Monday, 9 February 2015

Mintzberg - Five Ps For Startegy : Academic Paper Review


Mintzberg’s Strategy Concept is a highly complex composition which sets out to challenge, educate, change and arguably more. The general philosophy of the human mind abides by the notion of a single underlying meaning for any given word; to think a single term has not one, not two but many different (and) yet some correlating definition’s seems byzantine and to some extent difficult to assimilate. The article challenges this ideology as Mintzberg makes it his purpose to define strategic management as a concept which is free of any single given meaning. The article proposes to educate practitioners, researchers and others in the field of strategy and strategic management as Mintzberg deploys five individualistic elements of which all form the concept of strategy. The conscious objective of the article is to clear through the disarray in the sphere of the discipline which has emerged as a result of the contrasting and imprecise interpretation of the uses, meaning and definition of strategy. The core motivation of the article is to articulate the different ways strategy can be perceived as well as conceived. Furthermore the article seeks to find a common ground between strategy gurus of both sides by trying to insinuate the following: no single definition of strategy is right and neither is any single definition wrong, strategy is nothing yet strategy is everything and finally; although strategy is physically unseen and in the air (intangible) it is the blood, brain and soul of a firm (organisational mind). Mintzberg seeks to prove this notion and change the thinking and stale ideology of those in the field of Strategy and Strategic Management as Mintzberg presents Strategy as five separate elements: a plan, a ploy, a pattern, a position and a perspective. In hindsight the article is a presentation of the various forms of strategy, both tangible and intangible, both deliberate and emergent and both intended and unintentional.

The contribution of the article to the subject area.

Variance and contention amongst practitioners and researchers has always been a norm within the sphere of strategy and strategic management. While some highly regard one academic, others may differ. However Henry Mintzberg was, and has remained widely accepted and regarded as highly renowned scholar. Furthermore with negligible criticism Mintzberg’s work has always been staged and globally appreciated. Since Mintzberg delved into the field of Strategy his academic research and exploration in the discipline has been coherent. Mintzberg has remained extremely open and logical in his articles, developing complex arguments in the most realistic and straight forward conventions by means of utilising real life examples and proven theories in his explanations. In wider context this particular article of Mintzberg; shows similarity to the work of other famous academics, though the article also challenges the views, theories and studies by others. In a similar manner the article has been applaud by many strategy theorists as well being critically rejected by some.  Similar to Mintzberg, Whittington explains strategy can be used and viewed in various different ways. He explains this by introducing four separate perspectives on strategy: ‘the classical perspective, the evolutionary perspective, the processual perspective and the systemic perspective’ (Whittington:1993). However Mintzberg’s (The Strategy Concept) article was released in the 1980’s, a time where many academics had a specific view on strategy. While Mintzberg argues strategy can be deliberate as well as intended, he also shows strategy being emergent and unintentional; he raises this point in the article by asking “do people always say what they mean, or mean what they say”? However on the other hand Porter argues a view completely contrary to that of Mintzberg’s. Porter explains strategy can only be defined as strategic, if it involves consciously doing something which is different or better than rivals. In his article ‘What is strategy? (Harvard Business Review, Nov-Dec 1996) Porter states “Competitive strategy is about being different” (Porter: 1996). Porter’s views on strategy are based upon intentional, intended and deliberate decisions and actions which are not only different from competitors but marginally better; something which Mintzberg is in clear argument with. Arguments between the emergent school of strategy and deliberate school have been ongoing for a long time, in fact Hamel beautifully states “strategy didn’t start with Igor Ansoff, neither did it start with Machiavelli. It probably did not even start with Sun Tzu. Strategy is old as human conflict” (Hamel G, 2001, p4-10). The contribution of the article as a single piece of Mintzberg’s work is evident through the way the discipline has shown change.  Prior to the release of the article strategy was very much seen as a defined and existent way to enrich the best out of an organisation, in fact it was seen more or less as a business ‘tactic’. This is evident by the advice given by Sun Tzu (Sunzi) as he famously stated “Strategy without tactics is the slowest route to victory; Tactics without strategy is the noise before defeat” (Sunzi and Griffith, 1971). However post the release of this article the emergent philosophy behind strategy has become widely known and is no longer seen as inferior. More and more academics have used and been influenced by Mintzberg’s work, moreover academics now even share a similar ideology of strategy to that of Mintzberg’s; this is evident as famous Economist Markides states “Nobody knows what strategy is” (Markides, C 2004). Furthermore it can be argued the article has influenced academics as post the release of the article many scholars have come to agreement that strategy is a lot more than a single definition. This is evident as Bryson states “strategy is defined as a pattern, of purposes, policies, programmes, actions, decisions, or resource allocations that define what an organisation is, what it does, and why it does it” (Bryson, 1995, p.32). Mintzberg’s contribution to the sphere of strategy is evident through the way academics now view strategy which indicates a change in ideology therefore the article is successful in what it was seeking to achieve.  

The findings and conclusions of the article.

The findings and conclusions of the article somewhat derive from its purpose. As explained the purpose of the article was to de-clutter the confusion in around the sphere of strategy. Mintzberg uses the article to show strategy is free of any given single meaning as it can be described and explained in various different methods. This is evident as most academics have there on viewpoint on strategy. For example Johnson & Scholes define strategy as “the direction and scope of an organisation over the long term” (Johnson and Scholes, 1999) yet Rumelt explains “Strategy is creating situations for economic rents and finding ways to sustain them” (Rumelt: 1982). Both the definitions of strategy are politically correct yet verbally different; and this is the notion Mintzberg tried to clarify. Mintzberg explains this artefact through the findings of the following quote:
“Gradually the successful approaches merge into a pattern of action that becomes our strategy…we certainly don’t have an overall strategy on this”. (Homewood et al 1982)
If one defines strategy with a single meaning, then the above quote is not only inconsistent but it is impossible to ascertain what the author is trying to suggest. In fact one can go as far as saying the quote does not make sense. Therefore Mintzberg’s uses the concept of the ‘Five Ps’ to show the inner realm of the term strategy and at the same time shows the immediate need for eclecticism (differentiation) in definition . To further conclude, the article uses McDonalds as a prime example as the ‘Egg McMuffin Syndrome’ shows Mintzberg’s ideology as a working piece. 

This is evident as the article explains how the five concepts of strategy are interrelating and in some respects bounce of one another. For example McDonald’s is ‘positioned’ in a typically fast food market; the introduction of a breakfast item did not only fit in with the current ‘pattern’ of products that McDonalds offer but it also formed part of the overall ‘plan’ as McDonalds aims to sell food which is quick to produce, high in taste, marginally profitable and most importantly the whole operation is reliant on the intense productivity of its human resources. Mintzberg explains all these areas form the overall strategy of McDonalds and no single area has precedence over the other as conclusively they form the ‘perspective’ that individuals have of McDonalds. Now, the thought of McDonalds introducing “McDuckling a l’Organge” is quite clearly impossible as the item does not meet the requirements of McDonalds market ‘position’, it does not fit in with the current ‘pattern’ of products, it does not follow the company’s ‘plan’ and most importantly it completely clashes with the ‘perspective’ people have of McDonalds.  

In hindsight the article concludes whether it’s a plan, a ploy, a position, a perspective or even a pattern; it is all a form of strategy, if anything they all intertwine and influence one another; however while some elements of strategy can easily change, others are a lot more difficult to change as they are embedded within the roots and culture of an organisation therefore one must be very careful when implementing strategy.

Critical appraisal 

The 20th century saw real misunderstanding of the term strategy; with this in mind Mintzberg’s article (Concept of Strategy) truly does bring light upon the matter; therefore in this respect the relevance and validity of the article is truly exceptional. The article remains easy to read, easy to understand and fairly easy to apply. This is evident from the way businesses see strategy today. While Tesco “ploys” land banking to scare away competition (Financial Times, 2014) Wal-Mart has discovered “patterns” in buyer behaviour such as the unconventional selling combination of “beer and nappies” on Friday evenings. Furthermore “positioning” alcohol in the children & babies section during the latter hours on Friday has become part of Wal-Mart’s countrywide “plan” (Rao, 1998). In the same way IKEA challenged peoples “perspective” of home décor being expensive by creating stores comparable to design studios which eliminated the need on an interior designer and further  introduced ‘flat pack do it yourself’ furniture which eliminated the need of a builder; making home décor not only cheap but also fun (Pelsmacker et al 2005). 

Taking into account the article was published in 1987 and almost 30 years on; modern day businesses are using strategy the way in which Mintzberg explained back then, truly shows Mintzberg has made a major contribution to the sphere of strategy and not only this his work has become a major source of reference for mainstream businesses.
While some feel competitive advantage is strategy others argue it plays a major role in and around strategy; the article being solely about strategy, one may feel Mintzberg should have clarified differences (if any) or similarities (if any) between the two. However Klein (2001) does mention “strategy texts books tend not to define competitive advantage, even though they use the term liberally”.

As a whole it is evident the article has been accepted and considered widely; not only by looking at the number of times it has been cited but by the fact that other academics and strategy professors feel Mintzberg really has “found his place” in the field of strategy (Pettigrew et al 2002:12). Finally it feels Mintzberg’s ideology behind strategy really has been accepted over Porter’s as Karl Moore concludes “I think that Henry’s ideas have pulled ahead of Michael’s” (Moore, 2011).

“Hena ta panta” (change was impossible) – (Parmenides )………..“The sun is new everyday. Everything changes”. (Heraclites )

Saturday, 7 February 2015

What You Don't Learn At Business School

Do We Still Think?



So, let me guess, organisational knowledge, culture, a learning organisation Blahh Blahh Blah… the typical concepts thrown around in business lectures, speeches, essay questions and exams. But wait… Hold on.. lets break this down. Have you heard the famous cliché ‘think outside box’?... yes? Woohooo, great start.. why?.. Because I want you to do exactly that.

First… Clear your mind, stop thinking of him or her, forget the assignment for a minute, and yes I know you have an early start but this isn’t going to take long… Now, take a few deep breaths, and please make use of that amazing gift god gave you.. Which one? Like please.. Did you really just ask me that? Common Sense off course!

Let’s talk, me and you, one on one… topic of discussion? Knowledge… So your telling me you know more (mentally) than you can say (physically)? (I also have that problem) sorry what’s that?.. and you can say more than you can write??.. (me to, HI 5!)… Then why do the majority of organisations base their entire operation on codified principles?.. wait you don’t  get it?... no problem, let me break it down.

So I want you to think of an organisation as a brain. So for argument sake let’s make this simple, let’s say its capacity to think is 100%... and as we've already agreed the brain knows more than it can say right? So let’s say its ability to say is 75% and finally its ability write is 50%... now before I take this one notch further I want you to quickly go down memory lane and think of a time when you knew what you wanted to say but didn't know how to say it, or articulate it. Done? Great. Now I want you to think of a time when you had an A4 sheet of paper or a blank word document in front of you, waiting to be written on, but; although you knew what you wanted to say, you couldn't quite articulate it through text. Done? Great. 

At this point I take it you've got what I’m trying to say, if you haven’t please move the cursor to the red box on the top right hand corner of this page and do yourself a favour and click the button on the right of your mouse or touch pad

Now my question is why would you chop your legs off? Why would you halve your own ability?.. It’s like superman getting a pair of scissors and detaching his cape from his top. Why do 21st century companies rely so heavily on written, codified principles, rules strategies etc. etc. Are the employees of the 21st century actually given a platform to think, are they given the opportunity to be creative? Are they given the scope to be innovative, are they given an environment in which divergent thinking and artistic flair is valued? Or are they mere carriers of mediocrity, or are they the leaders of normality and routine or are they simply connectors. Although I don’t fully agree with the concept of “Sustainable Competitive Advantage” (why, I’ll discuss in another blog) but are they not killing their SCA by doing this?.. Although at this point you would think I will give you an answer of why they do this or why they shouldn't… well sorry but I’m not going to, in fact I don’t even know if I have one. However; the purpose of this post is to make you think and to make you question the reasons behind this.


All these different concepts, terms and theories we learn in business school, are they valid, or more importantly how apparent are they within the work place?.. Question yourself.


Now, let’s add some meat to the discussion, so let’s look at 2 organisations, Facebook and Google… why are they so successful?... Well I can think of at least one reason, maybe because they refuse to submit to this current codified hype? Just think, these organisations are based upon thinking… thinking, imagining and visioning beyond explainable lengths and heights. Not just jotting down the ordinary and using it company-wide, neglecting the specialism and the ideas that already loosely exist within the firm. 

As academics, individuals, business owners and organisations, it is essential we think. To progress and develop we have to challenge the norms and finally it is vital we spread the knowledge we have, as tacit knowledge is only valuable when it become explicit.


So going back to the point; why oh why! Why do the majority of organisations do this? Have we forgotten to think, or have we forgotten how to think?