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Who to include in strategy-making? Obviously the top management team is going to be included in strategymaking. But who else? With the spread of MBAs and similar management qualifications, middle managers are increasingly able to add value in strategy - and want to do so. But 'the paradox of strategy inclusion' is that middle managers with the greatest responsibility for execution are often those with least access to strategic decision-making in the first place. There are plenty of people who might get involved in any strategic issue: as well as the Chief Executive and the top management team, non-executive directors, strategic planners, strategic consultants and middle managers. This often creates a dilemma about who should be included on particular strategic issues. The paradox of strategy inclusion is that those with the most access to the CEO on strategy are often strategic planners and strategy consultants who have little responsibility for strategy execution and little knowledge of business on the ground (see Exhibit 1). The middle managers who have both the knowledge and the execution responsibility can have least access to the CEO in strategy discussions, either because they are too busy with operational realities or because they are seen as likely to favour particular outcomes because of their own self-interest. The result is simple: strategy does not necessarily get made by the right people. Exhibit 1: The Access/Execution Paradox CEO Access Strategy Consultants Strategic Planners Middle Managers Execution Responsibility However, there is no single correct answer about who to include in strategy-making. Following McKinsey & Co research, we believe that the people involved should vary according to the nature of the issue (see Exhibit 2). Thus: highly discontinuous and urgent issues (such as a merger or acquisition opportunity) are best approached by small special project teams, consisting of senior managers and perhaps planners and consultants, on the analogy of the specialized elite SWAT (Special Weapons and Tactics) teams of the American police. However, care should be taken to include some of those responsible for execution: in the case of an acquisition for example, those responsible for managing and integrating the new business should have buyin from the first, and not be able to shift blame to the original acquisition project team should things start to go wrong. more enduring but still intense issues (such as meeting ambitious growth targets) can benefit from more prolonged and open strategic conversations, both formal and informal. You need everbody's ideas and engagement for this kind of challenge. Strategy workshops can be an effective way to generate ideas and commitment. significant but focused issues (such as matching an aggressive competitor pricing move) may only require limited participation. The CEO may need to have oversight, but otherwise the relevant functional or business team (e.g. the marketing group) can normally shape an appropriate response. general issues requiring idea generation over time (such as 'who are our key competitors in this market space?') can benefit from more open participation. Top management can generate useful ideas by being deliberately engaging employees in the on-going 'strategic conversation', for instance at staff meetings or training events. Alternatively this might be organized more formally through planned events, such as conferences bringing together large groups of managers in particular geographical regions. Exhibit 2 Who to include in strategy-making? High Discontinuity (Major Strategic Change) Low E.g. How should we grow? Broad participation Strategy workshops E.g. Acquisition threat or opportunity Narrow participation Project teams or taskforces E.g. Who are our key competitors? Open participation On-going strategic conversation E.g. How to respond to competitor move? Limited participation Meetings, project teams Low High Urgency The point is that there is no general rule about inclusion or exclusion in strategy-making. However, there are criteria that can guide managers about who to include according to the nature of the strategic issues in hand. You should think carefully about who to include with regard to each particular issue: avoid sweeping generalisations such as 'strategy is the business of top management' or 'we are an inclusive company and involve everybody'. Based on Chapter 15, Gerry Johnson, Kevan Scholes and Richard Whittington, Exploring Corporate Strategy, 8th edition, 2008, FT Prentice Hall