Article at a glance:

Better strategy for business units: A McKinsey Global Survey

• Executives are most pleased with the results of strategic planning for their business units if they work at companies that apply many best practices to the process and foster collaboration between corporate and business unit managers.
• Business unit strategy development seems collaborative to corporate executives, while the heads of business units more often see it as a mandate by the corporate center.
• Although executives know how to formulate an effective strategy, many say their companies skip some of the relevant steps.
• Executives have mixed feelings about the outcomes of strategic planning; few see it fostering creativity or including the priorities of employees at all levels.