chapter 3 Deliberate and Emergent Strategies H Mintzberg

chapter 3 Deliberate and Emergent Strategies H. Mintzberg , J. A. Waters 1

3. 0 Introduction • Mintzberg, Mc. Hugh, Brunet & waters define strategy as “A pattern in a stream of decisions” • Stream of behaviors could be isolated and strategies identified as patterns or consistencies in such streams. • The origin of these strategies could be investigated by exploring the relationship between – leadership plans and intentions – and what the organization actually realize. • The label strategy for these 2 phenomena are – Intended strategy – Realized strategy • Comparing intended strategy with realized strategy allow the distinguishing of – Deliberate strategies ( strategy that is realized as intended) – Emergent strategy ( represented by patterns that are realized without intentions. ) 2

Deliberate versus Emergent Strategies In t St end ra ed te gy Del iber a Unrealized Strategy te S trate gy Realized Strategy Sustained Superior Performance Emergent Strategy 3

Deliberate and Emergent Strategy Deliberate Emergent • Plans for the future • Think, then act • Strategies are formulated • What do we intend? • Can be realized or unrealized • Smart = devising better strategies • Patterns from the past, present and future • Strategies form thru action, then reflection. • What is on the ground? • Can become deliberate • Smart = noticing patterns and legitimating them. 4

3. 1 Pure deliberate & Pure Emergent A. A perfectly deliberate strategy implies at least 3 conditions: – Existed precise intention • – – • No doubt about what was desired before any actions were taken. Because collective action exists in organization, intentions should be common to all actors. In this respect leaders must share and communicate the intentions with actors. Collective intentions must have been realized exactly as intended (no external force like the market or environment could have interfered). Some strategies may come close, but no strategy in real practice can be perfectly deliberate. 5

Pure deliberate & Pure Emergent B. A perfectly emergent strategy implies • The environment has a big role and there is absence of intention. Since it is impossible to have total absence of intentions, purely emergent strategy is very rare ( consensus is the most near) • Real world strategies discussed in this chapter range from the most deliberate to the most emergent (eight types ). They are classified according : - To the extent of leadership intentions, the effect of the environment, and the size of central control over organizational actions. 6

Types of strategies along the continuum I. The planned strategy – – – Clear & articulated intentions. These intentions emanate from one center (centralized leadership). Backed up by formal control to ensure their pursuit Classic distinction between formulation & implementation Leaders are the center of authority who formulate their intentions very precisely and then strive for their implementation. They must articulate their intentions in the form of a plan. This plan should elaborate in as much detail as possible in the form of budgets and schedules. Employees don’t decide, they just follow the plan. Apply this plan as formulated in the environment surrounding organization Environment should be at least predictable if not benign or controllable. 7

II. The entrepreneurial strategy (central general vision, somehow deliberate) • • One individual imposes his/her vision. This is common in small or young entrepreneurial companies tightly controlled by the owners. Intentions emanate from one center. The leader gives direct orders to impose his vision on the organization. The vision selects a safe niche and expects the environment to be cooperative. The force for pattern or consistency in action is the individual vision ( the central actor’s concept) Sometimes found in bigger organization in time of crisis where all actors follow the direction of a single leader with vision and will. 8

• It is DELIBRATE as long as actors respond to the personal will of the leader. • Also it can have emergent characteristics. It is EMERGENT in the sense where : – Vision provides only a general sense of direction, the vision can emerge “en route” and there is a room for adaptation. – Since the leader’s vision is personal, it can react quickly and adapt to feed back on past actions or to new opportunities & threats ( the leader can reformulate his vision). • The entrepreneurial strategy provides flexibility at the expense of specificity and articulation of intentions. ( i. e. of the planned strategy) 9

III. • q q Ideological strategy When members of an organization share a vision which they identify and follow it as an ideology. These shared beliefs are shown as patterns in their behavior thru which clear realized strategies can be identified. Under this strategy intentions can be identified , are collective in nature and are positively embraced by the members of the organization Concerning realization: – Intentions can be adapted or changed ( but hard) – All who share it must agree to change their “collective mind” – It is rooted in the past – Usually people resist the change – Environment is unlikely to impose the change A charismatic leader’s vision may become everyone’s ideology (people resist changing it). Ideology does not let the environment to impose changes. It is highly deliberate 10

IV. The Umbrella strategy • • This is the most realistic strategy and it happens frequently. Designed by leaders who have only partial control over actors in an organization. Here leaders : – – – • • q Set general guidelines for behavior. Define the boundaries and set the content. Let other actors maneuver with them. Leaders establish umbrellas under which actions should fall (example: products should be for the high priced end). Patterns cannot be set deliberately in one central place Boundaries may be established to constrain them. Strategies are allowed to emerge, at least within these boundaries Not only deliberate and emergent but also deliberately emergent 11

• When the environment is complex and unpredictable, strategies are allowed to emerge within this umbrella strategy. • All real world strategies have some umbrella characteristics. Central leadership allows employees to have discretion, and this leadership monitors everyone’s behavior. • When employees act outside the boundaries set by leadership, central leadership might stop them , ignore them or adjust to them. • Leadership might alter his umbrella to keep in touch with the environment and with other actors’ behavior. There is a balance (maintained by the leadership) between pro-action and reaction. 12

V. Process strategy • • Instead of trying to control strategy content at a general level, leadership need to exercise influence indirectly Employees have discretion to determine outcomes (like in umbrella strategy). Also here the environment is considered complex, unpredictable and uncontrollable. Central leadership controls the process of strategymaking while leaving the content of strategy to the appropriate managers. The behavior is deliberate in some respects and emergent in others. The leadership determines the structure of the organization and appoints managers of divisions. EX. Divisionalized companies 13

VI. The unconnected strategies • • The most straightforward type. Each individual or group or subunit within the organization realizes its own pattern of actions. This happens in complex environments where the organization employs many experts ( Hospitals and universities are examples). Each expert pursues his or her own strategies ( patient care, subject of research, style of teaching). q Could be found in organizations that pursue central deliberate or even planned strategies. 14

VII. Consensus strategy • • Many different actors naturally converge on the same theme or pattern. Strategy become pervasive in the organization without the need for any central direction or control Consensus strategy grows out of the mutual adjustment among different actors who learn from each other and from their responses to the environment. They find a common unexpected pattern. Convergence just evolve through the result of a host of individual actions. That is , strategy derives from collective action rather than from collective intention. More clearly emergent 15

VIII. The imposed strategy • • Environment can directly force the organization into a pattern of stream of actions. When external individual or group with a great deal of influence over the organization imposes a strategy on it. This strategy then gets adopted by the company and becomes deliberate. As the umbrella strategy may be the most realistic reflection of leadership intention, the imposed strategy is a reflection of environmental influence. It is Deliberate in nature 16

3. 2 Conclusion • Fundamental differences between deliberate and emergent strategy is that : A- Deliberate strategy : Focus on direction and control (Getting desired things done ) B- Emergent strategies : Opens up the notion of “strategic learning”. • Defining strategy as intended and conceiving it as deliberate effectively precludes the notion of strategic learning. Emergent strategy : – – Implies learning what works Means unintended order but not chaos It is the means by which deliberate strategies change Provide strategic learning and allow managers to change their intentions. 17

• Unrealized deliberate strategies are also a source of learning because managers find out what and what doesn’t work. • To authors there is no universal way in which strategy occurs; it depends on how decision making is structured in specific organization • The main conclusion is that strategy formation walks on two feet: one deliberate and the other emergent. • Managers need to direct things in order to realize intentions while at the same time responding to an unfolding pattern of action ( to keep the room for emergent outcome) • The concrete lesson from the processual approach is that strategy has to be both well out thought and planned while remaining flexible and adaptable. 18

Deliberate/emergent change Strategic learning Deliberate strategies Realized strategies Unrealized strategies Emergent strategies 19