Strategic Management

Lecture 11 Strategy as Practice

Intended vs Realised Strategy

H Mintzberg Five Ps for Strategy in H Mintzberg, J Lampel, J B Quinn and S Ghoshal The Strategy Process: Concepts, Contexts, Cases, 4th Edition, Prentice Hall, 2003, p5

Definition
..looks at strategy as something people do. It is concerned with the practice of strategising, encompassing both the formulation of strategy and how strategies are put into action to deliver strategic renewal and change. (Lancaster Centre for Strategic Management)

Strategy As Practice
Jarzabkowski et al (2005)

Practitioners Practice Praxis

A Comparison
Strategic Management

Focused on a winning formula or strategy Looks at the organisation as an entity Considers the big picture view Processes are seen as rational actions

Strategy as Practice Investigates understanding of components of whole Considers the actions of individual managers Examines the minutae of detail Processes are humanistic and may include feelings and emotions

Hondas Entry to the US Market

BCG Account Planned rational strategy Predicated on the leveraging of economies of scale from home market Pre-selected product placement to take advantage of unoccupied market niche Masterminded by the Honda corporation Pascales (1984) Account Emergent strategy Opportunistic exploration of potential market Serendipitous selection of product line (cub) in response to larger bike issues Success from the responsive actions of local employees

Research Insights?
Discussions in the corridor? Policy interpretation by a first line manager? Technical Sales Assistants dealing with Customers? The roll-out of a new product to market project?

Komatsus Mission
To Encircle Caterpillar - Maru C

www.komatsu.com

Clarity of strategic intent can motivate an organisation to achieve its goals

G Johnson & K Scholes, Exploring Corporate Strategy, 5th Ed, Pearson, 1999, p265

Strategy Formulation/ Formation

Classical Perspectives
Planning, Positioning, Design

The Strategist(s)
Learning, Cognitive, Entrepreneurial

Forces
Culture, Environment, Configuration, Power
Mintzberg et al (2008) Strategy Safari.

S as P Research
Whittington (2006) Actors in the research landscape Jarzabowski (2005) Pluralistic Contexts Johnson et al (2007) The flow of activity Schatzki (2005) Sociological Approaches Balogun et al (2003) Research methodologies