Strategy in Business

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Most strategies are deliberate in structure. They are intentional, vetted, and data supported prior to implementation. There are occasions that a change of plans might occur due to unexpected events requiring a change of action. This strategy is called emergent. Define and debate the origins and differences between a deliberate strategy and an emergent strategy. How might an emergent strategy help with future strategic planning processes?Deliberate strategies are planned, data supported, implemented, and managed. Emergent strategies are often unexpected, reactionary, and untested. Part of the process for strategic development is the establishment of metrics to measure the progressive success of the strategic plan. Based on the metric options discussed in Chapter 8 of the text, what types of measurement would be appropriate and necessary to support the change when considering the deployment of an emergent strategy? What are the potential consequences for ignoring emergent strategies? Research and discuss an emergent strategy implemented by an organization and its success or failure.

Sample Solution

Deliberate vs. Emergent Strategies: Planning and the Power of the Unexpected

Deliberate Strategy: The Art of Planning

A deliberate strategy is the classic approach, often likened to a chess game. It involves careful planning, analysis, and data-driven decision-making. Here’s the breakdown:

  • Origins: Deliberate strategies have roots in military tactics and business management. Pioneered by thinkers like Michael Porter, they emphasize setting clear goals, analyzing the competition, and formulating a step-by-step plan for achieving objectives.
  • Characteristics: Deliberate strategies are:
    • Intentional: Derived from a predefined vision and mission.
    • Vetted: Thoroughly analyzed and tested with data and simulations.
    • Data-Supported: Backed by market research, competitor analysis, and financial projections.
    • Controlled: Implementation is monitored and adjusted as needed based on pre-determined metrics.

Emergent Strategy: Embracing the Unexpected

An emergent strategy, on the other hand, is a more fluid approach that adapts to unforeseen circumstances. It thrives on flexibility and real-time decision-making.

  • Origins: Emergent strategies are credited to Henry Mintzberg, who argued that plans can be disrupted by unexpected events. This approach draws inspiration from complex systems like ecosystems, where change is constant.
  • Characteristics: Emergent strategies are:
    • Unexpected: Arise from unplanned events or opportunities.
    • Reactionary: Respond to changing market dynamics, competitor actions, or customer preferences.
    • Untested: May lack the rigorous data analysis of deliberate strategies.
    • Adaptive: Continuously adjust based on real-time feedback and results.

Learning from the Unexpected: How Emergent Strategies Shape the Future

Emergent strategies, despite their lack of initial planning, can have a profound impact on future strategic planning processes:

  • Identifying New Opportunities: By capitalizing on unexpected events, emergent strategies can reveal untapped markets or innovative solutions.
  • Testing Assumptions: Unforeseen challenges can highlight flaws in existing plans, prompting the need to re-evaluate assumptions and update deliberate strategies.
  • Building Agility: The ability to adapt to change becomes a core competency, preparing the organization for future uncertainties.

Metrics for the Unpredictable: Measuring Success in Emergent Strategies

Traditional metrics focused on pre-defined goals may not be suitable for emergent strategies. Here’s what to consider:

  • Market Response: Track customer satisfaction, market share changes, and brand perception shifts in response to the emergent action.
  • Employee Engagement: Measure employee morale and adaptability to the new approach.
  • Financial Performance: Monitor financial indicators like cost savings, revenue growth, or cost-benefit analysis specific to the emergent action.
  • Agility Improvement: Track how quickly and effectively the organization adapts to future unforeseen events.

Ignoring the Unforeseen: The Cost of Missed Opportunities

Failing to acknowledge emergent strategies can have serious consequences:

  • Missed Opportunities: Ignoring potential game-changers can leave the organization behind competitors who adapt to new realities.
  • Stifled Innovation: An inflexible adherence to a pre-determined plan can stifle creativity and responsiveness to new market demands.
  • Strategic Blind Spots: Failure to learn from unexpected events can lead to an inability to predict or respond effectively to future disruptions.

A Case Study: Netflix’s Rise to Streaming Dominance

Netflix’s shift from DVD rentals to streaming wasn’t part of their initial plan. However, recognizing the disruptive potential of the internet, they embraced an emergent strategy, capitalizing on the growing demand for online video streaming. This adaptation propelled them to become the industry leader in streaming services.

Conclusion: A Strategic Blend

The ideal approach lies in a strategic blend. Organizations can benefit from having a well-defined deliberate strategy while remaining open to and adaptable to emergent opportunities. By embracing the power of the unexpected, organizations can foster a culture of innovation and agility, positioning themselves for success in a constantly changing world.

 

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