Dynamic Strategic Planning: Achieving Strategic Flexibility Through Formalization

In this article, we present findings on strategic thinking and decision making that result from a series of interviews with executives from six firms in the forest products industry. Drawing from these interviews, the executives suggest that much of their firms' financial success or lack thereof is derived from their form of strategic planning. Firms which are the most financially successful use a dynamic strategic planning process that combines key elements from both formalized and ad-hoc strategic planning through the addition of strategic flex-points. Poorly-performing firms often adopt a reactive approach to opportunities or threats compared to their more successful competitors and are unable or unwilling to change.