MGT Notes

Reference: Strategic Management (5e) – Frank T. Rothaermel (Pg 51)

The two approaches to strategy planning discussed previously (Top Down & Scenario Planning) have the disadvantages that they can be too regimented & confining, lack flexibility and provide an illusion of control or a false sense of security. Moreover, they do not account for the role that employees at all levels of the organization play.

The Planned Emergence approach still unfolds along the Analyze-Formulate-Implement axis. Here we start with Top-Down Planning and design an Intended Strategy. However, here it is acknowledged that parts of the strategy fall along the wayside (Unrealized Strategy). The eventual Realized Strategy is then a combination of the Top-Down intentions as well as Bottom-Up Emergence.

Bottom-Up emergence is any unplanned initiative (ex. an activity pursued to develop new products, new processes, explore new markets and undertake new ventures) bubbling up from deep within the organization.

These initiatives can be arrived at through:

• Autonomous actions: By lower level employees on their own volition. Here the role of leadership is to manage alignment with Vision and Mission.
• Serendipity: Pleasant surprises that can have a profound impact on the firm.
• Resource Allocation: A resource allocation process that allows for emergence.

The above is known as Planned Emergence and is followed in response to the inability of the Top-Down process alone to fully account for unforeseen circumstances.