The Emergent Approach to Strategy
Strategy Guide
Overview
Introduction
Traditional strategic planning methods often assume stability, predictability, and control. Many businesses invest significant time and resources in rigid, long-term plans that fail when faced with uncertainty and complexity.
However, strategy must evolve as businesses navigate rapid technological advancements, shifting market dynamics, and unpredictable global events.
Peter Compo, in his book The Emergent Approach to Strategy, challenges the conventional linear approach to strategy. He introduces an adaptive model that embraces complexity, iteration, and continuous refinement. His method emphasises real-time learning, alternative strategic choices, and decision-making under uncertainty.
This guide explores the Emergent Approach to Strategy, Strategy Alternative Matrices (SAMs), Triads’ value, and practical applications in modern business.
Want to Read More About Change Management?
Table of Contents
In this guide you will learn about:
- The Emergent Approach to Strategy – A New Way of Thinking
- The Strategy Alternative Matrix (SAM)
- The Role of Triads in Strategic Decision-Making
- Comparing the Emergent Approach to Traditional Strategy Models
- How Businesses Can Apply the Emergent Approach
- Case Study: Netflix’s Use of the Emergent Approach
- Key Takeaways
- Conclusion
- Further Resources
The Emergent Approach to Strategy - A New Way of Thinking
Peter Compo’s Emergent Approach to Strategy is based on the concept of complex adaptive systems. Instead of treating strategy as a fixed roadmap, this approach assumes that strategy should be flexible, iterative, and continuously evolving based on real-world conditions.
The Problems with Traditional Strategic Planning
Traditional strategic planning relies on:
- Fixed objectives and long-term projections
- Top-down decision-making with little iteration
- A linear process that assumes markets remain stable
- Large-scale data gathering before committing to a strategy
The issue with this approach is that markets, customers, and competitors rarely remain static. By the time a strategy is fully developed, conditions may have already changed.
Example:
Kodak had a long-term strategic plan based on film photography, but it failed to adapt quickly to the rise of digital cameras and smartphones. Had Kodak followed an emergent approach, it might have identified digital photography trends earlier and adjusted its strategy accordingly.
How the Emergent Approach Solves These Problems
The Emergent Approach to Strategy encourages:
- Learning through action rather than excessive pre-planning
- Testing strategic alternatives in real-time
- Continuous refinement of strategy based on market feedback
- Balancing risk and reward by considering multiple possibilities
Example:
Amazon has built its business model around experimentation and rapid iteration. By continuously testing different strategic initiatives (e.g., Amazon Prime, AWS, drone deliveries), it can pivot and scale successful ventures while quickly abandoning unprofitable ones.
The Strategy Alternative Matrix (SAM)
The Strategy Alternative Matrix (SAM) is one of the core tools in the Emergent Approach. It helps businesses evaluate multiple strategic alternatives before committing to a single approach.
How the SAM Works
Framework Alternatives
Different strategic directions a business could take.
Fitness Criteria
The key factors that determine how well each alternative aligns with business needs.
Assessment Process
A structured evaluation to determine which alternative is most viable.
Using SAM, companies compare different strategic options without prematurely discarding possibilities that might work under different conditions.
Example: Applying the Strategy Alternative Matrix
Expand into Europe via acquisitions
Fitness Criteria (e.g. cost, risk, market potential)
- High cost, but strong market demand
Assessment
Medium viability
Develop an e-commerce platform for global sales
Fitness Criteria (e.g. cost, risk, market potential)
- Lower cost, but complex logistics
Assessment
High viability
Form joint ventures with regional partners
Fitness Criteria (e.g. cost, risk, market potential)
- Moderate cost, lower risk
Assessment
High viability
This structured analysis prevents businesses from blindly committing to a single approach without considering viable alternatives.
The Role of Triads in Strategic Decision-Making
Triads are another valuable concept in the Emergent Approach. They offer a structured way to balance competing factors and help businesses navigate complex decision-making.
What Are Triads?
Triads involve identifying three interrelated strategic elements that need to be balanced.
They help leaders:
- Avoid binary thinking (e.g., “either we expand internationally, or we don’t”).
- Explore trade-offs in decision-making.
- Find solutions that integrate multiple perspectives.
Example:
A company planning a digital transformation must balance:
Cost constraints
Budget limitations
Technology integration
Selecting the right tools
Workforce readiness
Employee skills and adoption
Without considering all three elements together, the strategy could fail due to unintended consequences (e.g., adopting expensive technology without training employees).
Comparing the Emergent Approach to Traditional Strategy Models
The Emergent Approach challenges well-established strategic planning models by prioritising adaptability over rigid planning.
Traditional Strategy Models
- Assumes stability and predictability
- Relies on extensive pre-planning
- Follows a top-down decision-making process
- Strategy is static and long-term
Emergent Approach to Strategy
- Assumes change and complexity
- Focuses on learning through action
- Encourages bottom-up experimentation
- Strategy evolves based on feedback
The Emergent Approach aligns well with agile methodologies in software development, where teams iterate on small experiments before scaling successful initiatives.
How Businesses Can Apply the Emergent Approach
Embrace Flexibility in Strategic Planning
- Accept that uncertainty is a given and build a strategy that can adapt quickly.
- Avoid excessive pre-planning; instead, test and refine multiple alternatives.
Implement the Strategy Alternative Matrix (SAM)
- Identify at least three potential strategic options.
- Develop fitness criteria for evaluation.
- Regularly assess and adjust the chosen strategy as market conditions evolve.
Use Triads to Balance Strategic Trade-Offs
- Identify three interdependent factors that influence a key decision.
- Assess how each factor affects the other two.
- Ensure decisions account for all three elements rather than over-prioritising one.
Failing to balance all three could result in inefficiencies, poor customer satisfaction, or unsustainable costs.
Case Study: Netflix’s Use of the Emergent Approach
Netflix successfully applied emergent strategy principles in its shift from DVD rentals to global streaming.
Step 1: Strategy Alternatives
- Maintain the DVD rental model
- Develop a streaming platform
- Expand internationally with local partnerships
Step 2: Fitness Criteria
- Growth potential
- Infrastructure readiness
- Consumer adoption rates
Step 3: Execution & Adjustment
- Launched streaming in limited regions first
- Measured consumer demand and tech capability
- Scaled rapidly once viability was proven
By adopting an emergent approach, Netflix avoided premature commitment to a failing model and pivoted towards streaming and original content production.
Key Takeaways
- The Emergent Approach to Strategy challenges traditional, rigid strategic planning by prioritising adaptability and iteration.
- The Strategy Alternative Matrix (SAM) provides a structured way to evaluate multiple strategic options before committing to one.
- Triads help businesses balance interdependent factors in decision-making.
- Organisations that continuously test, refine, and adapt their strategy are better positioned for long-term success.
Conclusion
The Emergent Approach to Strategy is a valuable model for organisations operating in highly dynamic environments. By using tools like the Strategy Alternative Matrix and Triads, businesses can make better decisions, avoid strategic rigidity, and build more resilient, adaptive strategies.
For more in-depth insights, Peter Compo’s book “The Emergent Approach to Strategy” is a recommended resource. You can explore further at Emergent Approach and StratNavApp.com.
Further Resources
Useful Links
StratNavApp is The Sixsess Consultancy’s preferred and recommended tool for strategic and organisation planning.
The Sixsess Consultancy
Our bespoke consultancy services are designed to empower leaders, optimise processes, and embed sustainable change.
Contact us today to learn more about how we can support your journey.
About The Sixsess Consultancy
Experts in Change and Transformation
The Sixsess Consultancy specialises in guiding organisations through complex transformations. Our bespoke consultancy services are designed to empower leaders, optimise processes, and embed sustainable change. With proven strategies and a team-first approach, we help organisations navigate change with confidence.
Ready to transform your organisation? Contact us today to learn more about how we can support your journey.
