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5 P Models (Strategic Management) - Explained

What is the 5 P's Model of Strategic Management?

Written by Jason Gordon

Updated at May 10th, 2022

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Table of Contents

What is the 5 P's Model of Strategic Management? 

What is the 5 P's Model of Strategic Management? 

The 5 P's Model, proposed by Pryor, White, and Toombs, proposes the alignment of 5 variables to improve organizations and their operations.

The variables are as follows: 

  • Purpose involves all the elements that constitute the intention of the organization. This includes the organization's mission, vision, goals and objectives, and strategies.
  • Principles are the guiding philosophies, assumptions, or attitudes about how the organization should operate and how it should conduct its business. This variable includes the integrity base, ethics, and core values to which employees are expected to make a commitment when they are hired.
  • Processes are the organizational structures, systems, and procedures that are used to make the products or perform the services that the organization provides, as well as the infrastructure and rules that support these systems and procedures.
  • People are the individuals (and teams of people) who perform work that is consistent with the Principles and Processes of an organization to achieve its Purpose. They are the active components who accomplish work results.
  • Performance encompasses all the metrics, measurements, and expected results that indicate the status of the organization, and are used as criteria for decision making. Performance results are fed back into the strategic management process to provide a means of feedback and control.

For an organization to be efficient and effective, socio-technical organizational theories suggest that all of the 5 variables must be aligned. So that they support and reinforce each other. Incongruence or incompatibility among the variables expends unnecessary time, energy and money. Also it can lead to high levels of frustration, feelings of helplessness, and dissatisfaction for employees. The 5 variables exist in all organizations.

5p model model of strategic management

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