Integrating uncertainty management in strategic planning practice

Despite competing in highly turbulent and competitive industry, evidence suggests that construction firms have not put sufficient emphasis on strategic planning. Further, the practice of strategic planning in construction is dominated by informal nd sporadic approaches/processes, which rely heavily on the subjective judgement of top management and tacit knowledge of individuals involved. Literature indicates that the identification of possible risks and opportunities is the most critical in this process, but little guidance is available with regards to the most effective approaches in dealing with the inherent characteristics of strategic planning. A review of underlying aspects (including decision theory, cognitive and behavioural psychology) is presented with a view of developing a framework for improving this process in a construction firm. The framework attempts to engage stakeholders and capture both explicit and tacit knowledge in the strategic thinking for organisational learning. The framework is viewed as a better alternative to the top-down approach of strategic decision making in the construction industry. Benefits from adopting such anapproach and future direction of research in this area are then discussed. Copyright ASCE 2009.