Global and Corporate Strategies Critique of Deliberateness and Emergence - Research Paper Example

Global and Corporate Strategies - Critique of deliberateness and emergence Introduction: Planning of strategies is intrinsic to any organisation. Strategies could be classified into two sub sections- intended strategies and realised strategies. The intended strategies are the deliberate planning processes conducted by management to realise goals and objectives of the firm in terms of optimum resource deployment and at the same time taking a holistic view of the entire operational scenario, including all major areas of community responsibility and environment concerns, health and safety measures, etc. The intended strategies could be in terms of realising growth and profitabity objectives by entering new markets through acquisitions and mergers, setting up manufacturing plants in other countries in order to reduce labour and materials costs, entering strategic partnerships with rivals and other firms, etc. These are intended strategies which the management effects though intense, circumspect, deliberate planning, organising and executing, after considering all aspects and after giving these strategies a careful and through study. These strategies are well intentioned and management are well aware, from the initial stages itself, about the objectives these strategies would realise. However, emergent strategies are the realised strategies or the result of completed actions. While deliberate strategies are deliberate and planned, emergent strategies may be accidental and may not be really planned or deliberated. In real terms, deliberateness is the result of planned, well thought out, formulated, deigned, strategised and conceived strategies, while emergence may be in terms of innovative, accidental, spontaneous, instinctive and intuitive planning. In certain cases, management needs to take an immediate and critical decision, regarding clinching a competitive bid, or buying of a new unit. In such cases, strategic planning may not work and it would be necessary to rely on intuition, or instinctive nature of the decision maker. It may be proved correct or wrong at a later stage, or carried out "with practical and ethical difficulties." (Macrae 1998). But the fact remains that it is a spur-of -the movement decision and not one arrived after long, deliberate, and planned sessions. This is because "all corporations experience problems in implementing and using a formal planning system." (Henry 1977, p.40-45). Explanation of both strategies - deliberateness and emergence: Planning is a key aspect in deliberateness. Without planning, the question of strategising does not arise. In order to enforce deliberateness, strategies need to imbue it with time, efforts and mental thoughts. All relevant information are put into the decision theory, the options are weighed and assessed, different alternatives courses are considered, extensive analysis of the situation are considered, and then final deliberativeness are made. Therefore, it could be said that rigidity and lack of flexibility could be a main criteria in deliberateness" that might effectively narrow the gap between what-is and what-ought-to-be." (Eppel). Once strategic plans are drafted and finalised, the options for changes or modifications are minimal. Therefore, it would not be wrong to assume that bureaucratic elements are very much present in deliberateness since the laid out systems are to be maintained and followed. Thus a manager becomes restrained and restricted in his functioning, under the deliberateness strategy, since he has to follow the stipulated guidelines in totality, and flexibility, or innovative thinking may not be possible. However, emergent strategies are highly flexible and accommodating. In the case of any disruption or unthought-of threat, the deliberate strategy may be rendered ineffective, or unusable. Under such circumstances, emergent strategies seek to offer alternative solutions, in terms of unplanned, innovative perceptions that may be able to control the situation effectively and find a viable solution. This is because all hazards and threats cannot be foreseen by top management and there may be surprise elements that need to be addressed to, that strategic planning may not envisage, or pre plan. Thus, structured planning and control arrangement that is characteristic of deliberateness, may not always be practicable or feasible The essential function of deliberateness being putting preplanned strategies into action, in the case of emergencies, it is seen that strategies arise on situational basis, on the basis of empirical judgements and case study. Differences between deliberateness and emergence: Although the objectives of both deliberateness and emergences are the same, the modus operandi adopted by them may be different. While deliberateness is more system oriented and relies on adherence to preplanned strategies, emergent strategies are inventive, empirical, pragmatic, based on reactions to ground realities of goals for devising strategies, "emanating from society." (Beckert and Harshav 2002, p.76). There are differences between deliberativeness and emergence with respect to the following salient aspects: 1. Direction and leeway 2. Rigidity and flexibility 3. Co-ordination and independence 4. Optimisation and learning 5.Structure planning and resourceful planning Direction and leeway: Strategic planning requires pre-preparation and organising. It could also be seen in terms of pre- deliberations on all aspects of actions plans and considering all aspects. Thus, the main aspects of strategy are deliberation and consideration. It is often said that this tends to make strategies one-track minded and oblivious to other considerations, however significant they may be. This short sighted approach may prove costly in the long run. For instance, a company that considers profit maximizing as a focal point of business strategy may tend to ignore environmental factors or overload on machines. However, emergence would consider the maximum output that could be carried out keeping view of all impinging aspects, which has significant direct or indirect bearing on the outcomes. Rigidity and flexibility: It is seen that early commitments to deliberativeness ensures planning and smooth operational flexibility. For instance, a Master Plan on production includes quality, quantum and technical specifications of raw materials to be used. In case, the desired specifications are not available, the master plan has options for suggesting alternatives. However, the problem arises when clients start asking for finished products, made from non-standard or non stocked raw materials. Thus, the master plan would need to be completely changed since the market conditions have now changed. In case of emergent strategy, its flexibility and resourcefulness would ensure that manufacturing process is modified and overhauled to suit new market conditions. The inherent intransigence of deliberativeness would ensure that changes cannot be readily effected, and, "if this is not done, then the company's strategy will become atrophied and over time will lead to the need for radical repositioning." (Explaining Strategic Management processes: A rational view of strategy form) Co-ordination and independence: Deliberativeness follows a single, consistent and single track strategy, where all inconsistencies and differences are removed and there is a unified end. This however, could lead to centralisation and single chain of command. Thus there could be opportunities for autocracy and imposition of decision making by central team, which could be undemocratic way of corporate functioning. It is necessary that issues regarding decision making "should not be addressed independently, but rather in a dynamic and coordinated way." (Siemsen, Roth and Balasubramanian 2008, p.426-445). The absence of team participation and collective decision making practices could be detrimental in the long run, especially if restructuring occurs at the echelons of top management. However, emergences ensure that the innate flexibility renders smooth and well coordinated transitions. Optimisation and learning: Since planning is critical in deliberativeness, lot of unequal time and efforts are taken in devising and redevising plans. It could often happen that the entire strategy process is taken by planning, and no strategy could be devised, especially if there are conflicting opinions and differences. It is essential is consensus is maintained. However, under emergences operate under learning environment, trial and errors methods; the impact of planning is considerably reduced, thus leading to better overall efficiency and "a sense of purposeful direction." (Damoshoushou 2008). Structured planning and resourceful planning: Pre-programming is an essential feature of deliberativeness and all actions stems from this criteria. What are not pre-programmed cannot be executed, and thus aspects like resourceful planning, innovativeness, creativity, etc., cannot be readily implemented, unless there is a departure from pre-programming. This is very effective when markets are predictable and controlled, external environments are well documented and each player in the planning process is able to perform to optimum; also it is possible that "while dealing with past extreme events in helping to plan for the future" (Kunreuther, Meyer and Bulte 2004, p.1). Quinn on logical incrementalism: Quinn has inferred that formal and structured strategic planning could have its own constraints. He says that positive approaches need to be made, using "formal analysis, behavioural techniques and power politics." (Armstrong, 2006, P. 349). Quinn has advocated the use of deliberativeness strategy through the creation of knowledge base, offering roles and responsibilities on escalating lines, widening the political support, administering unity within diversive forces and strengthening leaders with needed powers for strategy operation and execution. It could also be seen in terms of fact that deliberativeness strategy encompasses a gradual and procedural method of analysing facts and figures, building strategies, short, medium and long term. By meticulously following these strategies, it is possible for corporates to move forward towards goal realisation. This would ensure that step- by- step and gradually, the solutions which were objectives at the beginning could materialise. He feels that aspects that have not been considered in deliberativeness strategy planning, in terms of unanticipated and supervening possibilities need to be dealt with adhoc and extempore planning process, regularised through usage and made flexible and adaptable to varying conditions and market activities. with more realistic assumptions." (Camerer and Loewenstein 2002, p.2). Conclusions: It is often seen that rigid and inflexible strategies may not effectively deal with unexpected developments and market reactions, and therefore it is necessary that contingency plans also need to be kept in standby to address special situations. Given the kind of market competitivness today, "Organizations can no longer be attributed the capability to create the truly novel." (Rocca, p.7). Best choice: The best choice would be in terms of adopting a mixture of both deliberativeness and emergence, in order that challenges to both strategies could be solved. A corporation needs to build a long term, well planned and rehearsed deliberative strategy that could suit the overall business framework and long term business interests of the company vis-a vis its operating milieu and short, medium and long term objectives. Besides this, emergent strategies are needed in order to counter non routine forces that impinge business over a period of time and change "the basic rules of the game." (Mitroff and Bennis, p.32). This could either be integrated into the main strategy framework, or stand independently, subject to review and appraisals over regular intervals, to make it in sync with current business operations and market opportunities. Markets are dynamic and ever-changing. "Business will help drive change." (Stuart). It is necessary for businesses also to change to suit market conditions. Entrepreneurs cannot expect business environment to change to fit their purposes. It is for businesses, through a judicious blend of deliberative and emergences that have to adapt to business vicissitudes for their own betterment and prosperity and to achieve. "Improved competitive advantage, greater efficiency, and enhanced margin and revenue." (Astle 2008). Works Cited ARMSTRONG, Michael. (2006). A Handbook of Human Resource Management Practice. [online]. Kogan Page. P. 349. Last accessed 14 December 2008 at: http://books.google.com/booksid=D78K7QIdR3UC&pg=PA349&dq=Quinn+(1980) ASTLE, Michael. (2008). Improving Collaboration to Enhance Competitiveness. [online]. Cisco. Last accessed 09 December 2008 at: http://www.cisco.com/web/solutions/smb/need_to/improving_collaboration_to_enhance_competitiveness.html# HENRY, Harold W. (1977). Formal Planning in Major US Corporations. [online]. 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