School of Public Affairs and Governance Silliman University

PA 205
Marketing Management for Public Affairs Institutions
DR. REYNALDO Y. RIVERA

ABITONA, LISE PAUL D.

Oct 12, 2013

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Strategy Safari:
A Guided Tour Through the Wilds of Strategic Management
We are the blind people and strategy formation is our elephant. Since no one has had the vision to see the entire beast, Everyone has grabbed hold of some part or other and "railed on in utter ignorance" about the rest. We certainly do not get an elephant by adding up its parts. An elephant is more than that. Yet to comprehend the whole we also need to understand the parts.
-Mintzberg et al (2002)-

The book Strategy Safari: a Guided Tour Through the Wilds of Strategic Management written by Henry Mintzberg, Bruce Ahlstrand, and Joseph Lampel, presents different disciplines to support efficient business planning, positioning and design in phases of strategy formulation, implementation and control against the competitive business environment. By its very nature, business concerns could no longer be predicted with certain conventional strategic techniques and principles because they are becoming very complex, volatile and rapidly changing. What organizations and firms need to do then is to grow their learning by aggregating different perspective for strategy-formation1. The wider strategic view is best achieved when the members in an organization solve their problems jointly and broaden their understanding beyond one specific idea.

The in aforementioned book, the authors draw attention to the Ten Schools of Thought that would serve as a framework that will categorize the different fields of Strategic Management. They have had map down all the theoretical premises of
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Strategy Formation- a process where organizations make and interrelate their decisions/strategies . *Minzberg, Henry. Patterns in Strategy Formation. Management Science. Vol 24. 1978.Institue of Management Sciences, Quebec, Canada. Abitona. SPAG. PA 205

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each school to determine the essential characteristics of strategy making processes and their application to both internal and external environments.

But before summarizing the ideas of the Ten Schools of Thought, I find it simpler to highlight first the 5 Ps to define strategy as : i) Plan; ii) Pattern; iii) Position; iv) Perspective; and v) Ploy.

Strategy as a plan is mostly conveyed as a direction or a guide or course of action into the future. But the authors viewed that this definition might not be true and applicable in some cases because some realized strategies2 are just different from what has been intended in the actual practice. The authors also recognized that in the long run, some prior intentions can be fully realized ( deliberate strategy) but some could be interrupted by emergence of events or alterations of plans (emergent strategy3). It is therefore flexible and may stray from the actual intentions. However, in terms of better and efficient outcomes, the authors suggested that it is best to mix Deliberate and Emergent strategies because it will teach the actor to predict and handle unexpected events but at the same time render importance to what has already been planned in the first case. 4

Realized Strategies- the outcome; completed or achieved strategy. Realized strategies can be the outcome of intended plan or it may have nothing to do with the prior plan; something that was performed/ practiced. Mintzberg, Ahlstrand, and Lampel. 1998 Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. Copyright The Free Press:A Division of Simon & Schuster Inc. New York 3 Emergent Strategy- when a pattern realized was different from what has been expressly intended. Ibid. 4 Ibid. Abitona. SPAG. PA 205

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When the realized strategies become a consistent practice over time, strategy is developed into a pattern. People will become accustomed to do what they have had believed as productive. The past organizational behavior often creates consistency of decisions and commitment of particular actions, especially when it has gained favorable judgment from its customers.5

Third, Strategy as Position means developing a competitive advantage6 in the business environment. Since competition has always been viewed as the driving force behind markets, every organization must be able to find its appropriate fit to acquire favorable condition and survive in the competing environment. 7

After choosing a desired Position, the next strategy is to develop it with precise Perspective. The result of every plan would always depend on the companys perspective. In laymans term, perspective as a strategy can be labeled as the character of the organization. Thus, it needs development of an organizational culture to sets the desired intentions to be achieved. Also, it is seen as a strategy because better outcome is produced when individuals in the firm share common motivations, intentions and behavior. In this case, strategy as perspective can be

Ibid. Competitive Advantage- is defined as an edge over its rivals/ competitors in the market. It would allow the generation of greater sales and customer support that could bring out financial gain for the firm and its shareholders. Investopedia Dictionary. ( http: // www. investopedia. Com /terms /c /competitive _advantage.asp)Date Accessed: October 5, 2013. 7 Mintzberg et al. 2002. Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. FT Prentice Hall Abitona. SPAG. PA 205

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interrelated to as pattern, where consistencies of behaviors between members create organizational intention and course.8

Finally, the strategy as a Ploy means to bring forth the attention of competitors by setting a threat, disruption, influence or maybe discouraging them from carrying out new schemes that might endanger the firms position. It is simply a form of tactics to defeat competitors. 9

I think the aforementioned 5Ps on Strategy allow every 0rganization to discover essential features (both internal and external factors10) that could affect its performance towards the achievements of its goals. Previous actions taken as a pattern could assist rationality in carrying out its intentions. However, these strategies have considered that every organization must be able to deal with its changing environments to survive. Thus, it is important to note that possible

external circumstances might affect the direction or process of planning in the long run. Lastly, strategies are mere representations of possibilities. They explain the occurrences of events and they guide the organization. However, they cannot really assure what will happen in the time yet to come.
8

Mintzberg, Henry. 2001. California Management Review: The Strategy Concept 1. P.16. (http:// www. milesazachary. Com /MGT % 204380 % 20 S p % 202012 /Mintzberg,%20H.,%201987.%20The%20Strategy%20Concept%20I-Five% 20 Ps % 20 for %2 0Strategy. .pdf) 9 Mintzberg et al. supra note 7. 10 Internal and External Factors- Strengths and weaknesses; Opportunities and Threats.
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In Strategy Safari, the authors redefine the analysis of Strategy formation by presenting different approaches through what they call The Ten Schools of Thought. Each of these ten Schools of Thought presents its narrow and limited perspective as regards to methods and practice in strategy-making. However, each school is very important for the clear understanding of the entire strategy process.

The Ten Schools of Thought about Strategy Formation

i) The Design School: Strategy Formation as a Process of Conception

The Design School perceives strategic formation as an approach where clear and unique strategies must be formulated in order to fit the internal situation of an organization to its external environment. The strategy was developed through SWOT analysis (strengths, weakness, threats and opportunities). It includes conscious assessment of the strengths and weaknesses to match up with the demands of the surrounding conditions. It suggests a balance between the formulation of strategies in terms of its capabilities and implementing them with regard to environmental possibilities. 11

However, this identification of the organizations strengths and weaknesses could not really be proved in exactitude before testing them. In the process, an organization must be able to cope up with uncertainties too. Hence, it involves the
Mintzberg, Henry. Mar-Apr 1990.The Design School : Reconsidering the Basic Premises of Strategic Management. http:// www. wiggo. Com /mgmt8510 /readings /readings2 /Mintzberg 1990smj. Pdf. Pp. 171-179. Date Accessed: Oct 06, 2013.
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process of incurring potential risks (taking mistakes) for an organization to figure out whether its strategies will work or not.

Further, The Design School also suggests the possible interrelationship between the formulation (thinking) and implementation (acting) processes. To design is to determine of the process of strategy making (to take strategic steps and to simplifying them down) which must be fully accomplish first before its implementation for an organization to learn and effectively carry out its intentions.12

ii)

The Planning School: Strategy Formation as a Formal Process

The Planning School as a formal process follows an accurate and elaborated set of steps from: a) analysis of the situation and synthesizing; b) aggregation of the operational activities and c) execution of strategy and meeting the results in accordance with what has been projected.

Strategic Planning by its very nature is often used as a way to impose a rigid and stable direction for the firm. It takes formal leadership and compels top managerial functions to create firm strategies. Thence, it can predict and estimate possible forces in the environment to implement the plans in accordance with what

12

Mintzberg et al. supra note 7.

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has been formulated. It will also enable resource allocation and determine control. Hence, Strategic planning is very analytical.

iii) The Positioning School: Strategy Formation as an Analytical Process

The Positioning School emphasizes the importance strategies applied by a firm in the market industry in which it operates. It is quantitatively13 oriented and functions systematically in analyzing its future advantage as compared against all other existing and future competitors in the industry. Unlike the Design School and Planning School, Positioning has a narrow focus since it only seeks suitable strategies to make favorable customer preferences. It neglects social elements like politics, power, and culture because its strategic management is analytical science.14

This School stresses out that a company occupying a unique position is likely have a higher profit compare to its competitors.

iv)

The Entrepreneurial School: Strategy Formation as a Visionary Process

Entrepreneurial School explicates the prominent status of a single leader15 in the organization. The strategy making processes is confined with the leaders

14

Quantitative Orientation- refers to the hard economic facts, it is number oriented Mintzberg et al. supra note 7. 15 Single Leader- usually the CEO of the firm
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strategic vision16 of the organizations future. Hence, the leader must able to make a dominant, smooth, and deliberated strategy formation. Also, the vision set by its leader will serve as the motivations for the people around him. The members of organization in response will favorably act in accordance to the dictates of its leaders.

v)

The Cognitive School: Strategy Formation as a Mental process

Cognitive Psychology is the basis of the Cognitive School. The theory here is to develop reasonable solutions and actions to be taken in formulating the right strategy for the organization.

Since it is inevitable that organization would always face the challenge of decision-making process, it is likely that people respond to situation on the basis of their ideal preferences. The school demonstrated that individuals have differing cognitive approaches consistent with their perspectives. Strategies are formulated according to their cognitive styles and understanding of the environment.

The school also postulated that once the strategies are implemented, it is expected to become a strategic pattern. Changing these strategies would be difficult

Vision- innate of mental states and processesintuition, judgment, wisdom, experience, insight. This promotes a view of strategy as perspective, associated with image and sense of direction. Mintzberg et al. supra note 7.
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because it has undergone thorough perception, learning and reasoning during its formation processes.17

vi)

The Learning School: Strategy Formation as an Emergent Process

The Learning School suggests that the learning process is acquired by the organization as it adapts to its changing environment. This includes the recognition of its capabilities and adaption of positive manner in handling business challenges.

As it tries to comprehend the procedural methods taken during strategy formulation, Learning School argues that the process of Formulation cannot be separated to Implementation. Learning process would always get in the way during strategy formulation and it helps the organization to develop alternative solutions for its goals. The actions taken from the past will serve as pattern for the formulation of plans but the learning process gives way to some emergent strategies that are applicable to the present and future endeavors.

vii) The Power School: Strategy Formation as a Process of Negotiation

The Power School established its idea from the Political concept of Power. In politics, power simply means the ability to influence, or impose authority over

Pelling, Nick. 2004. Mintzbergs Ten Schools. Kingston University Business School Survey. (http://www .slideshare.net/SteinbeisSIBE/input-mintzbergs-strategy-safarichapter-4)
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another. Through the exercise of power, policies are implemented and the acceptance of its subordinates would make it valid and justifiable.18

Power takes part in the strategy formation. The Power School sees an organizations activities as political structure because it involves influence, negotiations, rivalry, rewards, scarcity, problem-solving, persuasion, bargaining, etc. One cannot deny that organization sometimes operates through imposition of authority over its employees. Also, Power relationships build negotiations for partnerships and coalitions.

The authors argued that the Power School did not draw all the possible means for strategy making within the organization but it did exhibit the potential influence of political process in strategy making especially in negotiation managements.

viii) The Cultural School: Strategy Formation as a Collective Process

The Cultural School describes the crucial process of socialization and indicated the dimensions of organizational culture which include teamwork, honesty, control, conflicts and other social affairs within groups. Basically, cultural relationships resemble the beliefs and value systems among individuals in a particular group. This is also the reason why organizations differ from one another.

Wilks,Stephen and Edward, Elgar. March 2013. The Political Power of the Business Corporation. LSE: London School of Economics and Political Science.
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Social interactions among members then cause the decision-making processes and development of strategy formation. 19

A favorable outcome of Strategy Formation is best reflected on how members are organized themselves, resolved their conflicts and participate in the process. Culture therefore contributes to the success of the company. It has been proven that most organizations with members having a strong cultural foundation are likely to succeed on the decision-making processes. On the other hand, unlike other schools, the changes in the cultural school are likely to move and evolve slowly because of its nature to repeat the established patterns of the past. 20 ix) The Environmental School: Strategy Formation as a Reactive Process Strategy making in Environmental School pertains to how the organization responds to the circumstances of its environment21. For instance, when it is confronted with unmanageable outside forces, the organization must be able to remain flexible and adapt successfully to the environment.

Under this school, the outside environment with its operating forces is considered to be the initiator of strategy making process. The organization merely responds to these forces through strategy formation otherwise it will lose its validity in the market place. Lastly, it has also emphasized the role of leadership in
Matthews, Joseph R. 2005. Strategic Planning and Management for Library Managers. Pp.38-40. Green Wood Publishing Group Inc. USA. 20 Mintzberg. Supra. Note:2 21 Environment- refers to the outside forces of the organization; the active forces to which the organization reacts. Mintzberg. Supra
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understanding the environment which will further guide the members for its industry undertakings. 22

x) The Configuration School: Strategy Formation as a Process of Transformation The Configuration School suggests that in the process of strategic planning and management, significant changes are necessary through the adaption of several conditions of decision-making. To change and to transform is part of the life cycle of an organization.

It also emphasized that the periodical organizational development are interrelated and the best network of knowledge would include precedent ideas of the past which can be usable for solving the current situations. It did not ignore the accepted and patterned set of strategies that has been previously adapted by the organization. However, the organizations life cycle must have configuration in itself and consider some periods of significant changes.

Strategy Safari presented the Ten Schools of Thought as an alltime guide for understanding the different styles of strategic thinking, and to help the audience analyze the problems of safari23 themselves. Drawing theory and application, the Ten Schools provided for the key points in demonstrating strategy
22 23

Matthews. Supra. Note: 18 Safari- refers to the chaotic, unpredictable and rapidly changing marketing industry environment; as interpreted in the book Strategy safari Abitona. SPAG. PA 205

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formation and implementation that predetermines an organizational endeavor in the competitive market industry.

I could certainly say that the book is a difficult material but it has emphasized straightforward explanation about the processes of strategy making. It has been clearly understood that there is no specific solution to settle the uncertainties of marketing environment. However, the book successful presented number of approaches and alternative guides in strategy making processes that can fit to multiple areas not only in business but also in social relations, politics and public administration (e.g. organizational management, customer relations, competition, bargaining, and organizational service/functions).

It has been observed that the: 1) Planning, 2) Design, and 3) Positioning schools have considered carefully the difference between the overall plan of actions and program implementations towards specific goals. That is why they are considered to be under the Prescriptive School category because they are focused on strategy formulation process (how strategies are being decided). Also, these Schools have considered that plans must be carefully anticipated in advance. Whatever an organization wants to implement in the future, there must always be solid preparation, design, and projection of intentions (e.g. target goals, purposes, and objectives) which will eventually benefit the entire company to enhance its performances.

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On the other hand, the Descriptive Schools: 1) Cognitive, 2) Learning, 3) Power, 4) Culture, and 5) Environment place a higher value on the content of strategy making (what strategies should be done). As to direction, management and decision-making are run not only by superior managers but by all members of the organization. Further, these schools place a high consideration on the structural approaches on both internal and external environment. As to strategy making, strategy formulation process is not the only method of organizational development. These Schools have regarded that many factors could affect organizational conditions (internal or external). At times, changing circumstances must be anticipated although they could be very unpredictable. For instance, crisis management, risk management, and assessment of potential problems outside the organization must also be analyzed in order to survive the complex and competitive marketing environment.

The issue of surviving the wilderness24 involves a series of organizational strategies about what should be done, how should it be done, or whether something new must be done. Also, it has been repeated mentioned by the authors that successful strategic management would depend on how leaders, strategists and employees strive for the wider systematic perspective25. And it can only be

24
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Wilderness- (safari) refers to the political, economic, and social environment Wider Systematic Perspective- refers to the metaphor of blind men and the elephant that in understanding the beast (strategy formulation and implementation), there is a need to go beyond the narrow schemes. Thus, the ten schools must be pictured a whole. Mintzberg et al. supra note 7. Abitona. SPAG. PA 205

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achieved by sewing together the deferring substantial explanations of strategy making as mentioned in the ten schools.

As a student of Public Administration, the theories on strategy formation would serve as rational approach in understanding not only leadership but also personal relationships and social involvement within an organization. Methods presented by the Ten Schools of Thought are both systematic and rational schemes. I could ascertain that the structures of industry organizations are very similar to that of the governmental institutions (as well political and social and economic systems). For instance, the struggle over the issues of delivering quality services and general assistance involves rigorous planning, decision-making, and strategic implementation. And the working system involves the social leaders who must administer it, employees who must support it, and certainly the constituents who will benefit and pay back the services being rendered. For example, as regards to strategy making in management of public affairs, governmental institution will tend to analyze and will give alternative proposals to resolve societal needs and demands. In this case, the strategy making processes must include the setting up of governmental visions, goals and directives (e.g. settlements of conflicts, rendering of services and policy programs, eradication of social inequalities). Following the guidelines of prescriptive schools, the institution must successfully look into the needs of its constituents. For example, programs and services must be designed to hit the target populace and to determine whether there are available resources that could provide for the needs of everyone. Once the

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targets are successfully accomplished, most likely the organization will develop a pattern.

However, aside from the aforementioned prescriptive measures, the institution must also consider that future uncontrollable circumstances might occur. Thus, planned strategies need to be adjusted in accordance to the changing external influences in order to improve and guaranty quality services. Sometimes there is a need to develop operational plan and extend beyond the internal institutional objective. An example of which is the consideration competitive market industries, customer feedbacks and assessments of services.

It must be noted that customers view on the products/services are very important in the success of every marketing organization. The value of money paid must equate to an effective and high quality service that enhances the well-being of customers.

These strategies could not be enough to secure the future of the institution. There is also a need to be guided by expert entrepreneurs who could decipher systematic plans that are internal in nature (for example, resolving financial problems, increase profitability, or branching of institutions). These alone cannot be resolved by ordinary member of the workforce or by the customers from the outside environment.

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Furthermore, managerial experts are nothing without the growing and learning workforce. It has been a common observation that ordinary staffs could cause transformation in the institution. Working employees sometimes share common values and the way they are organized predetermines the success of an institution. In governance, it has been observed that policies and services are better implemented if the people who are running the program know what they are supposed to do (this include how they carry out truthful and uncorrupted services).

In marketing social services, there is a need for every policy directive to be clear and accurate. However, the original intended plans may be altered by emerging circumstances if they cannot maintain the best interest of the institution and if they are not consistent with the demands and needs of its customers.

The field of strategic management has come a long way since the early 160s as technology advances to even greater things, businesses will need to be more astute to compete and strategy will become even more complex. Managers will need to look at the entire beast of strategy formation, not only to keep it alive, but also to help sustain its real-life energy -Mintzberg et al (2002)-

The struggle in the safari world does not end with knowing what goal to be achieved and how to get it. As the world grows, things will also change, develop and become very complex. The process of formulation and implementation of strategies are not constant.

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Books: Matthews, Joseph R. 2005. Strategic Planning and Management for Library Managers.Pp. 38-40. Green Wood Publishing Group Inc. USA. Minzberg, Henry.1978. Patterns in Strategy Formation. Management Science. Vol 24.Institue of Management Sciences, Quebec, Canada. Mintzberg, Ahlstrand and Lampel. 2002. Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. FT Prentice Hall Mintzberg, Ahlstrand, and Lampel. 1998 Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. Copyright The Free Press:A Division of Simon & Schuster Inc. New York Mintzberg, Ahlstrand and Lampel. 2002. Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. FT Prentice Hall Wilks,Stephen and Edward, Elgar. March 2013. The Political Power of the Business Corporation. LSE: London School of Economics and Political Science. Electronic Sources: Mintzberg, Henry. 2001. California Management Review: The Strategy Concept 1. P.16. (http:// www. milesazachary. Com /MGT % 204380 % 20 S p % 202012 /Mintzberg, %20 H., % 2 0 1 9 8 7 .% 20 The % 20 Strategy % 20 Concept %20I-Five% 20 Ps % 20 for %2 0Strategy. .pdf) Date Accessed: Oct 06, 2013. Mintzberg, Henry. Mar-Apr 1990.The Design School : Reconsidering the Basic Premises of Strategic Management. http:// www. wiggo. Com /mgmt8510 /readings /readings2 /Mintzberg 1990smj. Pdf. Pp. 171-179. Date Accessed: Oct 06, 2013. Pelling, Nick. 2004. Mintzbergs Ten Schools. Kingston University Business School Survey (http://www.slideshare.net/SteinbeisSIBE/inputmintzbergs-strategy-safari-chapter-4) Investopedia Dictionary. ( http: // www. investopedia. Com /terms /c /competitive _advantage.asp)Date Accessed: October 5, 2013.

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