3 pitfalls Commitment: Commitment to planning engenders commitment to strategies and to the process of strategy making. Nature of planning fosters managerial commitment to itself Whether planning is committed to management.
Change: Process of planning tends to evoke resistance to serious change in organizations
Planning tends to favor short term over long term
Politics: Planning is a biased form of objectivity and enforces political resistance. Aggravates the conflict between line and staff
3 fallacies
Predetermination: To make strategic planning successful, an organization has to control or predict the course of the environment.
Detachment managers are detached from the very things they are supposed to make strategies about
Formalization
Grand falacy:
Soft analysis: Informal visionary and learning processes of line managers.
Strategic planning is not the same as strategy making should have been called strategic programming
Promoted as a process to formalize, when necessary, the consequences of strategies already developed instead of making new strategies

Learning myopia:
Why experience is a poor teacher.
Experience is often a poor teacher, because it involves inferences from information and there are cognitive limits. Additionally, the experience is not as complex as the actual account. Experiences from others and politics influence your experience as well. Finally learning in the neighborhood of current experiences in the short-run restricts learning at a distance and in the long run.
Simplification construction of buffers
Organizations want to learn from former experiences; however the interactive complexity of history makes it hard to find the causal relation. Departmentalization will solve this problem, because it segregates experiences and allocates attention sequential to divergent goals.
Specialization principle of learning substitution
The success of adaption of one part relieves the pressure for adaption for another part. Because of this one part of an organization will be more developed and has greater adaptive competences than the slow learner. On the long run, coordination will become difficult between the units because of the fact that one will be more competent than the other.
Bounded rationality Succes leads to increase of slack and target, however decrease in search. Failure leads to search, decreases slack and targets. (if a service declines in terms of quality this will lead to search from the ‘service receiver’ and decrease slack)
3 kinds of Myopia:
Overlooking distant times: Focus on short run, but forget long run. ( For example CA favors short term if already there but, can lose its ability to adjust in the long run)
Distinctive competence trap: Organization tend to focus on activities in which they are most competent. Other competences become relatively worse and became vulnerable to changes in the environment.
Trap of power: Powerful companies change the environment themselves, but the adaptive skills will be underdeveloped. Therefore companies build inventories of competencies to back themselves up in times of change.
Distant places: Organizations tend to exploit successful explorations of others, if everybody does this, there will be no radical innovation on the long terms. Organizations should research but also absorb the information from one another.
Failures: Likelihood of success tends to increase with competence, because confidence finds confirmation in its own imagination. Succes because of luck or ability? Succesful people tend to get power and authority and link success to their abilities and failure to bad luck. This bias in perception will be translated into biases in the risk assessment.

Exploitation-exploration balance:
Exploration: Pursuit of new knowledge of things that might come to be known
Exploitation is the use and development of things already known.
Excessively exploring / exploiting could lead to self-destruction. Trap of learning.
The failure trap: Occurs when firms constantly fail to explore, it will search more and change and that leads to more failure and so on.
The success trap: Follows when exploitation drives out exploration.
Learning (exploitation) generally increases average performance, generally increases reliability and reduces variability, however improved reliability reduces exploratory deviation. Negative in an environment with high competition, as survival could be dependent on having a performance draw that is extreme. Therefore success in highly competitive situations not closely related to either experience or knowledge.
Exploitation can drive out exploration do not want their own products to become obsolete.
Stimulate exploration through incentives, such as property rights to successful search activities. Removing downside risks tend to be more effective in sustaining exploration.
- Avoid excessive socialization of new members.
- Promote successful people (exploitation)
- Building a can do attitude.
Learning
3 major problems:
- Ignorance
- Conflicts
- Ambiguity
Temporal myopia one should not develop distinctive competences and niches, as it would improve performance in the short run however one will have to compromise capabilities outside those competencies and niches and the learned skills become impaired when conditions change. Companies can lose their ability to adjust
Spatial myopia, the learner tends to favor effects that occur to them, but do not favor the survival of the larger systems of which the firm is a component.
The failure myopia elaborates on the fact that successful people have drawn experiences that have been more favorable than they should expect in the future.