Using integrated solutions as market-shaping/market-driving strategy in oil industry Part 5
Using integrated solutions as market-shaping/market-driving strategy in oil industry
Part 5
استفاده از "راه حل یکپارچه" به عنوان استراتژی شکل دهنده بازار و هدایت کننده بازار در صنعت نفت
بخش پنجم
این پژوهش به عنوان تز پایانی دوره MBA در یکی از دانشگاه های مطرح اروپایی ارایه شده است
Strategy as a Dialogue
Rational school of strategy and its formal planning approaches are criticized by process group (Mintzberg et al, 1998) (Mintzberg (b), 1987). They focus on differences between intended, emerging and realized strategy. Emerging strategy sees strategy as an opportunistic, incremental, and political process which is done through trial and error and learning. The realized strategy is the outcome of the both intended and emergent factors. It has been said that realized strategy is only between 10-30 % of intended strategy (Grant, 2010) (Mintzberg et al, 1998). In reality, strategy formation begins with rational approach then moves into a process mode. In an interesting metaphor Mintzberg (1987) (b) managers are assumed as craftsmen and strategy as their clay. Like the potter, they sit between a past of corporate capabilities and a future of market opportunities and if they are truly craftsmen, they bring to their work an equally intimate knowledge of the materials at hand; that is the essence of crafting strategy. Classic approaches to strategy adopt a predictable future founded on rational assumptions about changes in environment. In a highly uncertain era, this approach is not an applicable method. Mintzberg has criticized formal strategic planning schools and recognized four fallacies (Mintzberg et al, 1998):
· The fallacy of predetermination
· The fallacy of detachment
· The fallacy of formalization
· The grand fallacy of strategic planning
To explain these fallacies, Mintzberg (1998) states that formal planning is valuable if the strategy makers can predict the future accurately. Furthermore, stability and predictability of conditions should be hold not only during planning but also during implementation. Considering highly uncertain conditions of today’s business world it is not a realistic assumption. Additionally, since analysis is not synthesis, formal strategic planning which is based on analysis cannot be strategy making. Analysis may come first and support synthesis by providing essential inputs. Via decomposing and formalizing its outcomes, analysis may follow and expand synthesis.
Considering inability of classic approaches to strategy in new business world revealing some modern thoughts on strategy seems necessary. An interesting framework is the portfolio-of-initiatives developed by Bryan (2002) based on ideas of three horizons of growth and Courtney’s levels of uncertainty. The framework states that a good strategy should entail “a handful (portfolio) of good initiatives”. In a further contribution from McKinsey, strategy is seen as a dialogue, a process which leads to a prepared mind and creativity in strategy making. The research shows that formal planning can add value if it has two main goals (Beinhocker & Kaplan, 2002); the first is to form “prepared minds” to make sure that strategy makers have a concrete understanding of the business, its strategy and assumptions, environment, challenges and opportunities, thus making it possible for executives to react swiftly to challenges and opportunities in real time. The second is to increase the likelihood that creative insight will occur and consequently the innovativeness of strategies. Results of another research on 800 executives have shown that too many companies concentrate on data gathering features of strategic planning and overlook the vital and critical interactive components (Dye & Sibony, 2007). Hence, team members’ time should be devoted to challenging yet cooperative debates with mangers instead of struggling to absorb many facts during the review. In other words, the role of interaction is more important than data gathering (Dye & Sibony, 2007).
References:
Beinhocker, E., & Kaplan, S. (2002, June). Tired of Strategic Planning. Retrieved 2011, from McKinsey Quarterly: http://www.mckinseyquarterly.com/Tired_of_strategic_planning_1191
Bryan, L. (2002). Just-in-time strategy for a turbulent world . Mckinsey Quarterly, https://www.mckinseyquarterly.com/Just-in-time_strategy_for_a_turbulent_world_1195.
Dye, R., & Sibony, O. (2007). The McKinsey Quarterly. Retrieved 2011, from McKinsey & Company: https://www.mckinseyquarterly.com/How_to_improve_strategic_planning_2026
Grant, R. (2010). Strategy. Chichester: John Wiley & Sons.
Mintzberg (b). (1987). Crafting Strategy. Harvard Business Review, 66-74.
Mintzberg et al. (1998). Strategy Safari: A Guided Tour Trough the Wilds of Strategic Management", Bruce Ahlstrand, and Joseph Lampel, 1998. New York: The Free Press.
