Design School

Strategy formation as a Process of Conception

Group Members
Hania Ahmed
Misbah Shuja Ansari
Syed Aalay Kashif Pirzada
Contents of Presentation
1 Origin of Design School

2 Design School Model

3 Premises of Design School

4 Critique of the Design School

5 Contribution Of Design School

Design School
 Strategy is a deliberate process of conscious thought.

 Is a model of strategy formation that seeks to attain a match or fit between internal
Capabilities and external Possibilities.

 „Establish Fit‟ is motto of Design school.

 Two main principles of Design school

 Rational Decision makers

„Anticipation of the future effects of possible actions‟

 Optimize economic performance

 Give no or very little room for incrementalist views or emergent strategy.

 Clear and unique strategies are formulated.

 Top management plan the destiny of organization.

 Objectives are clear and explicit.

 It is centralized approach of strategy formation.

 It deals with complex and uncertain issues in rational, logical & structure way

 Important stakeholders value this approach

 Known as “Rational/ Analytic view”

Where we use Design School

 Issues are Complex, Important, Significant & Uncertain.

 Intended strategy is a result of design school.

 “Deliberately formulated or Planned “by managers at the top.

 Use tools, techniques and methods of Design school.

 Origin of Design School

 Traced back to two influential books written at University of California and at M.I.T :

1. Philip Selznick‟s Leadership in Administration

2. Alfred. Chandler‟s Strategy and Structure

 Real impetus for the design school came from General Management Group At Harvard
Business School
 Design School Model

External Appraisal Internal Appraisal

Threats & Opportunities Strength & Weaknesses

Creation Of
Strategy

Managerial
Values
Evaluation & choice
Of Strategy

Implementation of Strategy
 Framework for Evaluation
 According Harvard General Management group the best strategy
must have following characteristics;
Consistency
Strategy must not present mutual inconsistent goals & policies.
Consonance
Strategy must present an adaptive response to external environment and to critical
change
Advantage
In selected area of activity strategy must provide or retain competitive edge
Feasibility
Strategy must be free from unsolvable subproblems
Premises of Design School
1. Strategy formation should be a Deliberate process of Conscious thought

2. Responsibility for the Control & Consciousness must rest with the CEO

3. The model of strategy formation must be kept Simple and Informal

4. Strategies should be one of a Kind: the best ones result from a process of
individualized design
5. The design process is complete when strategies appear fully
formulated as perspective

6. The strategies should be explicit, so they have to be kept simple

7. Finally, only after these unique, full-blown, explicit, and simple

strategies are fully formulated can they then be implemented.
Contexts
 It can be implement easily in situation where environment is stable or predictable
 Organization in question must be prepared to cope with centrally articulated
strategy
Critique Of Design School
1. How does an organization know its strengths and weaknesses?
2. Can organizations be sure of its strengths before it tests them?
3. The premise of this school deny important aspects of strategy formation;
 Incremental Development
 Emergent strategy
 By passing learning
 Influence of existing structure on strategy
 Full participation of actors other than Chief Executive.
3. Data can be Collected & Transmitted up the hierarchy without any
significant loss or distortion, This assumption often fails.

4. Environments can always be understood, currently and for the future and
it is sufficiently stable or at least predictable but it is not the case in real
life.
5. Structure follows strategy.
6. Explicit strategy promoting Inflexibility.
7. Separation of Formulation from Implementation
Contribution of Design school
 One brain can handle all of the information relevant for strategy formation
 One brain has complete detailed knowledge of situation in question
 Reduced Ambiguity.
 Useful in relatively stable environment
 Support strong and visionary leadership.
limitation
 Simplification may distort reality.
 Strategy has many variables and is inherently complex.
 Bypassing learning, inflexible in fast-changing environment.
 High risk of resistance
Thank You !!!