1 - The Nature of Strategy and Planning Flashcards
A definition of ‘Strategy’
The combining of knowledge and capability in the perception of a future outcome.
A definition of ‘Vision’
The ability of the human brain to imagine something different from a current situation.
A definition of ‘Mission’
The ethos, beliefs and values that enable the forming of a vision.
A definition of ‘Objectives’
A range of criteria that identify and clarify different aspects of the vision and mission.
A definition of ‘Goals’
Specific and definable outcomes that enable identification of progress towards achieving the objectives and, if defined in such a manner, the achievement of the strategic intent: it is often useful to consider a goal as something tangible that is either achieved (scored) or not.
A definition of ‘Actions’
The steps that are required to be undertaken to enable the achievement of goals and objectives.
A definition of ‘Planning’
The bringing together of objectives, goals and actions in a cohesive and comprehensive manner to enable the realisation of the vision while maintaining the ethos of the mission
A definition of ‘Review’
A process by which any aspect of the strategic journey is considered to enable an evaluation of progress and/or fulfilment: a plan will often include a pre-emptive review process to ensure that progress is considered at key points.
A definition of ‘Iteration’
A repetition of a process or action, usually to either clarify a previous outcome or to apply a slightly different set of criteria to be able to assess the impact of such change.
A definition of ‘Success’
Notionally, the achievement of goals and objectives, the fulfilment of the plan, the realisation of the strategic vision.
A definition of ‘Risk’
Any situation or decision where there is more than one possible outcome, and such outcomes can be visualised and ranked against likely probability
A definition of ‘Uncertainty’
Any situation or decision where there is more than one possible outcome, but where it is not possible to visualise all possible outcomes.
A definition of ‘Control’
A step or measure taken or implemented to attempt to reduce or mitigate perceived risks or uncertainties.
A definition of ‘Values’
Beliefs and principles that drive our decision-making, our opinions and our attitudes.
A definition of ‘Paradigm’
The perspective, view or vision held by one or more human brains at any particular point in time.
3 types of decisions (characteristics)
- Irreversible
- Reversible
- Experimental
6 Qs which can be used to examine intent when considering cause and effect of decision-making
- Why must I make a decision?
- Who will my decision affect?
- Where do I look for help to inform my judgement?
- What is my personal objective in this situation?
- When is my deadline?
- How can I judge the outcome of my decision?
3 perspectives of strategy
intzberg - 5Ps theory (2008)
Spender - four paradigms (2015)
Maccoby - Strategic Intelligence (2017)
What are Mintzberg’s 5 Ps?
Plan
Pattern
Position
Perspective
Ploy
Explain ‘Plan’ (Mintzberg) (2)
- Planning in some ways sits at the heart of strategy, giving a direction, course of action or defined route
- What are we going to do next?
Explain ‘Pattern’ (Mintzberg) (2)
- Strategy is perhaps better considered as a pattern, or manner of behaving over a period of time
- Recognises that human beings (and organisations) generally like to work in comfortable and familiar way
Explain ‘Position’ (Mintzberg)
Strategy requires an understanding of position (there is a right time and right place)
Explain ‘Perspective’ (Mintzberg) (2)
- Strategy does not just happen by chance, so a perspective is always required
- Implies the need for person or people charged with dev of strat to be able to step back and look at org and strategy from one or more perspective
Explain ‘Ploy’ (Mintzberg)
Strategy must also be a ploy - deliberate and intended move to thwart the competition and maintain a competitive edge
From what lens does Spender consider strategy?
Starting point - ‘what are we going to do now?’
What are Spender’s four paradigms?
Goals
Judgement
People
Flexibility
4 dimensions from which Maccoby believes that strategy should be considered from
- Foresight
- Visioning
- Partnering
- Motivating
What is the core driver to the level of planning required (planning horizon)?
Immediacy that is required for the anticipated task or change
What is an operational plan? (re. planning horizons)
Short-term plan - ie. for that day
What is an intermediate plan? (re. planning horizons)
Medium-term plan - such as achieving team cohesion
What is a strategic plan? (re. planning horizons)
Longer-term plan - such as achieving wider business goals
Which planning horizon leads to greatest level of uncertainty?
Strategic (long-term) plans
Who will oversee and accomplish operational plans?
Each individual employee, at whatever level
Who will oversee intermediate plans?
Managers
How are intermediate plans achieved?
Through shorter-term operational plans
How are strategic plans achieved?
Through intermediate and operational plans
Who develops strategic plans?
Directors and senior manager
4 levels of strategy (in order, inside to outside diagram)
Corporate
Business unit
Functional
Individual/team
What is individual/team level of strategy dev?
Day-to-day work where most key decisions are made
What is functional level of strategy dev?
Putting the strategic intent of the business unit decisions into action
Which level of strategy dev is linked to CG?
Corporate
7 dimensions (of business) driven by corporate level of strategy
- Purpose
- Focus
- Financial structure
- Stakeholder requirements
- Supply chain
- Environmental
- Legal
What does business unit of strategy dev do?
Aim to achieve medium term goals
Which level of strategy dev is fed by corporate lvel?
Business unit
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