SHRM chapter 7

• Informatiemanagement
• WO
• Studiejaar 1

Chapter 7: Strategy Formation

What is strategy?

Intended strategy

a pattern of decisions

Strategy formulation

Realizes strategy

a pattern of actions in practice

Strategy Formation = 

strategy formulation + (unplanned) action

issue: how to achieve strategic behavior

strategy formation = all the processes that lead to strategic behaviour in practice. 

issue: by answering-> what are the SF activities? who are filling in the roles?

strategic behaviour: organization's action directed at marketplace (a platform where vendors can come together to sell their products or services to a curated customer base)

Which of these elements are necessary to show strategic behavior

It is

It is not

exchange of information and ideas

decision making procedure

allocation of resources and action coordinations

leadership

In chapter 2, the Strategic Reasoning Process which are a number of strategic thinking / mental tasks to increase strategist's knowing. 

Now, we dive in deeper to define 8 building blocks of strategic formation process

Identify

Mission setting 

Agenda setting

Diagnose

External assessment 

Internal assessment

Conceive

Option generation

Option selection

conceive = form the idea in mind / formulating / imagining/activities contributing to decide which action should be pursued (follow)

Realizing

Action taking

Performance control

implementation of the plan

"Option Generation" falls in _______ activities

1. Identify
2. Diagnose
3. Conceive
4. Realize

Strategy formation roles

Top vs middle vs bottom roles

Top vs. Middle vs. Bottom roles

Line vs. Staff roles

Internal vs. External roles

The disadvantage of a formal planning system is

1. structured and discipline
2. gives top roles more control
3. hard to create new insights and innovation
4. keep things organized

Where do you see yourself in 5 years?

The paradox of Deliberateness and Emergence

Advantages of each strategy

Deliberate strategizing

Emergence strategizing

Programming

Opportunism

Flexibility

Coordination

Commitment

Entrepreneurship

Support

Direction

Optimization

Learning

Perspective on Strategy formation

Which side are you on?

Strategic Planning

Incrementalism Perspective

Which strategy is preferred in a hypercompetitive industry?

1. Deliberateness
2. Emergence

How to manage
the 2 paradoxes?

Balancing

Juxtaposing

Strategy Formation in International Perspective

Formalized planning 

Strong labour division: clear tasks & responsibilities

Vision & Mision driven

JP: a low tendency to engaged in formal strategic planning, less plan, less rigid

Industry-level

Thank you for your attention!