ABSTRACT This report, originally issued in September 1967 by the Long Range Planning Service (LRPS) of the Stanford Research Institute (SRI) and reproduced here as a historical document, traces the evolution of formal management and planning in US firms amid rising complexity, size, and technological change. Four stages emerge: (1) Implementation Cycle—directing and monitoring actions in stable settings; (2) Control Cycle—adding objective measurement against historical standards; (3) Extrapolative Planning—introducing forecasting, action programs, budgeting, and feasibility checks; (4) Entrepreneurial Planning—the advanced phase, with environmental scanning, strengths‐weaknesses analysis, objective setting, gap analysis, opportunity search, and strategic commitments. Each stage builds on the prior, shifting from reactive control to proactive, organized entrepreneurship. Advanced planning simulates the entrepreneurial genius by marshaling nine key talents: motivation (drive and energy), exposure (broad curiosity), sensitivity (insight into patterns), creativity (generating options), analysis (understanding consequences), judgment (wise selection amid uncertainty), leadership (inspiring followership), marshaling ability (organizing resources), and administrative ability (efficient organization and communication).
Ansoff et al. (Sat,) studied this question.
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