Strategic Innovation: A Lifeboat for Planning in Turbulent Waters

Reminds us that strategic planning has been widely advocated in the management literature but points out that studies of its actual effect on performance have been sparesely and selectively reported. Reconsiders the question of whether strategic planning really does contribute to business success in today′s dynamic and turbulent environments. Highlights the adversarial positions in this debate, as personified by management writers Michael Porter and Tom Peters. Finds the results of a meta‐analysis of empirical evidence to be inconsistent and confusing and, as a result, proposes the use of a contingency approach for modelling the planning‐performance relationship. Illustrates the growing importance of technological sophistication as a contingency factor by considering the author′s own research. Considers that a strategic innovation paradigm, which creates a synergy between formal planning and action‐based learning, is appropriate for surviving and navigating increasingly turbulent waters. Uses this new paradigm as the basis for offering practical guidance to general managers.