Strategy development processes - summary
12 Strategy development processes
1. Intended strategy: strategies come about as the result of the deliberations of top management.
- the rational/analytic view of strategic development.
2. Emergent strategy: strategies do not develop on the basis of a grand plan but tend to emerge in organisations over time.
These two views are not mutually exclusive.
12.2 Intended strategy development
Intended strategy is deliberately formulated or planned by managers. This may be the result of strategic leadership, strategic planning or sometimes the external imposition of strategy deliberately formulated elsewhere.
12.2.1 Strategic leadership: the role of vision and command
An organisation’s strategy may be influenced by strategic leaders: whose personality, position or reputation gives them dominance over the strategy development process.
Strategic leadership as command
The strategy of an organisation might be dictated by an individual. This is, perhaps, most evident in owner-managed small firms, where that individual is in direct control of all aspects of the business.
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.
Strategic leadership as decision-making
One of the key roles of leaders is to have the ability to weigh different views, interpret data, have the confidence to take timely decisions and the authority to get others to buy into those decisions.
Strategic leadership as symbolic
12.2.2 Strategic planning systems
In a study of strategic planning systems of major oil companies, Rob Grant noted the following stages in the cycle for a large corporation:
Initial guidelines
The cycle’s starting point is usually a set of guidelines or assumptions about external environment.
Business – level planning
Business units or divisions draw up
1. Intended strategy: strategies come about as the result of the deliberations of top management.
- the rational/analytic view of strategic development.
2. Emergent strategy: strategies do not develop on the basis of a grand plan but tend to emerge in organisations over time.
These two views are not mutually exclusive.
12.2 Intended strategy development
Intended strategy is deliberately formulated or planned by managers. This may be the result of strategic leadership, strategic planning or sometimes the external imposition of strategy deliberately formulated elsewhere.
12.2.1 Strategic leadership: the role of vision and command
An organisation’s strategy may be influenced by strategic leaders: whose personality, position or reputation gives them dominance over the strategy development process.
Strategic leadership as command
The strategy of an organisation might be dictated by an individual. This is, perhaps, most evident in owner-managed small firms, where that individual is in direct control of all aspects of the business.
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.
Strategic leadership as decision-making
One of the key roles of leaders is to have the ability to weigh different views, interpret data, have the confidence to take timely decisions and the authority to get others to buy into those decisions.
Strategic leadership as symbolic
12.2.2 Strategic planning systems
In a study of strategic planning systems of major oil companies, Rob Grant noted the following stages in the cycle for a large corporation:
Initial guidelines
The cycle’s starting point is usually a set of guidelines or assumptions about external environment.
Business – level planning
Business units or divisions draw up