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Understanding Strategy Development Lenses

The document introduces three strategy lenses proposed by Johnson and Scholes: strategy as design, strategy as experience, and strategy as ideas, each providing different insights into strategy development. It emphasizes that there is no single correct approach to strategy, and management should be prepared to utilize all three lenses. Additionally, it discusses the rational planning model as a structured framework for strategic planning, focusing on achieving objectives through a formal, multi-layered process led by senior management.

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Michael John Dayondon
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12 views2 pages

Understanding Strategy Development Lenses

The document introduces three strategy lenses proposed by Johnson and Scholes: strategy as design, strategy as experience, and strategy as ideas, each providing different insights into strategy development. It emphasizes that there is no single correct approach to strategy, and management should be prepared to utilize all three lenses. Additionally, it discusses the rational planning model as a structured framework for strategic planning, focusing on achieving objectives through a formal, multi-layered process led by senior management.

Uploaded by

Michael John Dayondon
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MODULE 1: INTRODUCTION TO STRATEGIC AND BUSINESS ANALYSIS

Prof. Michael John V. Dayondon


MA 001

STRATEGY LENSES
Johnson and Scholes have suggested a slightly different approach to understanding strategy
development. They have suggested that there are three different ways of looking at strategy
development and, depending on circumstances, each approach might be appropriate.

They use the term strategy lenses to describe these three ways of looking at strategy
development. Strategy development can be seen:
1. as design
2. as experience
3. as ideas

STRATEGY AS DESIGN: THE DESIGN LENS


Strategy can be seen as the result of a design process. Strategy development
is logical, analytical and planned. This type of strategic development is well-suited to an entity
with a hierarchical management structure, where employees are accustomed to receiving
directions from their senior managers. It is similar to deliberate strategy.

STRATEGY AS EXPERIENCE
This is the view that future strategies are based on experience gained from past strategies. There
is strong influence from the received wisdom and culture within an organization about how
things should be done. It is similar to incremental strategy. The weakness with this form of
strategic development is strategic drift.

STRATEGY AS IDEAS
Strategy as design and strategy as experience do not explain innovation. Formal strategic
planning can help an entity to deal with the problems of change in the business environment,
but it is not particularly well-suited to innovation and radical new ideas.

USING THE THREE STRATEGY LENSES


Johnson and Scholes suggested that there is no single correct approach to strategy development.
All three strategy lenses provide a different insight into strategy, and any one lens might be
appropriate in a particular situation. Management should therefore be prepared to use all three
lenses.

STRATEGIC PLANNING FRAMEWORK


Although strategic development in practice might be the outcome from deliberate strategies
and emergent strategies (and possibly also some incremental strategies), it is useful to study
the subject of business analysis and business strategy as if it were an organised process of
planning and implementation. This helps to provide a framework for understanding the issues
in strategic management and business analysis.
MODULE 1: INTRODUCTION TO STRATEGIC AND BUSINESS ANALYSIS
Prof. Michael John V. Dayondon
MA 001
Two strategic planning frameworks that are useful to bear in mind are the rational
planning model and strategic gap analysis.

THE RATIONAL PLANNING MODEL


The ‘rational planning model’ is a strategic planning framework that:
1. sees the purpose of strategy as the achievement of clearly-established objectives
2. considers strategic planning to be a formal process, led by senior management
3. sees strategic planning as a multi-layered process, with corporate strategy,
business strategy and functional strategies.
The rational planning model consists of several elements, and the planning
process goes through each of these elements in the following sequence.

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The main differences between the three strategy lenses are as follows: Strategy as design views strategy as a result of a deliberate and logical design process, suitable for hierarchical organizations. Strategy as experience views future strategies based on past experiences and culture within the organization, similar to incremental strategy and susceptible to strategic drift. Strategy as ideas emphasizes innovation and is not well-suited to formal strategic planning, instead addressing changes in the business environment .

Relying solely on one strategy lens may lead to challenges such as lack of innovation with the design lens, strategic drift with the experience lens, or impracticality with the ideas lens. These challenges can be mitigated by employing all three lenses, which allow organizations to benefit from planned deliberate processes, adapt from past experiences, and embrace innovative ideas. This combination ensures a balanced and adaptable strategy development process that can address various operational and environmental needs .

The key components of the rational planning model in strategic planning include: establishing clear objectives, strategic planning as a formal process led by senior management, and viewing the strategic planning process as multi-layered with corporate, business, and functional strategies. The model involves progressing through these components in a structured sequence .

Strategic gap analysis fits into the strategic planning frameworks by helping identify the difference between an organization's current state and desired future state. It works alongside the rational planning model by providing a means to evaluate strategic objectives and assess how far the current strategies need to be adjusted or developed to meet future goals, thus supporting structured strategic planning .

Johnson and Scholes describe the 'strategy as design' lens as a strategic development process that is logical, analytical, and planned. It is particularly well-suited to organizations with a hierarchical management structure where employees are accustomed to receiving directions from senior managers. This type of strategy development is similar to deliberate strategy .

The rational planning model is distinguished from emergent or incremental strategies by its structured and formal approach to achieving clearly-defined objectives through a planned sequence, typically guided by senior management. In contrast, emergent and incremental strategies evolve over time, adapting to situational changes without a predetermined plan, allowing for flexibility and responsiveness .

Strategic drift may occur in strategy development when using the strategy as experience lens because it relies heavily on past successes and the existing organizational culture. This can lead to an inability to respond effectively to changes in the business environment, as the strategies may no longer be suitable or innovative enough to address current or future challenges .

Strategic planning through the rational planning model is considered a formal process because it involves the achievement of clearly-established objectives, led by senior management, and follows a multi-layered approach comprising corporate, business, and functional strategies. The process is structured and systematic, involving several key elements executed in sequence .

By using all three strategy lenses—strategy as design, strategy as experience, and strategy as ideas—organizations can gain a comprehensive insight into strategy development. Each lens provides a distinct perspective: design for deliberate planning, experience for incremental adaptation, and ideas for innovation. Together, they allow for a balanced approach to addressing both current operational needs and future innovation, ensuring readiness for various circumstances .

Innovation plays a crucial role in the strategy as ideas lens by providing a way to generate radical new ideas and address changes in the business environment. This lens is not focused on formal strategic planning but rather on fostering innovative thinking, which is necessary for adapting and thriving amidst environmental changes .

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