8/13/2019 Mintzbergs Ten Schools of Thought about Strategy Formation

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Mintzbergs Ten Schools of Thought about

Strategy Formation

Model Approach Typical

The Design School

A process of

conception

Clear and unique

strategies are formulated.

The internal situation of

the organisation is used to

match the external

environment.

SWOT Analysis

The Planning

School

A format process

A rigorous set of steps are

taken, from the analysis

situation to the execution

of the strategy.

Theory of

Mechanistic and

Organic Systems

Parenting styles

Levers of Control

Scenario Planning

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Model Approach Typical

The positioning

School

An analytical process

It places the business within

the context of its industry

and looks at how theorganisation can improve its

strategic positioning within

that industry.

Competitive

Advantage.

Five Forces.

Value Chain.

BCG Matrix.

The Entrepreneurial

School

A Visionary Process

The visionary process takes

place within the mind of the

charismatic founder or

leader of an organisation.

Rely heavily on intuition,

judgement, wisdom,

experience and Insight.

Entrepreneurial

Government

Seven surprisesfor new CEOs

Leadership

styles.

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Model Approach Contributions Typical

Thecognitive

School

A mental

process

Analyses howpeople percelve

patterns and process

information.

Concentrates onwhat is happening

in the mind of the

strategist and how it

processes the

information.

Sees strategy as acognitive process

in the mind of the

strategist.

Stresses thecreative side of the

strategy process.

Strong at the level

of an individual

strategist.

Groupthink

Cognitive Bias

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Model Approach Typical

The Learning School

An emergent process

Management pays close

attention over time to what

does work and what does

not work! They incorporate

lessons learned into theiroverall plan of action. The

world is too complex to

allow strategies to be

developed all at once.

Organisational

Learning

Knowledge

Management.

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Model Approach Contributions Typical

The Power

School

A process ofnegotiation

The strategy is

developed as a

process ofnegotiation

between power

holders within the

company, and/or

between the

company and its

external

stakeholders.

Can help to let the

strongest people

survive in thecorporate jungle.

Can help to ensure

that all sides of an

issue is fullydebated.

Can help to break

through obstacles to

necessary change.

Democratic.

Can help to decrease

resistance after a

decision is made.

Bases of

Social Power,

PowerDistance,

Stakeholder

Value,

StakeholderMapping.

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Model Approach Contributions Typical

The

cultural

SchoolA collective

process

Tries to involve

various groups

and departmentswithin the

company.

Strategy

formation is

viewed as a

fundamentally

collective and

cooperative

process.

Emphasises the

crucial role that

social processes,beliefs and values

are playing in

decision-making and

in strategy formation

Explains resistance

to strategic change

and helps to deal

with mergers and

acquisitions.

Cultural

Dimensions

CulturalIntelligence

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Model Approach Typical

The Environmental

School

A reactive process

The strategy is a response to

the challenges imposed by

the external environment.Where the other schools

sees the environment as a

factor, the Environmental

School sees it as an actor

Contingency

Theory

SituationalLeadership

The Configuration

School

A process of

transformation

Strategy formation is a

process of transforming the

organisation from one type

of decision-makingstructure to another.

Configurations

Chaos Theory