Strategic Options - Mintzberg 5 Ps of Strategy

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Mintzberg's 5 Ps of Strategy
Developing a Better Strategy
What's your approach to developing strategy?

Many of us brainstorm opportunities, and then plan how we'll take advantage of them.
Unfortunately, while this type of approach is important, we need to think about much more than
this if we want to be successful. After all, there's no point in developing a strategy that ignores
competitors' reactions, or doesn't consider the culture and capabilities of your organization. And it
would be wasteful not to make full use of your company's strengths – whether these are obvious or
not.
Management expert Henry Mintzberg, argued that it can be difficult to get strategy right. To help us
think about it in more depth, he developed his 5 Ps of Strategy – five different definitions of (or
approaches to) developing strategy.
About the 5 Ps
Mintzberg first wrote about the concept in 1987. Each of the 5 Ps represents a different approach to
strategy. They are:
1. Plan.
2. Ploy.
3. Pattern.
4. Position.
5. Perspective.
By understanding each P, you can develop a robust business strategy that takes full advantage of
your organization's strengths and capabilities.
In this article, we'll explore the 5 Ps in more detail and the tools that you can use in each area.
1. Strategy as a Plan
Planning comes naturally to many managers and as such, has become the default first step.
Planning is an essential part of the strategy formulation process, so take time to Brainstorm new
opportunities. Tools like PEST Analysis , SWOT Analysis and practical business planning can help
you to formulate an effective strategy.
The problem with planning, however, is that it's not enough on its own. This is where the other four
Ps come into play.
2. Strategy as Ploy
Mintzberg says that getting the better of competitors, by plotting to disrupt, dissuade, discourage, or
otherwise influence them, can be part of a strategy. This is where strategy can be a ploy, as well as a
plan.
For example, a grocery chain might threaten to expand a store so that a competitor doesn't move
into the same area; or a telecommunications company might buy up patents that a competitor could
potentially use to launch a rival product.
Here, techniques and tools such as the Futures Wheel , Impact Analysis and Scenario Analysis can
help you explore the possible future scenarios in which competition will occur. Our article on Game
Theory then gives you powerful tools for mapping out how the competitive "game" is likely to
unfold, so that you can set yourself up to win.
Nazrul Islam Jewel

[email protected]
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3. Strategy as Pattern
Strategic plans and ploys are both deliberate exercises. Sometimes, however, strategy emerges from
past organizational behavior. Rather than being an intentional choice, a consistent and successful
way of doing business can develop into a strategy.
For instance, imagine a manager who makes decisions that enhance an already highly responsive
customer support process. Despite not deliberately choosing to build a strategic advantage,
their pattern of actions nevertheless creates one.
To use this element of the 5 Ps, take note of the patterns you see in your team and organization.
Then, ask yourself whether these patterns have become an implicit part of your strategy; and think
about the impact these patterns should have on how you approach strategic planning.
Tools such as USP Analysis and Core Competence Analysis can help you with this. A related
tool, VRIO Analysis , can help you explore resources and assets (rather than patterns) that you
should focus on when thinking about strategy.
4. Strategy as Position
"Position" is another way to define strategy – that is, how you decide to position yourself in the
marketplace. In this way, strategy helps you explore the fit between your organization and your
environment, and it helps you develop a sustainable competitive advantage .
For example, your strategy might include developing a niche product to avoid competition, or
choosing to position yourself amongst a variety of competitors, while looking for ways to
differentiate your services.
When you think about your strategic position, it helps to understand your organization's "bigger
picture" in relation to external factors. To do this, use Porter's Diamond and Porter's Five Forces to
analyze your environment – these tools will show where you have a strong position, and where you
may have issues.
Note:
There can be a lot of overlap between "Strategy as Position" and other elements of the 5 Ps. For
instance, you can also achieve a desired position through planning, and by using a ploy. Don't worry
about these overlaps – just get as much value as you can from the different approaches.
5. Strategy as Perspective
The choices an organization makes about its strategy rely heavily on its culture – just as patterns of
behavior can emerge as strategy, patterns of thinking will shape an organization's perspective, and
the things that it is able to do well.
For instance, an organization that encourages risk-taking and innovation from employees might
focus on coming up with innovative products as the main thrust behind its strategy. By contrast, an
organization that emphasizes the reliable processing of data may follow a strategy of offering these
services to other organizations under outsourcing arrangements.
To get an insight into your organization's perspective, use cultural analysis tools like the Cultural
Web , Deal and Kennedy's Cultural Model , and the Congruence Model .
Using the 5 Ps
Instead of trying to use the 5 Ps as a process to follow while developing strategy, think of them as a
variety of viewpoints that you should consider while developing a robust and successful strategy.
As such, there are three points in the strategic planning process where it's particularly helpful to use
the 5 Ps:
Nazrul Islam Jewel

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1. When you're gathering information and conducting the analysis needed for strategy
development, as a way of ensuring that you've considered everything relevant.
2. When you've come up with initial ideas, as a way of testing that they're realistic, practical
and robust.
3. As a final check on the strategy that you've developed – to flush out inconsistencies and
things that may not have been fully considered.
Using Mintzberg's 5 Ps at these points will highlight problems that would otherwise undermine the
implementation of your strategy.
After all, it's much better to identify these problems at the planning stage than it is to find out about
them after you've spent several years – and large amounts of money – implementing a plan that was
flawed from the start.
Key Points
The 5 Ps of Strategy were created by Henry Mintzberg in 1987. Each of the 5 Ps stands for a different
approach to strategy:
1. Plan.
2. Ploy.
3. Pattern.
4. Position.
5. Perspective.
As a Plan, strategy needs to be developed in advance and with purpose. As a Ploy, strategy is a
means of outsmarting the competition.
With strategy as a Pattern, we learn to appreciate that what was successful in the past can lead to
success in the future.
As for Position, strategy is about how the organization relates to its competitive environment, and
what it can do to make its products unique in the marketplace.
Perspective emphasizes the substantial influence that organizational culture and collective thinking
can have on strategic decision making within a company.
Understanding and using each element helps you to develop a robust, practical and achievable
business strategy.
Nazrul Islam Jewel

[email protected]

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What's your approach to developing strategy?

Nazrul Islam Jewel

Nazrul Islam Jewel

Nazrul Islam Jewel

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