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Design school of strategic management

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  • 1. Design School Strategy formation as a Process of Conception

2. Group Members Hania Ahmed Misbah Shuja Ansari Syed Aalay Kashif Pirzada 3. Contents of Presentation 1Origin of Design School2Design School Model3Premises of Design School4Critique of the Design School5Contribution Of Design School 4. Design School Strategy is a deliberate process of conscious thought.Is a model of strategy formation that seeks to attain a match or fit between internal Capabilities and external Possibilities.Establish Fit is motto of Design school.Two main principles of Design schoolRational Decision makersAnticipation of the future effects of possible actions Optimize economic performance 5. Give no or very little room for incrementalist views or emergent strategy.Clear and unique strategies are formulated.Top management plan the destiny of organization.Objectives are clear and explicit.It is centralized approach of strategy formation.It deals with complex and uncertain issues in rational, logical & structure wayImportant stakeholders value this approachKnown as Rational/ Analytic view 6. Where we use Design School Issues are Complex, Important, Significant & Uncertain.Intended strategy is a result of design school.Deliberately formulated or Planned by managers at the top.Use tools, techniques and methods of Design school. 7. Origin of Design School Traced back to two influential books written at University of California and at M.I.T :1.Philip Selznicks Leadership in Administration2.Alfred. Chandlers Strategy and StructureReal impetus for the design school came from General Management Group At Harvard Business School 8. Design School Model External AppraisalInternal AppraisalThreats & OpportunitiesStrength & WeaknessesCreation Of StrategyEvaluation & choice Of StrategyImplementation of StrategyManagerial Values 9. Framework for Evaluation According Harvard General Management group the best strategy must have following characteristics; Consistency Strategy must not present mutual inconsistent goals & policies.Consonance Strategy must present an adaptive response to external environment changeand to criticalAdvantage In selected area of activity strategy must provide or retain competitive edgeFeasibility Strategy must be free from unsolvable subproblems 10. Premises of Design School 1.Strategy formation should be a Deliberate process of Conscious thought2.Responsibility for the Control & Consciousness must rest with the CEO3.The model of strategy formation must be kept Simple and Informal4.Strategies should be one of a Kind: the best ones result from a process of individualized design 11. 5. The design process is complete when strategies appear fully formulated as perspective 6. The strategies should be explicit, so they have to be kept simple 7. Finally, only after these unique, full-blown, explicit, and simple strategies are fully formulated can they then be implemented. 12. Contexts It can be implement easily in situation where environment is stable or predictableOrganization in question must be prepared to cope with centrally articulated strategy 13. Critique Of Design School 1.How does an organization know its strengths and weaknesses?2.Can organizations be sure of its strengths before it tests them?3.The premise of this school deny important aspects of strategy formation;Incremental DevelopmentEmergent strategyBy passing learningInfluence of existing structure on strategyFull participation of actors other than Chief Executive. 14. 3. Data can be Collected & Transmitted up the hierarchy without any significant loss or distortion, This assumption often fails. 4. Environments can always be understood, currently and for the future and it is sufficiently stable or at least predictable but it is not the case in real life. 5. Structure follows strategy.6. Explicit strategy promoting Inflexibility. 7. Separation of Formulation from Implementation 15. Contribution of Design school One brain can handle all of the information relevant for strategy formationOne brain has complete detailed knowledge of situation in questionReduced Ambiguity.Useful in relatively stable environmentSupport strong and visionary leadership. 16. limitation Simplification may distort reality.Strategy has many variables and is inherently complex.Bypassing learning, inflexible in fast-changing environment.High risk of resistance 17. Thank You !!!

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