Ten Schools of Thought on Strategic Management

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The Ten Schools of Thought model from Henry Mintzberg is a framework that 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 Strategic Management.

While academics and consultants keep focusing on these narrow perspectives, business managers will be better served if they strive to see the wider picture. Some of strategic management's greatest failings, in fact, occurred when one of these concepts was taken too seriously.

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 School

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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Ten Schools of Thought on Strategic Management

  1. 1. Crowdsourced Business Presentation Design Service Ten Schools of Thought Mintzberg’s Ten Schools of Thought in Strategic Management May 30, 2013 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. ORIGINAL PROJECT DETAILS http://pptlab.com/ppt/Business-Framework-Ten-Schools-of-Thought-36
  2. 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3 Contents  Overview 4  Ten Schools of Thought 12  Templates 33
  3. 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5 The Ten Schools of Thought model breaks down the field of Strategic Management into 10 categories of thinking Executive Summary The Ten Schools of Thought model from Henry Mintzberg is a framework that 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 Strategic Management. While academics and consultants keep focusing on these narrow perspectives, business managers will be better served if they strive to see the wider picture. Some of strategic management's greatest failings, in fact, occurred when one of these concepts was taken too seriously. 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 School Design Planning Position- ing Entrepre- neurial Cognitive Learning Power Cultural Environ- mental Configur- ation Strategic Management
  4. 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7 Each School of Thought takes a varied approach into strategy formulation, as tabulated below Ten Schools of Thought – School Overviews (1 of 2) THE DESIGN SCHOOL . • This school sees strategy formation as a process of conception • Clear and unique strategies are formulated in a deliberate process • In this process, the internal situation of the organization is matched to the external situation of the environment THE PLANNING SCHOOL • This school sees strategy formation as a formal process • In this approach, a rigorous set of steps are taken, from the analysis of the situation to the execution of the strategy • This school sees strategy formation as an analytical process • This approach places the business within the context its industry, and looks at how the organization can improve its strategic positioning within that industry. THE ENTREPRENEURIAL SCHOOL • This school sees strategy formation as a visionary process • The visionary process takes place within the mind of the charismatic founder or leader of an organization THE COGNITIVE SCHOOL • This school sees strategy formation as a mental process • It analyzes how people perceive patterns and process information • It concentrates on what is happening in the mind of the strategist, and how it processes the information THE POSITIONING SCHOOL . SCHOOL DESCRIPTION
  5. 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 9 Though model is great for understanding the origins and characteristics of the 10 defined dominant schools, more “schools” may exist Strengths and Limitations STRENGTHS  Useful illumination of the origins and characteristics of the different schools of thought in strategy formation  Understand, appreciate, and exploit the differences in strategy approaches LIMITATIONS  Other classifications of the field of strategy formation are possible  Additional major ―schools‖ that should be included: e.g. Strategy Dynamics and Resource-based View  The complexity of the 10 schools may initially scare away aspiring strategists vs
  6. 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11 Non-realized strategies There is often a disconnect between the company’s Realized Strategy and its original Intended Strategy Deliberate vs. Realized Strategy DELIBERATE STRATEGYINTENDED STRATEGY EMERGENT STRATEGIES REALIZED STRATEGY The disconnect arises during the execution process, because different people along the way will interpret the organization’s strategic direction differently. Source: Strategy Safari, Mintzberg, 2002 time
  7. 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13 This school sees Strategy Formulation as a process of conception School of Design (1 of 2) Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment This approach embraces the adage: look before you leap. OVERVIEW • This original view sees strategy formation as achieving the essential fit between internal strengths and weaknesses and external threats and opportunities • Senior management formulates clear and simple strategies in a deliberate process of conscious thought (which is neither formally analytical nor informally intuitive) and communicates them to the staff so that everyone can implement the strategies • This was the dominant view of the strategy process at least into the 1970s given its implicit influence on most teaching and practice INTENDED STRATEGY • Fit REALIZED STRATEGY • Think (strategy making as case study) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • None  SOURCE OF THIS SCHOOL • P. Selznick
  8. 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15 This school sees Strategy Formulation as a formal process School of Planning (1 of 2) This approach embraces the adage: a stitch in time saves nine. OVERVIEW • This school grew in parallel with the design school, but the Planning School predominated by the mid- 1970's and though it faltered in the 1980's it continues to be an important influence today • It reflects most of the design school's assumptions except a rather significant one: that the process was not just cerebral but formal, decomposable into distinct steps, delineated by checklists, and supported by techniques • This meant that staff planners replaced senior managers as the key players in the process INTENDED STRATEGY • Formalize REALIZED STRATEGY • Program (rather than formulate) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Some links to urban planning, system theory, & cybernetics  SOURCE OF THIS SCHOOL • I.Ansoff Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  9. 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17 This school sees Strategy Formulation as an analytical process School of Positioning (1 of 2) This approach embraces the adage: Nothing but the facts. OVERVIEW • This was the dominant view of strategy formulation in the 1980s • It was given impetus especially by Michael Porter in 1980, following earlier work on strategic positioning in academe and in consulting, all preceded by a long literature on military strategy, dating back to 500 BC and that of Sun Tzu, author of The Art of War • In this view, strategy reduces to generic positions selected through formalized analysis of industry situations—hence, planners became analysts • This proved especially lucrative to consultants and academics alike, who could sink their teeth into hard data and so promote their "scientific truths" to companies and journals alike INTENDED STRATEGY • Analyze REALIZED STRATEGY • Calculate (rather than create or commit) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Economics, industrial organization, and military history  SOURCE OF THIS SCHOOL • Sun Tzu's ―Art of War,‖ Michael Porter, Purdue University Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  10. 10. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19 This school sees Strategy Formulation as a visionary process School of Entrepreneurship (1 of 2) This approach embraces the statement: Take us to your leader. OVERVIEW • Similar to the design school, this school centered the process on the chief executive • Unlike the design school and in contrast to the planning school, it rooted that process in the mysteries of intuition • That shifted the strategies from precise designs, plans, or positions to vague visions, or perspectives, typically to be seen through metaphor • The idea was applied to particular contexts—e.g. start-ups, niche players, privately owned companies and "turnaround" situations, although the case was certainly put forward that every organization needs the discernment of a visionary leader INTENDED STRATEGY • Envision REALIZED STRATEGY • Centralize (then hope) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Economics  SOURCE OF THIS SCHOOL • J. A. Schumpeter, A. H. Cole, and others in Economics  Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  11. 11. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21 This school sees Strategy Formulation as a mental process School of Cognition (1 of 2) This approach embraces the saying: I’ll see it when I believe it. OVERVIEW • If strategies developed in people's mind as frames, models, or maps, what could be understood about those mental processes? • Particularly in the 1980s, and continuing today, research has grown steadily on cognitive biases in strategy making and on cognition as information processing • Another branch of this school adopted a more subjective interpretative or constructivist view of the strategy process: that cognition is used to construct strategies as creative interpretations, rather than simply to map reality in some more or less objective way INTENDED STRATEGY • Cope or Create REALIZED STRATEGY • Worry (unable to cope in either case) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Psychology  SOURCE OF THIS SCHOOL • H. A. Simon and J. March Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  12. 12. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23 This school sees Strategy Formulation as an emergent process School of Learning (1 of 2) This approach embraces the adage: If at first you don’t succeed, try and try again. OVERVIEW • The learning school became a veritable wave and challenged the omnipresent prescriptive schools • Dating back to early work on "incrementalism," and conceptions like "venturing," "emerging strategy," and "retrospective sense making," a model of strategy making as a learning developed that different from the earlier schools • In this view, strategies are emergent, strategists can be found throughout the organization, and so-called formulation and implementation intertwine INTENDED STRATEGY • Learn REALIZED STRATEGY • Play (rather than Pursue) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Education, Learning Theory  SOURCE OF THIS SCHOOL • C. E. Lindbiom, M. Cyert, J. G. March, K. E. Weick, J. B. Quinn, C. K. Prahlad, G. Hamel Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  13. 13. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 25 This school sees Strategy Formulation as a process of negotiation School of Power (1 of 2) This approach embraces the saying: Look out for number. OVERVIEW • This comparatively small, but quite different school has focused on strategy making rooted in power in two ways: • Micro power sees the development of strategies within the organization as essentially political, a process involving bargaining, persuasion, and confrontation among inside actors • Macro power takes the organization as an entity that uses its power over others and among its partners in alliances, joint ventures, and other network relationships to negotiate "collective" strategies in its interests INTENDED STRATEGY • Promote REALIZED STRATEGY • Hard (rather than share) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Political Science  SOURCE OF THIS SCHOOL • G. T. Alison (micro); J. Pfeffer and G. R. Salancik; W. G. Astley (macro) Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  14. 14. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 27 This school sees Strategy Formulation as a collective process School of Culture (1 of 2) This approach embraces the adage: An apple never falls far from the tree. OVERVIEW • Opposing the power school, the cultural school focuses on common interest and integration • Strategy formation is viewed as a social process rooted in culture • The theory concentrates on the influence of culture in discouraging significant strategic change • Culture became a big issue in the United States and Europe after the impact of Japanese management (e.g. Kaizen) was fully realized in the 1980's and it grew clear that strategic advantage can be the product of unique and difficult-to-imitate cultural factors INTENDED STRATEGY • Coalesce REALIZED STRATEGY • Perpetuate (rather than Change) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Anthropology  SOURCE OF THIS SCHOOL • E. Rhenman and R. Normann Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  15. 15. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 29 This school sees Strategy Formulation as a reactive process School of Environment (1 of 2) This approach embraces the sentiment: It all depends. OVERVIEW • Although not strictly strategic management, if one takes that term as concerned with how organizations use their degrees of freedom to create strategy, the environmental school deserves attention for the light it throws on the demands of the environment • Among its most noticeable theories is the "contingency theory," that considers what responses are expected of organizations that face particular environmental conditions, and "population ecology," writings that claim severe limits to strategic choice INTENDED STRATEGY • React REALIZED STRATEGY • Capitulate (rather than Confront) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • Biology  SOURCE OF THIS SCHOOL • M. T. Hannan, J. Freeman, contingency theorists (e.g. D. S. Pugh) Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  16. 16. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 31 This school sees Strategy Formulation as formal process School of Configuration (1 of 2) This approach embraces the adage: To everything, there is a season. OVERVIEW • This school enjoys the most extensive and integrative literature and practice at present • One side of this school, more academic and descriptive, sees organization as configuration (coherent clusters of characteristics and behaviors) • If organizations can be described by such states, then change must be described as rather dramatic transformation • Therefore, a literature and practice of transformation developed as the other side of the coin • These two very different literatures and practices nevertheless complement one another and so belong to the same school INTENDED STRATEGY • Integrate and Transform REALIZED STRATEGY • Lump (rather than Split and Adapt) SCHOOL CATEGORY  Prescriptive  Descriptive BASE PRINCIPLE • History  SOURCE OF THIS SCHOOL • A. D. Chandler, McGill University, R. E. Milles, C. C. Snow  Design Plannin g Position -ing Entrepre -neurial Cogni- tive Learnin g Power Cultural Environ- mental Configur -ation Strategic Manage- ment
  17. 17. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 33 Contents  Overview  Ten Schools of Thought  Templates
  18. 18. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 35 Insert headline 10 Schools of Thought - TEMPLATE Design Planning Position- ing Entrepre- neurial Cognitive Learning Power Cultural Environ- mental Configur- ation Strategic Management • Insert filler text • Insert filler text • Insert filler text
  19. 19. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 37 Insert headline 10 Schools of Thought - TEMPLATE STRATEGIC MANAGEMENT DESIGN CHOOL PLANNING SCHOOL POSITIONING SCHOOL ENTREPRENEURIAL SCHOOL COGNITIVE SCHOOL • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text LEARNING SCHOOL POWER SCHOOL CULTURAL SCHOOL ENVIRONMENTAL SCHOOL CONFIGURATION SCHOOL • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text • Filler text filler text filler text filler text
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