Comprehensiveness of Strategic Planning: The Importance of Heterogeneity of a Top Team

Abstract

A conceptual model linking the demographic heterogeneity of the top management team to comprehensiveness of strategic planning is developed. Planning comprehensiveness is one of the key dimensions underlying the dominant models of formulation of strategy, consistent with the tradition of “synoptic” strategic planning. Drawing on group process theory, heterogeneity among team members in outlooks and perspectives, represented by their demographic backgrounds, is expected to stimulate an open, broad, and challenge-oriented approach to the process of strategic planning, consistent with comprehensiveness. Heterogeneity on five characteristics—age, organizational tenure, team tenure, functional background, and educational curriculum—was included. Also discussed are the complexities of managing the group process of a heterogeneous team and additional influences, external to the team, on the comprehensiveness of strategic planning.