A strategy defines the long-term direction of an organization as it tries to gain a competitive edge in the market over its industry rivals in the midst of changing business environment, diverse stakeholder expectations, and resource constraints. The formulation, development, and implementation of an organization’s strategy is never a straightforward but a complex and uncertain process. A good strategic planning process articulates a clear vision of where an organization would like to go or be in a given period of time. Such planning can be done using the rational and emergent models of strategy. For the purpose of this assignment, the emergent approach to strategy will be analyzed and discussed in detail.
In the emergent approach to strategic planning, strategies emerge as organizational leaders make operational and strategic decisions from time to time, which give birth to a certain pattern. This means that the realized strategy of the firm will be emerging from the interpretations of events, decisions and actions taken, as well as the complex interactions taking place at the lower levels hence leading to bottom-up; instead of the intentional planning from the top (Soliman, Anchor, and Taylor 2019). Thus, under the emergent approach, making of a strategy can be said to be an interactive, incremental, and unplanned process that permits adaptation and flexibility upon changes to the business environment. Nonetheless, a strategy can be documented in strategic plans and annual reports when it comes out from the pattern of decisions. The organizational leaders should not confuse this with the original strategy obtained from the rational approach due to the fact that the emergent strategy will have resulted into a strategic plan not the opposite.
In the emergent approach to strategy, planning is not long-term and new knowledge and experiences gained assists in the adaptation of the strategy. The implication of this is that the emergent approach represents a learning school of strategy development given that strategies are developed and strategic changes take place as organizational managers at lower levels learn new ways of doing things, acquire new experiences, and take risks (Hernandez-Betancur, Montoya-Restrepo, and Montoya-Restrepo 2019). The ability to learn and change tactics quickly as dictated by conditions implies that the emergent approach to strategy is most applicable in business environments that are uncertain, unpredictable, turbulent, and changing.
The emergent approach to strategy is relevant to organizations because of its advantages. For instance, the approach offers less resistance to change and provides higher chances of strategic success. Given that strategy emerges incrementally under this approach, different people in the company can prepare themselves for strategic changes as the formation and implementation of strategy is done simultaneously. Implementation of radical changes can result in higher resistance within the organization (Kopmann, et al. 2017). On the other hand, a company can easily respond to changes in its environment hence taking advantage of opportunities as they arise because tactics can be shifted quickly and strategy readjusted under the emergent approach. The approach also offers higher chances of strategic success. Strategic options are tested through learning, trial and error, as well as experimentation as they emerge. This means that the learning resulting from experience can act as the organization’s source of competitive advantage and strategic success. Sinha (2019), points out that this is especially possible due to the fact that the development of strategy is simultaneous with its implementation hence enabling readjustment and flexibility as the environment changes.
That notwithstanding, the emergent approach can also result in employee motivation. The approach sees to it that ideas emerge from lower organizational levels, something that makes the employees feel valued as they contribute to the company’s overall direction. Such kind of feeling can be instrumental in motivating the organizational employees to put more effort in realizing the general goals and objectives of the organization. Furthermore, Luederitz et al. (2021) make it known that emergent approach facilitates strategic innovation. Companies that have adopted the emergent approach to strategic planning develop some learning organization’s characteristics. The culture of a learning organization facilitates continuous capture, sharing, and utilization of skills and knowledge for continual increase in performance. Emergent approach to strategic planning promotes such learning due to the fact that it allows ideas to emerge from the lower organizational levels, be debated, and experimented out thus supporting a person’s creativity, initiative, as well as innovation (Hernández-Betancur, Montoya-Restrepo, and Montoya-Restrepo 2017).
Conversely, the approach has some drawbacks associated to it, which makes it undesirable to some organizations. Some of the disadvantages associated with the approach include the possibility of short-termism, risk of strategic drift, and the fact that pure emergent approach is impractical. With regards to the issue of short-termism, Hernández-Betancur, Montoya-Restrepo, and Montoya-Restrepo (2020) point out that the organizational managers are more likely to concentrate on the organization’s short-term performance and not on long-term direction due to the lack of a formal strategic plan under this approach. For instance, managers following this approach may end up focusing on the growth of annual earnings but not on where the company will be in the next five or ten years to come. Such kind of approach can compromise the competitiveness of the organization in future because it primarily focuses on how the business can survive today only.
Further, there is also risk of strategic drift under the emergent approach given that the development of strategy is incremental and is influenced by culture. Thus, the risk of strategic drift arises as the strategy will so much be influenced by how things used to be done in past yet there maybe rapid changes in the environment. Therefore, the emerging strategy may fail to fit in the current business environment. Furthermore, it is also impractical to follow a pure emergent approach. James (2018) points out that companies that have adopted a purely emergent approach to strategic planning have no defined direction and the feeling of being out of control may be experienced by the managers. For instance, the managers may find it difficult to defend their decisions and actions in the absence of set objectives. Without set targets, monitoring performance becomes a very difficult task for the managers. In addition, the absence of a well written strategic plan also makes it difficult to raise finances externally.
In summary, in the emergent approach to strategic planning, strategies emerge as organizational leaders make operational and strategic decisions from time to time, which give birth to a certain pattern. An emergent strategy is realized when the managers take a series of actions that result in a consistent pattern of behavior, irrespective of the specific intentions. The strategy is created as the organization learns what works in practice. The approach facilitates innovation, higher chances of strategic success, and ensures less resistance to change. On the other hand, there is risk of strategic drift and possibility of short-termism with the approach.
References
Hernández-Betancur, J.E., Montoya-Restrepo, I. and Montoya-Restrepo, L.A., 2020. The tree of science of deliberate and emergent strategies. IIMB Management Review.
Hernández-Betancur, J.E., Montoya-Restrepo, I. and Montoya-Restrepo, L.A., 2017. The moment of decision from the perspective of deliberate and emergent strategies. AD-minister, (31), pp.93-114.
Hernandez-Betancur, J.E., Montoya-Restrepo, L.A. and Montoya-Restrepo, I., 2019. Deliberate strategy deconstructing event for the arising of the emergent strategy. Journal of Engineering and Applied Sciences, 14(22), pp.8452-8463.
James, M., 2018. Emergent Strategy. The international encyclopedia of strategic communication, pp.1-10.
Kopmann, J., Kock, A., Killen, C.P. and Gemünden, H.G., 2017. The role of project portfolio management in fostering both deliberate and emergent strategy. International Journal of Project Management, 35(4), pp.557-570.
Luederitz, C., Caniglia, G., Colbert, B. and Burch, S., 2021. How do small business pursue sustainability? The role of collective agency for intergrating planned and emergent strategy making. Business Strategy and the Environment.
Sinha, S., 2019. The emergent-strategy process of initiating organizational ambidexterity. Journal of Strategy and Management.
Soliman, S., Anchor, J. and Taylor, D., 2019. The international strategies of universities: deliberate or emergent? Studies in Higher Education, 44(8), pp.1413-1424.
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