Iterative Model in the strategic management process

Management expert Peter Lorange gives the following examples of the five Iterative Model in the strategic management process

Loop 1:

When the CEO receives inputs indicating where the businesses may be going, he may have to reconcile the emerging portfolio pictures with his initial tentative objectives. As a result he may ask one or more of the businesses to revise their inputs, and he may change his original tentative objectives as well. One or more iterations may be necessary before the loop is closed.

Loop 2: During the business manager’s strategy formulation he may frequently go back to the functional departments and request revisions of particular programs in order to fit individual programs into a more coherent package from the business strategy viewpoint.

Loop 3: When the CEO receives the portfolio of business strategies he may have to cycle one or more of these back for revisions to achieve the desired portfolio strategy.

Loop 4: During the implementation cycle a business manager may have to recycle the functional implementation proposals so that the overall implementation plan attains the desired strategic properties, i.e., be¬ comes a near-term reflection of the longer-term strategy.

Loop 5: Similarly, the CEO might want to call for revisions in one or more of the business implementation plans so that the final overall fit is achieved. 3 The central point of this discussion is that the team concept in strategic processes is a critical and practiced feature. Managers at various levels have different responsibilities for various parts of the process, but they interact and are interdependent in producing the final product.

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