Strategy formulation: a learning methodology

Abstract

Strategy formulation can no longer be based on a process of conception, as the underlying conditions change before a formulated strategy can be implemented. It should be based on a continuous learning process which involves, inter alia, learning about the organization’s goals, the effect of different actions towards these goals and the way in which these actions should be implemented. First, highlights the importance of an organization’s knowledge base by demonstrating the relationship that exists between strategy formulation and organization learning. Then presents the role of performance measurement systems in stimulating cognitive and behavioural learning. Places the concept of organization learning in a strategy formulation context in order to show the effect of the nature and speed of environmental changes on the organization’s learning processes.