Abstract for: The Role of Proactive Strategic Planning in Punctuated Organizational Change: Revisiting Sastry's Model
Sastry's (1997) simulation model of Tushman and Romanelli's (1985) classic theory of punctuated organizational change supported the underlying causal theory and yielded several important insights regarding executive management's role in monitoring the strategic fit with the environment and allowing for a trial period directly after reorientation. However, Sastry's model focuses exclusively on reactive strategic reorientations triggered by sustained poor performance due to organization-environment misalignment, leaving no room for proactive strategic shifts in response to anticipated events. The extremely common process of strategic planning is geared toward just this type of change; routine planning attempts to manage uncertainty, anticipate future demands, and make targeted strategic changes before performance deficits make radical reorientation necessary. This paper explores the impact of adding a strategic planning routine to Sastry's model on organizational performance and change.