5 Ps of Strategy - Mintzberg

Summary

In this insightful lesson, the focus is on Henry Mintzberg's five Ps of strategy, which offer a multifaceted approach to developing robust strategies. The video script explains that a simplistic SWOT analysis is often insufficient, and instead, one must consider strategy from five viewpoints: plan, ploy, pattern, position, and perspective. Each 'P' sheds light on different aspects of strategy, from intended actions to realized behaviors and the organization's culture. The lesson uses Apple as an example to illustrate these concepts, emphasizing the importance of a unique and well-rounded strategic approach.

Takeaways

• 🧠 Strategy is not just about competing to be the best, but about being unique and standing out in the market.
• 🕵️‍♂️ Mintzberg's Five Ps of Strategy offer a comprehensive approach to understanding and developing a robust strategy.
• 📝 The 'Plan' is a set of intended actions or guidelines to move from current position to desired future state.
• 🎯 'Ploy' involves specific tactics to outsmart competitors, such as price reductions or legal threats, but should not overshadow long-term strategy.
• 🔍 'Pattern' refers to the behaviors that have worked in the past and should be continued or enhanced as part of the realized strategy.
• 📍 'Position' defines where an organization sits in the market relative to competitors, such as being the cheapest or having the most features.
• 🌟 'Perspective' looks internally at shaping the organization's culture and personality based on its view of the marketplace.
• 🛠 Tools are available for each viewpoint to further develop the strategy, with links provided for detailed exploration.
• 🔑 A good strategy requires deep thought and time investment, and even then, it can be rendered obsolete by competitors.
• 📈 Strategy is not a one-time event but a series of consistent actions that move the organization towards its goals.
• 🍏 Apple serves as an example of applying the Five Ps, with a plan for innovation, ploys of legal action, patterns of responding to competition through innovation, a high-end position in the market, and a perspective of 'Think Different'.

Q & A

What is a common mistake companies make when developing strategy?

A common mistake is taking a simplistic approach, such as brainstorming through a SWOT analysis and immediately plotting a path to world domination without deep thought and time investment.

What is the key to a successful strategy according to the lesson?

The key is to compete to be unique, not to be the best. This involves deep thought and time investment to develop a robust strategy.

What are Mintzberg's five Ps of strategy?

The five Ps of strategy are Plan, Ploy, Pattern, Position, and Perspective.

How does Mintzberg define 'Plan' in the context of strategy?

Plan is a course of action or a series of guidelines intended to get an organization from where it is now to where it wants to be. It is developed purposely and in advance.

What is a 'Ploy' in Mintzberg's strategy model?

A Ploy is a specific tactic to outsmart or disrupt a competitor. Examples include dropping prices, filing for patents, or threatening legal action.

Why is 'Pattern' important in strategy development?

Pattern looks at the behaviors that have worked in the past and decides which to continue, enhance, or stop. It represents the realized strategy through everyday actions.

What does 'Position' refer to in Mintzberg's strategy model?

'Position' refers to where an organization sits on the playing field relative to competitors, such as being the cheapest or having the most features.

How is 'Perspective' defined in the context of Mintzberg's strategy model?

'Perspective' looks internally at the organization's culture and personality, shaping its actions based on how it views the marketplace and what it perceives it wants.

Can you give an example of how the five Ps of strategy apply to a real company?

Using Apple as an example: Plan - build intuitive consumer electronics and expand their app ecosystem; Ploy - stay ahead of competitors in innovation and threaten legal action against imitators; Pattern - respond to competition through innovation; Position - high-quality, high-end products; Perspective - 'Think Different' culture focused on innovation.

What role does senior management play in maintaining the 'Perspective' of an organization?

Senior management's role is to ensure everyone shares the same perspective through sharing the organization's vision and values and aligning daily actions with this perspective.

How does Mintzberg’s model help in developing a robust strategy?

By examining strategy from five different viewpoints (Plan, Ploy, Pattern, Position, Perspective), it ensures a more comprehensive and robust strategy than using just a couple of sentences.