Concept-driven strategy

A concept-driven strategy is a process for formulating strategy that draws on the explanation of how humans inquire provided by linguistic pragmatic philosophy. This argues that thinking starts by selecting (explicitly or implicitly) a set of concepts (frames, patterns, lens, principles, etc.) gained from our past experiences. These are used to reflect on whatever happens, or is done, in the future.

Concept-driven strategy therefore starts from agreeing and enacting a set of strategic concepts (organizing principles) that "works best" for an organisation. For example, a hospital might set its strategy as intending to be Caring, World Class, Local, Evidence Based, and Team Based. A University might set its strategy as intending to be Ranked, Problem Solving, Online, Equis, and Offering Pathways. A commercial corporation might set its strategy as intending to be Innovative, Global, Have Visible Supply Chains, Agile and Market Share Dominant. These strategic concepts make up its Statement of Intent (or Purpose).

Much of the strategic management literature mutates Peter Drucker's call for corporations to start the strategic management process by producing a statement of purpose, mission and objectives. This has been mutated into a call to start with a vision, mission and objectives statement. There is an alternative approach which focuses on the Statement of Purpose or Intent. Drucker's example for this statement for a commercial corporation was to state that the corporation's purpose was to create customers. That is, it was going to use the concept of 'customer creation' to coordinate and organise the cognition or mindset of those that worked for the organisation. This was why the corporation existed. Having one concept is now thought to be insufficient. George Armitage Miller's modified The Magical Number Seven, Plus or Minus Two and dialectic suggests a handful of concepts under tension would be preferable.

The Statement of Purpose, Statement of Intent or concept-driven approach to strategy formulation therefore focuses on setting and enacting a set strategic concepts. If a participatory approach is being used these concepts will be acquired through a process of collaboration with stakeholders. Once agreed the strategic concepts can be used to coordinate activities and act as a set of decision making criteria. The set of concepts that make up the Statement of Intent is then used to make sense of an unpredictable future across an organisation in a co-ordinated manner.

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