The 'strategy creation' process -the process of formulating and implementing strategy -has been under critical study for decades for not delivering the desired results. The discussion on how a strategy process should be run has resulted in a number of 'strategy schools'.Procedural justice theory is relevant to this discussion. It states that when people impacted by a process consider the process as 'fair' they demonstrate a higher level of trust and commitment, and performance increases.This article evaluates the extent to which traditional 'strategy schools' comply with the tenets of procedural justice theory and highlight the non-compliance with these tenets for each of these schools. We then propose a new strategy process model which has a greater fair process dimension than any of the more traditional 'strategy schools' and as such offers the potential to bring greater effectiveness to the strategy process."These men ask for just the same thing, fairness, and fairness only. This, so far as in my power, they, and all others, shall
AbstractThe 'strategy creation' process -the process of formulating and implementing strategy -has been under critical study for decades for not delivering the desired results. The discussion on how a strategy process should be run has resulted in a number of 'strategy schools'.Procedural justice theory is relevant to this discussion. It states that when people impacted by a process consider the process as 'fair' they demonstrate a higher level of trust and commitment, and performance increases.This article evaluates the extent to which traditional 'strategy schools' comply with the tenets of procedural justice theory and highlight the noncompliance with these tenets for each of these schools. We then propose a new strategy process model which has a greater fair process dimension than any of the more traditional 'strategy schools' and as such offers the potential to bring greater effectiveness to the strategy process.
IntroductionIn most large companies, senior management invests an important amount of energy and time in formulating and implementing a strategy.This typically consists of a vision for the future, a path to realize that vision, as well as company priorities and an associated competitive posture.The strategy process has been under discussion for (at least) the last three decades, both academic and corporate worlds presenting many variants on how a strategic process ought to be effectively run. The importance of the question was recognized, but no satisfactory conclusion to this debate has been presented. The discussion applies both to the efficiency of the strategy process -too time consuming and mobilizing too many resources and parties -and the effectiveness of it -not leading to the 'right' outcome.This discussion has resulted in a number of 'strategy schools' expressing different views on the 'ideal' strategy process. An underlying premise of all these schools is that the process largely determines the outcome, including the performance impact on the company.The...
