Strategy: Past and Future--The Problem of Strategic Behavior in Discontinuous Environments

By: Stephan H. Haeckel

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Synopsis: Strategy-as-plan has ceased to be a viable option for most large organizations because creating an overall plan of organizational behavior requires the ability to predict or control the future, an ability that increased discontinuity has all but eliminated. Pervasive uncertainty about customer preferences calls into question the usefulness of both strategic plans and the business structures designed to carry them out. This chapter looks at the potential benefits and pitfalls of adopting an emergent strategy, which implies reactive rather than proactive behavior, as well as the decentralization of the traditional organization.