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Entrepreneurial articles - Wiltbank et al.: What to do next? The case for non-predictive strategy

10 important questions on Entrepreneurial articles - Wiltbank et al.: What to do next? The case for non-predictive strategy

Among the most difficult challenges in business is creating strategy for the future of an organization that is doing well: how can a firm know what to do next? Name 3 common possibilities: (Wiltbank)

1 You can't predict the future, but you can make an educated guess: analyze trends, track competitors, evaluate financial indicators, assess strengths and weaknesses (= prediction)

2 As an alternative to predication, you could watch how are growing competitors: what formats work well, what customers love right now.

3 Do both: moving forward slowly on their to do list, keep options open and be able to react to real learning without betting the business on predictions

Describe the global differences in prediction and adaptation (Wiltbank)

- Prediction enables control, allowing to choose the appropriate means to proceed toward desired outcomes

- Adaptation argues that, in changing environments, moving faster to adapt will lead organizations forward more effectively than trying harder to predict.

> In current conceptions prediction is fundamental in controlling future outcomes.

Organizations should try harder to predict better (rational strategies advocating by the planning school). Of move faster to adapt better (adaptive strategies espoused by the learning school). What are the key characteristics and the key differences of both strategies? (Wiltbank)

-Key characteristic of both approaches is their emphasis on positioning the organization within an exogenously given environment.
-The difference is primarily how they cope with that given uncertainty.

What is the approach suiting high prediction and low control? (Wiltbank)

Planning: under certain situations organizations need to analyze accurately their environment (in order to predict). Prediction is to inaccurate for strategy making under uncertainty.

What is the approach suiting low prediction and low control? (Wiltbank)

Adaption: minimizing the use of predictive rationality, and instead experimenting and moving quickly to capture new opportunities. By being flexible and adaptive.

Incrementalism: the firm learns from environmental feedback.

What are the disadvantages of planning? (Wiltbank)

Planning slows down adaption. Comprehensive planning can blind the organization to important changes in it's environment. Predictions lead to commitments that lock organizations into planned strategy.

How can planning and adaption be combined? (Wiltbank)

It is planned adaption: rational planning can focus on predictive strategies that set the stage for fast adaption.

What is the approach suiting high prediction and high control? (Wiltbank)

Visionary: strong connections with predictive approaches to strategy and embody heroic notions of insightful and persistent entrepreneurs that seem to impose their will upon the world. This approach simultaneously emphasizes high control and high prediction. The future that comes to exist does so in large part simply, because visionary leaders chose to create it.

What is the approach suiting low prediction and high control? (Wiltbank)

Transformative: it focus on co-creating goals with others in a mutually persuasive process where action often precedes clear goals and predicted outcomes. Actors using this strategy to transform extant (bestaande) means into new futures.

In sum: predictive strategies are ways to manipulate current realities to reach preselected goals. Adaptive strategies are ways to map resources onto (naar) given environments. Transformative strategies generate new goals and new environments from current realities. Reconceptualizing prediction and control as independent suggests new relationships beteween strategy making and.... (name 5) (Wiltbank)

1 Particular types of environments (uncertain/mature etc.)

2 Specific aspects of dynamics such as speed, magnitude, quantity of changes over time

3 Various types of technological regimes

4 Macro-economic factors

5 Behavioral assumptions about the actors involved.

The question on the page originate from the summary of the following study material:

Designing effective organizations : how to create structured networks | 9780787960643 | Michael Goold, et al

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Entrepreneurial articles - Wiltbank et al.: What to do next? The case for non-predictive strategy

10 important questions on Entrepreneurial articles - Wiltbank et al.: What to do next? The case for non-predictive strategy

Among the most difficult challenges in business is creating strategy for the future of an organization that is doing well: how can a firm know what to do next? Name 3 common possibilities: (Wiltbank)

Describe the global differences in prediction and adaptation (Wiltbank)

Organizations should try harder to predict better (rational strategies advocating by the planning school). Of move faster to adapt better (adaptive strategies espoused by the learning school). What are the key characteristics and the key differences of both strategies? (Wiltbank)

What is the approach suiting high prediction and low control? (Wiltbank)

What is the approach suiting low prediction and low control? (Wiltbank)

What are the disadvantages of planning? (Wiltbank)

How can planning and adaption be combined? (Wiltbank)

What is the approach suiting high prediction and high control? (Wiltbank)

What is the approach suiting low prediction and high control? (Wiltbank)

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