9-SAERe-ViewingStrategyProcesses(Lenses)

Re-ViewingStrategyProcessesRonBradfieldGraduateSchoolofBusinessUniversityofStrathclydeSchoolsofthoughtinStrategyOutcomesPluralisticProfit-maximizingDeliberateEmergentProcessesCLASSICALEVOLUTIONARYSYSTEMICPROCESSUALAnsoffChandlerSloanDruckerPorterHendersonAldrichHannan&FreemanWilliamsonCyert&MarshSimonMintzbergPettigrewMorganGranovetterWhitleyPascaleShrivastavaTheThreeStrategyLensesAsdesign-logical,analyticalandplannedAsexperience-adaptation,culturalandpoliticalAsideas-emergentfromdiversityandvarietyThestrategylensesaredifferentwaysofviewingstrategydevelopment:-AssumptionsoftheDesignLensThinkingprecedesactionStrategymakingisdeliberateStrategyislogicalandclearTopmanagersarestrategicdecisionmakersanddirectorsofstrategyOrganisationsaremechanisticandhierarchicalTheDesignLensHighlights:ThepotentialbenefitsofsystematicthinkingtohandlecomplexityanduncertaintyTheneedforplanningandcontrolThebenefitsofanalytictoolsandtechniquesBut:FailuretoachieveownershipofplansDetailratherthanvisionInformedoverloadStrategyas‘theplan’PlanningasritualAssumptionsoftheExperienceLensIndividualandcollectiveexperienceiscentralThereforecultureandhistorystronglyinfluencesstrategicthinkingandchoicesBargainingandnegotiationdeterminestrategicdirectionStrategiesarelikelytodevelopincrementallyExperienceisBothAnadvantageProblematicTheExperienceLensHighlights:TheimportanceofcollectiveexperienceThelinksbetweentakenforgrantedassumptionsandwaysofdoingthingsTheuseofanalytic/planningtechniquestopostrationalizeandjustifyTheriskofstrategicdriftButhowdoweaccountfor:Penicillin?MobilePhones?TheWalkman?PostIts?MicrowaveOvens?Paradigm(orRecipe)…thebeliefsandassumptionsheldincommonandtakenforgrantedinanorganisation…TheParadigmDevelopmentofStrategyImplementationCorporatePerformanceIfUnsatisfactory(AfterJ-CSpender)STEP2ReconstructordevelopnewstrategySTEP3Abandonparadigm&adoptnewoneSTEP1TightercontrolStoriesSymbolsRituals&RoutinesParadigmPowerStructuresControlSystemOrganisationalStructuresTheCulturalWebofanOrganisationTheIdeasLens….buildsoncomplexityandevolutionarytheoriesTheIdeasLensIdeasaregeneratedthroughvariety:Naturally:EnvironmentalChangeandunpredictabilityDiversityofexperienceInformallinks/”weakties”IntuitionImperfectcopyingTheIdeasLensIdeasaregeneratedthroughvariety:Deliberately:Experiments“Lowcostprobes”MovingpeoplearoundRecruiting“outsiders”IncentivesReductionofboundariesAdaptivetension/edgeofchaos“Simplerules”SimpleRulesTypePurposeHow-torulesSpelloutkeyfeaturesofexecution–‘Whatmakesourprocessunique?’BoundaryrulesFocusmanagersonwhichopportunitiescanbepursuedandwhichshouldnotPriorityrulesHelpmanagersratetheacceptedopportunitiesTimingrulesSynchronisemanagerswiththepaceofemergingopportunitiesandotherpartsofthecompanyExitrulesHelpmanagersdecidewhentopulloutofyesterday’sopportunitiesSource:EisenhartandSullSelectionofIdeasThrough:MarketforcesProjectevaluationandbudgetingprocessesOrganisationalcultureInstitutionallegitimacyAttractivenesstopeopleRetentionofIdeasThrough:Sufficientsupportfrom-champions-communitiesofinterestRoutinizationDiffusionandacceptanceacrossanindustryManagementImplicationsManagerscannotknoworplanthefutureManagersneedtobeawareof,sensitivetoandresponsivetothewiderenvironmentManagersneedtofindwaysofencouragingvarietyanddiversityThiswillnotbeachievedbytightstrategiccontrolFormalplansandsystemsarede-emphasizedManagerscancreatecontextAndestablishsimplerulestocreateadaptivetensionImplications:Noone“right”approachManagersneedtooperatewithall3lensesRequires“reflective”managersThedangersare:UnitaryperspectivesonmanagingAlackofrealismabouttheroleandlimitationsoftopmanagementFormsofStrategyIntendedStrategyUnrealisedStrategyDeliberateStrategyEmergentStrategyRealisedStrategyMintzbergShareholderValueCorporationsareinstrumentswhosepurposeitistocreateeconomicvalueonbehalfofthosewhoinvestrisktakingcapitalintheenterprise.Thisclearpurposeshoulddrivecompaniesregardlessofwhethertheyareprivatelyorpubliclyheld…andthereforebusinessstrategiesshouldbejudgedbytheeconomicvaluetheycreatefortheshareholders.PWCEconomicValueAddedDefinedas“…aperformancemeasurementofeconomicreturnwhichtakesaccountofprofitability,thetotalcostofcapitalandtheamountofassetsunderamanager’scontrol”Calculatedas…economicearningslesschargeforweightedaveragecost(WACC)ofcapitalemployed.Therefore…itmeasuresmanagersinmuchthesamewayasinvestmentfundmanagersaremeasuredandalignsmanagementperformancegoalswiththeexpectationsofshareholdersandtheiropportunitycostofcapital.TheSearchforUniquenessKanbanQualityCirclesCORETQMJITZBBABCMBOBPRSVAEVAVBMCRMSRM6SigmaStrategicRelationshipMarketingE-everythingOutsourcingandOffshoringBalancedScorecard……..???“…thepossibilitythattheonlytrulysustainablecompetitiveadvantageistolearnfasterthanthecompetition.Thereforethetaskisnotsomuchtoseewhatnooneyethasseen...buttothinkwhatnobodyyethasthoughtaboutthatwhicheverybodysees”AriedeGuesSustainableCompetitiveAdvantage