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...