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PoOC > 6 - Middle-In/Out radical change > Flashcards

6 - Middle-In/Out radical change Flashcards

Lecture 7 Floyd & Lane Burgelman

1
Q

The ecological perspective on strategic renewal

  • What is it
  • what did it say
A
  • Based on environmental determinism, opposite of strategic choice
  • Evolutionary perspective on what is important for (the survival of) strategic renewal
  • Rules of evolution:
    > variation in genes: caused by strategic renewal
    >selection: environments dictates what works best
    > retention: survival chances
  • It identified middle managers as scarce resource for which change initiatives compete
  • strategic renewal as outcome of bottom up and top down change initiatives
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2
Q

Environmental determinism

  • emphasis on
  • Industry development
  • Change dynamics
  • Succes factor
  • Ability to shape the industry
  • Normative implication
  • Development path
  • Firm profitability
A
  • emphasis on: Compliance over choice
  • Industry development: uncontrollable evolutionary process
  • Change dynamics: Environment select fitting firms
  • Succes factor: Fitness to industry demands
  • Ability to shape the industry: Low and slow
  • Normative implication: Adapt to play by the rules
  • Development path: Convergence towards dominant design
  • Firm profitability: industry dependent
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3
Q

Strategic choice

  • emphasis on
  • Industry development
  • Change dynamics
  • Succes factor
  • Ability to shape the industry
  • Normative implication
  • Development path
  • Firm profitability
A
  • emphasis on: Choice over compliance
  • Industry development: Controllable creation process
  • Change dynamics: Firms create fitting environment
  • Succes factor: Manipulation of industry demands
  • Ability to shape the industry: High and fast
  • Normative implication: Innovate and thereby change the rules
  • Development path: Divergence, create a new design
  • Firm profitability: firm dependent
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4
Q

Burgelman - Coevolutionary Lockin

A

A positive feedback process that increasingly ties the previous success of a company’s strategy to that of its existing product-market environment

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5
Q

Burgelman - Strategy as a vector

A

The efforts to drive (focus) an organizations strategy in the intended direction with a total force equal to all the forces at its disposal.

  • Everybody is looking to the same direction
  • Convergence of individual believe and company code
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6
Q

Burgelman - Strategic actions

A

Induced Strategy

  • Exploits initiatives within the scope of a company’s current strategy
  • extend further in its current product market environment

Autonomous strategy

  • Exploits initiatives that emerge through exploration outside the scope of a company’s current strategy
  • provides the basis for entering a new product market environment.
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7
Q

Burgelman: strategic renewal

A

Induced strategy + Autonomous strategy

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8
Q

Role middle managers in strategic renewal

A
  • Implementing top down changes
  • Facilitating adaptation / learning in lower levels
  • Developing and championing strategic initiatives
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9
Q

F&L - Strategic renewal

-sub processes

A
  • Competence definition
  • Competence deployment
  • Competence modification
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10
Q

F&L - Strategic role conflict

A
  • When managers have no consensus about need for change
  • Conflict within individual managers and managerial roles
  • Managers facing inconsistent behavioral expectations of both deploying existing competencies and experiment with new ones
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11
Q

F&L - strategic renewal

- Competence deployment

A
  • the synoptic process wherein managers deploy resources to venture into new product market arenas or to reinforce an existing product market position
  • Managerial activity involves adjustments to organizational structure, systems, and people to fit the strategy
  • Change is based on an established strategic principle and is guided by an accepted definition of strategic ends and means, often in the form of a formal strategic plan.
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12
Q

F&L - Competence modification

A
  • The process wherein managers
    > recognize the need for change
    >question the organization’s existing strategy and/or competencies
    >encourage emergent & adaptive behavior
  • Established routines no longer fit the circumstances of the external environment
  • Managerial attention shifts
    >away from deploying existing competencies
    >towards assessing the utility of the organization’s resources or the desirability of the strategy itself
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13
Q

F&L - competence definition

A
  • Managers encourage experimentation with new skills and exploration of new market opportunities
  • Core competencies and strategic position are contestable
  • Represents the autonomous loop of strategic behavior
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14
Q

F&L - Roles strategic renewal

  • TM
  • MM
  • OM
A

TM

  1. Ratifying (Competece Definition)
  2. Recognizing (Competence Modification)
  3. Directing (Competence Deployment)
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15
Q

F&L - Roles strategic renewal

- MM

A

MM

  1. Championing (Competence Definition)
  2. Synthesizing (Competence Modification)
  3. Facilitating (Competence Modification)
  4. Implementing (Competence Deployment)
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16
Q

F&L - Roles strategic renewal

- OM

A

OM

  • Experimenting (Competence Definition)
  • Adjusting (Competence Modification)
  • Conforming (Competence Deployment)
17
Q

F&L - Strategic role conflict

- versions

A
  • Within individual
  • Between individuals: horizontal exchange conflict
  • Between individuals: vertical exchange conflict
18
Q

F&L - Strategic role conflict within individuals

A
  • Managers in boundary spanning positions more likely to experience role conflict
  • No consistent evidence role conflict is a problem for (top) managers
  • Number of roles managers play
    > Because middle managers are between top management and operating management, they are more likely to have to take on multiple roles, and therefore more likely to experience within individual conflict
19
Q

F&L - vertical exchange conflict

- Why does it happen

A
  • Differences in technic expertise creates different mental frameworks which cause managers to notice different cues and create different interpretations of cues
  • Different level managers develop different expectations of strategic change
  • External environment may also vary for each management level
  • Top management primarily focuses on the capital market
  • Operating managers are closer to customer concerns, they see the need for investing in new competencies sooner than top managers.
  • Strategic role conflict between individuals of different management levels is more likely to occur in dynamic environmental conditions
20
Q

F&L - horizontal exchange conflict

A

More likely in OM

  • More people in OM
  • More about small details and technicalities then TM

When top management experiences role conflict, it is likely to pass over to lower management, due to conflicting expectations

21
Q

F&L - Managing roles for strategic renewal

A
  • Bureaucratic control
  • Market Control
  • Clan control
22
Q

F&L - Managing roles for strategic renewal

- Market Control

A
  • Compare prices to evaluate outcomes and opportunities.
  • Has minimum information and social requirements
  • Vulnerable to opportunism and uncertainty because they presume self-interested actors
  • For effective market control: minimal goal incongruity between the parties, minimal equivocality of information.
23
Q

F&L - Managing roles for strategic renewal

- Bureaucratic Control

A
  • Rules, policies, hierarchical authority, and written documentation to standardize behavior and assess performance.
  • Less vulnerable in terms of opportunism, Most demanding information requirement
24
Q

F&L - Managing roles for strategic renewal

- Clan Control

A

o conveys information through traditions, assumes that members’ commitment is driven by organizational identification and common culture
o clans reduce uncertainty by inventing both the questions and the answers within their view of the world
o This communality reduces opportunism and equivocality due to the greater similarity of norms, beliefs, and priorities between members
o Maximum tolerance of ambiguity in social arrangements, therefore ideal when behavior specificity and output measurement not possible

25
Q

F&L - Market / Product dynamics: environmental conditions

A
  • stable competition
    > conditions in the factor and product markets are relatively stable
    > strategic renewal by deploying existing competencies according to a well-defined strategy
    > uncertainties come from search for optimal solutions to well defined problems
    > Bureaucratic control best to decrease strategic role conflict
  • Mature competition
    > Low factor, high product market dynamism
    > Modification rather then redefinition of competencies
    > Combination of clan control and bureaucratic control
  • Emergent competition
    > High factor, low product market dynamism
    > Market and bureaucratic control
    > Often found in emerging technology intensive industries
    > Competence definition greatest level of uncertainty  market control
  • Hyper competition
    > No sustainable competitive advantage therefore compete by series of short lived advantages
    > Market & clan control
    > Continuous redefinition and modification
26
Q

Ecology view of strategic renewal

A
  • New routines/capabilities developed through resource investment
  • Ideas for development come from different levels of management
  • In entrepreneurial firms ideas not the scarce resource but time and energy of managers to allocate different ideas
  • This creates competition among ideas for managers attention, change requires the idea to be advocated to engage in the political processes

PoOC (9 decks)

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