I gave an opening speech today at a breakfast meeting for communication professionals at the Helsinki School of Economics. It was a pleasant invitation as I had not had interactions with many of the companies who were represented and have had too few dealings with the HSE, which is a well-reputed school just across the street.
I was confronted with a group of experienced and inquisitive senior communication officials and researcher colleagues. Answering their challenging questions proved to be a highly pleasurable ordeal. I had prepared a speech on the development and historical debates within the strategic management discipline. I chose to focus on particular dissident thinkers who have caused revolutions within the strategic management discipline.
Key dissidents within strategic management
Strategic management was born as a business discipline in the 1960s. Management teachers in the U.S. had become more and more aware of the role the changing business environment has in the practice of management. Many attribute the birth of the discipline of strategic management to Harvard, and more specifically its course on general managers.
Indeed, it is striking how the early texts from the discipline such as Business Policy: Texts and Cases by Learned, Cristensen, Andrews and Guth, and Concept of Corporate Strategy by Andrews are focused on teaching strategy. These early authors, who are often labeled as the Business Policy authors were indeed concerned with the holistic development of their students as strategists. Andrews (1971: 238) indeed wrote that
"Corporate purposes are by definition a projection in part of the leader’s own personal goals and a reflection of his character […] a corporation is essentially the lengthened shadow of a man.”
The Business Policy authors were also leaning towards what is known as the planning school (apparently Mintzberg's term) in strategic management. Strategy was regarded as a future-oriented business, where strategic choices lead to objectives, to be implemented with the use of various plans. While this view is often associated closest with Igor Ansoff, Learned et al. (1969: 15) also defined strategy as :
"the pattern of objectives, purposes, or goals and major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be."
Dissident 1. Michael Porter - Strategy as an instrument
The first revolution in strategic management was caused by Michael Porter, a graduate from Harvard Business School who gained a PhD from Harvard in Economics, was successful in applying rigorous techniques from the field of microeconomics to the study and teaching of strategic management. In the a new introduction to his first milestone Competitive Strategy (Porter, 1980: x), he reflects upon the success of the book:
“This book filled a void in management thinking. After several decades of development, the role of general managers versus specialists was becoming better defined. Strategic planning had become widely accepted as the important task of charting a long-term direction for an enterprise. Early thinkers such as Kenneth Andrews and C. Roland Christensen had raised some important questions in developing a strategy [...] Yet, there were no systematic, rigorous tools for answering these questions – assessing a company’s industry, understanding competitors, and choosing a competitive position.”
Andrews and Christensen had become "early thinkers" in their approach to strategy, and Porter's powerful view started to atttract followers. Eventually, the focus started to shift away from understanding the strategists to understanding and employing strategy instruments.
Dissident 2. Henry Mintzberg - Strategy as a process
It is open to debate whether Henry Mintzberg is the founder of the strategy process school, but he probably is the most widely known. Where Michael Porter managed to switch focus away from the strategists, Mintzberg attacked the early authors', most notably Igor Ansoffs view of strategy as a premeditated plan. In a famous figure (below) in his 1977 article, Mintzberg reminded us that we understand little of strategy if we focus merely on what companies intend in their strategies, without understanding what they do.
Mintzberg's work on strategy-as-process, as well as Porter's, has fundamentally affected organizational practice as well as management studies.
Dissident(s) 3. David Knights and Glenn Morgan - Strategy as a discourse
In 1991, David Knights and Glenn Morgan published a paper in Organization Studies, where they studied strategy in a funny way. Instead of looking at strategy content or process as organizational phenomena, they took the whole discipline of strategic management under the looking glass. They conducted a foucauldian geneology on the discipline, and focused on the way strategic management constructs top managers.
Knights and Morgan's paper was revolutionary in at least two respects:
1. Through its research setting it critically examined the dogma that strategy work in some form is necessary for companies. That is, it showed the boundaries of the strategy concept in management, which had become almost overwhelming.
2. It questioned the power of top managers as craftsmen of strategy, the key premise in the Business Policy tradition. Instead, they demonstrated in an uncomfortably convicing way how the opposite is true: the strategy discipline constructs the managers.
Dissident(s) 4. David Barry and Michael Elmes - Strategy as fiction
In a way, Barry & Elmes's paper "Strategy Retold" in the Academy of Management Review in 1997 about strategy as a narrative returns the focus to a core aspect of the early planning school: viewing strategy as a text. When we look at strategy as a plan, our focus is on formulations of that plan in various documents.
There is a twist, however. Barry and Elmes treat strategy as a form of fiction and use a number of methods from literary studies to make sense of strategy as a fictional narrative.
Another key point of departure from the planning school is that Barry and Elmes also treat an organizational narrative as a polytonal form of fiction, social and shared, as well as written text. The notion of polytonality is a powerful notion in organizational strategy practice, as well as it is novel in strategy literature.
Dissident 5. Richard Whittington - Strategy as work
In 1996 Richard Whittington published a short paper in Long Range Planning, where he promoted a novel view on strategy, which he called strategy as practice.. The paper was intended for opening a discussion on a new approach for studying strategy: "The focus of this approach is on strategy as a social 'practice', on how the practitioners of strategy really act and interact." (Whittington, 1996: 731).
The discussion grew in conferences and workshops. Many well-established senior scholars joined in, followed by a number of junior scholars. Strategy-as-practice has established itself as an open discipline, with a variety of theoretical and methodological viewpoints. Although the discussion is rather diverse, the shared focus remains on understanding strategy as something that real people do in real organizations. I like to think of it as a rain dance of a sort, and us scholars as anthropologists, seeking to understand the ways and local reasons why it is performed.
Concluding reflections
I think this story has a practical dimension. The views, promomoted by the dissidents are part of the implicit, often conflicting cognitive background of strategy practice in organizations. Becoming aware of the tensions that exist in he background assumptions regarding strategy is helpful, as it enables one to be more reflexive in one's practice.
I have used a number of important scholars to plot out one possible interpretation of what has happened within the discourse of strategic management. Why these scholars were chosen over others is determined by my personal interpretation and does not represent a particularly authoritative view. Indeed, within the strategy-as-practice community there exist a number of theoretical and methodological leaders who have made the community what it is today. Furthermore, all seven of my "dissidents" are white males. I have sought to include voices which some may regard controversial or even "marginal" (I doubt Knights and Morgan, 1991 is a part of the staregy readings at Harvard Business School - correct me if I'm wrong), yet the men themselves do not seem to represent particularly marginal groups. I can only claim that this is the characteristic of the discipline itself, not a failure in my perception.
I was confronted with a group of experienced and inquisitive senior communication officials and researcher colleagues. Answering their challenging questions proved to be a highly pleasurable ordeal. I had prepared a speech on the development and historical debates within the strategic management discipline. I chose to focus on particular dissident thinkers who have caused revolutions within the strategic management discipline.
Key dissidents within strategic management
Strategic management was born as a business discipline in the 1960s. Management teachers in the U.S. had become more and more aware of the role the changing business environment has in the practice of management. Many attribute the birth of the discipline of strategic management to Harvard, and more specifically its course on general managers.
Indeed, it is striking how the early texts from the discipline such as Business Policy: Texts and Cases by Learned, Cristensen, Andrews and Guth, and Concept of Corporate Strategy by Andrews are focused on teaching strategy. These early authors, who are often labeled as the Business Policy authors were indeed concerned with the holistic development of their students as strategists. Andrews (1971: 238) indeed wrote that
"Corporate purposes are by definition a projection in part of the leader’s own personal goals and a reflection of his character […] a corporation is essentially the lengthened shadow of a man.”
The Business Policy authors were also leaning towards what is known as the planning school (apparently Mintzberg's term) in strategic management. Strategy was regarded as a future-oriented business, where strategic choices lead to objectives, to be implemented with the use of various plans. While this view is often associated closest with Igor Ansoff, Learned et al. (1969: 15) also defined strategy as :
"the pattern of objectives, purposes, or goals and major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be."
Dissident 1. Michael Porter - Strategy as an instrument
The first revolution in strategic management was caused by Michael Porter, a graduate from Harvard Business School who gained a PhD from Harvard in Economics, was successful in applying rigorous techniques from the field of microeconomics to the study and teaching of strategic management. In the a new introduction to his first milestone Competitive Strategy (Porter, 1980: x), he reflects upon the success of the book:
“This book filled a void in management thinking. After several decades of development, the role of general managers versus specialists was becoming better defined. Strategic planning had become widely accepted as the important task of charting a long-term direction for an enterprise. Early thinkers such as Kenneth Andrews and C. Roland Christensen had raised some important questions in developing a strategy [...] Yet, there were no systematic, rigorous tools for answering these questions – assessing a company’s industry, understanding competitors, and choosing a competitive position.”
Andrews and Christensen had become "early thinkers" in their approach to strategy, and Porter's powerful view started to atttract followers. Eventually, the focus started to shift away from understanding the strategists to understanding and employing strategy instruments.
Dissident 2. Henry Mintzberg - Strategy as a process
It is open to debate whether Henry Mintzberg is the founder of the strategy process school, but he probably is the most widely known. Where Michael Porter managed to switch focus away from the strategists, Mintzberg attacked the early authors', most notably Igor Ansoffs view of strategy as a premeditated plan. In a famous figure (below) in his 1977 article, Mintzberg reminded us that we understand little of strategy if we focus merely on what companies intend in their strategies, without understanding what they do.
Mintzberg's work on strategy-as-process, as well as Porter's, has fundamentally affected organizational practice as well as management studies.
Dissident(s) 3. David Knights and Glenn Morgan - Strategy as a discourse
In 1991, David Knights and Glenn Morgan published a paper in Organization Studies, where they studied strategy in a funny way. Instead of looking at strategy content or process as organizational phenomena, they took the whole discipline of strategic management under the looking glass. They conducted a foucauldian geneology on the discipline, and focused on the way strategic management constructs top managers.
Knights and Morgan's paper was revolutionary in at least two respects:
1. Through its research setting it critically examined the dogma that strategy work in some form is necessary for companies. That is, it showed the boundaries of the strategy concept in management, which had become almost overwhelming.
2. It questioned the power of top managers as craftsmen of strategy, the key premise in the Business Policy tradition. Instead, they demonstrated in an uncomfortably convicing way how the opposite is true: the strategy discipline constructs the managers.
Dissident(s) 4. David Barry and Michael Elmes - Strategy as fiction
In a way, Barry & Elmes's paper "Strategy Retold" in the Academy of Management Review in 1997 about strategy as a narrative returns the focus to a core aspect of the early planning school: viewing strategy as a text. When we look at strategy as a plan, our focus is on formulations of that plan in various documents.
There is a twist, however. Barry and Elmes treat strategy as a form of fiction and use a number of methods from literary studies to make sense of strategy as a fictional narrative.
Another key point of departure from the planning school is that Barry and Elmes also treat an organizational narrative as a polytonal form of fiction, social and shared, as well as written text. The notion of polytonality is a powerful notion in organizational strategy practice, as well as it is novel in strategy literature.
Dissident 5. Richard Whittington - Strategy as work
In 1996 Richard Whittington published a short paper in Long Range Planning, where he promoted a novel view on strategy, which he called strategy as practice.. The paper was intended for opening a discussion on a new approach for studying strategy: "The focus of this approach is on strategy as a social 'practice', on how the practitioners of strategy really act and interact." (Whittington, 1996: 731).
The discussion grew in conferences and workshops. Many well-established senior scholars joined in, followed by a number of junior scholars. Strategy-as-practice has established itself as an open discipline, with a variety of theoretical and methodological viewpoints. Although the discussion is rather diverse, the shared focus remains on understanding strategy as something that real people do in real organizations. I like to think of it as a rain dance of a sort, and us scholars as anthropologists, seeking to understand the ways and local reasons why it is performed.
Concluding reflections
I think this story has a practical dimension. The views, promomoted by the dissidents are part of the implicit, often conflicting cognitive background of strategy practice in organizations. Becoming aware of the tensions that exist in he background assumptions regarding strategy is helpful, as it enables one to be more reflexive in one's practice.
I have used a number of important scholars to plot out one possible interpretation of what has happened within the discourse of strategic management. Why these scholars were chosen over others is determined by my personal interpretation and does not represent a particularly authoritative view. Indeed, within the strategy-as-practice community there exist a number of theoretical and methodological leaders who have made the community what it is today. Furthermore, all seven of my "dissidents" are white males. I have sought to include voices which some may regard controversial or even "marginal" (I doubt Knights and Morgan, 1991 is a part of the staregy readings at Harvard Business School - correct me if I'm wrong), yet the men themselves do not seem to represent particularly marginal groups. I can only claim that this is the characteristic of the discipline itself, not a failure in my perception.