Institutional Learning: The Essence of Strategic Management

Strategic management is not a formal, well-laid-out set of techniques. It is the mode in which decision makers understand the context in which they function and initiate decisions and actions for establishing meaningful linkages with the environment. In recent years, strategic management has become important for several Indian organizations due to dramatic environmental changes.In this article, Ramnarayan and Reddy use the “learning” perspective to evolve a framework of the strategic management process in organizations. Through four illustrative cases, they highlight four clearly identifiable blocks to institutional learning. These are : Single Loop Learning, Analysis Paralysis, Ivory Tower Planning, and Me Too Planning. The paper outlines the likely causes of each of these dysfunctional blocks to learning. The authors propose a set of guidelines for enhancing the effectiveness of strategic initiatives in organizations.