Lecture 5
Governance and Strategy
Theoretical perspectives on strategy
Learning goals
• Students are able to explain the changing definitions of strategy;
• Students are able to critically assess two different lenses on strategy: a design
perspective and a strategy-as-practice perspective
Strategy concept (Mintzberg)
Strategy as a plan:
• a plan of action designed to achieve a long-term or overall aim
• a high level plan to achieve one or more goals under conditions of uncertainty
• A general direction set for the organization and its various components to achieve a
desired state in the future
Strategy as ploy:
• a specific maneuver intended to outwit a competitor (typically used in war, e.g.
Trojan horse)
Strategy as a pattern:
• Strategy is consistency in behavior whether or not intended
• If the realized pattern was different from the intent; the strategy has emerged
• Can involve over time (incrementalism)
Strategy as perspective:
Strategy in this respect is to the organization what personality is to the invidual.
E.g. Planetree hospital, patient-centered pattern by having the environment being
soothing and comfortable.
Researches as knowledge creators, the tools they use in social science:
- Ontology: what is the nature of reality?
- Epistemology: how can we gain knowledge about reality?
- Methodology: what tools can we use?
1
, Paradigms in social science
Functionalist: rationalist perspective, maths etc.
Hermeneutics: reality is interpreted and change by people (constructivist)
Political: reality constructed by different stakeholders and views of people
Critical theory: some parties have a big influence on reality.
Political, critical and functionalism is used most often. Look at theory and practice from
another way. Often start from a functionalist perspective. Very rational and objective.
Origins of strategy
- Sun Tzu: the Art of War (5th century BC)
- 1960s Chandler: business strategy, he founded the design school from a very
functionalist perspective. From this design school a lot of design tools came about,
mostly used in business management.
- New public management: started copying tools from business management. Efforts
to make the public service more ‘businesslike’ and to improve its efficiency by using
private sector management models.
Design school of strategy (main premises)
• Strategy formation should be a controlled, conscious process of thought; strong
focus on rationality.
• Responsibility lies with the chief executive officer; an organization is a hierarchy.
• Focused on the organization being one with the leader. Strong leader which
decides strategy. Not much discussion about stakeholders or other parties.
• The model of strategy formation most be simple and informal
• Clear and simple strategy, not involving many people
• Strategies should be unique
• Should aim to outperform others. Grounded in market performance, want to
outperform the competitor.
• Strategies are fully formulated during the design process
• The ideas are process, and when its finished we will implement it.
• Strategies should be explicitly articulated and kept simple
• Should be very simple and clear what should be done.
2
Governance and Strategy
Theoretical perspectives on strategy
Learning goals
• Students are able to explain the changing definitions of strategy;
• Students are able to critically assess two different lenses on strategy: a design
perspective and a strategy-as-practice perspective
Strategy concept (Mintzberg)
Strategy as a plan:
• a plan of action designed to achieve a long-term or overall aim
• a high level plan to achieve one or more goals under conditions of uncertainty
• A general direction set for the organization and its various components to achieve a
desired state in the future
Strategy as ploy:
• a specific maneuver intended to outwit a competitor (typically used in war, e.g.
Trojan horse)
Strategy as a pattern:
• Strategy is consistency in behavior whether or not intended
• If the realized pattern was different from the intent; the strategy has emerged
• Can involve over time (incrementalism)
Strategy as perspective:
Strategy in this respect is to the organization what personality is to the invidual.
E.g. Planetree hospital, patient-centered pattern by having the environment being
soothing and comfortable.
Researches as knowledge creators, the tools they use in social science:
- Ontology: what is the nature of reality?
- Epistemology: how can we gain knowledge about reality?
- Methodology: what tools can we use?
1
, Paradigms in social science
Functionalist: rationalist perspective, maths etc.
Hermeneutics: reality is interpreted and change by people (constructivist)
Political: reality constructed by different stakeholders and views of people
Critical theory: some parties have a big influence on reality.
Political, critical and functionalism is used most often. Look at theory and practice from
another way. Often start from a functionalist perspective. Very rational and objective.
Origins of strategy
- Sun Tzu: the Art of War (5th century BC)
- 1960s Chandler: business strategy, he founded the design school from a very
functionalist perspective. From this design school a lot of design tools came about,
mostly used in business management.
- New public management: started copying tools from business management. Efforts
to make the public service more ‘businesslike’ and to improve its efficiency by using
private sector management models.
Design school of strategy (main premises)
• Strategy formation should be a controlled, conscious process of thought; strong
focus on rationality.
• Responsibility lies with the chief executive officer; an organization is a hierarchy.
• Focused on the organization being one with the leader. Strong leader which
decides strategy. Not much discussion about stakeholders or other parties.
• The model of strategy formation most be simple and informal
• Clear and simple strategy, not involving many people
• Strategies should be unique
• Should aim to outperform others. Grounded in market performance, want to
outperform the competitor.
• Strategies are fully formulated during the design process
• The ideas are process, and when its finished we will implement it.
• Strategies should be explicitly articulated and kept simple
• Should be very simple and clear what should be done.
2
