IESE Research Papers
No D/573:
Strategy formation effects on managerial action: Strategy in the back of your head
Juan I. Canales and Joaquim Vila ()
Abstract: This paper examines the interplay between top and middle
level managers as strategy-making settles and in subsequent managerial
action. It reports on an exploratory case study at a car service company
that has an aggressive expansion strategy. The study examines the context
and characteristics of the strategy-making process and the specific
evolution of fourteen strategic initiatives. Of particular interest was
that the interplay between top managers and middle managers was resolved
through a legitimizing mechanism. This interplay took place through
deliberation and agreement, with extensive participation, and developed
into shared views of strategy which provided legitimation. Once settled,
strategic initiatives were subsequently developed in harmony with the
strategic intent. This agreement provided guidance to carry out strategic
initiatives and was a source of resilient strategic conversation. From
analysis of the case, a model presenting how strategic intent interacts
with the creation of strategic initiatives is presented. This model aims at
overcoming the mutually exclusive bottom-up and top-down sources of
influence, integrating both in a process model.
Keywords: Strategy-making; middle management; top management; managerial action; (follow links to similar papers)
28 pages, October 10, 2004
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