Abstract of Effectiveness of Rational Strategizing
Gary Grey
Ateneo Graduate School of Business, Ateneo de Manila University, Philippines
This study focuses on measuring the effectiveness of rational strategizing and its implementation in the Philippine setting. Rational or “left brain” strategizing is the main andragogical approach used in the Ateneo Graduate School of Business (AGSB). The study hypothesizes that there is a positive outcome resulting from the proper execution of a rational strategizing process. The strength of this positive outcome is dependent on the interaction among the three components of change management: the change agent (the leader), the change element (the strategy process of formulation and execution), and the change target (the organization). The outcome is measured by a credit risk measure, specifically the Altman Z-score for emerging markets. The basis for measuring the outcome is through selecting samples of implemented strategic management (STRAMA) papers from AGSB’s almost 3,700 digitized strategic management papers. Specifically, papers from AGSB’s MBA Regis program and MBA Health programs were selected with the cut-off year of implementation of 2004-2005 to allow for a 3-year performance window for analysis of the before and after implementation Altman Z-score outcome measure. A literature review was conducted to scan and review strategizing methodologies within the scope of the components of change management resulting in creating a Strategy-Organization-Leadership model that explain the positive outcome of implemented STRAMA paper using left-brain strategizing processes. The hypothesis of rational strategizing having a positive outcome is proven to be valid given the empirical evidence using the Chi-Square test.
The insights provide a template from the academe towards sustainable strategy formulation and implementation. The nuances of companies operating in emerging economies like the Philippines are captured in various industries represented in the selected sample companies. Through strategic and systemic thinking embedded in the Strategic Management integrative course of AGSB and the recommendations and conclusions emanating from the study, a guide is provided for future research directions and improvement of the strategizing process for higher education to assure sustainability. With improved strategizing comes business growth which promotes the social good and business sustainability.
Acknowledgement
This paper “Effectiveness of Rational Strategizing” is part of the AGSB Research Unit’s initiative to award research grants to faculty members. The paper was peer reviewed by Dr. EpitectusPatalinghug, Dr. Eduardo A. Morato,Jr. and Dr. Carol Guina, with the participation of faculty members Ric Palo and Winnie Constantino. Research assistance was provided by the research staff of the Research Unit, particularly Anna Medrano and YsaCayabyab and the student researchers of the Research Unit. Continuing mentoring was also provided by Dr. Maria Cristina G. Bautista.
Key Words: Rational Strategizing, Change Management, Strategy, Change Agent, Change Element, Change Target, Data Mining, Leadership, Organization, Strategy Management, Sustainable Strategic Management, Sustainable Higher Education, Emerging Market
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