Session 1 Introducing Strategy

Overview Why strategy? The ‘pros’ and ‘cons’ of having a strategy The many faces of strategy The evolution of strategy as a field

The strategy beast Areas of agreement Strategy affects overall welfare of the organization. Strategy concerns both organizations and their environments. Strategy involves complex tradeoffs. Strategy forms on different levels. Strategy involves issues of both content and process. Strategy is a “two-edged” sword.

Strategies for better ……………….and for worse Chart a course Create and maintain cohesion Strategy sets direction Wrong direction

……………….and for worse (Continued) Strategies for better ……………….and for worse (Continued) Promotes coordination Reduces disorder Strategy focuses effort No peripheral vision “Groupthink”

……………….and for worse (Continued) Strategies for better ……………….and for worse (Continued) Captures essential meaning Creates shared identity Strategy defines the organization Loss of richness stereotyping

……………….and for worse (Continued) Strategies for better ……………….and for worse (Continued) Reduces ambiguity Explains the world Strategy provides consistency Can reduce creativity Simplify to the point of distortion

The many faces of strategy Intuitive Meaning Plan Pattern Position Perspective Ploy Deliberate Emergent Planned Ideological Process Consensus Entrepreneurial Umbrella Disconnected Imposed

Intuitive meaning The creation of a close relationship between actions and preferred outcomes

Specify future choices Made in advance of action Calculated towards achieving objectives Figure 1.1a Strategies ahead and behind

Without preconception Driven by actions; not design Consistency in behavior (whether or not intended) Figure 1.1b Strategies ahead and behind (Continued)

A match between organization and context A unique place in the environment Finding and sustaining rent creating situations Figure 1.3a Strategies above and below

The “character” of an organization Collective concept A world view Intensely shared The “character” of an organization Figure 1.3b Strategies above and below (Continued)

Figure 1.2 Strategies deliberate and emergent

Figure 1.4 Changing position and perspective

From the rather deliberate to the mostly emergent Planned strategy Ideological strategy Entrepreneurial strategy Process strategy Umbrella strategy Consensus strategy Disconnected strategy Imposed strategy

Types of strategies Planned Entrepreneurial Ideological Umbrella Process Disconnected (Clandestine) Consensus (Spontaneous) Imposed

Planned strategy Precise Intentions Surprise during implementation

Entrepreneurial strategy Opportunistic emergence Personal Intentions Vision Deliberate actualization

Ideological strategy Collective vision Share values Intended to be deliberate

Umbrella strategy Partly deliberate Targets and/or Limits Leadership in partial control Deliberately Emergent Partly emergent

Process strategy Process of decision making at the top Content of decisions below Deliberately Emergent

Disconnected strategy Subunit Deliberate Patterns Convergence for the whole Collective Patterns

Consensus strategy Mutual Adjustment Emergence

Imposed strategy Adaptive Response Organizationally Emergent

The ten schools of strategy 1. Design: a process of conception 2. Planning: a formal process 3. Positioning: an analytical process 4. Entrepreneurial: a visionary process 5. Cognitive: a judgmental process 6. Learning: an emergent process 7. Political: a process of negotiation 8. Cultural: a collective process 9. Environmental: a reactive process 10. Configuration: a process of transformation

The ten schools one word definitions! A DESIGN A PLAN A POSITION A VISION A PERCEPTION A PATTERN AN AGENDA A BELIEF A RESPONSE A STAGE

Why ten schools? Organizations can vary widely. Organizations can change greatly. Theories of dynamic systems are often either too simple or too complex. Understanding social systems requires understanding not only outcomes, but also intentions. Contingency is crucial.

Prescriptive Descriptive Schools Schools Biology Economics Sociology Psychology Anthropology Political Science

Evolution of Ten Schools (Continued)

Teaching plan The history of the school Basic assumptions Contributions Criticism