Design School Strategy formation as a Process of Conception
Dec 16, 2014
Design SchoolStrategy formation as a Process of Conception
Group Members
Hania AhmedMisbah Shuja AnsariSyed Aalay Kashif Pirzada
Contents of Presentation
Design School Model
Premises of Design School
Critique of the Design School
1
2
3
4
5 Contribution Of Design School
Origin of Design School
Design School
Strategy is a deliberate process of conscious thought.
Is a model of strategy formation that seeks to attain a match or fit between
internal Capabilities and external Possibilities.
‘Establish Fit’ is motto of Design school.
Two main principles of Design school
Rational Decision makers
‘Anticipation of the future effects of possible actions’
Optimize economic performance
Give no or very little room for incrementalist views or emergent strategy.
Clear and unique strategies are formulated.
Top management plan the destiny of organization.
Objectives are clear and explicit.
It is centralized approach of strategy formation.
It deals with complex and uncertain issues in rational, logical & structure way
Important stakeholders value this approach
Known as “Rational/ Analytic view”
Where we use Design School
Issues are Complex, Important, Significant & Uncertain.
Intended strategy is a result of design school.
“Deliberately formulated or Planned “by managers at the top.
Use tools, techniques and methods of Design school.
Origin of Design School
Traced back to two influential books written at University of California and at M.I.T :
1. Philip Selznick’s Leadership in Administration
2. Alfred. Chandler’s Strategy and Structure
Real impetus for the design school came from General Management Group At
Harvard Business School
Design School Model
Key Success Factors
Distinctive
Competences
External Appraisal Internal Appraisal
Threats & Opportunities Strength & Weaknesses
Creation Of Strategy
Evaluation & choice Of Strategy
Implementation of Strategy
Social
ResponsibilityManagerial
Values
Framework for Evaluation According Harvard General Management group the best strategy
must have following characteristics;
ConsistencyStrategy must not present mutual inconsistent goals & policies.
Consonance Strategy must present an adaptive response to external environment and to critical change
AdvantageIn selected area of activity strategy must provide or retain competitive edge
FeasibilityStrategy must be free from unsolvable subproblems
Premises of Design School
1. Strategy formation should be a Deliberate process of Conscious
thought
2. Responsibility for the Control & Consciousness must rest with the
CEO
3. The model of strategy formation must be kept Simple and Informal
4. Strategies should be one of a Kind: the best ones result from a
process of individualized design
5. The design process is complete when strategies appear fully
formulated as perspective
6. The strategies should be explicit, so they have to be kept
simple
7. Finally, only after these unique, full-blown, explicit, and
simple strategies are fully formulated can they then be
implemented.
Contexts It can be implement easily in situation where environment is stable or predictable
Organization in question must be prepared to cope with centrally articulated strategy
Critique Of Design School1. How does an organization know its strengths and weaknesses?
2. Can organizations be sure of its strengths before it tests them?
3. The premise of this school deny important aspects of strategy formation;
Incremental Development Emergent strategy By passing learning Influence of existing structure on strategy Full participation of actors other than Chief Executive.
3. Data can be Collected & Transmitted up the hierarchy without any significant loss or distortion, This assumption often fails.
4. Environments can always be understood, currently and for the future and it is sufficiently stable or at least predictable but it is not the case in real life.
5. Structure follows strategy.
6. Explicit strategy promoting Inflexibility.
7. Separation of Formulation from Implementation
Contribution of Design school One brain can handle all of the information relevant for strategy formation
One brain has complete detailed knowledge of situation in question
Reduced Ambiguity.
Useful in relatively stable environment
Support strong and visionary leadership.
limitation Simplification may distort reality.
Strategy has many variables and is inherently complex.
Bypassing learning, inflexible in fast-changing environment.
High risk of resistance
Thank You !!!