An exploratory study on strategy direction and strategy magnitude in organizations:The strategy vector model

This study proposes a new conceptual model for the evaluation of organizational strategies and for the diagnosis of strategy problems in organizations. The proposed model -Strategy Vectorial Model (SVM)- introduces a holistic approach for the strategic management of all kinds of organizations.SVM interprets organizational strategy as a vector in a 2D circular coordinate system where azimuth refers to strategy direction and radius refers to strategy magnitude. SVM is proposed as a tool for the measurement of actual organizational strategy which may also be used for the evaluation of strategic performance and for the determination of strategy related problems.Four cardinal strategy directions (Innovative, Conservative, Adaptive, and Erratic) and five levels of strategy magnitude are employed in the model for expressing both individual and organizational strategy vectors. The strategy vectors of individuals will be measured by a carefully-designed questionnaire composed of four dedicated instruments for four parameters. Measured individual vectors are summed with a specifically designed software program and thereby the resultant organizational vector is calculated. Besides determining exact organizational strategy status in terms of strategy direction and magnitude, the model is also expected to be useful for the diagnosis of strategy problems such as strategy anomalies, strategy deviation and strategy deficiency. Strategy anomalies represent situations where the organizational vectorial structure or in other words the distribution of individual strategy vectors in the organizational structure, does not have a semblance of a healthy organization. Strategy deviation refers to the directional deviation from the intended direction and strategy deficiency refers to the difference between the intended and measured strategy magnitudes. SVM is proposed as a new tool to help decision makers to see the gap between where they are and where they want to be. The difference between the aimed and measured organizational strategy vectors is addressed as strategy gap and calculated with the proposed model.