Assignment 2.3 After reading the chapter on Collaborative Planning, please explain what a consensus meeting is and why they are useful for strategy formulation?
Consensus groups are one of means of systematic approaches to strategic planning (Mohammed and Ringseis, p. 321). In a wider methodological system, it can be compared with focus groups, with one particular difference, consensus groups are more interactive and participative, and the outcome of discussion depends on participants' agreement towards its acceptance and not due to moderator's decision (book of reading, p. 46). Unlike in surveys, participants modify statements they vote on in such a way so that at least 75% of their votes (book of reading, p. 46). The essence of consensus groups is in the fact that participants bring their own background knowledge into discussion table in non-obligatory manner, unlike specialists who prepare their own variants of planning and try to impose it on other participants (Goldstein and Butler, p.242). Thus, consensus groups contribute to a more systematic and interdisciplinary discussion of the subject matter and further realistic decision-making and planning (Mohammed and Ringseis, p. 320). In general terms of strategy formulation, the interdisciplinary nature of consensus groups contribute to a more systematic and therefore realistic strategy formulation (Mohammed and Ringseis, p. 324). Thus, strategy would be driven by a consensus of what is applicable and achievable within the existing capacities, and not because a certain suggestion was better presented or another left out of discussion (Goldstein and Butler, p.241).
Bibliography
Goldstein, B. E. and Butler W. H. 2010, Expanding the Scope and Impact of Collaborative Planning. Journal of the American Planning Association, 76(2), pp. 238-249.
Mohammed S. and Ringseis E. 2001. Cognitive Diversity and Consensus in Group Decision Making: The Role of Inputs, Processes and Outcomes. Organizational Behavior and Human Decision Process. 85(2), pp. 310-335.
Assignment 2.5 Read the chapter on Strategic Concepts and please explain what are strategic concepts and why are they useful for formulating strategy?
Strategic concepts are the ways of thinking about strategy; they are ideas, assumptions and models of strategic problems perception (book of reading, p. 70). Although it may seem that simple thinking is less accurate than more exact ways of problem evaluation like computation, for instance, in reality, concepts are behind every exact calculation and evaluation of the studied problem (book of reading, p. 69). Strategic concepts are crucial for provision of unanimity of strategic categories for decision-making and subsequent strategy-formulation (Virkkunen and Ristimaki, p. 278). This unanimity is not in complete formalisation and subsequent dogmatisation of thinking, but in creation of common ground for further development of creative thinking (Virkkunen and Ristimaki, p. 281). In terms of strategy formulation, strategic concepts are vital for concentrating on the why question, in other words, it explains motivations behind potential actions and importance of some goals over the others (book of reading, 74). Regarding prediction of the future, strategic concepts provide an opportunity for more flexibility in analysis rather than exact models; mainly because strategic concepts include an essential changeable element of any prediction - unpredictability of human behaviour - a human factor (Sagi, p. 42). In terms of strategy formulation, flexibility of strategic concepts is ideal for existing mission command approach of operations' execution, meaning decentralised execution (Sagi, p. 43).
Bibliography
Sagi J. 2007. Lessons from Management: Using Strategic Planning Concepts to Develop a Universal Futuring Model. Futures research Quarterly. 23(3), pp.39-45.
Virkkunen J. and Ristimaki P. 2012. Double Stimulation in Strategic Concept Formation: An Activity-theoretical Analysis of Business Planning in a Small Technology Firm. Mind, Culture & Activity, 19 (3), pp. 273-286.
Assignment 2.6 Read the chapter on Dialectic Decision Criteria and explain what dialectic decision criteria are and why they are useful for strategy formulation?
Dialectic decision criteria are the benchmarks of decision-making which are based on dialectic approach (Schwenk, p. 419). The essence of dialectic approach is opposite to idealistic one, which argues that decisions should be taken in order to achieve and ideal-form or outcome (book of reading, p. 92). Dialectic approach argues for necessity to embrace diversity, multi-dependencies of unpredictable and chaotic world (book of reading, p. 95). In its turn, dialectic strategy aims at exploration of alternatives ways of world perception, analysis and subsequent facilitation of actions into it (Schwenk, p. 420). The essence of dialectic decision criteria is in comparison of contradicting concepts, world views in an attempt to find out which of concept would be the most applicable and relevant in a particular situation (book of reading, p. 97). This approach does not seek to give a universal answer to any posed question, it only provides criteria to value a certain decision in terms of a single existing situation; so, what is applicable in one case, might be entirely inappropriate in another, due to the change of the situation and subsequent priorities (Vermeulen, p. 979). Thus, the dialectic approach and subsequent decision criteria provide strategy formulation with a more creativity though a better and more systematic understanding of contradicting aspects of the studied problem and subsequent decision making process (Vermeulen, p. 980).
Bibliography
Schwenk C.R. 1980. Effects of devil's advocacy and dialectic inquiry on decision-making: A meta-analysis. Organisational Behavior and Human Performance. 26(3), pp.409-424.
Vermeulen F. 2005. On rigor and relevance: Fostering dialectic progress in management research. Academy of Management Journal. 48(6), pp. 978-982.
Assignment 2.7 Read the chapter on Action Plans and explain what action plans are and how they relate to strategic concepts?
Action plan is a totality of organised practices which aim at practical implementation of introduced concepts (book of reading, p. 101). Thus, the connection between strategic concepts and action plan is in connection between theory and practice, and also in the function of action plan - facilitation of strategic concepts into organisation's functionality, in other words, action plans are aimed for alignment of staff's mentality and everyday practices with strategic concepts adopted by an organisation (De Fine Olivarious et al., p. 37). The essence of action plan is not simply in outlining of various actions that might place concepts into practice, the essence of action plan is in a systematic and interconnected chain practices/actions which should reorganise an institution in order to make a certain concept as a cornerstone for its functionality and the very existence; so action plan is both a toll of concept introduction into practice and also its indoctrination within organisation's existence (Mitzberg, p. 262). On the other hand, it does not mean that certain concept is imposed as dogma, rather it is introduced as a founding stone and a general philosophy to guide staff's decision-making process; in this context, action plan becomes a means of training, teaching staff how to do business according to a chosen fundamental approach (Mitzberg, p. 267).
Bibliography
De Fine Olivarious N., Kousgaard M.B. et al. 2010. Dynamic Strategic Planning in a Professional Knowledge-based Organization. Journal of Research Administration. 41(1), pp. 35-48.
Mitzberg H. and Waters J.A. 1985. Of Strategies, deliberate and emergent. Strategic Management Journals. 6(3), pp. 257-272.
Assignment 2.8 Read the chapter on Strategy Mapping and explain what a strategy map is and why it is useful for strategy formulation?
Strategic mapping is a graphical representation or visual sketching of strategic concepts and their subsequent implementation in planning of actions (book of reading, p.138). The main rationale for using this practice is in necessity of coming to a common ground in a discussion of a certain decision-making process, which often requires an exact and comprehensible means of passing certain idea and conclusion to the stakeholders with different backgrounds; in this regard, visual interpretation of a certain idea or plan of actions is the best solution (Yu and Wang, p. 148). The main benefits of this practice are in provision of clarity to the process of communication and time-economy (Irwin, p. 638). Although visualisation of ideas and concepts might not reflect the whole communication process in details, it helps to concentrate on the final outcome of discussion - final decision (Yu and Wang, p. 152). Thus, in terms of strategy formulation, strategic mapping contributes to development of a refined and mutually-comprehensible decision - simple and exact answer to the posed question (Irwin, p. 638). This is particularly important because in the process of discussion and desire of stakeholders to prove their position, the final outcome and the aim of the whole discussion might be lost and forgotten for a time being, while exact sketch shows stockholders where they are and what is yet to be done (Irwin, p. 639).
Bibliography
Irwin D. 2002. Strategy Mapping in public sector. Long range planning. 35(6), pp. 637-647.
Yu C.C. and Wang H.I. 2009. Strategy mapping in the process of formulating digital divide strategies. Electronic Government, An International Journal. 6(2), pp. 143-161.
Assignment 2.9 Read the chapter on Paradoxical Consequences and explain what are paradoxical consequences and why identifying them is useful for strategy formulation
Paradoxical consequences are critical issues which might challenge the existing strategic concept and subsequent action plan due to the issues which were not envisioned by chosen strategy (book of reading, p. 141). The evaluation of the chosen strategy through the potential paradoxical consequences contributes to strategy's validity, systematic nature of it and subsequent flexibility of strategy and plan of action based on it to the changes in the future environment of action conduct (Hart, p. 335).This practice is essential for evaluation of potential adaptability of strategy to unpredictable and least unlikely changes in acting environment; in this regard, the most chaotic and unpredictable factor of any system of palling and prediction is a human factor (Hart, p. 329). Since human behaviour and human nature are unpredictable in a long-termed planning and prediction, strategy need to take into account this aspect as an inherent one and work on alternatives (Amason, p. 128). Paradoxical consequences analysis gives an opportunity not only to take human factor into account, but it also gives an opportunity for alternatives views on problem resolution, thus boosting creativity, which in its turn results in the increase of flexibility of actions and strategy (Amason, p. 132). This practice contributes to an effects-based and consequences-oriented formulation of strategy (book of reading, p. 143).
Bibliography
Amason A.C. 1996. Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. Academy of management journal. 39(1), pp. 123-148.
Hart, S.L.1992. An integrative framework for strategy-making processes. Academy of Management Review. 17(2),pp. 327-351.
Assignment 2.10 Please read the chapter on Visions and explain why the use of vision statements can be problematic for strategy formulation?
The main reason why vision statements might be problematic in strategy formulation is inconsistency between the aim of vision statements and the final outcomes of the strategy: while vision statements can provide an inspirational long-termed perspective of actions for certain outcomes achievement, the strategy requires more flexibility of actions and existence of potential alternatives to adapt in unpredictable environment of the future activity with still successful achievement of posed goals (Kaplan and Norton, p. 96). Thus, the main limitation of visions is in their main strength - inspirational power to convince, which is based on present assumptions and present motivations; on the other hand, formulation of strategy requires endurance based on flexibility rather than a poor altruism and hope for a better outcome (Kaplan and Norton, p. 102). Visions are often inspired by charismatic leadership, which although can contribute to a flawless performance, eventually result in lack of creativity and over-reliance on one's authority or indoctrination of one's practice (Grant, p. 498). From pragmatic perspective, people think in terms of verbal concepts ad not visions, thus, in order to achieve consensus in extremely participatory process like strategy formation, visions might be counter-productive resulting in arguments for the sake of arguments rather than the final outcome (book of reading, p.165).
Bibliography
Kaplan, R.S. and Norton D.P.2001. Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. Accounting Horizons. 15(1), pp. 87-104.
Grant R.M. 2003. Strategic planning in a turbulent environment: evidence from the oil majors. Strategic Management Journal. 24(6), pp. 491-517.
