Beyond the Boardroom: Why the Practice Perspective Wins

Mainstream strategy models, such as Porter’s Five Forces, often explain as little as 4% to 18% of the variance in firm profitability. This leaves a massive "82 percent to 96 percent" gap that Strategy-as-Practice (SAP) attempts to fill by viewing strategy as an activity that is socially accomplished.

However, SAP faces valid criticisms. A major critique is that the field has become too focused on "articulated strategies"—those formally defined by top management—which risks making it a mere subset of traditional research rather than a radical alternative. Scholars argue that researchers often default to studying the "usual suspects," such as CEOs and middle managers, while overlooking the strategic impact of frontline actors like engineers or tour guides. Additionally, SAP researchers face a "dilemma" in balancing the depth of ethnographic data with the breadth and diversity required for robust findings.

Despite these hurdles, I consider the practice perspective more beneficial for understanding organizational reality. While mainstream literature focuses on what managers should do as rational actors, SAP explores what they actually do in their day-to-day work. By "humanizing" strategy, we move "inside the process" to examine the three Ps: Practitioners (the people), Praxis (the flow of work), and Practices (the tools and routines used).

The practice view reveals that strategy is "strategic-in-use". Mundane actions—such as tweaking a spreadsheet, crafting a specific email, or setting a meeting agenda—are not just administrative; they aggregate into consequential patterns of action. By using field immersion to identify these "hunches," we see how strategy is "breathed into life". Ultimately, this people-centric lens provides a far more comprehensive grasp of how organizations actually function and survive.

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