Planned vs Emergent Strategy

Mintzberg on Emergent Strategy:

• ‘A pattern of action that develops over time in specific mission and goals, or despite a mission and goals’

• ‘Strategy emerges over time as intentions collide with and accommodate a changing reality’

Planned Strategy:

• The intended strategy

• Influenced by specific corporate objectives

• Based on formal strategic planning (SWOT Analysis, PESTLE framework, Porter’s Five Forces)

• Described in formal business plan

Examples:

1. Purpose-driven:

   • Align your strategic plan with the Vision as you understand it.

2. Actionable:

   • Actionable strategic goals are worth spending your time and resources on to reach organisational objectives.

3. Measurable:

   • It’s critical for you to track your strategy's progress and success, enabling your teams to take action and meet the goals more effectively.

4. Focused Long-term:

   • A long-term focus distinguishes a strategic plan from operational goals, which involve daily activities and milestones required for success. When planning strategically, you’re looking ahead to the company’s future.

Emergent Strategy:

• The strategy that actually happens

• Strategy responds to events as they arise (Change in external environment)

• Often involves strategic and tactical changes

• Not restricted by formal planning tools and methods

Example:

• A famous example of emergent strategy is IKEA allowing customers to retrieve their own merchandise from the warehouse. This originally happened in response to a store becoming overwhelmed with customers but eventually became a core component of the IKEA brand and shopping experience.