Deliberate strategy, formal planning and the intention to create a detailed strategic plan (e.g. Porter) vs. an emergent strategy, which focuses on reacting to prevalent market changes (e.g. Mintzberg).
Strategy itself is an ambiguous concept with a multitude of questions to be considered, for instance, whether the process of strategic thinking should be predefined or rather an intuitive act. If Google, one of the most successful companies in the world, is taken as an example, it does not become any clearer what approach is recommended to follow, as the company decides to shut down products that seem popular, in order to invest in alternative projects. Have globalisation and economic deregulation created an environment too complex to be captured in a strategic framework?
This essay will first analyse strategy development processes with a focus on deliberate and emergent approaches, and secondly continue with a critical discussion about the applicability of these techniques in a high-velocity environment.
Finally this essay will provide managerial implications for an effective approach to strategy development. Taking Google as an example illustrates how a company achieves to integrate essential features from both, the deliberate and the emergent strategy, which bears strong resemblance to the most deliberate approach among those classified as emergent - logical incrementalism.
Table of Contents
1. Introduction
2. Strategy and its ultimate intention
3. Literature review on strategic development processes
4. Discussion on strategic decision making in high-velocity environments
a. Quantitative versus qualitative data
b. Forecasting and long-term planning
c. Proactiveness challenges reactiveness
d. The role of structure
e. Continuous innovation
5. Managerial implications
Objectives and Core Themes
This paper aims to analyze the dichotomy between deliberate and emergent strategy development processes and evaluate their effectiveness within high-velocity environments, using Google as a practical example to demonstrate how organizations can integrate these approaches to maintain a competitive advantage.
- Analysis of deliberate versus emergent strategy models.
- Strategic decision-making in volatile, high-velocity markets.
- The role of data-driven vs. intuitive decision-making.
- Balancing structural formality with organizational agility.
- Fostering continuous innovation through supportive organizational culture.
Excerpt from the Book
d. The role of structure
Informality usually refers to a low degree of structure, which can be defined as the extent to which rules and routines are implemented throughout the organisation (Davis et al, 2009). Reality proves that strategic decisions are usually not taken within the scope of formal strategic planning, but in an informal setting (Grant, 2003). Research acknowledges that a reduced structure, such as flat hierarchies or the inclusion of line managers in decision making, has a positive impact on strategic decision making in a volatile environment (Eisenhardt and Martin, 2000; Rowley et al, 2000). However, research also illustrates that performance is affected negatively when political behaviour is involved in the decision making process (Bourgeois and Eisenhardt, 1988), a bottom-up approach is therefore only suggested when line managers are willing to put the organisation’s benefit above their personal interest (Abercrombie et al, 1980).
While a too formal approach might flatten the performance, a too informal approach can lead to disastrous circumstances, as visualised in the graph below. This again illustrates a company’s trade-off between flexibility and its control over the future as well as achieving efficiency. It is therefore suggested to introduce a set of simple rules, specific enough to ensure guidance for an unburdened execution of opportunities and simultaneously broad enough to maintain flexibility (Davis et al, 2009).
Summary of Chapters
1. Introduction: The introduction establishes the ambiguity of the strategy concept and outlines the essay's goal to explore deliberate and emergent strategies in high-velocity environments using Google as a case study.
2. Strategy and its ultimate intention: This chapter defines strategy based on long-term goal setting and resource allocation, identifying the primary purpose as the stimulation of organizational success through performance.
3. Literature review on strategic development processes: This section contrasts the formal planning associated with deliberate strategies against the reactive, bottom-up nature of emergent strategies.
4. Discussion on strategic decision making in high-velocity environments: The core chapter examines the challenges of rapid environmental changes, detailing how firms manage data, planning, proactiveness, structure, and innovation to maintain stability.
5. Managerial implications: This chapter synthesizes the research findings, advocating for logical incrementalism as a way to integrate the benefits of both deliberate and emergent strategic approaches.
Keywords
Strategy, Deliberate Strategy, Emergent Strategy, High-velocity Environment, Decision Making, Google, Logical Incrementalism, Performance, Agility, Innovation, Formal Planning, Organizational Culture, Strategic Flexibility, Management, Business Strategy.
Frequently Asked Questions
What is the fundamental focus of this academic paper?
The paper fundamentally investigates how organizations can navigate the tension between deliberate, planned strategies and emergent, flexible strategic processes, particularly in highly volatile business environments.
What are the primary thematic areas covered?
The central themes include the comparison of deliberate and emergent schools of thought, the impact of quantitative versus qualitative data on decisions, the necessity of long-term vision, and the balance between formal structure and organizational agility.
What is the primary research goal?
The goal is to determine how companies can effectively combine different strategy development techniques to remain competitive and successful despite rapid changes in global markets.
Which scientific methodology is applied?
The study utilizes a literature-based analysis of management research and strategy theory, supported by an empirical illustration through the case study of Google.
What does the main body discuss?
The main body critically assesses strategic decision-making in high-velocity environments, focusing on the trade-offs between data reliance and intuition, planning versus flexibility, and the influence of organizational structure on performance.
Which keywords best characterize this work?
Key terms include Strategy, High-velocity Environment, Logical Incrementalism, Strategic Decision Making, and Organizational Agility.
How does the author define the role of structure in strategic decision making?
The author argues that while some structure is necessary for guidance, excessive formality leads to inertia, suggesting that a set of "simple rules" provides the best balance between maintaining control and ensuring flexibility.
What specific concept does the author recommend for an integrated strategy?
The author recommends the implementation of "logical incrementalism," which acts as an integrated approach, capturing the rationality of deliberate planning while maintaining the responsiveness of an emergent approach.
- Arbeit zitieren
- Anonym (Autor:in), 2015, Strategy development processes and Strategic decision making in high-velocity environments, München, GRIN Verlag, https://www.grin.com/document/358844
