Mintzberg's Entrepreneurial School
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The document summarizes the entrepreneurial school of strategic management thought. It focuses on the importance of visionary leadership, with the leader using intuition, experience, and judgment to develop a strategic vision. The entrepreneurial school views strategy as existing in the leader's mind and forming semiconsciously based on the leader's experience. The leader then promotes and implements the vision through close personal control of the organization.
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Mintzberg's Entrepreneurial School
- 1. The Entrepreneurial School of Thought Yza S. Reyes Michelle V. Cosico BA 190 - Strategic Management University of the Philippines Prof. Mita Angela M. Dimalanta
- 2. Introduction •Strategy Safari: A Guided Tour through the Wilds of Strategic Management (Mintzberg, Ahlstrand, and Lampel, 1998) •Descriptive •Emphasizes the importance of vision and leadership •“Rider of the Elephant”
- 3. The Entrepreneurial School Individual Leader Vision Judgment Intuition Insight Experience Wisdom
- 4. Strategic Thinking as Seeing AheadSeeing Behind
- 5. Strategic Thinking as Seeing DownSeeing Above
- 6. Strategic Thinking as Seeing BeyondSeeing Beside
- 7. Strategic Thinking as Seeing
- 8. Origin in Economics Traditional View Modern View The Entrepreneur
- 11. Contributions of the Entrepreneurial School Visionary Leaders
- 12. Limitations of the Entrepreneurial School
- 13. Premises of the Entrepreneurial School • Strategy exists as a perspective in the leader’s mind. • The process of strategy formation is semiconscious at best, rooted in the experience and intuition of the leader. • The leader promotes the vision single-mindedly, maintaining close personal control of the implementation • The strategic vision is malleable, and so entrepreneurial strategy tends to be deliberate and emergent • The organization is likewise malleable, a simple structure responsive to the leader's directives. • Entrepreneurial strategy tends to take the form of niche, one or more pockets of market position protected from the forces of outright competition.
Editor's Notes
- The Vision is the primary focus of this school of thought and it is considered to be the mental representation of the strategy The leader, usually the CEO 1. It is a target – a future state 2. Possible and desirable 3. It must be rooted on the organization’s core values, objectives, and aspirations 4. It must be simple, easily understood, and energizing strategic vision, similar to drama, is said to emerge in that moment when fiction and reality meet. This moment occurs from three procedures – repetition, representation and assistance and was applied by the authors to visionary management. Repetition indicates that in order for the vision to be effective, the leader must have a substantial knowledge on the subject. Representation suggests that the vision should be articulated not just by mere words but actions too. The leader is able to form a distinct image of the vision at the same time he is able to make others see the image too. However, the vision should not only be imagined in words or in pictures but it should be put into action. Assistance, on the other hand, implies that similar to how the audience of the drama empowers the actors and vice versa, in the organization the leader empowers his employees and the employees empower the leader as well.
- Generally, it has four characteristics: 1) it provides direction – there is a desired future state for the organization, 2) it uses foresight – typically a part of wisdom and intuition, great visionary leaders are able to foresee what is going to happen before others do, 3) it is believed – the leader must be right or must be perceived to be right, and 4) it motivates – visionary leaders move followers – employees – toward the achievement of the vision. “How will we make the world better for others?” - it inspires leaders and employees and gives people hope for a better world
- In general, the primary contribution of this school is highlighting the significance of developing a sound vision in order to formulate a successful strategy and it emphasized the role of the leader in the strategy formulation. due to industrial development, the increasing number of organizations that offer varying or similar products and services, the presence of having a great visionary leader is essential to start-up organizations that want to participate in the market and for existing organizations that want to survive in the long-run emphasizes the responsibility of the leader in guiding the organization in the future provides an insight to the characteristics of a person worthy of becoming a visionary leader highlights the importance of creativity and innovation and its practice in order to have a successful vision. It promotes flexibility and adaptability in terms of organizational strategies and leadership capabilities in response to dynamic changes in the environment it stresses on the importance of preparation and versatility when risks and uncertainties arise
- Primary criticism – strategy formulation is centered mainly on a single individual – the leader Selection: where to find and how to select, qualifications and characteristics and their objectivity Leaders sometimes tend to go over the edge, obsess or focus too much on the vision : not considering much if it is doable or not, sometimes they gravitate away from the organizations objectives and strategize based on their personal interests In some cases, when conflict or confusion arise, employees may become hostile and may demand a new leader. Stacey mentioned a number of harmful consequences of vision: 1. Forming a vision is not concrete enough given that the future is unknowable. 2. Visions fix managers too tightly in a single direction. 3. Places a great deal of burden on the leader – myth that orgs have to rely on a single or few individual/s while employees just follow. Promotes bureaucracy and discourages employee participation. 4. Vision distracts attention from what is really being done by employees. Too focused on your organization achieving that vision that you forget your impact on the society.
- To sum it all up, we used the summary of Mintzberg, Ahlstrand and Lampel (1998) of the premises that underlie the entrepreneurial view of strategy formation. - specifically a sense of long-term direction, a vision of the organization's future. - whether he or she actually conceives the strategy or adopts it from others and then internalizes it in his or her own behavior. (In many cases, information needed is qualitative such as opportunities in markets, product or service innovation from customer feedback however, some people focus on the quantitative info, basically, everything can work as a source of vision depending on the leaders mental processes.) - in order to be able to reformulate specific aspects as necessary. (reformulate strategies if changes occur) - Deliberate (planned) in overall vision and emergent (continuously developing) in how the details of the vision unfold. whether an actual startup, a company owned by an individual, or a large established organization Because your products are new to the market or an improvement of an existing product, you don’t dive straight to the competition In this school of thought, the strategy building process is built on a vision created by a single leader. The proponents believe that the key to organizational success was personalized leadership based on strategic vision.