CRAFTING STRATEGY

P R E S E N T E D B Y :N G U Y E N M I N H T U A N

N G U Y E N V O H U Y B A O

Henry Mintzberg

1 . S T R AT E G Y F R O M M I N T Z B E R G ’ S V I E W

2 . C R A F T I N G S T R AT E G Y - M I N T Z B E R G ’ S T H E O RY

3 . TA K E AW AY

STRATEGYPlanning• Reason• Control• Analysis• Stability

Crafting• Learning• Harmony• Learning• Change

STRATEGY• The crafting image better captures the process

by which effective strategies come to be• Managers are craftsmen and strategy is their

clayManager

s

Strategy

STRATEGIES ARE BOTH PLANS FOR THE FUTURE & PATTERNS FORM THE PAST

People’s thoughts of Strategya plan or explicit guide to future behavior.

People’s acts of Strategy:consistency of past behavior – a pattern in action over time.

PLAN PATTERN

STRATEGIES ARE BOTH PLANS FOR THE FUTURE & PATTERNS FORM THE PAST

Source: http://www.cafeios.net

STRATEGIES NEED NOT DELIBERATE – THEY CAN ALSO EMERGE• Strategy making depicts it as a deliberate process• First we think, then we act• We formulate, then we implement

Why would anybody want to proceed differently?

STRATEGIES NEED NOT DELIBERATE – THEY CAN ALSO EMERGE

Source: www.flatworldknowledge.com

STRATEGIES NEED NOT DELIBERATE – THEY CAN ALSO EMERGE

What does this example imply?

EFFECTIVE STRATEGIES DEVELOP IN ALL KINDS OFF STRANGE WAY• Effective strategies can show up in the

strangest places and develop through the most unexpected means• There is no best way to make strategy• Example of Facebook

EFFECTIVE STRATEGIES DEVELOP IN ALL KINDS OFF STRANGE WAY

Grass-roots approach

Umbrella Strategy

STRATEGIC REORIENTATIONS HAPPEN IN BRIEF, QUANTUM LEAPS

Concept of strategy: • is rooted in stability, not change

Conventional strategic management• Change must be continuous• Organization should be adapting all

the time.VS

QUANTUM LEAPS• Resolve opposing force of change and force of

stability– Attending first to one, then to the others– Clear periods of stability– Change can be distinguished in any

organization.Particular strategy may always be changing

marginally. Major change in strategic orientation occurs rarely.

Common pattern of change in organization: Organization adopts two distinctly different modes of behavior at different times.

– Change in context of orientation. It is encouraged to seek continuous improvement.

– Take place a strategic revolution to leap to a new stability quickly.

CYCLES OF CHANGE• Pattern “adhocracy” has more balanced stability

and change.• It is used for companies are in the business of

producing new, unusual outputs apparently need to go with all directions from time to time. Organization needs to settle down after each period

• Example: National Film Board produce individual or custom-made products in different periods

– Concentrated on aid of war films in 1940s– Make films series on TV in 1950s.– Evoke experimental films and social issues in

1960s

MANAGE STRATEGY• Additional view of strategists: Who are involved

or responsive to learn about their organizations and industries through personal touch.

• Manage stability: not to create strategy, but get on with making organization as effective as possible in following the strategies created.

• Detect discontinuity: manage within strategic orientation to be able to pick out the occasional discontinuity

• Know the business, manage patterns, reconcile change and continuity

KEY TAKEAWAY

Crafting strategy of Mintzberg's thoughts

• Strategies are both plans for the future and patterns from the past.• Strategies need not be deliberate - they can

also emerge.• Effective strategies develop in all kinds of

strange ways.• Strategic reorientations happen in brief,

quantum leaps.• Management strategy is crafting thought and

action, control and learning, stability and change.

REFERENCES• Mintzberg, H. (1987, July–August). Crafting

strategy• http://catalog.flatworldknowledge.com/bookhu

b/reader/3085?e=ketchen_1.0-ch01_s02• https://www.youtube.com/watch?v=u-dDl

RdLhWI

Thank You!