Philip Sheldrake

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Tag: deliberate strategy

Talking garbage and the purpose of business

garbage

The third in a series on the topic of the purpose of business. Follows:

  1. What, exactly, is the purpose of business? An answer post-Drucker
  2. Debating the purpose of business

Business exists to establish and drive mutual value creation. Steve Denning challenged this statement, preferring Drucker's assertion that the purpose of business is to create and keep a customer. I responded, and he has challenged my response:

we may be talking about different things: theoretical purpose of a firm and how to run it

"satisfying all the stakeholders" isn't a viable heuristic to run a firm. See Making Management as Simple as Frisbee

“satisfying all the stakeholders” was tried in mid20thC. It led to Garbage Can firms.

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Garbage

Steve refers to "garbage can firms" in his Forbes article, Is The Tyranny Of Shareholder Value Finally Ending?, an eloquent take down of prioritizing the pursuit of shareholder value. When it comes to garbage it quotes a trio of academics – Cohen, March and Olsen – who in 1972 explained: Read more

Deliberate and emergent, by design

crab sand

I've been trying to reconcile the apparent tensions between the deliberate and emergent strategy schools of thought. After all, it's a fundamental question at the heart of organizational life today.

Defining deliberate and emergent strategy

The deliberate strategy process is the one with which most people are most familiar if only because it dominated 20th Century organizational life and still does. A senior team reviews the market, the trends, the SWOT, the fruits of R&D, etc., and formulates strategy – where to play and how to win – that the wider organization is then charged with executing. And based on nothing more than atavistic agricultural habits that are now largely irrelevant, we exhibit a predilection for going through this process with a calendar based drumbeat.

Emergent strategy adherents on the other hand insist that such practice is pure fancy. It's divination beyond the realm of even the most cogent, gifted and able senior leadership team. The deliberate strategy process supports C-title egos and little else. Rather, we're better off making the organization sensitive to even the slightest changes, the weakest of signals, and developing an organizational fabric with the agility to react appropriately, to exploit opportunity and close down risk. Read more