A stakeholder perspective of strategy formation

Strategy formation traditionally involves the use analytical tools and highly structured processes (Heracleous, 1998; Wilson, 1998; Mintzberg 1994; Porter, 1980). This approach continues to assist in surfacing the `wicked¿ nature of strategic issues and testing of assumptions in strategy making, (Christensen, 1997; Mason and Mitroff, 1981), however theorists and practitioners in the past decade have identified a shift to more emergent characteristics in the strategy making process combining stakeholder considerations and strategic conversations during strategy formation with select stakeholders (Moss Kanter, 2002; Liedtka 1998a, 1998b; Heracleous, 1998; Christensen, 1997). The first acknowledgements of the approach to consider stakeholder needs in strategy formation date back to Freeman (1984). This paper presents case analysis of field investigations of strategy formation processes on two organizations. In both organizations the principal author facilitated strategy development processes with board members, senior executives and staff. A core theme in the strategy making process for each organization was the strong emphasis on stakeholder considerations in strategic thinking (Ohmae, 1982; Heracleous, 1998; Liedtka 1998a, 1998b) and also in developing strategic plans using emergent practices to supplement traditional planning process in strategy formation (Christensen, 1997; Mintzberg, 1994; Mintzberg and Waters, 1985).