Strategy-as-practice

Definition

Strategy-as-practice is a theoretical approach that focuses on the everyday actions and interactions of individuals and groups involved in the formulation and implementation of strategy. It emphasizes that strategy is not just a formal plan or document but a continuous process shaped by social practices, conversations, and behaviors in organizations. This perspective helps to understand how strategies are developed, enacted, and adapted in real-life settings.

5 Must Know Facts For Your Next Test

1. Strategy-as-practice highlights that strategy is co-created through the actions of individuals rather than being solely determined by top management.
2. It draws attention to the informal processes and interactions that contribute to strategy formation, emphasizing the role of culture and social dynamics.
3. This approach recognizes that strategy is context-dependent, meaning it can change based on the environment and stakeholder interactions.
4. By focusing on practices, this perspective encourages practitioners to reflect on how their daily actions impact strategic outcomes.
5. Strategy-as-practice helps bridge the gap between theory and practice by providing insights into how strategies are actually lived out in organizations.

Review Questions

• How does the strategy-as-practice perspective shift our understanding of who is involved in strategy formulation and implementation?
  • The strategy-as-practice perspective shifts our understanding by illustrating that strategy formulation and implementation are not solely the responsibilities of top executives but involve a range of actors at all levels within an organization. It emphasizes that everyday actions, conversations, and interactions among employees significantly influence strategic outcomes. By recognizing these contributions, organizations can harness collective insights and behaviors to shape more effective strategies.
• In what ways do informal practices within an organization affect the strategy-as-practice approach?
  • Informal practices play a crucial role in the strategy-as-practice approach by highlighting how social dynamics, culture, and interpersonal relationships shape strategic decisions. These practices may include casual discussions among employees, informal meetings, or unstructured collaborations that facilitate idea-sharing and innovation. Such interactions often provide valuable insights that may not be captured in formal planning processes but are essential for adapting strategies to real-world challenges.
• Evaluate the implications of adopting a strategy-as-practice approach for strategic leadership within organizations.
  • Adopting a strategy-as-practice approach significantly impacts strategic leadership by shifting the focus from hierarchical decision-making to inclusive participation and collaboration. Leaders must cultivate an environment that encourages open communication and fosters engagement across all organizational levels. This shift promotes adaptability and responsiveness as leaders become more aware of how their actions influence organizational practices. Additionally, leaders are encouraged to reflect on their role in facilitating conversations that drive strategic innovation and collective ownership of strategies.

Related terms

Strategic Management: The ongoing process of planning, monitoring, analyzing, and assessing an organization's strategies to achieve its goals.

Organizational Culture: The shared values, beliefs, and behaviors that shape how members of an organization interact and work together.

Strategic Leadership: The ability of leaders to influence and shape the strategic direction of an organization through effective communication, decision-making, and relationship-building.