The corporate senior leadership team should encourage suborganizations to create lower-level strategic plans if:
The corporation's size is large enough to support suborganizations that act as separate business entities
There is a diverse product or service line among the suborganizations
The creation of a strategic plan at the lower level will not perpetuate a stovepipe culture that the senior leadership team is trying to change
Suborganizations that are smaller and whose products and services result in the same output as the corporate organization should have a plan that includes strategies and objectives that contribute to the corporate vision, mission, guiding principles, and goals. In this case, representatives from the lower organizations should have been included in the original strategic planning process. If the senior leadership team decides that lower-level plans are needed, strategic planning guidance should be developed for the leaders of the suborganizations. Training and facilitation support is also needed.