THE 5 Ps OF STRATEGY

Mintzberg first wrote about the concept in 1987. Each of the 5 Ps represents a different approach
to strategy.

These five components allow an organization to implement a more effective strategy. A strategy
is aimed at the future, concerns the long term and involves different aspects of an organization.
Competition is always a factor, but it would be a mistake to develop strategies only aimed at
competitors. The strategies should also take into account the organizational culture and the other
possibilities and developments within an organization. The 5 Ps are explained below.

PLAN

A strategy is a plan for dealing with situations. A plan has to be made before possible actions are
taken and it’s also important that the plan is followed conscious and effectively. Goals can only
be achieved with a good plan. They enable managers to give their teams clarity and work
towards interim evaluations and final results. However, a clear organizational strategy requires
more than just a plan.

PLOY

It’s also a strategic choice to use a ploy. For instance one that competitors don’t expect.
Organizations can surprise their environment by implementing a plan that nobody saw coming.
For instance, a phone service provider can mislead others by suddenly also offering internet
service and digital television. That puts them in competition with other potential providers of
those services. It’s a ploy to outsmart the competition.

PATTERN

Where making a plan about intended strategy, patterns are about strategies that have been
implemented before, on the one hand, there are strategies that achieved that intended results. On
the other hand, there are strategies that still have to be worked out in more detail.

Earlier patterns are an important part of developing the new strategy. It’s about a regular pattern
in the decision making flow. If certain choices have been made in the past, an organization is
likely to make those decisions again in the future. In such cases, past behavior is a pattern that’s
included in strategy development. It’s about intentionally or unintentionally consistent behavior
displayed by employees and teams.

POSITION

This is about the organization’s position in the market, the interaction between the internal and
external context. It’s important to consider carefully in advance how the organization wants to
position itself. What will its identity look like and does that match the idea stakeholders have of
the organization? This can contribute significantly to developing a lasting competitive advantage.
Considering the strategic position helps against competitors and to give the organization a firm
place in the market.

PERSPECTIVE

Strategy is about more than the chosen position; it’s also about the larger perspective. It’s
important to find out how different target audiences perceive the organization. How do the
employees regard their employer? What do customers think of the organization? What is their
image among investors?

All these individual perspectives and thought patterns are a valuable source of information for
the organization, which they can use to make targeted strategic choices.