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Session 1 Introducing Strategy
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Overview Why strategy? The ‘pros’ and ‘cons’ of having a strategy
The many faces of strategy The evolution of strategy as a field
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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.
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Strategies for better ……………….and for worse
Chart a course Create and maintain cohesion Strategy sets direction Wrong direction
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……………….and for worse (Continued)
Strategies for better ……………….and for worse (Continued) Promotes coordination Reduces disorder Strategy focuses effort No peripheral vision “Groupthink”
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……………….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
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……………….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
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The many faces of strategy
Intuitive Meaning Plan Pattern Position Perspective Ploy Deliberate Emergent Planned Ideological Process Consensus Entrepreneurial Umbrella Disconnected Imposed
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Intuitive meaning The creation of a close relationship between actions and preferred outcomes
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Specify future choices Made in advance of action
Calculated towards achieving objectives Figure 1.1a Strategies ahead and behind
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Without preconception Driven by actions; not design
Consistency in behavior (whether or not intended) Figure 1.1b Strategies ahead and behind (Continued)
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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
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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)
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Figure 1.2 Strategies deliberate and emergent
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Figure 1.4 Changing position and perspective
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From the rather deliberate to the
mostly emergent Planned strategy Ideological strategy Entrepreneurial strategy Process strategy Umbrella strategy Consensus strategy Disconnected strategy Imposed strategy
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Types of strategies Planned Entrepreneurial Ideological Umbrella
Process Disconnected (Clandestine) Consensus (Spontaneous) Imposed
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Planned strategy Precise Intentions Surprise during implementation
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Entrepreneurial strategy
Opportunistic emergence Personal Intentions Vision Deliberate actualization
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Ideological strategy Collective vision Share values Intended to be
deliberate
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Umbrella strategy Partly deliberate Targets and/or Limits
Leadership in partial control Deliberately Emergent Partly emergent
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Process strategy Process of decision making at the top Content of
decisions below Deliberately Emergent
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Disconnected strategy
Subunit Deliberate Patterns Convergence for the whole Collective Patterns
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Consensus strategy Mutual Adjustment Emergence
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Imposed strategy Adaptive Response Organizationally Emergent
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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
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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
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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.
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Prescriptive Descriptive Schools Schools Biology Economics Sociology
Psychology Anthropology Political Science
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Evolution of Ten Schools (Continued)
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Teaching plan The history of the school Basic assumptions
Contributions Criticism
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