4. The Entrepreneurial School (Strategy Formation as a Visionary Process)
This post is continuation of my previous posts on strategy, based on Mintzberg's book Strategy Safari.
In this school, the strategy formation process is focused on the single leader (usually the CEO) and is built on a vision. Proponents of this school saw personalized leadership, based on strategic vision , as the key to organizational success - not only in starting up and building new organizations, but also in "turning around" faltering organizations.
It presents strategy formation as all wrapped up in the behaviour of a single individual. This has remained largely a black box. So for the organization that runs into difficulty, this school’s central prescription can be all too obvious and facile: find a new visionary leader.
Thank you very much,
RamP!
This post is continuation of my previous posts on strategy, based on Mintzberg's book Strategy Safari.
In this school, the strategy formation process is focused on the single leader (usually the CEO) and is built on a vision. Proponents of this school saw personalized leadership, based on strategic vision , as the key to organizational success - not only in starting up and building new organizations, but also in "turning around" faltering organizations.
The chief characteristics to strategy making suggested by Mintzberg, 1973:
- In the entrepreneurial mode, strategy making is dominated by the active search for new opportunities
- In the entrepreneurial organization, power is centralized in the hands of the CEO
- Strategy making in the entrepreneurial mode is characterized by dramatic leaps forward in the face of uncertainty
- Growth is the dominant goal of the entrepreneurial organization
- Strategy exists in the mind of the leader as a perspective, a vision of the organization’s future
- The process of strategy formation is semiconscious at best, rooted in the experience and intuition of the leader
- The leader promotes the vision under close personal control in order to be able to reformulate specific aspects if necessary
- The strategic vision is thus malleable, and so the entrepreneurial strategy tends to be deliberate and emergent
- The organization is likewise malleable, a simple structure responsive to the leader’s directives
- Entrepreneurial strategy tends to take a form of a niche, one or more pockets of market position protected from the forces of outright competition
It presents strategy formation as all wrapped up in the behaviour of a single individual. This has remained largely a black box. So for the organization that runs into difficulty, this school’s central prescription can be all too obvious and facile: find a new visionary leader.
Thank you very much,
RamP!
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