1. Inception pack volume three: What is strategy?
2007
the planning lab (sthlm)

2. What is strategy?
And how is it relevant to account planning?
the planning lab (sthlm) Inception pack

3. What is strategy?
• “We simply don’t know what strategy is or how
we can develop a good strategy”
(Markides, 2000)
• “Consultants and theorists that compete for
giving advice to companies cannot even agree on
the most basic question: what is strategy?”
(The Economist, March 20, 1993)
the planning lab (sthlm) Inception pack

4. Four generic perspectives on strategy*
Intention of strategy
Profit maximising
Classic Evolutionary
Process
Planned Gradual
Systemic Processual
Pluralistic
the planning lab (sthlm) Inception pack *Whittington, R (2002) What is strategy - and does it matter?

5. The Classical perspective
Intention of strategy
Profit maximising
Strategy = a rational process
that includes rational analysis and
objective decision-making in order
to maximise long-term value
Porter
Ansoff
Classical Evolutionary
Process
Planned Good business Gradual
planning is required to
control internal and
external environment
Systemic Processual
Pluralistic
the planning lab (sthlm) Inception pack *Whittington, R (2002) What is strategy - and does it matter?

6. The evolutionary perspective
Intention of strategy The dynamic,
hostile and competitive
Profit maximising nature of markets makes it
difficult to plan for long-
Classical term survival
(rational and future-
oriented) planning is
Hannan & Freeman
irrelevant
Classical Evolutionary Williamson
Process
Strategy = day-to-day
Planned management for surviving Gradual
external circumstances
Systemic Processual
Pluralistic
the planning lab (sthlm) Inception pack *Whittington, R (2002) What is strategy - and does it matter?

7. The processual perspective
Intention of strategy
Profit maximising
Classical Evolutionary
Process
Cyert &
Future-oriented business
Planned March Gradual
planning is irrelevant
Mintzberg
Systemic markets nor
Neither Processual
organisational processes are
“perfect enough” for classical or
evolutionary strategies to be People are too different
adopted Stategy = a when it comes to interest,
pragmatic process of knowledge, attention, rationality and
mistakes, learning can therefore not agree on an
Pluralistic and compromises optimal plan
the planning lab (sthlm) Inception pack *Whittington, R (2002) What is strategy - and does it matter?

8. The systemic perspective
Intention of strategy
Profit maximising
Classical Evolutionary
Other rational goals
Process
besides profit-maximisation: Definition of
professional pride, influence, stategy depends
patriotism, culture, religion
Planned on contextual Gradual
factors Whitley
Systemic Granovetter Processual
Competition
does not imply efficiency:
Strategic objectives depends
markets can be manipulated;
on the specific social system in
society has other criterias for
which the strategy is created
corporations than just profit-
Pluralistic
maximisation
the planning lab (sthlm) Inception pack *Whittington, R (2002) What is strategy - and does it matter?

9. Overview
Classical Processual Evolutionary Systemic
Strategy Formal Crafted Effective Encapsuled
Objective Profit-maximisation Unclear Survival Local approval
Internal (politics and
Focus Internal (plans) External (markets) External (society)
perceptions)
Processes Analytical Negotiation/learning Darwinist Social
Economics Economics
Influences Psychology Sociology
Military Biology
Cyert & March, Hannan & Freeman,
Important names Chandler, Ansoff, Porter Granover, Whitley
Mintzberg, Pettigrew Williamson
Development 1960s 1970s 1980s 1990s
the planning lab (sthlm) Inception pack

10. What does this imply for agency planning?
the planning lab (sthlm) Inception pack

11. social anthropologist
bad cop (to account management’s/ strategic thinker/strategy developer
client service’s good cop)
market researcher
target audience think piece polemicist
representative/voice of the
consumer
writer of the creative brief
insight miner
npd consultant
data analyst
brainstorming facilitator
knowledge applicator
qualitative focus group moderator
media/communications planner
soothsayer/futurologist
information centre
The role of planning again...
the planning lab (sthlm) Inception pack Source: “What is account planning” (2001), Account Planning Group UK

12. In other words: most planners need to
have a clue about strategy
Brand strategy
Business strategy
Communications
An understanding of the client firm’s strategic perspective allows us to
better grasp the potential and limitations of the branding and
communications work that we recommend
the planning lab (sthlm) Inception pack

13. The classical perspective: control everything
• Possible to control external environment = we can control the customer’s
attitude/behaviour through marketing communications
• Marketing communications decisions will be made through quantitative analysis
and modelling
• Masters of our own destiny when it comes to brand and advertising management
• Typical separation between strategy (“brain”) and reality (“hands”)
the planning lab (sthlm) Inception pack

14. The evolutionary perspective: sell or die
• Marketing communications decisions are for short-term survival
• In the long-term we might be dead!
• Intense focus on short-run sales, not long-term brand-building
the planning lab (sthlm) Inception pack

15. The processual perspective:
win some, lose some
• A trial-and-error approach to marketing communications: some consumer
attitudes and behaviours things we can influence, some we cannot
• Continuous improvement of brand and advertising management
• Certain degree of risk-taking in decision-making allows for innovative and
creative ways of reaching customer
the planning lab (sthlm) Inception pack

16. The systemic approach:
please follow the rules of the game
• Consumer attitudes and behavior are confined to social systems with given norms,
values, roles, culture, ethics, etc.
• Limitations to what marketing communications can do in terms of market share - the
consumer culture rules
• Other “rational” reasons for marketing communications than pure profit-
maximisation
the planning lab (sthlm) Inception pack

17. Conclusion
• Try to agree on what strategy is when you’re discussing strategy/strategic issues
with a client
the planning lab (sthlm) Inception pack

18. the planning lab (sthlm)
theplanninglab.typepad.com
theplanninglab@gmail.com