| Formal strategic planning process codifies the planning process with written plans, integrated involvement, and follow-up. However, despite the presumed importance of planning, empirical studies have not always agreed on its effectiveness or the role of formality. By surveying organizations across five industry groups, this study compared the financial performance of organizations that employ formal strategic planning practices against those that plan only informally and those that do not plan at all. This study supports the hypothesis that there is a relationship between the formality of strategic planning and financial results, particularly if the continuum used runs from no planning to formal strategic planning. |
