Reported by:

Pareja, Merry Joy D.

 Understand the beginnings of strategy;
 Analyze strategy from a deeper and
broader perspective;
 Distinguish strategy from concept;
 Explain why strategy is a tool;
Analyze in what ways are people
considered as strategy;
Evaluate strategy as both a learning and a
mindset; and
Demonstrate the utility of the balanced
scorecard and strategy maps.
In the past tactics and schemes were
informally implemented as when a person
competed in a game, when an organization
engaged in business, or when a government
went to war. Their actions imply an
approach called strategy.
The prehistory of strategy was seen early
in the person of Sun Tzu, a chinese military
general philosopher, and strategist who
lived in the spring and autumn of Ancient
China. His strategies are best written in the
book the Art of War (400 BC).
Another strategist is explicitly portrayed in
the book The Prince (1513) by Niccolo
Machiavelli.
Later in the 60’s and 70’s strategy started to
take a more structured configuration
through Alfred Chandler’s Strategy and
Structure (1962), Igor Ansoff’s Corporate
Strategy (1965), and Peter Drucker’s The
Age of Continuity (1969).
 In the 80’s and 90’s, Michael Porter’s
Competitive Strategy (1980) became very
popular. In fact, even until today, businessmen
refer to his strategic ideas.
 In the Mind of the Strategist (1982), Kenichi
Ohmae concluded that emergent strategy
originates not in the mind of the strategist but
in the interaction of the organization with the
milleu.
 Noel Tichy’s Managing Strategic Change
(1982) looks at strategy dynamics technically,
politically, and culturally while Peter Senge’s
The Fifth Discipline (1990) expounds on
strategy in learning
 In 1994, Henry Mintzberg came out with a
book titled The Rise and fall of Strategic
Planning and in 1997, Arie de Geus released
his book The living Company.
From the years 2000 to the present, we have
seen new modes of looking at strategy
wether in individual companies, in
government, in technology, and other allied
orientations.
 Strategies are plans formulated and
implemented with the sole purpose of attaining
set goals and objectives. Offhand, we have
always referred to strategy as a plan to be
executed, a map to chart, and a path to
traverse. Some say strategy is a policy, an
approach, a line of attack, or tactic.
 Concept

Strategy

Tool People
 • Intellectual Elasticity
Strategy as • Mindset
Concept • Learning
• Natural Concept
• Intellectual Capital
 The concept of intellectual elasticity came
from Kenichi Ohmae. Considered as Japan’s
only management guru, Ohmae wrote The
Mind of the Strategies in 1982.

 Hesay’s, “Strategies stem from creative minds

and not from rote memory. There are no magic
formulas for creating brilliant formulas.”
 Ohmae is know for developing the concept of
an idiosyncratic mode of thinking called
strategic thinking. This concept underscores
that the mind of a strategist is
characteristically that of intellectual elastity.

 Intellectual elasticity essentially refers to

flexibility and adaptability in coming up with
realistic responses to changing situations.
 Intellectual elasticity essentially refers to
flexibility and adaptability in coming up with
realistic responses to changing situations.

 When designing a business strategy, three

main players must be taken into sccount. They
are the company, the customers, and the
competitors.
a. In launching radical iniatives, strategy is
referred to as creativity.

b. In identifying the key success factors in one’s

business, strategy may mean investing
additional time, money, and effort in the
factors that have the greatest potential
succeed.
c. In matching the company’s unique skills to the needs
of the customers, strategy is having the flexibility to
study and adapt to the environment, to segmentize,
and to concretize improvement strategies.
d. Lastly, strategy is comparing one’’s strenghts with
those of competitors and exploiting the advantages to
build on superiority.
 Richard Pascale, in his book Managing the
Edge, considers strategy as a frame of mind
and an attitude.

 He says, “Nothing fails like success” and

goes on to illustrate his statemeny.
 Any cycle of success begins with the
organization coming up with a strategic
concept, that is, of a product or a service.

 It then organizes itself around the basic

product or service, and in the process, creates
a culture and personality for itself.
A strategic mindset is always active and
innovative. It is pulsating. It is filled with
ideas. It is alive. It is looking at the future to
deal with the present.
 One of the more widely discussed concepts
of strategy today is based on the learning
organization model.

 Change demands learning, and learning

means continuous change learning, from an
organizational perspective, is a process of
maintaning and improving performance
experientially.
 Learning refers to any old and new
knowledge and competencies, gained or
enhanced from persons, institutions, books,
experience, training, and others.

 Learning is not limited to personal

learning. The center of maximum learning is
an organization.
 Innovation
 Differentiation
 Continuous Improvement
 Contiuous adaptation; and
 Benchmarking
 Innovation – is learning new concepts and
new ways of doing things. It means creating
new knowledge, new products, and new
modes of thinking.

 A shade of innovation is differentiation – It is

improving, enhancing, and enriching what is
existent.
 Continuous Improvement – is an ongoing
constant process of doing things better. An
improvement life cycle never ends.
 Continuous Adaptation – refers to responding
to changes in the environment. It implies
flexibility, resilience, and spirit of openness to
change.
 Benchmarking – the combination of continuous
improvements and continuous adaptation.
 Hawken et.al. (1999) emphasized the both
environmental and economic priorities are
compatible with one another. When taken in
this light, natural capital creates competitive
advantage. Thus, it is in this instance that
strategy is considered natural capital.
 The book Intellectual Capital published in
2004, considers two categories of knowledge.

 It defines common knowledge as trite and

ordinary because it simply satifies minimum
expectations and knowledge.
 Intellectual
Capital
“Li”
Intangible
Assets
(Knowledge)
Common
Knowledge
“Survival”
 By definition, Intellectual Capital is the
synergistic confluence and interrelationships
of the organization’s valued resources. It is
intangible. Although not visible and concrete,
intellectual capital can be felt. It creates
impact. It can be assessed. It is critical to
attaining organizational success. It sometimes
makes the difference, but often times it is
difference.
 Li is more than survival. It propels the
organization to become monopolistic. It
creates leverage. I establishes dominance and
brings about comparataive advantage.

 Li refers to any gain, profit, advantage, and

benefits.
 Aside from looking as a strategy as a concept,
strategic management gurus consider it as a
tool, a mode approach by which goals can be
achieved.

Strategy as a •Information Technology

tool •Balanced Scorecard
1. Information Technology – The past 30 years
the radical development of information
technology. Information technology makes
work easier, more efficient, and simpler.
 Hammer and Champy (1993) looked at
technology as an important strategy to moving
organizations and businesses toward achieving
corporate and entreprenueral success faster.
1. Iniatially, an organization embarks on
process improvement.
2. Once process improvement is in place,
process design follows.
3. Lastly, when process redesign is in place, the
organization can pursue business process re-
engineering.
 Process
Re-engineering

Process
Redesign

Process
Improvements
2. Strategy as balanced scorecard – It gives
organizations real measurement figures,
thereby allowing them to plan and advise ways
of attaining their set goals.
 Two management gurus, Robert Kaplan and
David Norton, introduced the balanced
scorecard as a strategy too in their book The
balanced Scorecard.
 Perspective

Learning and growth measures are the

1. Learning and growth engines of the other measures. They motivate
employees to actualize other measures.

Customer measures are used by

2. Customer organizations to increase customer reach and
satisfaction.

 For product leader organizations, the

3. Internal Process measures are on innovation, while for the
customer intimate organizations, focus is on
customer satisfaction.

 The perspective stresses the need to define

4. Financial a mechanism that measures growth and
profitability.
Strategy maps are visual tools used in
identifying strategic goals, designing
strategies, and implementing them.
 Strategy is both a concept and a tool but it
also people. People are strategies in
themselves.

 They are executives managers, managers,

supervisors, subordinates, and anyone who
leads, directs and supports the organization
toward the realization of objectives. They are
strategy personified.
  Effective
Management and
leadership
People as
strategy Creativity

Monopolistic
Intellectual Capital
1.People is effective management and leadership
– One prominent person who has been considered
as the “guru of all management gurus” is Peter
Drucker. Having 38 books and many articles on
management and strategy.

- His book The Practice of Management (1968)

is considered todays as the first true management
book written where he extensively discussed what
management is, its practice, and the role of
managers.
 Alfred Sloan
 Harold Geneen
 Lee Larocca
 Jack Welch
 – was a professional manager. He was
well known for his service at General motors
in the 50’s and 60’s. He spelled out the role of
manager as a leader and a decision-maker. He
studied management as a disipline and
believed that a chief executive should have
not friends on jobs.
1. Management is a profession. Today, they
preach it but do not practice it.
2. The professional should subordinate his own
interests to those of the clients.
3. Professionals do not make decisions by
opinions and preferences but should be
according to facts.
4. The job of a professional manager is not to
like people, not to change people. It is only
performance that matters.
5. Performance is above the “bottomline.” It is
also setting an example like integrity and
tolerance for diversity.
6. Dissent and conflict are necessary and even
desirable.
7. Leaderhip is not charisma, public relations
and showmanship but performance, consistent
behavior, and trustwothiness.

8. Most important lesson; the professional is a

servant.
 - Is said to be the greatest business
manager after Sloan. He worked for
International Telephone and Telegraph
Company (ITTC), a Cuban company in 1959.
He stayed there for 18 years and expanded
ITTC to other parts of the world.
1. Theory G: You cannot run a business or
anything else on a theory.
2. How to run a business: You read a book
from the beginning to the end.
3. Experience and cash: Everyone is paid in
two coins: cash and experience.
4. Two organizational structures: Every
company has two organizational structures:
The two written on the charts. The other is
manifested in the everyday living relationship
of the men and women in the organization.
5. Management must manage.
6. Leadership cannot be thought. It can only be
learned.
7. The worst disease that can affect business
executives in their work is egotism, not
alcoholism.
8. The drudgery of numbers will make you free.
9. Cultivate corporate entreprenuerial spirit.
10. There is a need for a free and independent
board of directors.
11. The key element in good business
management is emotional attitude.
 - is one of the most widely read
biographies in management and leadership.
Lacocca had wonderful administrative ideas
that are workable. He worked for Henry Ford,
and one of his best car products was the
mustang.
1. When you borrow something, write it down
lest you forget.
2. Do not fight back using fist. Use knowledge.
3. Establish priorities.
4. Use time well.
5.Managers are decision-makers and motivators
with a team spirit.
6. The key to success is not information but
people.
7. Do not waste.
8. Why walk when one can run.
9. Do not make the same mistake twice.
10. Get a good liberal arts education. The key is
to get a solid grounding in reading, writing,
and psychology.
11. If he is bigger than you are, do not fight
back. Use your head instead of your fist.
12. Shake hands and be friendly.
13. Learning salesmanship takes time, for some.
One should practice it repeatedly.
14. You will never know happiness unless you
have something to compare it to.
15. Do not engage in a capital-intensive
business or else, bankers will end up owning
you.
 - was an Irish chemical engineer with
a PhD in chemical engineering from the
University of Illonoise. He succeed Reginald
Jones as CEO of General Electric.
 First, he saw that GE had too many
organizational layers. With no passion for
bureucracy, he went on to create a flat
management hierarchy. He abolished various
positions.
 Second, he dealt with the realtity of
superficial congeniality or an environment
where people in the company were pleasant on
the surface but were in fact distrustful and with
savagery boiling beneath it.

 Third, he challenged his members to action.

 Fourth, he called General Electric the people
factory where he created the vitality curve. A
people possess the 4Es of GE leadership:
high energy levels, ability to energize others
around common goals, the edge to make tough
yes-and-no decisions, and the ability to
consistently execute and deliver on their
promises.
 Lastly, he pursued four major initiatives:
globalization and collaborating in Japan,
engaging in services of their products,
adopting six sigma, and pursuing e-business.
Six Sigma is a statistical quality tool that
espouses 0.034% waste reduction.
3. Strategy is creativity – One realizes that the
challenge today for evry organization is
creativity. In short, opportunities arearound; it
is the creative mind that wins. Creativity is
strategy and strategy is creativity.
4. Strategy is monopolistic intellectual capital
– As mentioned earlier, strategy is intellectual
capital. It is a competitive advantage that is
created by organizations to be in the forefront
of any business and industry.
-When Intellectual Capital is monopolistic, one-
of-a-kind, or the only one, then it is a unique
strategy.
 • Intellectual Elasticity
•Mindset
•Learning
Concept •Natural Capital
•Intellectual Capital

STRATEGY Tool • Information Technology

• Balanced Scorecard

• Effective Management and

People Leadership
•Creativity
•Monopolistic Intellectual
Capital