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Organisation & EnvironmentStrategy Safari – Mintzberg, Alstrand, Lampel – 01-06-2020 – Second edition - Radboud University
, Five P’s for strategy
1 Strategic Management Beast Strategy can’t be fitted into one definition, therefore it requires 5 definitions;
1. Standard; “Top management’s plan to attain outcomes consistent with
the organizations missions and goals.”
In the poem about the elephants it is made clear that every person sees something 2. Strategies as plans and patterns; We call the first intended and the
from a different point of view. With strategy it is important to look at a problem second realized strategy. Because not everything goes as you want.
from multiple sides to get to see the entire view of “the beast”. 3. Strategies as deliberate and emergent; Intentions that are fully realized
can be called deliberate. An emergent strategy is a pattern that is
In strategy there are the ten design schools from Mintzberg. These 10 have all a realized but was not intended, it’s a one by one step pattern.
unique perspective on one major aspect of the strategy-formation process; 4. Strategies as positions and perspectives; to some people strategy is a
1. The Design school – Strategy formation as a process of Conception position , namely the locating of particular products in particular
2. The Planning school – Strategy formation as a Formal process markets. To others strategy is a perspective, namely an organizations
3. The Positioning school – Strategy formation as an Analytical process fundamental way of doing things.
4. The Entrepeneurial school – Strategy formation as a Visionary process 5. Strategy as a ploy; it is a specific manoeuvre intended to outwit an
5. The Cognitive school – Strategy formation as a Mental process opponent or competitor.
6. The Learning school – Strategy formation as an Emergent process
7. The Power school – Strategy formation as a process of Negotiation
8. The Cultural school – Strategy formation as a Collective process
9. The Environmental school – Strategy formation as a Reactive process
10. The Configuration school - Strategy formation as a process of Transformation
The first three schools are prescriptive in nature and are more concerned with how
strategies should be formulated than with how they necessarily do form. The Areas of agreement
Design school made the framework in the 1960s on which the other two were - Strategy concerns both organization and environment
build. The second school, Planning school, in developed parallel to the first one and - The substance of strategy is complex
peaked in the 1970s. However this school was displaced by the third one, - Strategy affects overall welfare of the organization
positioning school, because this focussed more on the economic positions. - Strategy involves issues of both content and process
- Strategies are not purely deliberate
The six schools that follow consider specific aspects of the process of strategy - Strategies exist on different levels
formation. Descriptive schools have been concerned less with prescribing ideal - Strategy involves various thoughts process
strategic behaviour than with describing how strategies do get made.
Strategies for better and worse; Strategy….
The last school is combines all the others. We call it configuration. People in this 1. Sets direction; it can serve as a course, but it can be a blinder.
school seek all the different perspectives of strategy. It focusses on transformation 2. focusses effort; promotes coordination, but can also create groupthink
and is all about strategic change. Some schools are better fit to a branche than 3. Defines the organization; help people understand, but complexity is lost
others. The Entrepeneurial is oriented to the art, Learning school to the craft and 4. Provides consistency; provides order, but can be misinterpreted.
Planning and Positioning school to the science. This book focusses on strategy Role of strategy is to resolve the big issues so that people can get on with the
formation both in publication and in practice. little details. Strategies can be vital with their absence as well as their presence.
, The basics of the Design school Premises
2 Design School The design school proposes a model of strategy making that seeks
to attain a match, or fit, between internal capabilities and
1. Strategy formation should be a deliberate process
of conscious thought
external possibilities. The design school was founded at Harvard 2. Responsibility for that control and consciousness
in 1965. must rest with the chief executive officer; that
Critique of the design school person is the strategist
A strategy that locates an organization in a niche can 3. The model of strategy formation must be kept
narrow its own perspective. This seems to have happen simple and informal
with the design school itself. 4. Strategies should be one of a kind, the best ones
result from a process of individualized designs
These assumptions concern the central role of the 5. The design process is complete when strategy
conscious thought in strategy formation, that such appears fully formulated, as perspective
thought must necessarily precede action and that the 6. These strategies should be explicit, so they have to
organization must separate the work of think from that be kept simple
of doers. 7. Only after these unique, full-blown, explicit and
simple strategies are formulated can they be
Assessment of strengths and weaknesses; bypassing implemented.
learning – The school sees the process more of
conception than as one of learning. How can a
organization know its strength and weaknesses? In the picture above we have an external appraisal which are Context and contributions
According to the design school; expressed verbally and factors as Demographic, Economic, Social, Technological, Ecologic The critique is not to dismiss the design school, but
on paper. No organization however can be sure of it, you and Politic surroundings of a company. The internal appraisal is the assumption of universality. There is no best way
cant know this upfront. more about the strengths and weaknesses and how an of making strategy. We see a set of four conditions
organization should know itself. The other two factors are that should encourage an organization to tilt towards
Structure follows strategy… as the left foot follows the managerial values; the beliefs and preferences of those who the design school;
right – according to this school structure follows strategy. formally lead the organization and social responsibilities; 1. One brain can, in principle, handle all of the
But which organization has ever wipe the state clean specifically the ethics of society in which the organization information relevant for strategy formation
when its changes its strategy? Strategy formation is an functions. Strategy development is not a linear process. Once 2. That brain is able to have full, detailed intimate
integrated system, not an arbitrary sequence. strategies have been determined, the next step is to evaluate and knowledge of the situation in question.
choose the best one. So several alternative strategies have been 3. The relevant knowledge must be established
Making strategy explicit; promoting inflexibility – designed and the best will be selected. Harvard group made a before a new intended strategy has to be
Organizations must function, not only with strategy, but framework to choose the best option; implemented. In other words, the situation has to
also during periods of the formation of strategy, which - Consistency; must present consistent goals and policies remain relatively stable or at least predictable.
can endure for long periods. While strategists may be - Consonance; adaptive response to external environment 4. The organization in question must be prepared to
sure for now, they can never be sure forever. Certain - Advantage; must provide competitive advantage cope with a centrally articulated strategy.
strategies must often be made explicit for purposes of - Feasibility; not create new problems
investigation, coordination and support. The design school sees formulation and implementation as two The design school would seem to apply best at the
different things. First you must thoroughly formulate, before you junction of a major shift for an organization, coming
Separation of formulation from implementation; can implement. The CEO is responsible for the strategy out of a period of changing circumstances and into
detaching thinking from acting – Thinking and action formulation. Strategy formation as a deliberate conscious thought. one of operating stability. The design school also can
have to proceed in tandem, closely associated. Strategies should be unique. This school has not developed so apply to new organization, since it must have a clear
much as provide the basis for developments in other schools. sense of direction before it can start.
, The basics of the Planning school Premises
3 Planning School The planning school is founded in the 1970s when there were
thousands of articles published. The central messages of the
1. Strategies result from controlled, conscious
process of formal planning, decomposed into
planning school fitted neatly with the whole trend in business land; distinct steps, each delineated by checklists and
formal procedure, formal training, formal analysis, etcetera. supported by techniques.
Fallacies of the Planning school The planning school arrived at around the same time as its most 2. Responsibility for that overall process rests with
The critique is not of planning, but of strategic planning. influential book, corporate strategy by Ansoff. the chief executive in principle; responsibility for
The idea itself that strategy can be developed in a its execution rests with staff planners in practice.
structured, formalized process. There are three fallacies; There are hundreds of strategic planning models, but most reduce 3. Strategies appear form this process full blown, to
to the same basic ideas; take a swot model, divide it in steps, be made explicit so that they can then be
The Fallacy of Predetermination articulate each of these with checklists and techniques. And giving implemented through detailed attention, to
To engage in strategic planning, an organization must be special attention to the setting of objectives on the front end and objectives, budgets, programmes and operating
able to predict the course of its environment, to control the elaboration of budgets and operating plans on the back. A big plans of various kinds.
it, or simply to assume its stability. Otherwise it makes no model is the following one;
sense to set the inflexible course of action that Recent developments
constitutes a strategic plan. Some things might be We discuss here three premises but more focused in
predictable, but others are not. Strategic planning application of it.
requires stability. Responsive strategies do not appear on Scenario planning – is predicated on the assumption that
schedule, they can happen at any time and any moment. if you cannot predict the future, then by speculating upon a
variety of them, you might open up your mind and even,
The Fallacy of Detachment perhaps, hit upon the right one. Time is not limitless you
If the system does the thinking, then though has to be need to cover enough scenarios to cover the important
detached from action, strategy from operations, possible situations.
formulation from implementation, thinkers from doers Real options –Managers can buy what amount to an
and so strategists from the objects of their strategies. option on a course of action (investment) , without fully
Managers must manage by control. Effective strategists committing themselves. In theory it fits well within the
planning school, but in practice it is a little bit tougher to
are not people who abstract themselves from the daily
do.
detail, but who immerse themselves in it while being able There are several stages in the planning school;
Strategic control – keeping organization on their intended
to abstract the strategic message from it. - The objectives-setting stage; quantifications of the goals
strategic tracks. Four levers of control; belief, boundary,
as a means of control diagnostic and interactive systems.
The Fallacy of Formalization - The external audit stage; set of forecasts for future.
Research tells us that strategy making in an immensely Predict and prepare became the motto of the school. Plans by nature are designed to promote inflexibility,
complex process. We know that the process requires - The internal audit stage; Strength and weaknesses they are meant to establish clear direction.
creativity and insight and synthesis, but this is exactly the - The strategy evaluation stage; Checking the strategy with
things that the planning school discourages. Strategic lists Context and contributions
planning not as aid, as support for natural managerial - The strategy operationalization stage; Very detailed Planners have important roles in the strategy
processes (including intuition), but as strategy making process. formation. Planners can act as analysts and catalysts.
replacing intuition. Strategy is based on rationality, it is a conscious, formal and They need to know when the right time for a strategy.
controlled process. Strategy must be composed into discrete Planners need to programme the strategy to an actual
Analysis cannot substitute for synthesis. Planning, steps. It is supported by checklists and analytical techniques. plan. There are two types of planners; lefthanded
rather than providing new strategies, could not proceed Influence of Taylorism. Planning and implementation are two planners (encourage creative thinking) and
without their prior existence. separate steps. Environment is stable and predictable. righthanded planners (more formal kind of strategy).
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