serious challenges and stabilities in the market environment, and the resources and capability of the organization are adequate for innovation, then only the firm goes for innovation projects. The second model is the entrepreneurial model which states that entrepreneurship is the natural state of affairs. In this model, goals and strategies are considered as key impetus to innovation by the firm rather than the business and market environment, and structure (Miller and Friesen 1982).
It is necessary that stagnating firms should bring upon remedial efforts for speeding up the efforts of innovation, but under strategic planning it must also be ensured that innovation does not become an end or final destination in itself. Innovation momentum should be such that it does not outstrip the ability of the organization to pay (Miller and Friesen 1982).
Driving Change: Critical Approaches
Organizations are operating in a constantly changing and dynamic environment. There is presence of certain discontinuities in the market environment often coming up with financial crisis and political unrest. Change is a ubiquitous phenomenon that has no boundaries. The sites of change in an organization include identities, processes of the organization, inter-organizational fields, and societal processes. The identity of employees becomes a site of struggle in change management. Employees actively oppose the initiatives taken at the managerial level and the identities which come with them (Josserand et al 2006).
In organizational processes, there is shift from simple control to technical control to later bureaucratic control and then to normative control. Inter-organizational fields show that social movements play a critical role in the changing organizations (Morgan and Spicer 2009). In regards to transition from bureaucratic to post-bureaucratic change in organizations, there are some difficulties in change of role identities in the changing organization. They occur because of the following reasons: difficulties in role invention, differences in role perception, philosophy of organization towards strategic HRM, difficulty in development of new networks, and role conflicts and sticky identities (Josserand et al 2006).
In order to cope with change in an effective manner, good planning is a prerequisite for learning organizations. Planning should be done on how to disperse power in the organization in an orderly manner so that the bureaucracy can be replaced by visions, values and aspirations. Systematic understanding is another key attribute for coping with change in an effective manner (Josserand et AL 2006). Conversation is the third attribute which is required by bureaucratic organizations to face contentious issues, such as, conflict between two worthwhile principles. Voluntary followership is another attribute that is required to be planned for the successful transition of the bureaucratic organization into post bureaucratic one. It is necessary because most of the leaders of the bureaucratic organization don’t give importance to voluntary followership. They usually think in terms of control. Therefore, it is necessary to have strategic planning and strategic conversations in place to facilitate change management in the organization (Payne 2005).
If the organization has to move decisively towards its vision of change, it has to develop a unique consciousness which is specifically designed for the purpose of attaining the vision of the organization. But, this unique consciousness of the organization is dependent on the consciousness of its people, which makes collective consciousness necessary for effective change management. There will be confusion in the organization if there is no shared understanding (The Learning Organziation 2011).
If you want Strategic planning Assignment Help study samples to help you write professional custom essay’s and essay writing help.
Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.
To get more information, please contact us or visit www.myassignmenthelp.Com
