3.4 People and strategy

Question 1

Why is it dangerous for the strategy to be too closely aligned with the personality or character of the CEO?

Answer 1

This can lead to overconfidence and derailing of the strategy.

Question 2

What are some benefit of involving the workforce in strategy?

Answer 2

• individuals doing day jobs have greater knowledge of what they are trying to achieve
• adds momentum to achieving strategy
• individuals feel more motivated to help

Question 3

What are some drawbacks of involving the workforce in strategy?

Answer 3

• lack of understanding of wider strategic vision
• lack of confidential information available to individuals
• risk of negative reactions to short term failures

Question 4

What roles does the Company Secretary play in the development of strategy?

Answer 4

• Acts as an independent link between different Board members
• can gather information and align interests
• can observe others and identify weak areas
• often has knowledge of previous strategy success and failures

Question 5

How might an executive director’s remuneration package create a conflict with the organisation’s strategy?

Answer 5

If bonuses are linked to annual financial performance, there will be a drive to boost this, rather than to achieve the long-term strategy.

Question 6

How does “Asymmetry” arise when talking about strategy?

Answer 6

The Board are usually in the know about the ultimate strategic objectives, but are unaware of the day-to-day challenges, while the opposite is true for the workforce.

Question 7

Give four examples of stakeholders in an organisation who are affected by strategy.

Answer 7

Owners
Employees
Customers
Suppliers