Monday, March 14, 2011

What is Logical Incrementalism with definition in Strategic Management?

Quinn (1978) studied strategic management process of a range of companies and found that strategies of most of the companies do not come to existence by following a long term plan or merely a positioning approach or follow just environment led or resource based approach. Quinn (1978) coined the term ‘Logical Incrementalism’ to explain how the strategies of companies come in existence in real world.

Logical Incrementalism approach towards strategic management is that strategies are not formed and come in existence as some long term plans which are made once a while and then whole organization starts working on them. Rather strategies emerge over time in an incremental way. However, this incremental way is not random but logical as top managers make changes and take strategic decision as they learn by implementing small steps of strategies. There is constant critical evaluation of all the decisions that are taken to come to a realized strategy for businesses.

Strategies are made over a period of time and strategists formulate strategies by searching, experimenting, learning and not being tied to any one course of action. Process of strategic management is scattered, small steps and unstructured approach. Realized strategies of companies, according to Quinn (1978) are partly random and partly logical.

This approach helps companies to reduce risk in strategic decisions though managers may focus more on taking short term decisions. Companies also take investment decisions more prudently for strategic decision as they learn from their past decisions. Managers are expected to take decisions proactively as they come in terms with results of internal decisions and change in environment. In this approach towards developing strategies, managers are continuously negotiating with stakeholders to make a consensus for strategic decisions and a ‘muddling through’ approach in a logical manner is followed.

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