Strategy of Innovation and Organizational Development in the Face of Wicked Problems - Assignment Example

Name: Tutor: Title: Strategic Management Course: Date: Question 1: Strategy develops incrementally based on past strategy, past experience and the culture of the organization an accurate an accurate view of strategic management Strategy as experience provides the view that strategies develop through an adaptive fashion and change gradually. Continuity is the driving force under this perspective strategy development, indicating that once organizations have adopted a given strategy, they focus on developing from and within that particular strategy rather than essentially changing direction. This implies that managers may develop a vision of where they intend their organization to be over years to come, and thus work towards achieving that position incrementally. In this case, strategic incrementalism can be perceived as basically the development of strategy through learning how to do. Continual regeneration of organizational strategies based on various skills and knowledge, experience of different people with culture is enhanced through the concept of learning organization portraying strategic management as a learning process. This creates a mutual questioning as well as challenge around a vision or a shared conception of the organization. Based on the incremental perspective, it can be noted that organizations go through various over a long period of whilst strategies develop incrementally. This implies that decisions build upon others so as the past decisions can mold future strategies in a more efficient and effective manner. However, fundamental shifts within the strategy may occur while major readjustments of the strategic direction of the organization take place (Heugens 2001). To a larger extent, the idea that strategy develops incrementally based on past strategy, past experience and the culture of the organization is an accurate view of strategic management. This is because incremental strategic development within the organizations is consciously as well as logically implemented and managed by executives. The corporate leaders view the approach as the ideal means through which they can cope with the challenges caused by the complexity and uncertainty of the strategy development. In order to cope with the uncertainty that organizations are political entities through which trade-offs between the interests of different people are inevitable and the complexity of arriving at optimal goal, strategies are expected to be developed gradually. This encourages the development and testing of new ideas as well as commitment in organizations, an approach that is perceived to be logical incrementalism. In IBM and SAP companies, for example, understanding how strategic thinking or mindset functions are considered essential. Such multinational companies with their particular experiences develop distinctive mindsets that enable them to react differently to a similar situation or strategic issue. The strategic thinking of IBM has made the company to focus more on the manufacture of hardware while neglecting the development of the software market. In contrast, the SAP founders concentrated on a different mindset, where they discovered the great potentiality their idea. Thus, they decided to separate from IBM and have currently established their own business based on the past experience. This implies that companies are required to develop strategies that deal with complexity, organizational learning and flexibility. Therefore, managers must align their thinking. Question 2: Strategy formation a process of innovation and organizational development in the face of wicked problems in an unknown future as an accurate description of current strategy processes Management of information as a corporate asset often involves large strategic changes to an organization so as to align processes, programs, define roles and the required skills, document structural designs as well as identify the needed technologies. Such organizational activities are major strategic changes accomplished continually and can be implemented as the overall strategic program or strategic plans attached to other projects related to change, for instance, mergers and acquisitions, development of new ERP roll out as well as regulatory conformity initiatives. Therefore, a plan or a strategy becomes a requirement in this case so as to implement the changes (Berghman, 2006). Measures must be established to track the strategic perspectives of executives on the key strategic issues for effective mapping of any strategic view raised in the organization. This implies that two major steps must be considered, the importance of unraveling strategic problems into various constituent parts or strategic issues and identifying the possible strategic perspectives for each strategic issue. The two steps provide the view that wicked strategic problems must be structured accordingly to successfully shift from an unstructured phenomenon to a category system of strategic value. Since the measurement mechanism envisioned is expected to be universally applicable. This implies that the strategic problem planned to be unraveled into various strategic issues may not be specific, but is required to be generic (Berghman, 2006). Therefore, strategy formation as a process of innovation and organizational development in the face of wicked problems in an unknown future to a larger extent is an accurate description of the current strategy process. Although the strategy process has largely been acknowledged as the main strategic management issues, few typologies have been used on strategic process issues. Most of the typologies used relate to decision-making steps such as identifying, analyzing, formulation and implementing, and thus shed little light on the various issues that underpin the strategy process. In this regard, De Wit and Meyer (2010) argued for the need to desegregate the strategy process issues through the identification of major subjects expected to undergo a process. The subjects include individuals, strategies as well as organizations, implying that the classification is developed on the basis of analytical units. This means that the identified subjects engage in distinctive aspects of an organizational overall strategy process and encounter different types of strategic issues. As a result, different categories of strategic issues such as strategic thinking, strategy formation and strategic change emerge. This implies that the more diversified two companies become in the past, the more likelihood of them developing a different mindset of strategic value. Yoshinoya a fast food company has opted to avoid a cookie-cutter approach and a more rigid expansion of blueprint rather than standardizing their fast-food formula and continuing it across Japan. However, such a direct approach of expansion would lead to insufficient application of the company’s capability to learn, improve as well as adapted along the way. Question 3: Is strategic management a waste of time? Strategic management to a larger extent may be a waste of time, for instance, if strategic plans fail to work yet too much time is invested in it, many nodding heads as well as too many and poorly informed experts are involved. Therefore, strategizing becomes a waste of time since too much cost is incurred to end up with a failing strategy. It can be argued that business managers struggle to execute strategic plans despite the challenging process involved. Most companies invest in strategies that fail due to lack of proper implementation of strategies to harvest their expected business needs. The emerging question in this view is why companies fail to successfully implement strategies inclusive of those that cover considers information as their asset. Strategic planning as a core aspect of strategic management becomes a waste of time particularly when a company decides to implement a strategy through a previously failed process. There are cases where companies accomplish same strategic task over and over again because they are used to that particular routine. Unfortunately, the exercise may develop into futility and as a result of this employee or members of an organization can react negatively. This makes them to lose morale to adapt for the future strategic needs or changes. Benefits of strategic management Since strategic management involves the process of strategic planning, implementation and control of strategy of the organization. It is an important management approach because it sets a strategic direction to the organization. Strategic management clearly defines the desired performance based on the missions, goals and objectives of the organization. This enables all members in the organization to understand the direction they are heading towards. It is quite clear that strategic management provides a road map to all people in the organization and a clearly defined way through which to achieve the desired level of performance (Saleeth 2010). Successful implementation of strategic management provides the implication that the management focused on the critical factors of the organization. Therefore, strategic management is crucial because identifies critical factors that are considered to be of strategic value to the organization. Through a successful identification of the critical factors, a company can effectively analyze as well as take the relevant measures to ensure that satisfactory performance in those areas is achieved. Strategic management enables a company to achieve sustainable competitive advantage. This is the most important benefit of a strategic planning. Effective implementation of strategic management process positions the company rightfully to build a competitive advantage over its competitors. This need to be sustained overtime to avoid being outperformed by the company’s competitors. It is apparent that the strategic management forecast the competitive advantages that can be developed through the capabilities of an organization as well as the most appropriate steps to effectively obtain them (Saleeth 2010). Effective implementation of strategic management provides a company with a framework for decision-making. The strategy offers a structure through which all the members of the organization can make the day-to-day operational decisions as well as understand the objectives of the organization. This implies that a strategy provides the organization with a vision for its future operations, confirms the aims and values of the organization. Furthermore, strategic management sets the objectives of an organization which in turn enables it to clarify the threats and opportunities so as to determine the most appropriate methods to leverage its strengths and mitigate the weaknesses. As a result, the organization sets the framework as well as boundaries in which decisions can be easily made (Robinson 2005). Bibliography Berghman, L.A., (2006), Strategic Innovation Capacity: A Mixed Method Study on Deliberate Strategic Learning Mechanisms, Promoter. De Wit, B. & Meyer, R.J.H., (2010), Strategy Synthesis: Resolving Strategy Paradoxes to. Create Competitive Advantage, 3rd edition, London, Cengage. Heugens, P., (2001), Strategic Issues Management: Implications for Corporate Performance, Promoters. Robinson, R., (2005), The Advantages and Disadvantages of Strategic Management, ABARIS Consulting Inc. Saleeth, H., (2010), What are the Benefits of Strategic Management? Retrieved May 4, 2012 from, Read More