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Writer's pictureDr. Marvilano

Overview of Strategy Tools: Logical Incrementalism


Different people process change and innovation at different speeds. Therefore, a manager must always strive to get his team on the same page at all times. This informs the need for managers to implement crucial business strategies so that the impact is properly managed and no party is left behind. This is so that the changes (in policy, operation, etc.) can be properly processed to achieve the desired effect. This is the concept of logical incrementalism, as discussed in this article.


What is it?

The concept of logical incrementalism holds that organizations should implement critical strategies or decisions in small steps rather than in one fell swoop. It maintains that an efficient manager takes steadily increasing but logical steps in actualizing a set objective/goal. This is so that the intricacies and technicalities of the objective/project are adequately handled. The ultimate goal is to manage the resistance/friction that is posed by drastic change by reducing it to tolerable levels.


5-stages of Logical Incrementalism
Example of 5-stages of Logical Incrementalism


When do we use it?

The logical incrementalism model proves useful for certain situations such as are listed below:

  • When a company seeks to implement certain massive changes in strategy and operations such that the impact is not immediately felt. It could be an increase in its production or the introduction of an innovation.

  • When the company looks to establish a progressive operational cycle, this is so that matters of management and operation are run effectively and as a routine.

  • When a company is set to introduce a new product into a market that is unfamiliar with the product, it is best to steadily roll out innovation and gauge its public reception before going all out.

  • When a company looks to decentralize its positions of authority and decision-making. The company delegates responsibility in such a way that everyone gets to contribute their quota to fulfilling a common objective.


What business questions is it helping us to answer?

Logical incrementalism offers answers to questions such as the following:

  • How can change be managed in a productive environment? How can innovation and technology be introduced as part of an ordered system?

  • What actions can be taken to minimize the shock impact of strategy implementation or any executive decision-making process that introduces drastic changes?

  • What risk management measures can be employed in situations that call for it? What can be done to lessen the impact of a potentially problematic situation?

  • What steps or cumulative effort must be taken for a company to fulfill its objectives or reach a set target? How does it manage expectations in a linear reference frame?


How do we use it?

Logical incrementalism is mostly used by businesses that seek to introduce big changes or key reforms to their strategies and operation. To use it, managers or leaders must first define the objective to be achieved or the project to be undertaken. They'll also break down the project or objective into smaller parts. Next, they introduce the team to the specifics of each part and define their tasks.


Any further refinement to the strategy/project is made at this stage by relying on team feedback. The tasks serve as subsystems or steps that build up a larger collective. Efforts are coordinated in groups to implement the fine points of the strategy in stages. This way, the big changes can be effected without even noticing them.


Practical example

We make an example using a refinery that is mandated to cut down on its gas flaring by 45% in the next three months. This is undertaken in response to a nationwide clampdown on excessive flaring as part of a wider climate change campaign.


Because this is a significant request, it decides to apply the logical incrementalism model in phasing out its flaring count to tolerable levels that build up steadily. This is because such a massive flaring drop would demand extra exertions on its personnel and resources that it'd be almost difficult to cope with.


It proposes a 10% decrease for the first month, 15% for the second month, and 20% for the third month. This way, the company's field workers can devote effort to meet the stated objective while working at a steady pace. The work processes build up in complexity while the workers put in more work at the previously stipulated percentage increases. The effect is that the workers can easily adapt to the workload changes and meet the flaring target count without being overwhelmed.


Advantages

  1. It acknowledges that strategy implementation can present some uncertainties and makes provisions to manage them.

  2. It relies on the object of logic in decision-making. It considers all the closely related and remote factors that could affect the result of business managers' choices.

  3. It helps businesses avoid the conflict that comes with strategy and policy implementation. This is because it gets everyone involved on the same page with each other.

  4. It is simple to understand and implement and is practical. All that is required is to create consensus among the parties involved and a clear course of action to follow.

  5. It can provide a clear pathway to introducing changes, new innovative ideas, and efficient operational practices in any organization.


Disadvantages

  1. There is the danger of missing out on the bigger picture with this approach. This is especially true if an opportunity comes with time constraints requiring a change to be drastically implemented.

  2. It fails to consider the possibility of change. It suggests that expenses remain unchanged, which is a rarity.

  3. It limits the input of the creative and innovative lot. This is because it is averse to drastic change or anything that involves immediate impact.

  4. It creates a business environment where growth and development are curated and well-managed. This may pose a problem if the business experiences a boom period and has to expand imminently.

  5. Certain corporate actions may present time constraints and may lose impact if incrementally executed. Because this model is designed for long-term impact, it might not be useful for problems that require quick fixes.


 

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