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Henry Mintzberg's Ten Schools of Thought on Strategic Management
 

Henry Mintzberg's Ten Schools of Thought on Strategic Management

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Developed by Henry Mintzberg, the Ten Schools of Thought framework breaks down the field of Strategic Management into 10 categories, from Positioning to Entrepreneurial to Configuration. This document explains each School, its origins, benefit and limitations, related analyses/frameworks, and other attributes. Also includes PowerPoint templates for illustrating this model in your presentation.

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Henry Mintzberg's Ten Schools of Thought on Strategic Management Henry Mintzberg's Ten Schools of Thought on Strategic Management Presentation Transcript

  • Crowdsourced BusinessPresentation Design ServiceTen Schools of ThoughtMintzberg’s Ten Schools of Thoughtin Strategic ManagementMay 30, 2013Developed by Henry Mintzberg, the Ten Schools of Thought framework breaksdown the field of Strategic Management into 10 categories, from Positioning toEntrepreneurial to Configuration. This document explains each School, its origins,benefit and limitations, related analyses/frameworks, and other attributes. Alsoincludes PowerPoint templates for illustrating this model in your presentation.ORIGINAL PROJECT DETAILShttp://pptlab.com/ppt/Business-Framework-Ten-Schools-of-Thought-36
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 2PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3Contents Overview 4 Ten Schools of Thought 12 Templates 33
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4The Ten Schools of Thought model breaks down the field of StrategicManagement into 10 categories of thinkingExecutive SummaryThe Ten Schools of Thought model from Henry Mintzberg is a frameworkthat can be used to categorize the field of Strategic Management.It describes each school in context and provides a critique. Thus,it acts as a very good overview to the entire field of StrategicManagement.While academics and consultants keep focusing on thesenarrow perspectives, business managers will be betterserved if they strive to see the wider picture. Some ofstrategic managements greatest failings, in fact,occurred when one of these concepts was taken tooseriously.These 10 Schools of Thought are as follows:• The Design School• The Planning School• The Positioning School• The Entrepreneurial School• The Cognitive School•The Learning School•The Power School•The Cultural School•The Environmental School•The Configuration SchoolDesignPlanningPosition-ingEntrepre-neurialCognitiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManagement
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5Ten Schools of Thought – School Overviews (2 of 2)THE LEARNING SCHOOL .• This school sees strategy formation as an emergent process• The management pays close attention over time to what does work, and what doesntwork• They incorporate these lessons learned into their overall plan of actionTHE POWER SCHOOL .• This school sees strategy formation as a process of negotiation• The strategy is developed as a process of negotiation between power holders withinthe company, and/or between the company and its external stakeholders• This school sees strategy formation as a collective process• Strategy formation is viewed as a fundamentally collective and cooperative processTHE ENVIRONMENTALSCHOOL .• This school sees strategy formation as a reactive process• The strategy is a response to the challenges imposed by the external environment• Whereas other schools see the environment as a factor, the environmental school seesit as an actorTHE CONFIGURATIONSCHOOL .• This school sees strategy formation as a process of transformation• Strategy formation is a process of transforming the organization from one type ofdecision-making structure into anotherTHE CULTURAL SCHOOLSCHOOL DESCRIPTIONTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 6The 2x2 below depicts how the 10 schools differ in their focus across thedimensions of the External World and Internal ProcessesExternal (World) vs. Internal (Processes)INTERNAL PROCESSESEXTERNALWORLDRational NaturalComprehensible,ControllableUnpredictable,ConfusingPositioningPlanningDesignEntrepreneurialPower (macro)ConfigurationCulturalPower (micro)LearningCognitiveEnvironmentalNo one view iscomplete by itself—strategy formulationshould borrow ideasand analyses frommultiple Schools ofThoughtTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7Non-realizedstrategiesThere is often a disconnect between the company’s Realized Strategy andits original Intended StrategyDeliberate vs. Realized StrategyDELIBERATESTRATEGYINTENDEDSTRATEGYEMERGENTSTRATEGIESREALIZEDSTRATEGYThe disconnect arises during the execution process, because different people alongthe way will interpret the organization’s strategic direction differently.Source: Strategy Safari, Mintzberg, 2002timeTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 8This school sees Strategy Formulation as a formalprocessSchool of Planning (1 of 2)This approach embraces the adage: a stitch in time saves nine.OVERVIEW• This school grew in parallel with thedesign school, but the PlanningSchool predominated by the mid-1970s and though it faltered in the1980s it continues to be animportant influence today• It reflects most of the design schoolsassumptions except a rathersignificant one: that the process wasnot just cerebral but formal,decomposable into distinct steps,delineated by checklists, andsupported by techniques• This meant that staff plannersreplaced senior managers as the keyplayers in the processINTENDED STRATEGY• FormalizeREALIZED STRATEGY• Program (ratherthan formulate)SCHOOL CATEGORY Prescriptive  DescriptiveBASE PRINCIPLE• Some links to urban planning, system theory, & cyberneticsSOURCE OF THIS SCHOOL• I.AnsoffDesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9School of Planning (2 of 2)Champions of this school include “professional" managers, MBAs, staff experts(especially in finance), consultants, and government controllers.LIMITATIONS Neither supports real-time strategy making norencourages creative accidents Strategy can become too static The risk exists of Groupthink Predicting is difficult Top managers must create the strategy from an ivorytowerBENEFITS Provides clear direction Enables firm resource allocation Analysts can pre-screen the facts and they can judgethe crafted strategies Offers controlVSANALYSES/FRAMEWORKS USED• Theory of Mechanistic and Organic Systems• Parenting Styles• Levers of Control• Scenario PlanningDesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10This school sees Strategy Formulation as an analyticalprocessSchool of Positioning (1 of 2)This approach embraces the adage: Nothing but the facts.OVERVIEW• This was the dominant view of strategyformulation in the 1980s• It was given impetus especially byMichael Porter in 1980, following earlierwork on strategic positioning inacademe and in consulting, all precededby a long literature on military strategy,dating back to 500 BC and that of SunTzu, author of The Art of War• In this view, strategy reduces to genericpositions selected through formalizedanalysis of industry situations—hence,planners became analysts• This proved especially lucrative toconsultants and academics alike, whocould sink their teeth into hard data andso promote their "scientific truths" tocompanies and journals alikeINTENDED STRATEGY• AnalyzeREALIZED STRATEGY• Calculate (ratherthan create orcommit)SCHOOL CATEGORY Prescriptive  DescriptiveBASE PRINCIPLE• Economics, industrial organization, and military historySOURCE OF THIS SCHOOL• Sun Tzus “Art of War,” Michael Porter, Purdue UniversityDesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11School of Positioning (2 of 2)Champions of this school include analytical people, consulting boutiques, and writers.LIMITATIONS Strategy is reduced to generic positions selectedthrough formalized analysis of industry situations Neglects power, politics, culture, social elements Is biased towards large firms Is too number-orientedBENEFITS This school made Strategic Management into ascience, enabling future progress Provides content in a systematic way to the existingway of looking at strategy Focuses on hard (economic) facts It is particularly useful in early stages of strategydevelopment when data is analyzedVSANALYSES/FRAMEWORKS USED• Competitive Advantage (Porter)• Porter’s Five Forces• Value Chain (Porter)• BCG Growth-Share Matrix• Game Theory• Art of War (Sun Tzu)DesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 12This school sees Strategy Formulation as formal processSchool of Configuration (1 of 2)This approach embraces the adage: To everything, there is a season.OVERVIEW• This school enjoys the most extensiveand integrative literature and practice atpresent• One side of this school, more academicand descriptive, sees organization asconfiguration (coherent clusters ofcharacteristics and behaviors)• If organizations can be described bysuch states, then change must bedescribed as rather dramatictransformation• Therefore, a literature and practice oftransformation developed as the otherside of the coin• These two very different literatures andpractices nevertheless complement oneanother and so belong to the sameschoolINTENDED STRATEGY• Integrate andTransformREALIZED STRATEGY• Lump (rather thanSplit and Adapt)SCHOOL CATEGORY Prescriptive  DescriptiveBASE PRINCIPLE• HistorySOURCE OF THIS SCHOOL• A. D. Chandler, McGill University, R. E. Milles, C. C. SnowDesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13School of Configuration (2 of 2)Champions of this school include Lumpers, Integrators, and Change Agents.LIMITATIONS In reality there are many shades of grey, not just alimited number of valid configurations Pattern is in the eye of the beholder If you describe the reality by using configurations, youare distorting the reality in order to explain it Polarized between two approaches favoring eitherradical or incremental changeBENEFITS Caters to how strategy and organizationaldevelopment are closely integrated and should bereconciled The way of strategy formation must adapt to its owntime and context, while it takes one or more of the 10mentioned forms Strategy formation itself has configurationsVSANALYSES/FRAMEWORKS USED• Organizational Configurations• Chaos Theory• Catastrophe Theory• Disruptive InnovationDesignPlanningPosition-ingEntrepre-neurialCogni-tiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManage-mentTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 14Contents Overview Ten Schools of Thought Templates
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15Insert headline10 Schools of Thought - TEMPLATEDesignPlanningPosition-ingEntrepre-neurialCognitiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManagementInsert bumper.THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16Insert headline10 Schools of Thought - TEMPLATEDesignPlanningPosition-ingEntrepre-neurialCognitiveLearningPowerCulturalEnviron-mentalConfigur-ationStrategicManagement• Insert filler text• Insert filler text• Insert filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17Insert headline10 Schools of Thought - TEMPLATEInsert bumper.DESIGNCHOOLPLANNINGSCHOOLPOSITIONINGSCHOOLENTREPRENEURIALSCHOOLCOGNITIVESCHOOL• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler textLEARNINGSCHOOLPOWERSCHOOLCULTURALSCHOOLENVIRONMENTALSCHOOLCONFIGURATIONSCHOOL• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 18Insert headline10 Schools of Thought - TEMPLATESTRATEGIC MANAGEMENTDESIGNCHOOLPLANNINGSCHOOLPOSITIONINGSCHOOLENTREPRENEURIALSCHOOLCOGNITIVESCHOOL• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler textLEARNINGSCHOOLPOWERSCHOOLCULTURALSCHOOLENVIRONMENTALSCHOOLCONFIGURATIONSCHOOL• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com