strategy analysis & choice contrasting strategy formulation and strategy implementation...
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation is positioning forces before the action
– Implementation is managing forces during the action
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
OverviewOverview
• Aligning People Behind Strategy• Managing Conflict• Organizational structures• Managing change• Organisational culture• Stakeholder analysis• Implementation steps• Managing Knowledge & technology
Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation focuses on effectiveness
– Implementation focuses on efficiency
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation is primarily an intellectual process
– Implementation is primarily an operational process
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation requires good intuitive and analytical skills
– Implementation requires special motivation and leadership skills
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation requires coordination among a few individuals
– Implementation requires coordination among many persons
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Strategy Analysis & ChoiceStrategy Analysis & Choice
Strategy implementation –Strategy implementation –
– Varies among different types and Varies among different types and sizes of organizations sizes of organizations
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Strategy Analysis & ChoiceStrategy Analysis & Choice
Strategy implementation Actions –Strategy implementation Actions –
– Altering sales territoriesAltering sales territories– Adding new departmentsAdding new departments– Closing facilitiesClosing facilities– Hiring new employeesHiring new employees– Cost-control proceduresCost-control procedures– Changing advertising strategiesChanging advertising strategies– Building new facilities Building new facilities
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
Formulation to Implementation Formulation to Implementation transition –transition –
– Shift in responsibilityShift in responsibility• From strategists to division and From strategists to division and
functional managers functional managers
Management PerspectivesManagement Perspectives
Aligning People Behind StrategyAligning People Behind Strategy
• Strategy would be difficult to implement if there is resistance
• Requires two area:
- Relationship Management: support change agents & supporters; don’t alienate gatekeepers & others
- Need key influencing skills: keep momentum towards change & coalition building
Managing ConflictManaging Conflict
Conflict –Conflict –
Disagreement between two or more parties on one or more issues
Managing ConflictManaging Conflict
• Conflict is not always “bad”Conflict is not always “bad”• Absence of conflictAbsence of conflict
– Signal indifference or apathySignal indifference or apathy
• Can energize opposing groups to actionCan energize opposing groups to action• May help managers identify problemsMay help managers identify problems
Managing ConflictManaging Conflict
Conflict Management and Resolution
– Avoidance– Defusion– Confrontation
Matching Structure with StrategyMatching Structure with Strategy
Changes in Strategy Changes in Structure
1. Structure largely dictates how objectives and policies will be established.
2. Structure dictates how resources will be allocated
Basic Forms of StructureBasic Forms of Structure
1. Functional Structure• Groups tasks and activities by business
function
2. Divisional Structure• Decentralized and organized by
geography, product, customer, or process
Basic Forms of StructureBasic Forms of Structure
3. Strategic Business Unit Structure (SBU)• Groups similar divisions; delegates authority
and responsibility to SBU executive
4. Matrix Structure• Most complex of all designs. Depends upon
both vertical and horizontal flows of authority and communication
Managing Resistance to ChangeManaging Resistance to Change
Resistance to change –Resistance to change –
– Single greatest threat to successful Single greatest threat to successful strategy implementationstrategy implementation
Managing Resistance to ChangeManaging Resistance to Change
Change raises anxiety over fear of:Change raises anxiety over fear of:
– Economic lossEconomic loss– InconvenienceInconvenience– UncertaintyUncertainty– Break in status-quoBreak in status-quo
Change StrategiesChange Strategies
• Force Change StrategyForce Change Strategy
• Educative Change StrategyEducative Change Strategy
• Rational or Self-Interest Change Rational or Self-Interest Change StrategyStrategy
Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture
Strategists should strive to preserve, emphasize, and build upon aspects of existing culture that support new strategies.
Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture
Elements linking culture to strategy:
1. Formal statements of philosophy, charters, etc. used for recruitment and selection, and socialization
2. Designing of physical spaces, facades, buildings3. Deliberate role modeling, teaching and coaching4. Explicit reward and status system, promotion criteria5. Stories, legends, myths about key people and events6. What leaders pay attention to, measure and control7. Leader reactions to critical incidents and crises8. How the organization is designed and structured9. Organizational systems and procedures10. Criteria used for recruitment, selection, promotion, retirement
Prioritising ImplementationPrioritising Implementation
• Root Cause (Fishbone analysis)
• From –To - Analysis
• Attractiveness – Difficulty Analysis
• Wishbone Analysis
Implementation StrategyImplementation Strategy
• Force-Field Analysis
• Stakeholder Analysis: Steps:
- identify key stakeholders
- evaluate whether they have high, medium or low influence on the strategy
- evaluate whether they are for, against or neutral
Stakeholder Analysis: Next StepStakeholder Analysis: Next Step
• Can new stakeholders be brought in/old stakeholders removed to improve support?
• Boost influence of “for” stakeholders?
• Reduce influence of “against” stakeholders
• Coalition of “for” stakeholders possible?
Stakeholder Analysis (contd)Stakeholder Analysis (contd)
• Can coalition of “against” stakeholders prevented?
• Can the project be reformulated to make it acceptable?
• Possible to bring abroad “against” stakeholders by including their prized areas?
• Need to redefine project?
Planning Implementation StepsPlanning Implementation Steps
• Establish objectives
• Identify actions (steps) required
• Identify & assess resources available
• Allocate accountabilities/responsibilities
• Plan monitoring & review activities
Resource AllocationResource Allocation
Resource Allocation –Resource Allocation –
A central management activity that A central management activity that allows for strategy executionallows for strategy execution
Resource AllocationResource Allocation
Four types of resources –Four types of resources –
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Knowledge & Technology - Knowledge & Technology - EffectsEffects
• Business strategy: creates new opportunities, e.g., services available over the net instead of in person
• Culture: more innovative and open culture due to electronic info dissemination (free-flow of info)
• Organizational structure: Flatter & fluid
Knowledge & Technology – Knowledge & Technology – Effects (contd)Effects (contd)
• Management: unstructured management processes possible with info on net, etc
• Work: all professional work includes IT component
• Workplace – de-centralised; can work from home