The Evolution of Strategic Planning at the General Electric Company, 1940e2006

Wechallenge conventional accounts of the rise and fall of strategic planningby examining the history and evolution of strategic planning practices at the General Electric Company (GE) during six CEO regimes: Wilson, Cordiner, Borch, Jones, Welch and Immelt. We distinguish strategic planningd a system of strategy formulation, decision making and controld from particular planning technologies such as SBUplanning.We showhowan integrative systemof strategic planning was first established in GE in the 1950s and continues, albeit transformed, to this day. Integrative strategic planning at GE was originally called long range planning, later strategic planning, and after the abandonment of SBU planning, GE’S Operating System, but changes in the use of labels mask continuities in prevailing practices. The history of strategic planning atGE has several implications for contemporary strategymaking: first, the practice of strategic planning cannot remain static but must evolve to facilitate changes in corporate agenda and management style. Second, the CEO’s involvement in design of the strategic planning system is critical to its endurance and centrality. Third, specialized governance channels for decision-making and communications focus attention of corporate executives on distinct, yet critical, planning tasks to shape the corporate agenda. Finally, the tight coupling of information and communication flows across governance channels is critical for the overall integration and effectiveness of the strategic planning system. ! 2008 Published by Elsevier Ltd.