mintzberg’s ten schools of thought about strategy formation
TRANSCRIPT
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8/13/2019 Mintzbergs Ten Schools of Thought about Strategy Formation
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Mintzbergs Ten Schools of Thought about
Strategy Formation
Model Approach Typical
The Design School
A process of
conception
Clear and unique
strategies are formulated.
The internal situation of
the organisation is used to
match the external
environment.
SWOT Analysis
The Planning
School
A format process
A rigorous set of steps are
taken, from the analysis
situation to the execution
of the strategy.
Theory of
Mechanistic and
Organic Systems
Parenting styles
Levers of Control
Scenario Planning
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Model Approach Typical
The positioning
School
An analytical process
It places the business within
the context of its industry
and looks at how theorganisation can improve its
strategic positioning within
that industry.
Competitive
Advantage.
Five Forces.
Value Chain.
BCG Matrix.
The Entrepreneurial
School
A Visionary Process
The visionary process takes
place within the mind of the
charismatic founder or
leader of an organisation.
Rely heavily on intuition,
judgement, wisdom,
experience and Insight.
Entrepreneurial
Government
Seven surprisesfor new CEOs
Leadership
styles.
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Model Approach Contributions Typical
Thecognitive
School
A mental
process
Analyses howpeople percelve
patterns and process
information.
Concentrates onwhat is happening
in the mind of the
strategist and how it
processes the
information.
Sees strategy as acognitive process
in the mind of the
strategist.
Stresses thecreative side of the
strategy process.
Strong at the level
of an individual
strategist.
Groupthink
Cognitive Bias
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Model Approach Typical
The Learning School
An emergent process
Management pays close
attention over time to what
does work and what does
not work! They incorporate
lessons learned into theiroverall plan of action. The
world is too complex to
allow strategies to be
developed all at once.
Organisational
Learning
Knowledge
Management.
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Model Approach Contributions Typical
The Power
School
A process ofnegotiation
The strategy is
developed as a
process ofnegotiation
between power
holders within the
company, and/or
between the
company and its
external
stakeholders.
Can help to let the
strongest people
survive in thecorporate jungle.
Can help to ensure
that all sides of an
issue is fullydebated.
Can help to break
through obstacles to
necessary change.
Democratic.
Can help to decrease
resistance after a
decision is made.
Bases of
Social Power,
PowerDistance,
Stakeholder
Value,
StakeholderMapping.
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Model Approach Contributions Typical
The
cultural
SchoolA collective
process
Tries to involve
various groups
and departmentswithin the
company.
Strategy
formation is
viewed as a
fundamentally
collective and
cooperative
process.
Emphasises the
crucial role that
social processes,beliefs and values
are playing in
decision-making and
in strategy formation
Explains resistance
to strategic change
and helps to deal
with mergers and
acquisitions.
Cultural
Dimensions
CulturalIntelligence
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Model Approach Typical
The Environmental
School
A reactive process
The strategy is a response to
the challenges imposed by
the external environment.Where the other schools
sees the environment as a
factor, the Environmental
School sees it as an actor
Contingency
Theory
SituationalLeadership
The Configuration
School
A process of
transformation
Strategy formation is a
process of transforming the
organisation from one type
of decision-makingstructure to another.
Configurations
Chaos Theory