Mintzbergs_Ten_Schools_of_Thought_about

Mintzberg’s Ten Schools of Thought about Strategy Formation

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The Design School

  • Model: A process of conception

  • Approach: Formulates clear and unique strategies based on matching internal and external situations.

  • Basis: Architecture as a metaphor, order, reduced ambiguity.

  • Contributions:

    • Useful in relatively stable environments.

    • Supports strong and visionary leadership.

  • Limitations:

    • Simplification may distort reality.

    • Bypasses learning; inflexible in fast-changing environments.

    • High risk of resistance from personnel.

  • Typical Tools: SWOT Analysis, Ashridge Mission Model.

The Planning School

  • Model: A formal process

  • Approach: Rigorous steps from analysis to execution of strategy.

  • Basis: Urban planning, system theory, cybernetics.

  • Contributions:

    • Provides clear direction and enables resource allocation.

    • Facilitates control.

  • Limitations:

    • Can become too static.

    • Risks groupthink and difficulty in predicting outcomes.

    • Relies on top management's isolated creation of strategy.

  • Typical Tools: Theory of Mechanistic and Organic Systems, Parenting Styles, Levers of Control, Scenario Planning.

The Positioning School

  • Model: An analytical process

  • Approach: Contextualizes business within its industry and aims to enhance strategic positioning.

  • Basis: Industrial organization and military strategy.

  • Contributions:

    • Treats strategic management as a science.

    • Provides systematic content for strategy development.

  • Limitations:

    • Neglects power dynamics, cultural aspects, social elements.

    • Biased towards large firms.

    • Primarily number-oriented.

  • Typical Tools: Competitive Advantage, Five Forces Analysis, Value Chain, BCG Matrix, Game Theory, The Art of War (Sun Tzu).

The Entrepreneurial School

  • Model: A visionary process

  • Approach: Relies on intuition and experience from charismatic leaders.

  • Basis: Economics.

  • Contributions:

    • A cohesive vision helps organizations navigate challenges.

    • Deliberate on broad lines but remains flexible in details.

  • Limitations:

    • Risk of missing potential developments or dangers due to rigid courses.

    • Identifying the right leader is crucial and challenging.

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The Cognitive School

  • Model: A mental process

  • Approach: Analyzes how strategists perceive patterns and process information.

  • Basis: Psychology.

  • Contributions:

    • Highlights the cognitive process that leads to strategy formation.

    • Stresses creativity in strategy.

  • Limitations:

    • Limited practicality beyond conceptual frameworks.

    • Ineffective for broad collective strategy processes.

  • Typical Tools: Whole Brain Model, Johari Window, Groupthink, Cognitive Bias, Myers-Briggs Type Indicator.

The Learning School

  • Model: An emergent process

  • Approach: Focuses on learning from experiences over time for strategy development.

  • Basis: Education and learning theory.

  • Contributions:

    • Provides a solution for complexity and unpredictability in strategy formation.

    • Allows for multi-participant learning beyond just leadership.

  • Limitations:

    • Potential to result in lack of coherent strategy during crises.

    • Costs associated with learning and not useful in stable conditions.

  • Typical Tools: Organisational Learning Framework, Knowledge Management, SECI Model.

The Power School

  • Model: A process of negotiation

  • Approach: Strategy is developed through negotiation among power holders.

  • Basis: Political Science.

  • Contributions:

    • Facilitates debate on issues.

    • Can break through obstacles to change.

  • Limitations:

    • Involves divisive politics and energy wastage.

    • Overemphasizes the role of power in strategy.

  • Typical Tools: Bases of Social Power, Power Distance, Stakeholder Value Perspective, Core Group Theory, Force Field Analysis, Stakeholder Mapping.

The Cultural School

  • Model: A collective process

  • Approach: Involves various organizational groups in strategy formation.

  • Basis: Anthropology.

  • Contributions:

    • Emphasizes the role of social processes and values in strategy formation.

    • Helpful in managing resistance to change, especially in mergers.

  • Limitations:

    • Can justify the status quo; may lack clear direction.

  • Typical Tools: Appreciative Inquiry, Cultural Dimensions, Cultural Intelligence, Ashridge Mission Model.

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The Environmental School

  • Model: A reactive process

  • Approach: Strategy is formed in response to external environmental challenges.

  • Basis: Biology.

  • Contributions:

    • Assigns a key role to the environment in strategy formation.

  • Limitations:

    • Often vague and aggregated dimension of environment.

    • Denies strategic choice for organizations; considered unrealistic.

  • Typical Tools: Contingency Theory, Situational Leadership.

The Configuration School

  • Model: A process of transformation

  • Approach: Integrates strategy and organizational structure, evolving over time.

  • Basis: Contextual organizational development.

  • Contributions:

    • Sees strategy formation as adaptable to context; recognizes the need for stability and occasional transformation.

  • Limitations:

    • Configuration descriptions may distort reality.

    • Many interpretations are possible; reality not limited to fixed configurations.

  • Typical Tools: Organisational Configurations, Chaos Theory, Catastrophe Theory, Disruptive Innovations.

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