IMPLEMENTATION OF CORPORATE SUSTAINABILITY STRATEGIES Flashcards
(11 cards)
What is Hoshin Kanri framework?
Framework combines strategies with implementation: (top down and bottom up)
* Vision and strategy
development as explained
* ABCD process extended
- E…Execution
- F…Feedback
- G…Goal achievement
and standardization
What are the hoshin planning processes?
Phase 1: strategic planning
1. Establish org vision
2. Develop 3-5 year plan (optional in some models)
3. Develop annual objective
Phase 2: Heart of Hoshin planning process
4. Deployment - Develop plans including targets and means
5. Implementation
6. Regular progress (MO + Q) - to step 5
7. Annual review
What is the Classical Logic of Strategic Management?
It contrasts two complementary views:
* Outside-In (Market-Based View, Porter): Strategy derives from fitting firm actions to external market conditions (e.g., via Porter’s Five Forces). Strategic logic: Being cost leader or differentiator
* Inside-Out (Resource-Based View, Barney): Strategy stems from leveraging a firm’s unique, valuable, rare and inimitable resources. Competitive advantage arises from deploying superior internal capabilities to generate superior performance.
What do Mintzberg & Whittington propose about strategy?
- Mintzberg (1985) distinguishes between deliberate strategies (those realized exactly as intended) and emergent strategies (patterns that arise in the absence—or despite—intentions). He famously defines strategy as “patterns in a stream of decisions.”
- Whittington (1996) develops “strategy-as-practice”, which shifts focus to the micro-level social activities, processes and practices through which organizational strategy is actually enacted and reproduced day-to-day.
What is PDCA cycle?
The PDCA cycle is a fundamental approach within Hoshin Kanri for continuous improvement and process management. It is critical for executing and adapting sustainability strategies over time.
*Plan: Define sustainability strategies and breakthrough goals.
*Do: Implement annual targets and initiatives within departments.
*Check: Gather feedback from teams and measure performance.
*Act: Adjust plans and processes based on feedback for continuous improvement
How can firms respond to tensions between economic goals and environmental & social sustainability?
Develop strategic agility:
* Strategic sensitivity: identify E and S challenges and their tensions with economic goals
* Collective commitment: culture and leadership for inconsistencies
* Resource fluidity: fast mobilization of resource and reconfiguration
These allow to quickly respond, to seize opportunities and
to change direction
What are the settings for org culture?
(1) Existence of values related to sustainability speeds up implementation
(2) Lack of sustainability values block integration efforts
(3) Organizational culture slows the disappearance of values (even after CEO change)
(4) Multiple locations create splits in culture, hindering dissemination of values.
What are the change management integration scenarios?
-Top-down or bottom up (fast integration)
-Top-down (takes time, involve and educate employees)
-Top-down or bottom up (strong leadership needed, raise awareness)
-Top-down weak (low employee engagement)
-Bottom up (blocked integration)
Why do companies need change management?
- Companies with a change agent have more advanced sustainability management
- Organizational culture drives the implementation of sustainability activities.
- Companies accepting goal conflicts invest in wider range of sustainability activities
Change agent/promoter model:
Power promoter, expert promoter, process promoter
Tasks are (initiate, decide, organize, implement, check)
What is SBSC?
It is a tool for strategic control, focused on integrating sustainability management into general management. It addresses shortcomings of separate management systems.
What are the 3 approaches to designing SBSC?
-Integrating environmental and social aspects into existing 4 standard perspectives (financial, customer, internal, learning and growth)
-Introduction of additional non-market perspective
-Creating a separate E and S scorecard
