Leadership and ManagementStrategic Leadership
Strategy Safari Summary
Introduction
“Strategy Safari: A Guided Tour Through The Wilds of Strategic Management” by Henry Mintzberg, Bruce Ahlstrand, and Joseph Lampel is a seminal work that explores multiple schools of thought in strategic management. The book likens the field of strategy to a jungle filled with different animals, i.e., theories and practices, each enlightening a different aspect of strategy creation and implementation. The authors categorize the approaches into ten schools, encouraging readers to understand the broad spectrum of perspectives to better navigate the complexities of strategic leadership.
1. The Design School: Strategy as a Process of Conception
Key Point: The Design School posits that strategy should be formulated through a clear, deliberate process that bridges the gap between internal capabilities and external opportunities.
Example: A company like IKEA aligns its unique capabilities in low-cost production with the external demand for affordable, stylish furniture.
Action: Conduct a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, then develop a strategy that leverages strengths and opportunities while mitigating weaknesses and threats.
2. The Planning School: Strategy as a Formal Process
Key Point: The Planning School views strategy formulation as a formal, systematic, and structured process driven by rigorous analysis and forecasting.
Example: In the 1960s and 1970s, General Electric used Strategic Business Units (SBUs) to plan and allocate resources effectively across its diversified businesses.
Action: Implement a formal strategic planning process, including setting clear objectives, forecasting future conditions, and developing detailed action plans.
3. The Positioning School: Strategy as an Analytical Process
Key Point: The Positioning School emphasizes quantitative and analytical methods to position the firm within its competitive environment optimally.
Example: Michael Porter’s Five Forces framework is often used to analyze industry structure and competitive forces to find a strategic position.
Action: Use Porter’s Five Forces to evaluate the competitive pressures in your industry and identify a niche where your company can excel.
4. The Entrepreneurial School: Strategy as a Visionary Process
Key Point: Central to the Entrepreneurial School is the role of the visionary leader who steers the organization with a bold vision and a willingness to take risks.
Example: Apple under Steve Jobs exemplifies how a strong visionary leader can transform an entire industry through innovative products and marketing.
Action: Develop a compelling vision for your organization and communicate it passionately to inspire and align your team.
5. The Cognitive School: Strategy as a Mental Process
Key Point: The Cognitive School delves into the mental processes of strategists, focusing on how they perceive, interpret, and conceptualize the strategic environment.
Example: Developers at 3M are encouraged to spend 15% of their time on personal projects, fostering cognitive diversity and creativity in strategic thinking.
Action: Encourage continuous learning and diverse perspectives within your team to enhance creative and strategic problem-solving.
6. The Learning School: Strategy as an Emergent Process
Key Point: The Learning School suggests that strategy emerges over time as organizations learn from their experiences and adapt to changing conditions.
Example: Honda’s entry into the US motorcycle market, initially accidental, led to a strategic reorientation based on real-time learning and adaptation.
Action: Foster a culture of experimentation and allow strategies to evolve by iteratively learning from successes and failures.
7. The Power School: Strategy as a Process of Negotiation
Key Point: The Power School focuses on the influence of power and politics in strategic decision-making, both within the organization and in its external dealings.
Example: The use of lobbying by companies in regulated industries, such as pharmaceuticals, to influence legislation and regulatory outcomes.
Action: Build coalitions and negotiate effectively with key stakeholders to achieve strategic objectives and mitigate resistance.
8. The Cultural School: Strategy as a Collective Process
Key Point: The Cultural School emphasizes the role of organizational culture in shaping strategy, where shared beliefs, values, and norms influence strategic decisions.
Example: Hewlett-Packard’s HP Way illustrates how a strong organizational culture can promote a coherent and consistent strategic direction.
Action: Cultivate and maintain a strong organizational culture that aligns with your strategic goals and fosters collective commitment.
9. The Environmental School: Strategy as a Reactive Process
Key Point: The Environmental School views strategy as a reaction to the external environment, as organizations must adapt to external forces and constraints.
Example: Think of Kodak’s initial focus on film-based photography and its eventual pivot to digital imaging in response to market changes.
Action: Continuously monitor the external environment for trends and shifts, and be prepared to pivot your strategy accordingly.
10. The Configuration School: Strategy as a Process of Transformation
Key Point: This school integrates various elements from other schools, focusing on the distinct stages or configurations that organizations go through.
Example: IBM’s transformation from a hardware-centric company to a services and solutions provider exemplifies strategic reconfiguration in response to industry evolution.
Action: Periodically review your strategic position and be willing to undertake significant transformations to maintain alignment with changing market conditions.
Conclusion
“Strategy Safari” offers a comprehensive guide to the various approaches to strategic management, promoting a holistic understanding of the field. The authors emphasize that no single school provides all the answers; rather, the complexity of strategic issues often requires a blend of different perspectives.
Practical Actions
Here’s a consolidated list of practical actions based on the recommended strategies from each school:
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SWOT Analysis (Design School): Regularly conduct SWOT analyses to identify opportunities and threats in the environment and align them with internal strengths and weaknesses.
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Formal Planning Process (Planning School): Develop and follow a structured, systematic planning process with clear objectives and detailed action plans.
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Competitive Analysis (Positioning School): Use frameworks like Porter’s Five Forces to assess your competitive environment and determine strategic positioning.
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Vision Development (Entrepreneurial School): Create and communicate a powerful vision to guide and inspire your organization.
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Cognitive Diversity (Cognitive School): Promote cognitive diversity and continuous learning to foster innovative strategic thinking.
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Learning and Adapting (Learning School): Encourage a culture of experimentation where the organization learns and adapts from its experiences.
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Negotiation Skills (Power School): Develop strong negotiation skills and build coalitions to navigate internal and external political landscapes.
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Cultural Alignment (Cultural School): Ensure that the organizational culture is aligned with strategic objectives to foster a unified direction.
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Environmental Scanning (Environmental School): Regularly scan the external environment for changes and be prepared to adapt strategies in response.
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Strategic Reconfiguration (Configuration School): Periodically review and, if necessary, transform your organization’s strategic position to stay relevant in a changing market.
By integrating these diverse perspectives, practitioners can better navigate the multifaceted landscape of strategic management.