In the past, the formulation of business strategies was the responsibility of upper-level management. The traditional approach involved top managers coming up with a strategic direction for the company, setting it forth in an annual written strategic plan, and then disseminating the plan to various departments and employees, who were expected to contribute only within their own spheres of influence. This approach seemed to work fairly well for slow-moving companies in a stable external environment.
In recent years, however, the process of developing strategy has changed dramatically in response to changes in the overall business world. The traditional approach to strategic planning, formulated in a different era, is inadequate to deal with the rapid and continuous changes taking place in today’s marketplace; it also fails to take into account the increased demand for autonomy in today’s work force.
Traditional approaches to strategy development have been criticized for being too rigid and authoritative. As a result, new approaches have emerged that no longer relegate strategy to top management; instead, the strategy formulation process involves all individuals in an organization, particularly those who are in direct contact with customers Strategic planning is evolving due to the increasingly urgent need for responsiveness to market changes. As markets continue to rapidly change every business owner must adapt and improvise. In today’s economy you can be left behind in a blink of an eye.