Strategi 2:
Strategiprosess
Sesjon 1
Bjarne Kiil, Ph. D.
Professor II, Institutt for strategi
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Dimensions of strategy
Strategy Process
Strategy Content
Strategy Context
WM 2nd edition, 1.1
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Levels of strategy
Network
level
Network II
Alliance I
Corporation Y
Business B
Corporation T
Corporation X
Corporation Z
Business L
Corporation X
Corporate
Level
Business
Level
Business A
Business B
Business C
Business B
HRM
Finance
R&D
Marketing
&sales
Functional
Level
Operations
Marketing & Sales
Product
Price
Place
Promo
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Towards a theory of Strategic
Managament
Porter
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• Process Perspectives
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Programming
Incrementalism
Logical incrementalism
Game theory
Strategic intent
Strategic core framework
Resource base perspective
Learning organizations
• Innovation
– Competing for the future
Revolutionary strategies
Changing the rule of the game
– Competing on the edge
– Robust strategies
• Views on reality
– On predictability
– On cognition
– On environment
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Strategic Perspective
I
Administration
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II
III
Resources
Knowledge
Imagination
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Andrews strategy model
Resource
analysis
Current
strategy
Strengths
Weaknesses
Opportunities
Threats
Environmental
scan
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Corporate
capabilities
Management
values
Strategic
alternatives
Strategic
decision
making
Market
opportunities
Social
responsibilities
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New strategy
ready to
implement
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The fine art of crafting strategy
Though Henry Mintzberg has much to say about how others see strategy,
it's less easy to capture what he thinks about it himself
Unrealized
strategy
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Realized strategy
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Strategy approaches
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The design school:
The planning school:
The positioning school:
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The entrepreneurial school:Strategy formations as a visionary process
The cognitive school:
Strategy formation as a mental process
The learning school:
Strategy formations as an emergent process
The political school:
Strategy formations as a power process
The cultural school:
Strategy formations as an ideological process
The environmental school: Strategy formation as a passive process
The configuration school: Strategy formation as an episodic process
Strategy formations as a conceptual process
Strategy as a formal process
Strategy formation as an analytical process
Programming *
Incrementalism **
* Programming, Prescriptive (how strategy should be made)
** Incrementalism, Descriptive (how strategy gets made)
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Traditional implicits assumptions
• Predictability
• Environment is real
• Analysis is key
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The concept of corporate strategy
By Kenneth Andrews
• "Strategy is the pattern of decisions in a company
that determines and reveals its objectives, purposes,
or goals, produces the principle policies and plans for
achieving those goals"
• The strategy process should be a rational and
conscious planning activity, in which formulation and
implementation are carried out sequentially
• The logical activity of planning is preferable to the
"muddling through" of incrementalism
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Definition
• "A strategy is the pattern or plan that
integrates an organization's major goals,
policies and action sequences into a
cohesive whole"
James Brian Quinn
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Logical incrementalism
(The dynamics of change processes - grounded theory)
Seeking: Normative guidance to the strategist
• Observation: Such incrementalism is not
muddling. It is a purposeful, effective, proactive
management technique for improving and
integrating both the analytical and behavioural
aspects of strategy formulation
• Precipitating events - shape future
• Analytical - create preparedness, awareness
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Strategy Process
• The manner in which strategies come about.
• The how of strategy
– How
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is and should strategy be made
analysed
dreamt up
formulated
Implemented
Changed
Controled
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Dimentions of strategy process
according to W&M
• Strategic thinking
Logic – Creativity
• Strategy formation
Deliberateness – Emergentness
• Strategic change
Revolution - Evolution
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Some Key Issues
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Sustainable competitive advantage
Attempts to offer prescriptive
Strategy Convergence
Uniqueness (Target)
Literature, S. M. S. (1999 – 2000)
Revolutionary
Learning
Knowledge
To be
Self Organization
process
Intellectual capital
integrated
New Economy
Strategic experimentation
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Breakthrough strategies for
seizing control of your industry
and creating the markets of
tomorrow
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"Food for thought"
• What if predictability is an illusion?
• and, what if environment is not real?
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• Is predictability desireable?
• Non-predictability
– A problem?
– or an asset?
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Development in strategic thinking
FOCUS:
Planning
Predictability
High
FOCUS:
Process
Resources
"Confidence
in
predictability"
?
Low
1960
Programming
1980
1990
Resource
based
Learning
Mintzberg
Porter
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Chaos
Innovation
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Strategy, "new" field
• Strategic alliances
• Networks
• Boarderless
1950
1980
Today
International
• MNC
• National responsive
• Global
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• Not one right process
• Not one right content
• Not one objective context
• Not search for the right
• Search for a suitable and most likely unique
process
• Comment to PROJECT
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Corollary from my experience
• Learning within the unknowable
• Only possible to get the grips with things that
are local to us in space and time
• Event driven
• Complexity theory
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Strategic intent
Focus
Strategic
intent
Time
horizon
Effective
operation
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Discovery driven planning
Discovery-driven planning recognizes that planning
for a new venture involves envisioning the unknown
• High ratio of assumptions to knowledge
• Systematically converts assumptions into
knowledge as venture unfolds
• Requires discipline - no less than planning
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Comments on hazards
• Lack of hard data - few key decisions - proceed as
assumptions were facts
• Hard data available - checking assumptions - but fail
to see implications
• Hard data available - continual opportunity exists
inappropriate assumptions about implementations
• Start off with right data - assumes static environment
- key variables change unnoticed
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The ten strategy tensions
Chapter
Strategy tension
Strategy perspectives
1. Strategic thinking
Logic vs. creativity
Rational thinking vs. generative
thinking
2. Strategy formation
Deliberateness vs. emergentness
Planning vs. incrementalism
3. Strategic change
Revolution vs. evolution
Discontinuous change vs.
continuos change
4. Business level strategy
Markets vs. recourses
Outside-in vs. inside-out
5. Corporate level strategy
Responsiveness vs. synergy
Portfolio vs. core competence
6. Network level strategy
Competition vs. cooperation
Discrete organization vs.
embedded organization
7. The Industry context
Compliance vs. choice
Industry evolution vs. industry
creation
8. The organizational context
Control vs. chaos
Organizational leadership vs.
organizational dynamics
9. The international context
Globalization vs. localization
Global convergence vs.
international diversity
10.
Profitability vs. responsibility
Shareholder value vs.
stakeholder value
Organizational purpose
WM 2nd edition 1.1
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Perspectives on the TENSIONS
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As puzzle
As dilemma
As trade off
As paradox
• Or source of reflection and inspiration for own
process:
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Design
Choice
Growth
Evolution
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The rational thinking versus
generative thinking perspective
Rational Thinking Perspective Generative Thinking Perspective
Emphasis on
Logic over creativity
Creativity over logic
Cognitive style
Analytical
Intuitive
Reasoning follows
Formal, fixed rules
Informal, variable rules
Nature of reasoning
Computational
Imaginative
Direction of reasoning
Vertical
Lateral
Value placed on
Consistency and rigor
Unorthodoxy and vision
Reasoning hindered by
Incomplete information
Adherence to current ideas
Assumption about reality
Objective, (partially) knowable
Subjective, (partially) createable
Decisions based on
Calculation
Judgement
Metaphor
Strategy as science
Strategy as art
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Planning versus incrementalism
perspective
Planning perspective
Incrementalism perspective
Emphasis on
Deliberateness over emergentness
Emergentness over deliberateness
Nature of strategy
Intentionally designed
Gradually shaped
Nature of strategy formation
Figuring out
Finding out
Formation process
Formally structured and comprehensive
Unstructured and fragmented
Formation process steps
First think, then act
Thinking and acting intertwined
Focus on strategy as a
Pattern of decisions (plan)
Pattern of actions (behaviour)
Decision-making
Hierarchical
Political
Decision-making focus
Optimal resource allocation & coordination
Experimentation and parallel initiatives
View of future developments
Forecast and anticipate
Partially unknown and unpredictable
Posture towards the future
Make commitments, prepare for the future
Postpone commitments, remain flexible
Implementation focused on
Programming (organizational efficiency)
Learning (organizational development)
Strategic change
Implemented top-down
Required broad cultural and cognitive shifts
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Discontinuous change versus
continuous change perspective
Discontinuous Change
Perspective
Continuous Change
Perspective
Emphasis on
Revolution over evolution
Evolution over revolution
Strategic change as
Disruptive innovation/
turnaround
Uninterrupted improvement
Strategic change process
Creative destruction
Organic adaptation
Magnitude of change
Radical, comprehensive and
dramatic
Moderate, piecemeal and
undramatic
Pace of change
Abrupt, unsteady and
intermittent
Gradual, steady and constant
Fundamental change requires
Sudden break with status quo
Permanent learning and
flexibility
Reaction to environmental jolts
Shock therapy
Continuous adjustment
View of organizational crises
Under pressure things become
fluid
In the cold everything freezes
Long-term change dynamics
Stable and unstable states
alternate
Persistent transient state
Long-term change pattern
Punctuated equilibrium
Gradual development
WM 2nd edition, 4.1
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Chapter 5: Introduction
W&M
Outside-in perspective
Inside-out perspective
Emphasis on
Markets over recourses
Resources over markets
Orientation
Market / industry-driven
Resource-driven
Starting point
Market / industry structure
Firm’s resource infrastructure
Fit through
Adaptation to environment
Adaptation of environment
Strategic focus
Attaining advantageous position Attaining distinctive resources
Strategic moves
Market / Industry positioning
Developing resource base
Tactical moves
Attaining necessary resources
Industry entry and positioning
Competitive weapons
Bargaining power and mobility
barriers
Superior resources and
imitation barriers
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Portfolio versus
core competence perspective
Portfolio Perspective
Core Competence
Perspective
Emphasis on
Responsiveness over synergy
Synergy over responsiveness
View of competition
Firms compete within a business Corporations compete across
businesses
Competitive strategy at
Business level
Corporate level
Key success factor
Responsiveness to business
demands
Competence leveraging
Corporate composition
Potentially unrelated (diverse)
Shared competence-base
(focused)
Multibusiness synergy
Cash flow optimization
Rapid competence building
Primary task corporate center
Capital allocation to SBU's
Competence development and
application
Position of business units
Highly autonomous
(independent)
Highly integrated
(interdependent)
Coordination between SBU's
Low, incidental
High, structural
Corporate control style
Setting financial objectives
Joint strategy development
Diversification acquisitions
Simple to accommodate
Difficult to integrate
03.01.01
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The paradox of competition and
cooperation
Discrete organization
perspective
Embedded organization
perspective
Emphasis on
Competition over cooperation
Cooperation over competition
Structure of the environment
Discrete organizations
(atomistic)
Embedded organizations
(networked)
Firm boundaries
Distinct
Fuzzy
Preferred position
Independence
Interdependence
Interaction outcomes
Mainly zero-sum (win/lose)
Often positive-sum (win/win)
Source of advantage
Bargaining power
Specialization and
coordination
Multicompany level strategy
No
Yes
Use of collaboration
Temporary arrangement
(tactical)
Durable partnership
(strategic)
Basis of collaboration
Power and calculation
Trust and reciprocity
Structure of collaboration
Limited, well-defined,
contract-based
Broad, open, relationshipbased
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Industry evolution versus
industry creation perspective
Industry Evolution
Perspective
Industry Creation
Perspective
Emphasis on
Compliance over choice
Choice over compliance
Industry changes
Uncontrollable evolutionary
processes
Controllable creation
processes
Change dynamics
Environment selects fit firms
Firm creates fitting
environment
Firm success due to
Fitness to industry demands
Manipulation of industry
demands
Industry malleability
Low, low
High, fast
Normative implication
Play by the rules (adapt)
Change the rules (innovate)
Firm profitability
Industry-dependent
Firm-dependent
Point of View
Deterministic
Voluntaristic
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Organizational leadership versus
organizational dynamics perspective
Organizational
Organizational
Leadership Perspective Dynamics Perspective
Emphasis on
Control over chaos
Chaos over control
Organizational changes
Controllable creation processes
Uncontrollable evolutionary
processes
Change process
Leader commands behavior
Behavior emerges from
history
Change determinants
Leader's vision and skill
Political, cultural and learning
dynamics
Form of change
Top-down, mechanistic
Interactive fermentation
Organizational malleability High, fast
Low, slow
Direction of adaptation
Organization follows strategy
Strategy follows organization
Normative implication
Strategize, then organize
Strategizing and organizing
intertwined
Point of view
Voluntaristic
Deterministic
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Dato
Tema
3/1
Overganger fra strategi som analyse til forståelse av strategi som prosess.
(Bjarne Kiil)
10/1
Utdyping av ulike perspektiver på strategiske prosesser. (Bjarne Kiil)
17/1
Strategiprosess og innovasjon (Øystein D. Fjeldstad)
31/1
Organisasjonslæring med fokus på ledelse av innovasjonsprosesser.
(Ragnhild Kvålshaugen)
7/2
Strategiprosessen – konsulent eller lederdrevet? (Reiar Ness)
14/2
Systemdynamisk perspektiv, kaosteori. (Bjarne Kiil/Gisle Henden)
21/2
Endringsledelse – implementering av strategi. (Øyvind Revang)
28/2
Valgt emne og oppsummering. (Bjarne Kiil/gjesteforeleser)
7/3
Strategic leadership and organizational vision. (Mark Kriger)
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Målsetning, Strategi 2
• Strategiske prosesser i en dynamisk verden,
basert på perspektiv-messig mangfold
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Kursmateriale
• Barney, Jay B.: Gaining and sustaining
competitive advantage. Addison
• Artikkelsamling: Strategiske prosesser.
Redaktør Bjarne Kiil.
• Anbefalt litteratur
– Senge, P. M.: The Fifth Discipline. New York:
Doubleday 1990.
– De Witt & Myer, Strategy process, content,
context. International Thompson Business Press,
1998, 2nd edition.
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"Punctuated equilibrium" Schrumpetarian development
Change
Punctuation points
Stability
Time
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On Implementation
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Prosjektoppgave
•
Case
–
Finn en artikkel i avis/magasin datert 2000/2001 om en
norsk bedrift. For å gjøre denne oppgaven gjør bruk av
denne artikkelen, andre artikler, årsrapporter, hjemmesider,
o.l. Dere kan bruke caset fra strategi 1, hvis dere vil.
1. Forsøk å klarlegg hvilket strategiprosess-perspektiv
bedriften er preget av?
–
Eksempelvis; planlegging, incrementalism, strategic intent,
innovation, eller kombinasjoner av disse. (50%)
2. I hvilken grad er bedriften innovativ?
–
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Diskutér og begrunn svaret.
Kom med synspunkter og forslag til innovative tiltak. (50%)
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Imagination is more important
than knowledge
(Albert Einstein 1879-1955; German-American physicist)
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Plans are nothing. Planning is
everything
(Dwigth D. Eisenhower 1890-1969; American General and president)
It is a mistake to look to far ahead.
Only one link of the chain of
destiny can be handled at a time
(Winston Churchill 1874-1965; British prime minister and writer)
Alexander the Great
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