Difference in Planned and Emergent Strategy

Question: Write about the Difference in Planned and Emergent Strategy. Answer: Introduction This report is basically focused on the analytical or planned and emergent approaches to the strategy. The report has described the differences between the planned and emergent approaches of the strategy. Along with this, the reflection of the practical experience in the organization related to planned and emergent approaches of the strategy has also discussed. At last, the benefits of these approaches for managing the organization and for legitimizing the self actions within the organization have been discussed. For the discussion, a MNC bank operating in Saudi Arabia has taken. The MNC bank, The National commercial Bank has selected for the discussion. The description of both the approaches is as follows: Analytical or Planned Approach Planned and analytical strategy is required to set the clear vision, plans and targets and the idea to execute them. The planned strategy is required to achieve the set goals in the stable and controllable environment. There are three characteristics of the planned approach i.e. Precise mission of the organization expressed to its staff and employees in the clear manner, Presence of the shared organizational goals among the staff and employees such as meet the Six-sigma quality standards in the deliverables, and the collective intentions must be understand in respect of environmental forces (Cailluet, Rose Whittington, 2005). Basically, in the planned approach, leaders in the organization build a plan and execute that plan in the stable environment. This approach does not give any response to external factors such as changes in customers preference, government policy and newer technology. The organization normally have no or little control over the environment in which it is operating so, it is not suitable to use analytical approach properly (Kumar, 2015). Emergent Approach On the other hand, the vision which is set by the organization shows the direction to the organization. In other words, the vision of the organization is to set the journey for the operations of the organization. In the emergent approach, the organization collects feedbacks related to past actions which were carried out. Along with this, this approach identifies the opportunities and threats in the present and by considering these factors, organization will be able to re-develop the vision. It is important in the emergent group to have the ability to change based on the external factors and to turn the threats into the opportunities within the organization. This approach is purposeful as a bottom-up approach which is the important part of the strategic planning within the organization having full control (Mullins, 2005). Difference Identified Between Approaches From the definitions of both the approaches, it is clear that there are some differences in both strategic approaches. In the planned approach, there are precise intentions, formal plans, and centralized leadership. On the other hand, in the emergent approach, there is the adaptation of new threats, opportunities, collective vision, shared targets and goals and respondent to the external environment. For a purposeful approach to get success, it is necessary for the organizations to be predicable (Sheldrake, 2014). There is the controllable and predictive environment in the planned approach which is impossible in the modern, bounder-less and high-tech environment. On the other hand, in the emergent approach, there is the need of consistent and reliable action. In the emergent approach, there are two key aspects i.e. presence of feedback and continuous strategy formulation by learning. Basically the emergent strategy is adopted by that management which is out of control. Emergent appro ach reacts to the external factors with very maturity which is the advantage of this approach. But using this approach too much can be the cause of trouble in the organization (Spacey, 2016). Practical Experience of the Approaches I was working in a MNC bank in Saudi Arabia named The National commercial Bank. The bank was about to implement the strict security measures to reduce the risks related to credit crisis. The vision of the bank was at very high level but the staff did not know about the threats and opportunities in the strategy. As we continued with the program, we took input from the environmental factors such as staff of the bank, industry best practices and government regulatory body. Then we prepared the way to implement the set vision in that plan. If we choose the planned approach, there would be fewer chances for feedback and re-formulate strategy and that wont work. There was need to motivate the staff and employees and ensure them that the measures would not affect them in any way. For this manner, feedback was taken and workshop was conducted to prepare them for the challenges. So, we finally turned the threats to the opportunities and the program was endeared by the employees of the bank as once we motivated the staff then all the things were easy to execute. It was a learning experience for me because the emergent approach has opened the way of possibility for the strategy implementation. This kind of learning behavior is very important when the external environment is too complex to handle. Then we took the help of emergent approach to understand the situation over the time (Ghobadian, 2008). Analysis of Benefit There is the need of both kinds of strategies in the organization to establish the effective vision. The approaches are necessary to direct the staff and the employees and to identify the proper way to respond the external factors during the operations. It is clear that the importance of the approaches can be changed based on the needs and requirements but both the strategies are needed for the success and growth of the organization. The adoption of the approaches depends upon the situation and the nature of the business (Manuwa, 2014). The planned approach is important as in this approach; employees have respect for their managers. Along with this, there is the availability of time to develop the action plan for the maximum advantage of the business. The emergent approach is developed and it is the front line approach which solves the actual issues. In the modern, fast-moving and boundary-less market, there is the need to gain competitive advantage by the organization over the compe titors. So, the emergent approach is very benefice in such kind of market. Emergent approach can be considered as the set of actions and behaviors in the organization. To take support and gain competitive advantage in the market, emergent approach is most suitable approach as compared to planned approach (Neugebauer, 2015). Conclusion The report has described about the differences between planned approach and emergent approach. From the above analysis, it has analyzed that there is the need of planned strategy to set the objectives and targets in the stable environment by the organization. But in the modern environment, it is impossible for the organization to assume for the controllable environment. By the self analysis, it is clear that the organization should adopt reliable and consistent actions to achieve the goals. Along with this, it also has observed that for the strategy implantation, the emergent approach is the best approach within the organization. Further, the management of the organization should have the practical experience to handle the complex situation of environment. So, the organization should choose the approaches based on the situation and the nature of the business. According to me, the emergent approach is the appropriate approach for the organizations as by this approach, the organization will be able to re-develop the objectives and mission. But it is also important that organization should use that approaches in the limited way to get the best results in the business. References Cailluet, L., Rose, T., Whittington, R. (2005). The rise and rise of strategic planning: Paper presented at the British Academy of Management Conference. Ghobadian, A. (2008). Formal strategic planning, operating environment, size, sector and performance: Journal of General Management. 34(2): 1-20 Kumar, P. (2015). An Analytical study on Mintzbergs Framework: Managerial Roles: International Journal of Research in Management Business Studies. 2(3). Manuwa, A. (2014). Deliberate vs. Emergent Business Strategy. Retrieved on 21st February 2017 from https://www.linkedin.com/pulse/20140630061420-296333353-deliberate-vs-emergent-business-strategy Mullins, L. (2005). Management and Organisational Behaviour. London: FT/Prentice Hall Neugebauer, N. (2015). Planned or Emergent Strategy Making? Exploring the Formation of Corporate Sustainability Strategies. 25(5) Rose, W. R. (2014). Planned and Emergent Strategy. New York: Springer Sheldrake, P. (2014). Deliberate and emergent, by design. Retrieved on 21st February 2017 from https://www.philipsheldrake.com/2014/07/deliberate-emergent-design/ Spacey, J. (2016). Change: Emergent vs Planned. Retrieved on 21st February 2017 from https://simplicable.com/new/emergent-change