Igor Ansoff (1918-)
through his unstintingly serious, analytical and complex,Corporate Strategy, published in 1965, had a highlysignificant impact on the business world. It propelled consideration of strategy into a new dimension. It was Ansoff who introducedthe term strategic management into the business vocabulary.
He also brought the concept of ‗synergy‘ to a wide audience for the first
time. In Ansof
f‘s original creation it was simply summed up as the ―2+2=5‖ effect.
The Problem with Strategic Planning (Analysis)
: Managers have assumed that anything which could not be analyzed could not bemanaged. The belief in analysis is part of a search for a logical commercial regime, a system of management which will, under anycircumstances, produce a successful result. There are two basic problems with the reliance on analysis. First, it is all technique. Thesecond problem is more fundamental. This was all very well in the 1960s and for much of the 1970s. Security could be found. Thebusiness environment appeared to be reassuringly stable. Objectives could be set and strategies developed to meet them in theknowledge that the overriding objective would not change. Such an approach, identifying a target and developing strategies to achieveit, became known as
Management by Objectives (MBO).
Under MBO, strategy formulation was seen as a conscious, rational process. MBO ensured that the plan was carried out. The overallprocess was heavily logical and, indeed, any other approach (such as an emotional one) was regarded as distinctly inappropriate. Thethought process was backed with hard data. There was a belief that effective analysis produced a single, right answer; a clear plan waspossible and, once it was made explicit, would need to be followed through exactly and precisely.
book The Rise and Fall of Strategic Planning was first published in 1994.
―The confusion of means and ends
s our age,‖ Henry Mintzberg observes and, today, the highways are likely to be gridlocked. When the highways are
blocked managers are left to negotiate minor country roads to reach their objectives
Strategic Planning to Strategic Management
Strategic Planning to Strategic Management: Strategic planning was a plausible invention and received an enthusiastic reception fromthe business community. n a minority of firms, strategic planning restored their profitability and became an established part of themana
gement process. However, a substantial majority encountered a phenomenon, which was named ―paralysis by analysis‖: strategic
plans were made but remained unimplemented, and profits/growth continued to stagnate.In 1972
published the concept under the name of Strategic Management through a pioneering paper titled
The Concept of Strategic Management
, which was ultimately to earn him the title of the
Father of strategic management
. The paper asserted theimportance of strategic planning as a major pillar of strategic management but added a second pillar
the capability of a firm toconvert written plans into market reality. The third pillar- the skill in managing resistance to change
was to be added in the 1980s.Between 1974 and 1979 Ansoff developed a theory which embraces not only business firms but other environment-servingorganizations. The resulting book titled Strategic Management, was published in 1979.The Key patterns in strategic management as practiced by the Indian companies in the 3 periods are as below:Pre-
liberalization Stage: Strategic management on government‘s fringes
Subsuming enterprise objectives into the national planning framework
Capabilities in generating and grabbing opportunities
High diversification, non- competitive scales and weak technology capabilities
Secretive and ‗one man‘ strategic management process
The decade of the 1990‘s : Transitional euphoria & reality check
Carried‘ operation de
linked strategy‘ mindset to the early 1990‘s
‗Foreign complex‘ governed strategy in older groups in the early 1990‘s
Strategy of focus through rationalization and operations improvement by majority of companies in the late 1990‘s
Strategy of growth through acquisitions, internationalization and product market expansion by some companies in the late
Experimentation with international consulting firms in strategic management process.Post liberalization stage: Issues and agenda in 2000-2010