Strategic Planning in the Small Business

HO 2-4 (continued)

Unit 2

critically affected

the business and that are relevant

for future

consideration. There

is considerable merit

and value to this

approach.

However,

two problems exist with the use

of and depen­

dence on historical evidence.

First, this historical

data may not

be available because

variables may not have

been monitored

carefully

in the past. Secondly,

historical evidence

may not be

relevant

to the firm's future needs,

because contemporary

bu;i­

ness

exists in a rapidly changing,

volatile environment.

It

may be unrealistic and

even dangerous to assume

that

past trends

are indicative of future

business conditions. There­

fore, forwarding-looking,

insightful,

proactive thinking may be

lost if one adheres

totally to historical

trends. This does not

imply that past records

and trends don't

provide meaningful

and interesting

input that should be considered.

It does imply

that

the firm needs to consider

more thanjust historical

records.

To the extent that it is available

and relevant historical

infor­

mation

is valuable, but it is

the beginning rather

than the end

of the analysis.

Environmental Brainstorming

In order to

identify the key environmental

concerns most

rel­

evant to

a business, managers may

periodically engage in

a

creative exercise

of envircnmentalbrainstorming.

Environmental

brainstorming is an

open. free-wheeling discussion

session that

zeroes in on the dyna'nics

of a firm's particular

environment.

These

sessions not caly

provide rich input from

employees,

but are also an excellent

vehicle for comnur:cation.

Moreover,

because

the needs and direction

of the !.usiness often

are dis­

cussed during :bese sessions

they are positive motivators

for

employees.

They foster understanding

and commitment from

key pei-sonnel

in the business.

Questions

about how often such

meetings should be held,

who should

attend, and how long

they should last are

most

difficult

to define. However,

some guidelines may be suggested.

The timing of these brainstorming

sessions is

largely dictated

by the rate

of change presently taking

place in the industry.

40

PartOne The Analysis

Phase

183