design school of strategic management

17
Design School Strategy formation as a Process of Conception

Upload: syed-aalay-kashif-peerzada

Post on 16-Dec-2014

180 views

Category:

Business


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Design school of strategic management

Design SchoolStrategy formation as a Process of Conception

Page 2: Design school of strategic management

Group Members

Hania AhmedMisbah Shuja AnsariSyed Aalay Kashif Pirzada

Page 3: Design school of strategic management

Contents of Presentation

Design School Model

Premises of Design School

Critique of the Design School

1

2

3

4

5 Contribution Of Design School

Origin of Design School

Page 4: Design school of strategic management

Design School

Strategy is a deliberate process of conscious thought.

Is a model of strategy formation that seeks to attain a match or fit between

internal Capabilities and external Possibilities.

‘Establish Fit’ is motto of Design school.

Two main principles of Design school

Rational Decision makers

‘Anticipation of the future effects of possible actions’

Optimize economic performance

Page 5: Design school of strategic management

Give no or very little room for incrementalist views or emergent strategy.

Clear and unique strategies are formulated.

Top management plan the destiny of organization.

Objectives are clear and explicit.

It is centralized approach of strategy formation.

It deals with complex and uncertain issues in rational, logical & structure way

Important stakeholders value this approach

Known as “Rational/ Analytic view”

Page 6: Design school of strategic management

Where we use Design School

Issues are Complex, Important, Significant & Uncertain.

Intended strategy is a result of design school.

“Deliberately formulated or Planned “by managers at the top.

Use tools, techniques and methods of Design school.

Page 7: Design school of strategic management

Origin of Design School

Traced back to two influential books written at University of California and at M.I.T :

1. Philip Selznick’s Leadership in Administration

2. Alfred. Chandler’s Strategy and Structure

Real impetus for the design school came from General Management Group At

Harvard Business School

Page 8: Design school of strategic management

Design School Model

Key Success Factors

Distinctive

Competences

External Appraisal Internal Appraisal

Threats & Opportunities Strength & Weaknesses

Creation Of Strategy

Evaluation & choice Of Strategy

Implementation of Strategy

Social

ResponsibilityManagerial

Values

Page 9: Design school of strategic management

Framework for Evaluation According Harvard General Management group the best strategy

must have following characteristics;

ConsistencyStrategy must not present mutual inconsistent goals & policies.

Consonance Strategy must present an adaptive response to external environment and to critical change

AdvantageIn selected area of activity strategy must provide or retain competitive edge

FeasibilityStrategy must be free from unsolvable subproblems

Page 10: Design school of strategic management

Premises of Design School

1. Strategy formation should be a Deliberate process of Conscious

thought

2. Responsibility for the Control & Consciousness must rest with the

CEO

3. The model of strategy formation must be kept Simple and Informal

4. Strategies should be one of a Kind: the best ones result from a

process of individualized design

Page 11: Design school of strategic management

5. The design process is complete when strategies appear fully

formulated as perspective

6. The strategies should be explicit, so they have to be kept

simple

7. Finally, only after these unique, full-blown, explicit, and

simple strategies are fully formulated can they then be

implemented.

Page 12: Design school of strategic management

Contexts It can be implement easily in situation where environment is stable or predictable

Organization in question must be prepared to cope with centrally articulated strategy

Page 13: Design school of strategic management

Critique Of Design School1. How does an organization know its strengths and weaknesses?

2. Can organizations be sure of its strengths before it tests them?

3. The premise of this school deny important aspects of strategy formation;

Incremental Development Emergent strategy By passing learning Influence of existing structure on strategy Full participation of actors other than Chief Executive.

Page 14: Design school of strategic management

3. Data can be Collected & Transmitted up the hierarchy without any significant loss or distortion, This assumption often fails.

4. Environments can always be understood, currently and for the future and it is sufficiently stable or at least predictable but it is not the case in real life.

5. Structure follows strategy.

6. Explicit strategy promoting Inflexibility.

7. Separation of Formulation from Implementation

Page 15: Design school of strategic management

Contribution of Design school One brain can handle all of the information relevant for strategy formation

One brain has complete detailed knowledge of situation in question

Reduced Ambiguity.

Useful in relatively stable environment

Support strong and visionary leadership.

Page 16: Design school of strategic management

limitation Simplification may distort reality.

Strategy has many variables and is inherently complex.

Bypassing learning, inflexible in fast-changing environment.

High risk of resistance

Page 17: Design school of strategic management

Thank You !!!