Mintzberg’s Planning School
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Mintzberg’s Planning School by Rozz Ignacio and Kiara Robles, Strategic Management, University of the Philippines
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Mintzberg’s Planning School
- 1. Mintzberg’s Planning School Rozz Joshua B. Ignacio Kiera Lyn S. Robles BA 190 - Strategic Management University of the Philippines Prof. Mita Angela M. Dimalanta
- 2. What is planning? • Mintzberg defined Planning Schools as a formal process that encompasses a rigorous set of steps from the analysis situation to the execution of the strategy
- 3. Steps in creating an effective strategic plan • Objective setting stage • External audit stage • Internal audit stage • Strategy evaluation stage • Strategy operationalization stage
- 4. Game Mechanics • The class will be divided into groups of four • Each group will be given Php 25 pesos • Using the fund given, the group will have to purchase materials from the shop and build their own tower • BBQ sticks - Php 0.50, Green wire - Php 2.00, Tape - Php 2.00 • Glue stick - Php 2.00, Rubber band - Php 0.50 • Each group will be given 3 minutes to plan • During the game, the towers and groups will be tested by different circumstances that usually happen in a company setting • After 10 minutes, the group with the highest tower wins
- 5. The premises of planning school: 1. Strategies result from a controlled, conscious process of formal planning, decomposed into distinct steps, each delineated by checklists and supported by techniques. 2. Responsibility for that overall process rests with the chief executive in principle; responsibility for its execution rests with staff planners in practice. 3. Strategies appear from this process full blown, to be made explicit so that they can then be implemented through detailed attention to objectives, budgets, program, and operating plans of various kinds. [Mintzberg et al. 1998]
- 6. Contributions • Gives clear direction • Enables resource allocation • Control
- 7. Disadvantages • Can be too static • Risk of groupthink • Predicting is difficult • Top management must create strategy from an ivory tower
- 8. Recent Developments • Scenario Planning • Levers of Control • Parenting Styles • Theory of Mechanistic and Organic Systems
- 9. References • Caldart, A. and J.E Roan [2006] “’Parenting Style’ and Performance” Retrieved from: http://www.ieseinsight.com/doc.aspx?id=560. Accessed: September 21, 2016 • Martin, J. [n.d] “Simon’s Levers of Control in Relation to the Balanced Scorecard” Retrieved from: http://maaw.info/ArticleSummaries/ArtSumSimon'sLeversofControl.htm. Accessed September 21, 2016 • Mintzberg, H., B. Ahlstrand and J. Lampel [1998] “Strategy Safari: A guided tour through the wilds of strategic management”, 48-80. Retrieved from https://www.academia.edu/1895549/Strategy_safari_A_guided_tour_through_the_wilds_of_strategic_management. Accessed September 19, 2016. • Nabil, A. [n.d.] “Different schools of thought on Strategy” Retrieved from http://www.academia.edu/4493694/Different_schools_of_thought_on_Strategy. Accessed September 18, 2016. • Ogilvy, J. [2015] “Scenario Planning and Strategic Forecasting” Retrieved from: http://www.forbes.com/sites/stratfor/2015/01/08/scenario-planning-and-strategic-forecasting/#5a460f4a6b7b. Accessed September 20, 2016 • “Summary of Organic and Mechanistic Organizations by Burn and Stalker” [n.d.]Retrieved from: http://www.valuebasedmanagement.net/methods_burns_mechanistic_organic_systems.html. Accessed September 21, 2016 • “Summary of Parenting Style Model by Goold and Campbell” [n.d.] Retrieved from: http://www.valuebasedmanagement.net/methods_goold_parenting_styles.html . Accessed September 21, 2016 • “Summary of Simon’s Model for Management Control” [n.d] Retrieved from: http://www.valuebasedmanagement.net/methods_simons_levers.html. Accessed September 20, 2016
Editor's Notes
- Company strategies are made up of business model and action aimed at creating value to customers and competitive advantage. The formulation and implementation of a strategic plan is critical to the success of the organization. When Frito Lays launched Lemonade, a good complement to the salty taste of their corn chips, consumers did not think of associating the term “thirst-quenching” to Frito Lays which in turn made the brand extension ineffective. Frito Lays may have missed something about the marketing aspect of the strategy formulation or perhaps stumbled upon an unexpected and unpredicted hindrance during the implementation. A good strategy together with proper strategic management is necessary for a company to reach its goals, however, sometimes it is not enough because no matter how sophisticated the planning and implementation process is, there are always things that cannot be predicted to a certain extent. There are different levels of strategy that exists within an organization
- Company strategies are made up of business model and action aimed at creating value to customers and competitive advantage. In other words, a strategy is a basic plan of the company that guides them in achieving their objectives and goals. A good strategy, however, is not enough. It should be accompanied by good strategic management.
- The strategy evaluation stage is concerned with measuring the effectivity of the plan and its contribution in reaching the goals of the organization. The planning school identified finance oriented measures such as ROI and NPV as the most common indicator of effectivity of a strategic plan. The strategy operationalization stage is where the core difference of the planning school to the design school is found. The strategy operationalization stage subjects the strategic plan to the constraints that the organization faces. In this stage of the process, each of the strategy planned by the top management is relayed to the concerned department who will now then decompose it to sub strategies for it to be accurately be considered in each of the operation decisions. As Steiner [(1979) as cited in Mintzberg et al (1998)] has stated: “All strategies must be broken down into subs strategies for successful implementation.
- Eto naan talaga ung contribution ng Planning di ba. The Planning School can be categorized under Prescriptive School. According to Mintzberg, this school of thought emphasizes the importance of analyzing current business situation and focusing more on the implementation stage of strategies. Current business situations include external factors, current position of the business, and contemporary issues that can affect the business. In other words, the Planning School consists of a formal process that encompasses a rigorous set of steps from the analysis situation to the execution of the strategy. This concept encourages brainstorming, innovation, and establishing goals and objectives. Unified goals and objectives give clear direction on what the company wants to achieve, guide in allocating scarce resources according to their needs, and to maintain control. This ideology resembles the five task of strategic management process.
- Static- from point A to point B Long term. No matter sophisticated forecasting tools. Randomness still prevails Predicting is difficult Group Think consensus comes from a small group of people. They want harmony and less risk of conflict – tendency is to just agree. Ivory tower – managers are very theoretical with tools. But not really aware on how the operations is going.
- Scenario planning – thinking of many scenarios that may happen and create possible solutions Levers of Control belief systems core values, mission and vision boundary s risks to avoid and what risks are to be taken advantage of interactive control communication and implementation of changes in the organization the diagnostic control critical performance variables strategic planning, financial planning and strategic control. The mechanistic system or design involves a hierarchical form of organization in which each member answers to their immediate superiors The organic structural design, on the other hand, is a design of an organization which promotes the cross-functionality between groups and departments