A concept-driven strategy is a management

methodology In its most common sense, methodology is the study of research methods. However, the term can also refer to the methods themselves or to the philosophical discussion of associated background assumptions. A method is a structured procedure for bri ...

that centers on the development of core concepts or ideas to drive decision making. This approach aims to establish distinctive value propositions and competitive advantages. The framework is intended to help organizations move beyond conventional market limits, challenge established norms, and identify new ideas and possibilities.

Elements

The essential elements often cited in a Concept-Driven Strategy include: * Priority on Understanding Concepts Focus on concepts rather than isolated facts to enable a deeper comprehension and application of knowledge. This approach emphasizes understanding underlying principles and frameworks, allowing for the adaptation of ideas to varied contexts instead of simple memorization. * Cultivating Analytical Thinking Critical thinking is encouraged by fostering the ability to analyze, evaluate, and synthesize information. This involves questioning assumptions, identifying biases, and making informed decisions, which can enhance problem-solving skills. * Integration Across Disciplines An interdisciplinary perspective is adopted to promote the integration of insights from multiple fields to address complex problems. This method encourages creativity, broadens understanding, and can lead to innovative solutions drawing from diverse areas of expertise. By incorporating these elements, organizations can foster innovation, differentiation, adaptability, and employee engagement, potentially leading to sustained competitive advantages. A Concept-Driven Strategy focuses on generating, developing, and implementing innovative concepts to create unique value propositions and competitive advantages. This approach encourages organizations to look beyond traditional market boundaries and explore new ideas and opportunities, thereby driving innovation, differentiation, adaptability, and employee involvement.

Background

Much of the

strategic management In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of Resource management, resources ...

literature builds upon

Peter Drucker Peter Ferdinand Drucker (; ; November 19, 1909 – November 11, 2005) was an Austrian American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of modern management theory. H ...

's suggestion that corporations begin the strategic management process by articulating a statement of purpose, mission, and objectives. This evolved into a call to start with a vision, mission, and objectives statement. An alternative approach focuses on the statement of purpose or intent. Drucker's example of a commercial corporation's purpose was to state that the corporation's purpose was to create customers, meaning using the concept of 'customer creation' to coordinate the thinking and mindset of employees. This was seen as the reason for the corporation's existence. It is now suggested that a single concept may be insufficient. Drawing on

George Armitage Miller George Armitage Miller (February 3, 1920 – July 22, 2012) was an American psychologist who was one of the founders of cognitive psychology, and more broadly, of cognitive science. He also contributed to the birth of psycholinguistics. Miller ...

's modified

The Magical Number Seven, Plus or Minus Two "The Magical Number Seven, Plus or Minus Two: Some Limits on Our Capacity for Processing Information" is one of the most highly cited papers in psychology. It was written by the cognitive psychologist George A. Miller of Harvard University's ...

and

dialectic Dialectic (; ), also known as the dialectical method, refers originally to dialogue between people holding different points of view about a subject but wishing to arrive at the truth through reasoned argument. Dialectic resembles debate, but the ...

, a small number of concepts under tension might be preferable. The statement of purpose, statement of intent, or concept-driven approach to strategy formulation focuses on establishing and enacting a set of strategic concepts. In a participatory approach, these concepts are often developed through collaboration with stakeholders. Once agreed upon, the strategic concepts can be used to coordinate activities and serve as a set of

decision making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either ra ...

criteria. The set of concepts forming the Statement of Intent is then used to provide a coordinated framework for understanding an unpredictable future across an organization.

Philosophy

Linguistic Linguistics is the scientific study of language. The areas of linguistic analysis are syntax (rules governing the structure of sentences), semantics (meaning), Morphology (linguistics), morphology (structure of words), phonetics (speech sounds ...

and

pragmatism Pragmatism is a philosophical tradition that views language and thought as tools for prediction, problem solving, and action, rather than describing, representing, or mirroring reality. Pragmatists contend that most philosophical topics� ...

suggest that prior conceptions interpret perception (sensory inputs). These conceptions are represented by concepts such as running, smiling, justice, reasoning, and agility. They are patterns of activity, experienced and remembered. They can be named using language and thus shared. Baggini illustrates pragmatic concepts using the classic example of whether the Earth is flat or round.

Method

The steps for formulating a participatory concept-driven strategy may include: # Select the target audience for the strategy and define their specific problem. # Reflect on significant past events that have impacted the organization. # Identify all stakeholders, including suppliers, competitors, staff, alliances, government, environmental groups, industry experts, etc. # Solicit stakeholder concerns regarding the future relevant to the organization, drawing on their experiences and industry expertise. # Use idea networking to cluster these stakeholder concerns into approximately five groups. # Name these clusters as strategic concepts (e.g., priorities,

organizing principle An organizing principle is a core assumption from which everything else by proximity can derive a classification or a value. It is like a central reference point that allows all other objects to be located, often used in a conceptual framework. Ha ...

s). For instance, a cluster of statements might relate to innovation, another to becoming more international. # Consider the potential paradoxical consequences of enacting these strategic concepts. # Draft a one-page 'Statement of Intent' indicating the organization's aim to align with the identified strategic concepts. # Draft implementation action plans for each strategic concept, including both organizational change actions and investment projects, with goals and milestones. # Communicate the 'Statement of Intent' and 'Action Plans' to stakeholders as appropriate. # Ensure senior staff input, performance measures, selection criteria, and decision criteria reflect the 'Statement of Intent'. # In the long term, review and reflect on the strategic concepts in the Statement of Intent.

Other terminology

Concept-driven strategy is a term applied to several similar

strategic thinking Strategic thinking is a mental or thinking process applied by individuals and within organizations in the context of achieving a goal or set of goals. When applied in an organizational strategic management process, strategic thinking involves ...

approaches. Generally, 'concept-driven' encourages a focus on the specific 'concepts' being utilized. See

Concept learning Concept learning, also known as category learning, concept attainment, and concept formation, is defined by Jerome Bruner, Bruner, Goodnow, & Austin (1956) as "the search for and testing of attributes that can be used to distinguish exemplars fro ...

or Management Concepts. Some organizations may produce a 'statement of intent' without extensive consideration of the concepts it contains. However, if it presents a concise list of concepts, high-level objectives, principles, priorities, or frames, then concept-driven strategy offers a philosophical basis for these statements. Some organizations create a 'strategic principles' statement, which is comparable to a statement of intent. A concepts approach can also provide a philosophical basis for this. The terms 'strategic priorities' or 'strategic values' are often used synonymously with strategic principles. Literature on 'corporate purpose' is also related to strategic intent. Sometimes, purpose refers to current actions and intent to future ones. If purpose is expressed as a set of concepts, the concepts approach can offer a philosophical basis. There is a connection between '

systems thinking Systems thinking is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its parts.Anderson, Virginia, & Johnson, Lauren (1997). ''Systems Thinking Ba ...

' and concept-driven strategy. The Churchman/Ackoff stream of systems thinking focused on developing a generic system of concepts for problem-solving. Rather than a generic set, the concept-driven approach typically uses concepts deemed most relevant by stakeholders for the organization's future. A military planning approach known as 'concept-led' exists. There appear to be few significant differences between the two. In turbulent environments, concepts are considered potentially "more flexible than objectives" (goals, targets) as they provide the rationale (why) behind certain actions. The literature on purpose and intent often distinguishes itself from objectives by stating that purpose and intent provide the reasons or drivers for change, while objectives represent the desired end state. In complex, dynamic situations, multiple acceptable outcomes may exist, many of which cannot be anticipated by planners. Survival can be considered a fundamental objective, with the statement of intent outlining the approach to achieving it. There is a connection between 'metaphor', metaphoric criticism, or conceptual metaphor and concept-driven strategy. While pragmatic concepts are not necessarily images, many relate to metaphors. For example, describing an organization as being like a machine with cogs or like an adaptive organism uses the concepts of machine and organism to reflect on organizations. Much of the discussion on the usefulness of metaphors in planning is relevant to concepts. The term 'strategic frames' is less common despite extensive literature on frame analysis; however, frames and pragmatic concepts appear quite similar.

Amos Tversky Amos Nathan Tversky (; March 16, 1937 – June 2, 1996) was an Israeli cognitive and mathematical psychologist and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned th ...

defined a frame as a conception of outcomes. The system of strategic concepts listed in a statement of intent, purpose, principles, frames, or conceptual metaphor can function as

(s). Furthermore, as Karl Weick describes sensemaking as the process of conceptualizing problems, concept-driven strategy can be viewed as a pragmatic means of sensemaking a strategy.

Elements

Background

Philosophy

Method

Other terminology

See also

References

Further reading