STRATEGY – 5 Ps

Henry Mintzberg, Bruce Ahlstrand and Joseph Lampell,

in their 2005 book “Strategy Bites Back”, present 5
"P's" as a way to define strategy.

Each "P" throws light on what strategy is / means /

encompasses from a different angle, to provide a
comprehensive overview that is probably more useful
than definitions that try to fit all into a couple of
sentences.

These 5 Ps are as follows:

Strategy is a PLAN

To almost anyone you care to ask, strategy is a plan -

some sort of consciously intended course of action, a
guideline (or set of guidelines) to deal with a situation.
A kid has a "strategy" to get over a fence; a firm has
one to dominate a market for a particular service.
By this definition, strategies have two essential
characteristics: they are developed consciously and
purposefully.

Strategy as a PLOY (Trick/Manoeuvre)

Strategy can be a ploy, too, which is really just a

specific "manoeuvre" intended to outwit an opponent or
competitor. A firm may threaten to establish a new
practice area in order to discourage a competitor from
trying to do the same. Here the real strategy is the
threat, not the new practice area itself, and as such is
a ploy. Threatened litigation often falls into this
category.

Strategy is a PATTERN

Strategy (whether as general plans or specific ploys) is

pointless if it cannot be realized. In other words,
defining strategy as a plan or ploy is not sufficient; we
also need a definition that encompasses the resulting
behaviour. Thus, strategy is also a pattern -
specifically, a pattern in a stream of actions. By this
definition, strategy is consistent in behaviour, whether
or not intended.

The outcome of strategy does not derive from the

design, or plan, but from the action that is taken as a
result.

Plans are intended strategy, whereas patterns are

realised strategy; from this we can distinguish
deliberate strategies, where intentions that existed
previously were realised and emergent strategies
where patterns developed in the absence of intentions,
or despite them.

Strategy is a POSITION

Strategy is also a position; specifically a means of

locating a firm in its environment. In ecological terms:
strategy becomes that firm's "niche." In management
terms: a "domain" consisting of a particular
combination of services, clients and markets. Position
is often defined competitively (literally so in the
military, where it becomes the site of a battle.)

Strategy is a position - specifically a means of locating

an organisation in an "environment". By this definition
strategy becomes the mediating force, or "match",
between organisation and environment, that is,
between the internal and the external context.

Strategy is a PERSPECTIVE (Viewpoint)

While position is outwardly focused, perspective looks

inward into the firm; even into the heads of the
strategists themselves. Strategy in terms of this
definition becomes a deep rooted way of perceiving the
world. Strategy in this respect is to the organisation
what personality is to the individual. What is of key
importance is that strategy is a perspective shared by
members of an organisation, through their intentions
and / or by their actions. In effect, when we talk of
strategy in this context, we are entering the realm of
the collective mind - individuals united by common
thinking and / or behaviour.

Some firms are aggressive pacesetters; others build

protective shells around themselves. A law firm's view
of their business is fundamentally different to that of an
accounting firm, and engineering firm or a graphic
design studio, yet all are staffed by professionals.

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5 Ps at a Glance

The plan provides the roadmap by which the firm

intends to achieve its goals. Plans evolve from the
patterns of the past and are about intended patterns
for the future. Ploys add a dimension of trick and
manoeuvre, where one firm's gain is another's loss and
competitive advantage is critical. Ploy is a specific
move/tactic intended to outwit a competitor.

Pattern emphasizes that strategy is not a once-off

event but a constant stream of decisions and resultant
actions that drive the firm forward, over time, towards
its goal. These are patterns in action over time.
Example – A company that regularly markets very
expensive products is using high end strategy.

Position adds that different firms have different mixes

of markets, clients and services that they provide to
those clients. Position is about locating particular
products in particular markets to achieve competitive
advantage.

Finally Perspective provides an insight onto how the

firm and its strategists are informed by their own
professions, their perceptions of business, and the
unique characteristics of each firms own "world."
Perspective is about an organisation's culture - its way
of doing things. It provides vision and direction.

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The different strategic planning models provide
constructs which enable an organisation's past, present
and future activities to be analysed in the context of its
industry, competitors, geography, organisational
structure and culture, and its available resources
including know-how, products, personnel and finance.

They provide formal structures, which can be followed

systematically to identify the strategic position and the
available strategic choices which lead strategy into
action.

The strategic position is concerned with the impact of

strategy with regard to:

 The external environment;

 Internal resources and competencies; and

 The expectation and influences of shareholders.

It is from this point of view that an organisation can

assess its strategic choices and formulate its proposed
actions.

There are a number of models that can assist in this

analysis. The starting point is the SWOT Analysis.
Analysis of strengths and weaknesses concentrates on
the internal factors that influence the organisation's
performance and opportunities and threats looks at the
external factors that are influencing a business.

The external analysis can be expanded further to

formulate a PEST (PESTEL/DER) (Political, Economic,
Societal, Technological, Legal, Demographic,
Environmental, Ecological and Regulatory Frame-work)
analysis.