krunal_dhabhi
Krunal Dhabhi
Hello Friends i am searching for meaning of Logical incrementalism. If anyone have information on Logical incrementalism. Kindly share with me
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What is Logical incrementalism?
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raj_verma61
Raj Verma
Hello Friends i am searching for meaning of Logical incrementalism. If anyone have information on Logical incrementalism. Kindly share with me
Hello.,
I found some Info on Logical Incementalism
This is the relatively haphazard process through which strategic decisions are made – largely as add-ons, or changes, or deletions to current strategies. Logical incrementalism is to be contrasted with more visionary strategies (Quinn 1980).
joel.francis.7351
Par 100 posts (V.I.P)
1.Explain the concept and characteristics of logical incrementalism .
2.What are the three key elements which affect how strategy is developed in an organisation?.
3.Identify and explain the difference between the four strategy development routes.
4.Discuss the issues that will impact on the continuity of an organisations strategy.
Part b: Refer Text Book.
5.What influences strategy development at Google and the strengths and weaknesses of their approach?
Question two, Part a:
1. Logical incrementalism is the evolution of strategy as a result of experimentation and consensus (Johnson, Whittington & Scholes, 2011). Logical Incrementalism allows strategy to be synthesised and coordinated into a single coherent direction by using as many known multi-dimensional inputs as possible in the conceptualisation process to shape the overarching goals (Kippenberger, 1998). This means incrementalism is relevant in a market that has a high degree of dynamism and where financial and other resources are neither rich nor abundant. It allows leaders to shape overarching goals that encourage creativity in their execution. This decision making style allows for the most informed decision possible, whilst not locking the decision in until the last practicable moment. The immediacy of the decision to the execution allows the strategist to anticipate the uncertain, the known unknowns rather than trying to guess at the unknown unknowns (Rumsfeld, 2002).
Image via Wikipedia
The focus on including as many variables as possible being generated and analysed by the stakeholders means it incorporates and underpins elements of a risk management approach to strategy creation. This is achieved by experimentation until the best possible options are found, which allows early identification of possible issues. It creates awareness and encourages convergent behaviour within the organisation because the stake holders understand the possible benefits and consequences. The small step of incrementalism gives time for behavioural adaptation and avoids the alienation created by the culture destruction of comprehensive changes. The consultative style required creates stakeholder engagement with the emergent strategy. This means it has a built in understanding which allows adaptive adjustment after any internal or external shocks.
2. The elements through which intended strategy can be developed include strategic leadership. This involves an individual or small team creating the strategy. There is a balance between organisational adaptability, flexibility and providing overarching direction in the chaos and inhibiting individual motivation, creativity and engagement (Johnson, Whittington & Scholes, 2011). Strategic planning systems are another element and are the structured procedures used to create strategy. This is suitable for an organisation with centralised power in a stable environment. It requires decisions to be made on unknowns because it looks at longer time frames (3-5 years) and relies on managers %u201Cknowing all%u201D (Obeng & Ugboro, 2008). The final way strategies are materialised is an externally imposed strategy. This is when an exogenous entity, such as governments, parent companies, receivers or venture capitalists forces their own agenda on the company%u2019s strategy (Johnson, Whittington & Scholes, 2011).
3. Whilst Incrementalism is underpinned by the learning aspect of the strategy development framework the political process for strategy development considers the determinates of successful engagement and manipulation of the process by diverse human agendas. It acknowledges that factional tension within the organisation will be a powerful driver of the overall strategy development. Depending on the dominance of the stakeholders these power plays will be an amalgam of compromises. They will be generated by personal experience, competition for resources, relative influence and access to information. Strategy informed by prior decisions identifies that all strategy development emerges and is influenced by the constraints from which it was created. No organisation creates strategy in a bubble; it is collective collaboration of people and resources. The history, richness and synergy of the people and resources will create path dependencies and a culture that will adapt and be adapted by the development of strategy. The last option is the organisational system for the creation of strategy. This identifies that strategy can be created within the organisation surrounded by a local context. It will be created from a combination of culture and environment at a grass roots level. This approach has a strong focus on endogenous and localised issues which will be seen from within the paradigm of the creator: for example marketing, sales, finance, human resources, etc. This means the creator may not have considered the integration implications for the whole organisation. This may have unexpected ramifications and consequences. In turn this may alienate stakeholders that have had no influence on the strategies creation (Johnson, Whittington & Scholes, 2011).
4. The capacity of an organisation to achieve continuity of its strategy is contingent on many factors. This is referred to in literature as its ambidexterity. It identifies the organisations capacity to tolerate the ambiguity of the %u201Cdual searches for certainty and flexibility%u201D. This contradiction will be displayed by the organisations aptitude at efficiently exploiting its current resources whilst having the flexibility to explore new opportunities (Bodwell & Chermack, 2010). This could manifest itself in the organisational structure by running different structures in different aspects of the organisation. It will be tightly controlled and hierarchical whilst trying to exploit its current resources and flexible and flat in the exploratory areas such as taskforces and teams. Within each team the acceptance and encouragement of diversity allows well managed cognitive dissonance to become a force for creativity. The implications for leadership include the required capacity to tolerate and encourage a diversity of opinions and the aptitude to make the balance between the two systems and champion the learning created. These capabilities ensure the stability and progress of the strategies of the organisation.
Part b:
Underpinning Google%u2019s strategy development is a combination of strategic leadership and incrementalism. This strategy is rooted in their history and been allowed to continue because of their high profitability. It has been developed by creating a two tier structure where the directors are removed from the shareholders. This allowed the directors a degree of creative freedom that gave rise to a flatter more autonomous, team based structure than American shareholders would normally have been comfortable with (Johnson, Whittington & Scholes, 2011). This creates a cultural platform that attracts the best American people which drives the strategy creation process. The managers are then given broad overarching goals (organise the world%u2019s information) and the space is then allowed for strategy to emerge (Bodwell & Chermack, 2010). The strategies created need to be embraced collectively so they are peer reviewed before they are accepted. The computing focus within the company means the peer review will be assisted by artificial intelligence and include data analysis (Claburn, 2006). There are many projects created and released in a %u2018buggy%u2019 beta form, %u2018fixed%u2019 from consumer input and %u2018killed%u2019 if there is not enough end user interest or uptake (Techcrunch, 2010). While the strategies seem to be a very lightly controlled incrementalist attitude toward strategy development this just means the company has focused on other aspects of the business to retain control. Therefore many of the backend systems are %u2018formulaic and rigid%u2019. For example: they have maximum teams of six, deadlines are extremely short and every aspect of the organisation possible is measured and systemised. The company%u2019s strategic development style has come at a cost. The overall strategic direction and accountability can get lost within the organisation. At this stage it has only had bizarre consequences such as the patent for the name Google not being renewed in Germany. In the longer term as the company moves into other aspects of computing it may have more dire outcomes? The high failure rate of projects within the organisation sometimes forces the company to create expensive patches, for example buying You Tube ($1.65 billion) to overcome the failure of Google Video. Also by sticking with strongly American cultural norms the company has upset the Chinese government and potentially alienated large potential markets such as China. Whilst the current approach has many weaknesses it allows for an inbuilt risk management attitude. It ensures that the failures are only a small percentage of the business and allows for the organisation to retain its ambidexterity. The deep level of knowledge and learning created by the incrementalism strategy has allowed the company to exploit it resources very effectively. This creates rising quarterly profit and earnings per share. While effected by many things the success and potential of the strategy is reflected in the share price. The initial public offering for Google was $US85, Google is currently trading at $US 598.67 (Google, 2011).
Bibliography
Bodwell, W, Chermack, T 2010, Organizational ambidexterity: Integrating deliberate and emergent strategy with scenario planning, Technological Forecasting and Social Change, Vol. 77, no. 2, pp.193-202, viewed 22 October 2011, (ScienceDirect)
Claburn, T 2006, %u2018Google Revealed%u2019, InformationWeek, 28 August, p. 34.
Google.com 2011, %u2018Google Inc.%u2019, Google Finance, viewed 23 October 2011, < http://www.google.com/finance?q=NASDAQ%u00253AGOOG>
Johnson, G, Whittington & R, Scholes, K, 2011, Exploring Strategy, Prentice Hall, London.
Kippenberger, T 1998, Logical incrementalism, Strategy & Leadership, vol. 3, no. 6, pp. 26 %u2013 27, viewed 21 October 2011, (Emerald Insight).
Obeng, K, Ugboro, I 2008, Transportation Research Part E: Logistics and Transportation Review, Vol. 44, no. 3, pp. 420-439, viewed 22 October 2011, (ScienceDirect).
Rumsfeld, D (Secretary of Defense) 2002, DoD News Briefing %u2013 Secretary Rumsfeld and Gen. Myers, Pentagon, Washington, February 12.
Techcrunch.com 2010, %u2018There%u2019s No Success Like Failure: Google%u2019s Biggest Product Flops%u2019, viewed 27 October 2011,
2.What are the three key elements which affect how strategy is developed in an organisation?.
3.Identify and explain the difference between the four strategy development routes.
4.Discuss the issues that will impact on the continuity of an organisations strategy.
Part b: Refer Text Book.
5.What influences strategy development at Google and the strengths and weaknesses of their approach?
Question two, Part a:
1. Logical incrementalism is the evolution of strategy as a result of experimentation and consensus (Johnson, Whittington & Scholes, 2011). Logical Incrementalism allows strategy to be synthesised and coordinated into a single coherent direction by using as many known multi-dimensional inputs as possible in the conceptualisation process to shape the overarching goals (Kippenberger, 1998). This means incrementalism is relevant in a market that has a high degree of dynamism and where financial and other resources are neither rich nor abundant. It allows leaders to shape overarching goals that encourage creativity in their execution. This decision making style allows for the most informed decision possible, whilst not locking the decision in until the last practicable moment. The immediacy of the decision to the execution allows the strategist to anticipate the uncertain, the known unknowns rather than trying to guess at the unknown unknowns (Rumsfeld, 2002).
Image via Wikipedia
The focus on including as many variables as possible being generated and analysed by the stakeholders means it incorporates and underpins elements of a risk management approach to strategy creation. This is achieved by experimentation until the best possible options are found, which allows early identification of possible issues. It creates awareness and encourages convergent behaviour within the organisation because the stake holders understand the possible benefits and consequences. The small step of incrementalism gives time for behavioural adaptation and avoids the alienation created by the culture destruction of comprehensive changes. The consultative style required creates stakeholder engagement with the emergent strategy. This means it has a built in understanding which allows adaptive adjustment after any internal or external shocks.
2. The elements through which intended strategy can be developed include strategic leadership. This involves an individual or small team creating the strategy. There is a balance between organisational adaptability, flexibility and providing overarching direction in the chaos and inhibiting individual motivation, creativity and engagement (Johnson, Whittington & Scholes, 2011). Strategic planning systems are another element and are the structured procedures used to create strategy. This is suitable for an organisation with centralised power in a stable environment. It requires decisions to be made on unknowns because it looks at longer time frames (3-5 years) and relies on managers %u201Cknowing all%u201D (Obeng & Ugboro, 2008). The final way strategies are materialised is an externally imposed strategy. This is when an exogenous entity, such as governments, parent companies, receivers or venture capitalists forces their own agenda on the company%u2019s strategy (Johnson, Whittington & Scholes, 2011).
3. Whilst Incrementalism is underpinned by the learning aspect of the strategy development framework the political process for strategy development considers the determinates of successful engagement and manipulation of the process by diverse human agendas. It acknowledges that factional tension within the organisation will be a powerful driver of the overall strategy development. Depending on the dominance of the stakeholders these power plays will be an amalgam of compromises. They will be generated by personal experience, competition for resources, relative influence and access to information. Strategy informed by prior decisions identifies that all strategy development emerges and is influenced by the constraints from which it was created. No organisation creates strategy in a bubble; it is collective collaboration of people and resources. The history, richness and synergy of the people and resources will create path dependencies and a culture that will adapt and be adapted by the development of strategy. The last option is the organisational system for the creation of strategy. This identifies that strategy can be created within the organisation surrounded by a local context. It will be created from a combination of culture and environment at a grass roots level. This approach has a strong focus on endogenous and localised issues which will be seen from within the paradigm of the creator: for example marketing, sales, finance, human resources, etc. This means the creator may not have considered the integration implications for the whole organisation. This may have unexpected ramifications and consequences. In turn this may alienate stakeholders that have had no influence on the strategies creation (Johnson, Whittington & Scholes, 2011).
4. The capacity of an organisation to achieve continuity of its strategy is contingent on many factors. This is referred to in literature as its ambidexterity. It identifies the organisations capacity to tolerate the ambiguity of the %u201Cdual searches for certainty and flexibility%u201D. This contradiction will be displayed by the organisations aptitude at efficiently exploiting its current resources whilst having the flexibility to explore new opportunities (Bodwell & Chermack, 2010). This could manifest itself in the organisational structure by running different structures in different aspects of the organisation. It will be tightly controlled and hierarchical whilst trying to exploit its current resources and flexible and flat in the exploratory areas such as taskforces and teams. Within each team the acceptance and encouragement of diversity allows well managed cognitive dissonance to become a force for creativity. The implications for leadership include the required capacity to tolerate and encourage a diversity of opinions and the aptitude to make the balance between the two systems and champion the learning created. These capabilities ensure the stability and progress of the strategies of the organisation.
Part b:
Underpinning Google%u2019s strategy development is a combination of strategic leadership and incrementalism. This strategy is rooted in their history and been allowed to continue because of their high profitability. It has been developed by creating a two tier structure where the directors are removed from the shareholders. This allowed the directors a degree of creative freedom that gave rise to a flatter more autonomous, team based structure than American shareholders would normally have been comfortable with (Johnson, Whittington & Scholes, 2011). This creates a cultural platform that attracts the best American people which drives the strategy creation process. The managers are then given broad overarching goals (organise the world%u2019s information) and the space is then allowed for strategy to emerge (Bodwell & Chermack, 2010). The strategies created need to be embraced collectively so they are peer reviewed before they are accepted. The computing focus within the company means the peer review will be assisted by artificial intelligence and include data analysis (Claburn, 2006). There are many projects created and released in a %u2018buggy%u2019 beta form, %u2018fixed%u2019 from consumer input and %u2018killed%u2019 if there is not enough end user interest or uptake (Techcrunch, 2010). While the strategies seem to be a very lightly controlled incrementalist attitude toward strategy development this just means the company has focused on other aspects of the business to retain control. Therefore many of the backend systems are %u2018formulaic and rigid%u2019. For example: they have maximum teams of six, deadlines are extremely short and every aspect of the organisation possible is measured and systemised. The company%u2019s strategic development style has come at a cost. The overall strategic direction and accountability can get lost within the organisation. At this stage it has only had bizarre consequences such as the patent for the name Google not being renewed in Germany. In the longer term as the company moves into other aspects of computing it may have more dire outcomes? The high failure rate of projects within the organisation sometimes forces the company to create expensive patches, for example buying You Tube ($1.65 billion) to overcome the failure of Google Video. Also by sticking with strongly American cultural norms the company has upset the Chinese government and potentially alienated large potential markets such as China. Whilst the current approach has many weaknesses it allows for an inbuilt risk management attitude. It ensures that the failures are only a small percentage of the business and allows for the organisation to retain its ambidexterity. The deep level of knowledge and learning created by the incrementalism strategy has allowed the company to exploit it resources very effectively. This creates rising quarterly profit and earnings per share. While effected by many things the success and potential of the strategy is reflected in the share price. The initial public offering for Google was $US85, Google is currently trading at $US 598.67 (Google, 2011).
Bibliography
Bodwell, W, Chermack, T 2010, Organizational ambidexterity: Integrating deliberate and emergent strategy with scenario planning, Technological Forecasting and Social Change, Vol. 77, no. 2, pp.193-202, viewed 22 October 2011, (ScienceDirect)
Claburn, T 2006, %u2018Google Revealed%u2019, InformationWeek, 28 August, p. 34.
Google.com 2011, %u2018Google Inc.%u2019, Google Finance, viewed 23 October 2011, < http://www.google.com/finance?q=NASDAQ%u00253AGOOG>
Johnson, G, Whittington & R, Scholes, K, 2011, Exploring Strategy, Prentice Hall, London.
Kippenberger, T 1998, Logical incrementalism, Strategy & Leadership, vol. 3, no. 6, pp. 26 %u2013 27, viewed 21 October 2011, (Emerald Insight).
Obeng, K, Ugboro, I 2008, Transportation Research Part E: Logistics and Transportation Review, Vol. 44, no. 3, pp. 420-439, viewed 22 October 2011, (ScienceDirect).
Rumsfeld, D (Secretary of Defense) 2002, DoD News Briefing %u2013 Secretary Rumsfeld and Gen. Myers, Pentagon, Washington, February 12.
Techcrunch.com 2010, %u2018There%u2019s No Success Like Failure: Google%u2019s Biggest Product Flops%u2019, viewed 27 October 2011,
bhautik.kawa
Bhautik Kawa
Hello Friends i am searching for meaning of Logical incrementalism. If anyone have information on Logical incrementalism. Kindly share with me
Hey Member,
Here i am Sharing information on Logical incrementalism, please check attachment below.
Thank you!