Management in Perspective Effective LRP Requires Action

Abstract

Long-range planning done on a “seat of the pants” basis by executives who sharpen their assessments of the future by discussions with other managers is becoming less reliable as the environment becomes more complex. Since operating management does not have time for the background studies for sound long-range decisions and long-term planning receives little real attention from line people because of overwhelming competition from pressing operating problems, there is a trend toward formal long-range planning (LRP). Many staff units specializing in LEP have been formed at the corporate level of American firms since World War II. Much has been written about their work including: why special staffs are necessary; how they should be organized; and how they should define a company’s objectives.