Can Strategic Planning Make Strategy More Relevant and Build Commitment Over Time? The Case of RACC

This paper illustrates that the way a company approaches strategic planning has major implications on the development of strategy. Lessons are inductively derived from the evolution of strategic planning at RACC automobile club. This case shows that the planning process is a powerful tool in the hands of management. Active participation in the process can contribute to middle managers' awareness of key principles, issues and goals. It also assists them to make strategy relevant, and to prepare their minds for necessary adaptations during the implementation stage. Strategy, conceived as a shared framework in the mind of all strategists, is a strong glue that can align the organization around a chief purpose. The case study shows that an upfront, clear definition of the purpose for the planning process has a major say in the ultimate outcomes that the firm reaches.