Article | Management Science | October 2018

Strategy and the Strategist: How it Matters Who Develops the Strategy

by Eric J. Van den Steen

Abstract

This paper addresses primarily two questions. First, when (and why) should a company’s strategy be developed by its CEO versus by some outside analyst or other insider? Second, how does strategy interact with vision (in the sense of a strong belief about the right course of action)? The paper studies these questions using a functional definition of strategy as “the smallest set of choices to optimally guide other choices.” Among other things, the paper shows that strategy formulation by the CEO leads to both better strategy and better execution, and that a strategist’s vision may improve execution. In the process, the paper also identifies criteria that make a decision strategic and derives explanations why strategies often reflect the background of the strategist.

Keywords: strategy; strategy and leadership; strategy and execution; Strategy; Leadership;

Format: Print Find at Harvard

Citation:

Van den Steen, Eric J. "Strategy and the Strategist: How it Matters Who Develops the Strategy." Management Science 64, no. 10 (October 2018): 4533–4551.

About the Author

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Eric J. Van den Steen
Royal Little Professor of Business Administration
Strategy

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