The Strategic Planning Process and its Context: The Role of Psychological Type

Abstract

This article reviews the literature concerning contextual factors affecting configuration of the strategic planning process. The potential role of managers' psychological type (MBTI) as a determinant of preferences towards design of the planning process is examined. From a study based upon 187 managers it is concluded that managers' planning preferences primarily reflect the imperatives presented by specific strategic situations rather than psychological type. Managers appear to vary their planning response to strategic situations according to the characteristics each situation presents. Conclusions are provided for managers engaged in strategic planning, recruitment, management training and for academic strategy research.

Get full access to this article

View all access options for this article.

References

Bain and Co. (2003), ‘Bain Study Reveals How Firms are Using Three Main Analytical Tools’, Financial Times, 4th September.

Bantel

(1993), ‘Top Team, Environment, and Performance Effects on Strategic Planning Formality’, Group and Organizational Management, Vol. 18, No. 4, pp. 436-458.

Barringer

B. R.

and Bluedorn

A. C.

(1999), ‘The Relationship Between corporate Entrepreneurship and Strategic Management’, Strategic Management Journal, Vol. 20, pp. 421-444.

Beyer

Chattopadhyay

and George

et al. (1997), ‘The Selective Perception of Managers Revisited’, Academy of Management Journal, Vol. 40, pp. 716-37.

Blaylock

B. K.

and Rees

L. P.

(1984), ‘Cognitive Style and the Usefulness of Information’, Management Science, 15, pp. 74-91.

Bolton

and Leach

(2002), ‘Strategic Planning in Local Government: A Study of Organisational Impact and Effectiveness’, Local Government Studies, Vol. 28, No. 4, Winter, pp. 1-21.

Brews

P. J.

and Hunt

M. R.

(1999), ‘Learning to Plan and Planning to Learn: Resolving the Planning School/Learning School Debate’, Strategic Management Journal, Vol. 20, pp. 889-913.

Burgelman

R. A.

(1983), ‘A Model of the Interaction of Strategic Behaviour, Corporate Context, and the Concept of Strategy’, Academy of Management Review, Vol. 8, No. 4, pp. 61-70.

Byrne

(1997), The Myers – Briggs Type Indicator: A Critical Review and Practical Guide, Stanley Thornes (Publishers) Ltd.

10.

Carland

J. W.

Carland

J. A. C.

, and Busbin

J. W.

(1997), ‘Nurturing Entrepreneurship: Reconsiderations for Competitive Strategy’, Advances in Competitive Research, Vol. 5, No. 1, pp. 85-105.

11.

Catford

L. R.

(1987), Creative Problem-solving in Business: Synergy of Thinking, Intuitive, Sensing and Feeling Strategies, Unpublished doctoral dissertation, CA: Stanford University.

12.

Chakravarthy

B. S.

(1987), ‘On Tailoring a Strategic Planning System to its Context: Some Empirical Evidence’, Strategic Management Journal, Vol. 8, pp. 517-534.

13.

Chakravarthy

B. S.

and Lorange

(1991), ‘Adapting Strategic Planning to the Changing Needs of a Business’, Journal of Organizational Change Management, Vol. 4, No. 2, pp. 6-18.

14.

Chattopadhyay

Glick

W. H.

Miller

C. C.

and Huber

G. P.

(1999), ‘Determinants of Executive Beliefs: Comparing Functional Conditioning and Social Influence’, Strategic Management Journal, Vol. 20, pp. 763-89.

15.

Cowan

D. A.

(1991), ‘The Effect of Decision Making Styles and Contextual Experience on Executives' Descriptions of Organizational Problem Formulation’, Journal of Management Studies, Vol. 28, No. 5, pp. 463-483.

16.

Currie

(1999), ‘The Influence of Middle Managers in the Business Planning Process: A Case Study in the UK NHS’, British Academy of Management, Vol. 10, pp. 141-155.

17.

Das

T. K.

(1987), ‘Strategic Planning and Individual Temporal Orientation’, Strategic Management Journal, Vol. 8, No. 2, pp. 203-209.

18.

Dearborn

D. C.

and Simon

H. A.

(1958), ‘Selective Perception: A Note on the Departmental Identification of Executives’, Sociometry, Vol. 21, pp. 140-144.

19.

Fernlie

(2002), ‘Quasi Strategy: Strategic Management in the Contemporary Public Sector’, in Handbook of Strategy and Management, (Ed.) Pettigrew

Thomas

and Whittington

, SAGE Publications.

20.

Finkelstein

and Hambrick

D. C.

(1996), Strategic Leadership: Top Executives and their Effects on Organizations, St Paul, MN: West Publishing.

21.

Floyd

S. W.

and Wooldridge

B. B.

(1992), ‘Middle Management Involvement in Strategy and its Association with Strategic Type’, Strategic Management Journal, Vol. 13, pp. 153-167.

22.

Flynn

and Talbot

(1996), ‘Strategy and Strategists in UK Local Government’, Journal of Management Development, Vol. 15, pp. 24-37.

23.

Gardner

W. L.

and Martinko

M. J.

(1996), ‘Using the Myers Briggs Type Indicator to Study Managers: A Literature Review and Research Agenda’, Journal of Management, Vol. 22, No. 1, pp. 45-83.

24.

Grant

R. M.

(2003), ‘Strategic Planning in a Turbulent Environment: Evidence From the Oil Majors’, Strategic Management Journal, Vol. 24, No. 6, pp. 491-527.

25.

Green

(1998), ‘Strategic Management Initiatives in the Civil Service: A Cross Cultural Comparison’, International Journal of Public Sector Management, Vol. 11, No. 7, pp. 536-552.

26.

Grinyer

Al-Bazzaz

and Yasai-Ardekani

(1986), ‘Towards a Contingency Theory of Corporate Planning: Findings in 48 UK Companies’, Strategic Management Journal, Vol. 7, pp. 3-28.

27.

Gupta

A. K.

and Govindarajan

‘Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation’.

28.

Haley

U. C. V.

and Stumpf

S. A.

(1989), ‘Cognitive Trails in Strategic Decision-Making: Linking Theories of Personalities and Cognitions’, Journal of Management Studies, Vol. 26, No. 5, pp. 477-497.

29.

Haley

U. C. V.

(1997), ‘The MBTI and Decision-Making Styles: Identifying and Managing Cognitive Trails in Strategic Decision Making’, In Fitzgerald

and Kirby

L. K.

, (Eds.) Developing Leaders, Palo Alto, CA.: Davies-Black.

30.

Harris

D. J.

and C.L. Davies

C. L.

(1981), ‘Corporate Planning as a Control System in UK Nationalised Industries’, Long Range Planning, Vol. 14, pp. 15-22.

31.

Hellriegel

and Slocum

J. W.

(1980), ‘Preferred Organizational Designs and Problem Solving Styles: Interesting Companions’, Human Systems Management, 1, pp. 151-158.

32.

Hopkins

W. E.

and Hopkins

S. A.

(1997), ‘Strategic Planning – Financial Performance Relationships in Banks: A Causal Examination’, Strategic Management Journal, Vol. 18, No. 8, pp. 635-652.

33.

Houghton

and Neubam

D. D.

(1994), ‘Do Executives Really have Selective Perception?’, Academy of Management Best Paper Proceedings, pp. 367-371.

34.

Houlden

B. T.

(1995), ‘How Corporate Planning Adapts and Survives’, Long Range Planning, Vol. 28, No. 4, pp. 99-108.

35.

Hoy

and Hellriegel

(1982), ‘The Kilmann Herden Model of Organizational Effectiveness Criteria for Small Business Managers’, Academy of Management Journal, Vol. 25, No. 2, pp. 308-22.

36.

Hurst

D. K.

Rush

J. C.

and White

R. E.

(1989), ‘Top Management Teams and Organizational Review’, Strategic Management Journal, 10, pp. 87-105.

37.

Ireland

R. D.

Hitt

M. A

Betis

R. A.

and De Porras

(1987), ‘Strategy Formulation Processes: Differences in Perception of Strength and Weaknesses Indicators and Environmental Uncertainty by Management Level’, Strategic Management Journal, Vol. 8, pp. 469-85.

38.

Javidan

‘The Impact of Environmental Uncertainty on Long-Range Planning Practices of the U.S. Savings and Loans Industry’, Strategic Management Journal, 5, 1984, pp. 381-392.

39.

Jennings

D. R.

(2000), ‘PowerGen: The Development of Corporate Planning in a Privatized Utility’, Long Range Panning, Vol. 33, No. 2, pp. 210-219.

40.

Jung

C. G.

(1923), Psychological Types, London: Routledge and Kegan Paul.

41.

Kaplan

and Beinhocker

E. D.

(2003), ‘The Real Value of Strategic Planning’, Sloan Management Review, Vol. 44, No. 2, Winter, pp. 71-6.

42.

Kleiner

B. H.

(1983), ‘The Interrelationship of Jungian Modes of Mental Functioning with Organizational Factors’, Human Relations, Vol. 36, Issue 11, pp. 997-1113.

43.

Kirby

L. K.

(1997), ‘Introduction: Psychological Type and the Myers-Briggs Type Indicator’, In Fitzgerald

and Kirby

L. K.

(Eds.), Developing Leaders, Palo Alto CA.: Davies-Black.

44.

Kukalis

(1988), ‘Strategic Planning in Large US Corporations – a Survey’, Omega, Vol. 16, No. 5, pp. 393-404.

45.

Kukalis

(1991), Determinants of Strategic Planning Systems in Large Organizations: A Contingency Approach’, Journal of Management Studies, Vol. 28, No. 2, pp. 143-160.

46.

Lang

R. S.

(1997), ‘Type Flexibility in Processes of Strategic Planning’, In Fitzgerald

and Kirby

L. K.

, (Eds.) Developing Leaders, Palo Alto, CA.: Davies-Black.

47.

Lenz

R. T.

and Lyles

(1982), ‘Managing the Planning Process: A Field Study of the Human Side of Panning’, Strategic Management Journal, Vol. 3, pp. 105-118.

48.

Miller

C. C.

Burke

L. M.

and Glick

W. H.

(1998), ‘Cognitive Diversity Among Upper-Echelon Executives: Implications for Strategic Decision Processes’, Strategic Management Journal, Vol. 19, pp. 39-58.

49.

Miller

and Friesen

P. H.

(1977), ‘Strategy Making in Context: Ten Empirical Archetypes’, Journal of Management Studies, October, pp. 253-280.

50.

Miller

and Toulouse

J. M.

(1986), ‘Chief Executive Personality and Corporate Strategy and Structure in Small Firms’, Management Science, Vol. 32, pp. 1389-1409.

51.

Mintzberg

and Lampel

(1999), ‘Reflecting on the Strategy Process’, Sloan Management Review, Spring, pp. 21-30.

52.

Mitroff

I. I.

and Kilmann

R. H.

(1976), ‘On Organization Stories: An Approach to the Design and Analysis of Organizations Through Myths and Stories’, In Kilmann

R. H.

Pondy

L. R.

Slevin

D. P.

(Eds.), The Management of Organization Design, North Holland.

53.

Myers

I. B.

and McCaulley

M. H.

(1985), Manual: A Guide to the Development and use of the Myers-Briggs Type Indicator, Palo Alto, CA.: Consulting Psychologists Press.

54.

Nutt

P. C.

(1976), ‘User Preference as a Basis to Select a Planning Method’, AIDS Proc. 8, November, pp. 351.

55.

Nutt

P. C.

(1979), ‘Influence of Decision Styles on Use of Decision Models’, Technological Forecasting and Social Change, 14, pp. 77-93.

56.

Nutt

P. C.

(1990), ‘Strategic Decisions Made by Top Executives and Middle Managers with Data and Process Dominant Styles’, Journal of Management Studies, Vol. 27, No. 2, pp. 173-194.

57.

Odom

R. Y

and Boxx

W. R.

(1988), ‘Environment, Planning Processes and Organizational Performance of Churches’, Strategic Management Journal, Vol. 9, pp. 197-205.

58.

Reynierse

J. H.

and Harker

J. B.

(1995), ‘The Psychological Types of Line and Staff Management – Implications for the JP Preference’, Journal of Psychological Type, 34, pp. 8-16.

59.

Rhyne

L. C.

(1985), ‘The Relationship of Information Usage Characteristics to Planning System Sophistication; An Empirical Examination’, Strategic Management Journal, Vol. 6, pp. 319-337.

60.

Ruble

T. L.

and Cosier

R. A.

(1990), ‘Effects of Cognitive Styles and Decision Setting on Performance’, Organizational Behaviour and Human Decision Processes, 46, pp. 283-295.

61.

Rumelt

(1974), Strategy, Structure and the Financial Performance of the Fortune 500, Cambridge, Massachusetts: Harvard University Press.

62.

Schilit

W. K.

(1987), ‘An Examination of the Influence of Middle Managers in Formulating and Implementing Strategic Decisions’, Journal of Management Studies, Vol. 24, pp. 271-293.

63.

Steckroth

R. L.

Slocum

J. W.

and Sims

H. P.

(1980), ‘Organizational Roles, Cognitive Roles and Problem Solving Styles’, Journal of Experiential Learning and Simulation, 2, pp. 77-87.

64.

Schweiger

D. M.

and Jago

A. G.

(1982), ‘Problem Solving Styles and Participative Decision Making’, Psychological Reports, 50, pp. 1311-1316.

65.

Taggart

and Robey

(1981), ‘Minds and Managers: On the Dual Nature of Human Information Processing and Management’, Academy of Management Review, Vol. 6, No. 2, pp. 187-195.

66.

Walck

C. L.

(1996), ‘Management and Leadership’, In Hammer

A. L.

(Ed.) MBTI Applications: A Decade of Research on the Myers-Briggs Type Indicator, Palo Alto, CA.: Consulting Psychologists Press, Inc.

67.

Walsh

(1988), ‘Selectivity and Selective Perception: An Investigation of Managers' Belief Structures and Information Processing’, Academy of Management Journal, 31, pp. 873-96.

68.

Yasai-Ardekani

and Haug

R. S.

(1997), ‘Contextual Determinates of Strategic Planning Processes’, Journal of Management Studies, Vol. 34, No. 5, pp. 729-768.