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Mintzberg’s Modes of Strategic Decision-Making

 Mintzberg’s Modes of Strategic Decision-Making

1. Entrepreneurial Mode: Strategy is made by one powerful individual who has entrepreneurial competencies like innovation and risk-taking. The focus is on opportunities. Problems are secondary. Generally, the founder is the entrepreneur, and the strategy is guided by his or her own vision of direction and is exemplified by bold decisions.

2. Adaptive Mode: Sometimes referred to as “muddling through,” this decision-making model is characterized by reactive solutions to existing problems, rather than a proactive search for new opportunities. Much bargaining goes on concerning priorities of objectives. The strategy is fragmented and is developed to move the corporation forward incrementally.

3. Planning Mode: This decision-making model involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. It includes both the proactive search for new opportunities and the reactive solution of existing problems.

4. Logical Incrementalism: In this mode, top management first develops a reasonably clear idea of the corporation’s mission and objectives. Then, in its development of strategies, it chooses to use “an interactive process in which the organization probes the future, experiments and learns from a series of partial (incremental) commitments rather than through global formulations of total strategies”. Thus the strategy is allowed to emerge out of the debate, discussion, and experimentation.

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