Chapter 14 Flashcards
Deliberate strategy development
The deliberate strategy development view is that strategies come about as the result of the consciousss intentions of top management. Involves intentional formulation or planning. Could be intentionality of a strategic leader, or through a process of strategic planning or it might be experienced as the external imposition of strategy formulated elsewhere.
Emergent strategy development
Implies that strategies do not develop on the basis of a grand plan, but tend to emerge in organisations over time.
There are different views of emergent strategy, among those* logical incrementalism, strategy as the outcome of political processes* and the outcome of organisational structure and systems
Realised strategy
May have inputs from both the strategy development view and emergent view.
Strategic leadership
Falls under the umbrella of deliberate strategy development
Strategic leadership
Strategic leadership as command: The strategy of an organisation might be dictated by an individual.
Strategic leadership as vision: It could be that a strategic leader determines or is associated with an overall vision, mission, or strategic intent that motivates others, helps create the shared beliefs within which people can work together effectively and guides the more detailed strategy developed by others in an organisation.
Strategic leadership as decision making: One key roles of leaders is to have the ability to weigh different views, interpret data, have the confidence to take timely decisions.
Strategic leadership as the embodiment of strategy: A founder or chief executive of an organisation may represent its strategy. May be intentional or deliberate.
Strategic planning systems
Falls under the umbrella of deliberate strategy development.
Strategic planning systems
Strategic planning: systematic analysis and exploration to develop an organisations strategy.
Following stages in the planning cycle:
Initial guidelines: A set of guidelines or assumptions about the external environment and the overall priorities, guidelines and expectations of the corporate centre.
Business-level planning: In the light of these guidelines, business units or divisions draw up strategic plans to present to the corporate centre. Corporate center executives then discuss these with business managers, revise the plans.
Corporate-level planning: The corporate plan results from the aggregation of the business plans.
Financial and strategic targets: are then likely to be extracted to provide a basis for performance monitoring of businesses and key strategic priorities on the basis of the plan.
Can play different roles such as learning, understanding, integration and communication.
Henry Mintzberg emphasises dangers with strategic planning such as; confusing planning with managing strategy, detachment from reality, over-complex planning processes and dampening of innovation.
Logical incrementalism
Falls under the umbrella of emergent strategy development.
Logical incrementalism:
Logical incrementalism was a term coined by James Quinn, and is the development of strategy by experimentation and learning.
Three main characteristics of strategy development in this way:
Environmental uncertainty: Managers realise that they cannot do away with the uncertainty of their environment by relying on analyses of historical data or how it will change. Sensitive to signals in the environemnt.
General goals: general goals may stifle ideas and prevent innovation.
Experimentation: Managers seek to develop a strong, secure, but flexible core business. They then build on the experience gained in that business to inform decision both about its development and experimentation with ´side-bet´ ventures.
This view of strategy development corresponds with the learning organisation which is an organisation that is capable of continual regeneration from the variety of knowledge, experience and skills within a culture that encourages questioning and challenge.
Strategy as the outcome of political proceses.
Falls under the umbrella of emergent strategy development.
An explanation of how strategies may emerge is that they are the outcome of the bargaining and power politics that go on between executives or between coalitions within an organisation and its major stakeholders.
