Study: Strategic Planning Process
IBA111 Assessment 2: Report
Report on Strategic Planning at Valve
Prepared by:
Jimmy Jo Jo S1234567
Due Date:
Monday, 4 February 2013
Strategic Planning at Valve Introduction A global leader in the software and computer gaming industry, Valve maintains a very unique internal operating environment. The company operates without any managers, instead relying on all employees to manage themselves. Grouped into project teams, the employees of each team are collectively responsible for the success of their respective project. While it could no doubt be argued that there are certain benefits to Valve’s distinctive operating style, it is evident from the case study that there are also substantial problems with the operational ecosystem within Valve. One of the major issues for Valve is the lack of strategic planning within the organisation. All of Valve’s employees work in project groups, and their goals, tasks, and deliverables are all project-specific. As such, there is no employee group specifically focused on longer-term, strategic planning for the organisation. Valve’s flat organisational structure also means that there is an absence of management personnel, who would usually be charged with driving the strategic planning process. This lack of strategic planning at Valve has left the organisation without clear goals, objectives, and plans for the future. An absence of strategic planning also exposes Valve to the risk that it will be in a weaker position to respond to future changes in the operating environment. Schermerhorn, Davidson, Poole, Simon, Woods, and Chau (2011, p. 166) define planning as ‘setting objectives and determining how to accomplish them’, and stress the importance of planning as one of the four functions of the management process. Strategic planning maps out the company’s future goals and objectives, and allows the employees to see the direction the company wants to take. Without strategic planning, Valve cannot hope to be successful
Report on Strategic Planning at Valve
Prepared by:
Jimmy Jo Jo S1234567
Due Date:
Monday, 4 February 2013
Strategic Planning at Valve Introduction A global leader in the software and computer gaming industry, Valve maintains a very unique internal operating environment. The company operates without any managers, instead relying on all employees to manage themselves. Grouped into project teams, the employees of each team are collectively responsible for the success of their respective project. While it could no doubt be argued that there are certain benefits to Valve’s distinctive operating style, it is evident from the case study that there are also substantial problems with the operational ecosystem within Valve. One of the major issues for Valve is the lack of strategic planning within the organisation. All of Valve’s employees work in project groups, and their goals, tasks, and deliverables are all project-specific. As such, there is no employee group specifically focused on longer-term, strategic planning for the organisation. Valve’s flat organisational structure also means that there is an absence of management personnel, who would usually be charged with driving the strategic planning process. This lack of strategic planning at Valve has left the organisation without clear goals, objectives, and plans for the future. An absence of strategic planning also exposes Valve to the risk that it will be in a weaker position to respond to future changes in the operating environment. Schermerhorn, Davidson, Poole, Simon, Woods, and Chau (2011, p. 166) define planning as ‘setting objectives and determining how to accomplish them’, and stress the importance of planning as one of the four functions of the management process. Strategic planning maps out the company’s future goals and objectives, and allows the employees to see the direction the company wants to take. Without strategic planning, Valve cannot hope to be successful
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