Sectoral Strategy Processes and Competencies

Sectoral Strategy Processes and Competencies

In this second section of Chapter 2, sectoral strategy related competencies are discussed

and the literature regarding four theories (sectoral strategy content, sectoral strategy processes,

sectoral strategic technical competencies, and sectoral strategic psychology) are considered.

According to the U.S. Office of Personnel Management, “competencies specify the ‘how’ of

performing job tasks, or ‘what’ the person needs to do the job successfully” (U.S. Office of

Personnel Management, 2013). Sectoral strategy related competencies are a subset of leadership

competencies and include, among other things, having knowledge of sectoral strategy content,

sectoral strategy processes, and certain strategy related technical and psychological concepts,

skills, and abilities. As previously stated, strategy content is the “what” of strategy, describes

attractive destinations, and can be considered along five different levels (Chakravarthy & White,

2002). The “how” of strategy is referred to as “strategy process” by researchers (Chakravarthy &

White, 2002; Taylor, 1990).

All aspects of strategy content and process known to be relevant in 1991 were embodied

in the Stumpf and Mullen (1991) strategic leadership competencies model. Each leg of the

Stump and Mullen (1991) table model was conceptualized to represent one aspect of strategic

leadership competencies, which are as follows: “1) Consistently applying a small number of key

concepts, 2) Developing skill at thinking and acting strategically, 3) Taking advantage of

knowing one’s personal style and its impact on others and 4) Understanding the nature of

strategic management processes” (Stumpf & Mullen, 1991, p. 43). For the purposes of this

dissertation, the original Stumpf and Mullen (1991) model is supplemented and augmented

primarily by the work of Kaplan and Norton (2005), by scholarly work in psychology, and by the

work of strategy-as-practice (SAP) researchers. This SAP research distinguishes “having” a

strategy and strategy processes from the “doing” of strategy (Johnson, 2007).

This supplementation and augmentation is achieved by reference to two distinct models.

The first model is the model of the sectoral enterprise, which was previously discussed and

presented as Figure 3 in this chapter. The second model is presented below as Figure 5. In the

model in Figure 5, sectoral strategy content and sectoral strategy processes, which an

organization may “have,” is distinguished from practices that a sectoral strategic leader may

“do.” In a best practice organization, such doing (strategy practices) is facilitated through an

office of strategy management, and using this office is considered by some to be a best practice

sectoral strategy tool (Kaplan & Norton, 2005). In this section, the strategy management office is

discussed along with other sectoral strategy processes and competencies depicted in Figure 5.

Each aspect of the Stumpf and Mullen (1991) table model of strategic leadership competencies is

considered in either this section or in the subsequent section by reference to Figure 5, above.

Figure 3 and the original Stumpf and Mullen (1991) table model were reconfigured and

presented as Figure 5 (below) to facilitate a discussion of the specific categories of sectoral

strategic leadership knowledge, skills, abilities, and other competencies. The model in Figure 5

was designed by trifurcating sectoral strategy related competencies. The three categories of

competency areas are a) sectoral strategic management tools (herein referred to as sectoral

strategic technical competencies), b) sectoral strategic management process elements, and c)

sectoral strategic psychology. The third topic is discussed in section three, while sectoral

strategic management process elements and sectoral strategic management tools are discussed in

this section. The reconfigured model that is presented in Figure 5 places the strategic plan and

the effectiveness plan at the center of this model of sectoral strategy-related competencies.

Figure 5. Model of sectoral strategy processes and competencies.

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