H. Igor Ansoff

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H. Igor AnsoffFather of Strategic Management
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If you can see things that are out of whack, you
can also see how things can be in whack. Dr.
Seuss, The Problem
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Who influenced this person?

• F. W. Taylor
• Elton Mayo
• Henri Fayol
• Henry Mintzberg

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Early Life

• Born in Vladivostok, Russia in December of 1918
• His father was American
• His mother a Russian
• He lived in Russia until 1936 when his family
  moved to New York

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Early American Life

• Convinced that Americas capitalistic system was
  corrupt
• Department stores with more products than he
  could dream of dispeled the propaganda-induced
  myths.

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Education

• He mastered English and valedictorian of New
  Yorks prestigious Stuyvesant High School
• He completed his ME and MS with honors at Stevens
  Institute of Technology in New Jersey
• He completed his Ph.D. at Brown University
• Holds at least 4 Honorary Doctorates
• Stockholm School of Economics
• University of Bath and Helsinki School of
  Economics

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Early Work Life

• In 1948, Ansoff joined the Rand Corporation
• In 1957, He began work for Lockheed Aircraft
  Corporation
• Vice President of Planning and Programs at
  Lockheed Electronics
• Developed a number of management concepts related
  to strategic analysis and planning

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Academic Life

• Professor of Industrial Administration at
  Carnegie-Mellon University
• Vanderbuilt University
• Founding dean of the Graduate School of
  Management
• Helped the school establish the niche of the
  management of change
• European Institute of Advanced Studies in
  Management
• Stockholm University
• United States International University in San
  Diego

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Publications

• Prolific writer
• 11 Books
• Over 120 articles
• Several were reproduced in more than 15 languages

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Corporate Strategy (1965)

• A model for Strategic Decision
• The solution of any decision problem in business,
  science, or art can be viewed in four steps.
• Perception of decision need or opportunity.
• Formulation of alternative courses of action.
• Evaluation of the alternatives for their
  respective contributions.
• Choice of one or more alternatives for
  implementation.

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Applied to Marketing

• 1957 Harvard Business Review

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The New Corporate Strategy
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Key Hypothesis of Stategic Management

1. Contingency Hypothesis
2. Environmental Dependence Hypothesis
3. Requisite Variety Hypothesis
4. Strategy Capability Performance Hypothesis
5. Multicomponent Capability Hypothesis
6. Balanced Capability Hypothesis

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What is the Difference Between Strategic Planning
and Strategic Management

• Strategic planning is focused on optimal strategy
  decisions
• Stategic management is focused on producing
  strategic results
• New markets
• New products
• New technologies

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What is the Difference Between Strategic Planning
and Strategic Management

• Strategic planning is an analytical process
• Stategic management is an organizational action
  process

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What is the Difference Between Strategic Planning
and Strategic Management

• Strategic planning is focused on business,
  economic and technology variables
• Stategic management broadens the focus to include
• Psychological
• Sociological
• Political
• Thus, strategic planning is about choosing things
  to do, while strategic management is about
  choosing things to do and also about the people
  who will do them.

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What is the Difference Between Strategic Planning
and Strategic Management

• Strategic management consists of
• Formulating strategies
• Designing the firms capability
• Managing implementation of strategies and
  capabilities

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Lasting Impact

• Early 70s he moved from a concept of strategic
  planning
• He realized that making sound plans was not
  enough to ensure strategic success.
• Coined the term strategic management, emphasizing
  a broader approach including
• Individual and group behavior dynamics
• Political processes
• Organizational culture
• Coined the term synergy
• One internally generated by a combination of
  capabilities or competencies

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Lasting Impact

• Ansoff Institue was established in co-operation
  with the US International University, San Diego
• Vision is to be a leading research institute
• Purpose is to transfer theoretical strategic
  research to practical applications.
• Continuing Igors work
• Develop into many new and unanticipated
  directions
• Multinational in Scope
• Two annual Ansoff Awards
• Holland
• Japan

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Critisisms

• Himself
• Noel Capon, John U. Farley and James M. Hulbert
  in Corporate Strategic Planning
• Henry Mintzberg
• In 1984, Business Week was quoted as After more
  than a decade of near-dictatorial sway over the
  future of U.S. corporations, the reign of the
  strategic planner may be at an end

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'Twas the Night Before Christmas orStrategy in a
Nutshell By Dr. Richar Z. Gooding 'Twas the
night before Christmas and all through the
office,          not an employee was stirring,
not even the bosses. The last orders were
shipped by FedEx that day,          in hopes
that big profits would soon come their way. The
work had been planned to the final
detail.          Management was confident that
nothing would fail. They'd examined their
strengths and knew how they compared.          Th
e goal was in sight. The team was prepared.
Market research had clearly shown them the
way.          Sound strategy would keep them
from going astray. Team work was more than a
word to avow.          Everyone had a say in
who, what and how. Competitors reacted the way
that they do,          defending their turf and
denying the truth. The team's product was
superior, the service first-rate.          One
wonders why competitors responded so late. The
customers were savvy, they knew what they
wanted.          The team had delivered. Their
praise went undaunted. Financial results proved
the merit of their vision.          Revenues
soared. They'd accomplished their mission.
Shareholders cheered at the next annual
meeting.          The room was so packed there
was no extra seating. When asked to explain how
it had all been done,          the President
exclaimed, "We all worked as one."