Mintzberg’s 5 Ps of Strategy: A Lens to Understand Strategic Thinking
Strategic thinking helps businesses analyze situations, make decisions, and solve problems. For those new to strategic thinking, this process can be difficult to master.
Industry experts and academics like Henry Mintzberg have developed definitions and additional frameworks to make the topic more approachable. First published in 1987, Mintzberg’s 5 Ps of strategy offer a helpful lens as you work to understand strategic thinking and its applications in the workplace.
Begin your strategic thinking with Mintzberg’s five foundational elements of strategy.
What Is Strategic Thinking According to Mintzberg?
Strategic planning, according to Mintzberg, starts by understanding several elements of strategy. Ideally, a strategic endeavor incorporates details from each of the five elements. This allows strategic decision-makers to consider the full context of a situation as they execute their work.
To make these elements easier to remember, he coined the five Ps mnemonic, which comprises plans, ploys, patterns, positions, and perspectives.
1. Plans
Definition: A plan is an intentional outline of steps and tactics for achieving one’s goal.
Planning is an inherent part of strategic thinking. Establishing specific intentions for a project or strategic undertaking creates clear steps for follow-through. It also allows one to consider upcoming changes and safeguards against unexpected circumstances.
When thinking about a strategic plan, ask questions like:
- What do I hope to achieve? What is my goal?
- What specific steps do I need to take in order to reach that goal?
- What resources can I allocate toward this goal?
SMART goals, driven by organizational values, help to create successful plans. Rely on specific and measurable steps to achieve established goals.
2. Ploys
Definition: A ploy is a tactic used to gain an advantage over competitors, typically by outsmarting or outwitting them.
When people think of strategy, ploys are often what come to mind. Picture strategic moves in chess designed to overcome your opponent. Just as a chess player uses Queen’s Gambit (a strategic series of moves) to secure a key advantage, a leader or organization can also leverage and best position themselves for a win.
For organizational ploys, consider:
- Using an aggressive and unexpected marketing push to catch competitors off guard
- Create a unique selling proposition in a proposal that is difficult for your competition to replicate.
- Identifying unexpected actions might grant me favorable footing with customers.
A leader who is intimately familiar with their own organization and the uniqueness of its offerings is better positioned to use ploys as a strategic thinking tool.
3. Patterns
Definition: A pattern is a consistent string of actions over time that reflect or reveal an organization’s approach.
Sometimes elements of an organization’s strategy come from looking to the past. Previous decisions or projects create patterns of success that can be learned from or duplicated. Emerging patterns can help leaders recognize their strengths and optimize processes. Patterns can also reveal opportunities for innovation to keep well-used ideas fresh and relevant.
When working with historical patterns, ask:
- What has worked well in the past?
- Why did I choose this path or technique on a previous project?
- What do my successes have in common?
Pattern recognition is a sharp, strategic skill that puts actions in context.
4. Positions
Definition: A position is an organization’s place in the marketplace relative to its competitors or other industries.
A large company with significant market share will not approach a problem the same way a small company with significant competition might. An organization’s position in the market influences which actions will be the most effective.
To understand market position, think about:
- Who are my largest competitors that I compete with directly?
- How can I differentiate myself from others in the industry?
- What unique value do I offer that can increase my market share?
A clear understanding of your position in the market, competitors, and other economic factors offers insight that can benefit a strategic plan.
5. Perspective
Definition: A perspective is the way an organization views itself and the larger context around it.
Each organization and each person approach a situation with their own perspective. The mission, vision, and values of an organization create a lens through which work is filtered. From a strategic standpoint, this offers guidance for all decisions.
To understand an organization’s perspective, consider:
- What are my organization’s values?
- What does my organization prioritize that others might not?
- How do our values inform and guide the work we do?
Honing a specific perspective allows unique ideas, attitudes, and techniques to emerge, all of which help form a strategic mindset.
Mintzberg’s 5 Ps: Advantages and Disadvantages
The greatest advantage of the 5 Ps is the simplicity of the framework. It is an excellent way for novices or non-strategists to see their work through a more strategic lens. It can also bring experienced strategic leaders back to basics, helping them guide a team or refocus their efforts.
However, Mintzberg’s framework also has some limiting factors. For example, simply planning by itself, does not always amount to strategic effort or action. Strategy must be dynamic, looking at the broader landscape and anticipating obstacles. One must incorporate all elements to gain this perspective.
Utilizing other frameworks can take you from mere thinking to direct action, which is a critical part of a well-rounded strategic approach.
Learning and Implementing Strategic Skills with CMOE
Strategic thinking can be developed at all levels from senior management to individual contributors. Mintzberg’s framework offers one perspective on how to understand and approach strategy.
CMOE’s Applied Strategic Thinking® workshop pulls from proprietary principles like Mintzberg’s and teaches you how to incorporate practical strategic solutions into your work.
In this course, you will experience:
- Research based models and reference frameworks
- Strategy simulations
- Behavioral assessments
- Application guides
- Opportunities to apply strategic skills
