Strategy in Action: Organizing for success & leading strategic change Flashcards
(59 cards)
1
Q
3 scenarios for adapting the organizational structure
A
- Internationalization (requires addressing dilemma of reaching global scale and local adaptation)
- Innovation (requires knowledge creating and knowledge sharing)
- Diversification (entails entering new product markets)
2
Q
Diversification: Which structure fits the best?
A
- Multidivisional: (divisionality allows
managers enough decentralized responsibility to enact their own
strategies)
3
Q
Internationalization: Which structure fits the best?
A
Matrix : best accommodates both
sides in the dilemma: one dimension could allow for scale, the other could
allow regional adaptation
Transnational: (best accommodates both sides in the dilemma
4
Q
Innovation: Which structure fits the best?
A
Project : Bring together relevant
experts to focus intensely on innovation initiatives
5
Q
Challenging traditional organizational designs
A
–> growing call for “flatter” & more democratic organizational designs
- Greater decision right : Employees participate in the making of
decisions that affect them - Democratic culture:
- Creates space for discourse, deliberation, and negotiation
- Invokes a group identity
- Employee ownership :
- Ownership not concentrated in shareholders but includes employees
- Legitimate participation in decisions (e.g. cooperative)
6
Q
What constitutes successful leadership?
A
Transactional –> Situation –> Transformational
7
Q
Keeping track of strategy execution with the Balanced Scorecard
A
- Financial
- Business Processes
- Learning & Growth
- Customer
8
Q
Financial
A
- Objectives
- Targets
- Measures
- Initiatives
9
Q
Business Processes
A
- Objectives
- Targets
- Measures
- Initiatives
10
Q
Learning & Growth
A
- Objectives
- Targets
- Measures
- Initiatives
11
Q
Customer
A
- Objectives
- Targets
- Measures
- Initiatives
12
Q
SAFe criteria of strategy evaluation
A
- Suitability
- Feasibility
- Acceptability
13
Q
Suitability
A
Does a proposed strategy address the key opportunities and threats an organization faces?
–> SWOT analysis
- Opportunities & threats (external)
- Strength & weaknesses (internal)
14
Q
Feasibility
A
Would a proposed strategy work in practice?
- Financial feasibility
- People and skills
- Integrating resources
15
Q
Acceptability
A
Does a proposed strategy meet the expectations of stakeholders?
- Risk
- Return
- Stakeholder reactions
16
Q
There are other measures of performance becoming increasingly relevant
A
- The embedded view
- Science-based targets
- Sustainable development goals
17
Q
Gap Analysis
A
gap between the desired and projected
–> voir page 23
18
Q
Using “trees” to break down and structure our problems
A
- Issue tree
- Hypothesis-driven tree
19
Q
Issue tree
A
- Starts with the definition of the problem and divides it into components
- Elements of branches : Actions, assertions, criteria, questions, topics
- Typical application: Suitable for a comprehensive approach; used for a new problem when relatively little is known about it
20
Q
Hypothesis-driven tree
A
- Hypothesizes a solution and develops a necessary and sufficient rationale to
validate or disprove it - Elements of branches : Reasons
- Typical application: Typically used when the problem area is relatively familiar and it is possible to make
sound assumptions
21
Q
Strategy Development Process: How do strategies emerge?
A
- Intended strategies : Elements of strategic behavior, could not be realized
–> unrealized strategy - realized strategy: Elements of strategic behavior, the permanent new way
–> Emergent Strategy
voir page 27
22
Q
Direction of the strategy formation
A
- Top down
- Basis updward
- Bipolar
- Keil
- Multiple Nucleus
page 29
23
Q
Ideal types of strategy development
A
- Command approach
- Strategic Planning
- Guided Evolution
- Symbolic approach
- Self-organization approach (grassroots)
24
Q
Command approach
A
- Top management sets goals &
strategies - Predictable businesses
25
Strategic Planning
- Systematic process
- Coordinated actions in large
companies
26
Guided Evolution
- Management guides initiatives
- Variation, selection , retention
27
Symbolic approach
- Management articulates vision
and inspires initiatives
- Often founder-active
28
Self-organization approach (grass root)
- Decentralized organization
- Boundary conditions
29
Deep Dive “Strategic Planning”: The Basic Model
- Aspirational phase : Enterprise Mission
Corporate Vision Business Goals
- Analysis Phase: External analysis Internal analysis
- Formulation Phase: Formulating., strategic alternatives, Corporate strategy, Business strategy, Functional, Evaluation and Choice
- Implementation Phase: Action Planning, Changes in structure and people, Functional activity and coordination, Budgeting, Strategic Control, Measures and accountability
30
“Strategic Planning” at Daimler Chrysler
voir page 33
31
Strategic Planning: Advantages
* Systematic search for information
* Comprehensive analysis
* Rational process
* Coordinates and controls activities
toward common goals
* Improves communication
* Creates a common sense of direction
* Focuses on and (sometimes) improves
financial performance
32
Strategic Planning: Disadvantages
* Relies on uncertain forecasts
* Over-simplifies a complex world
* Overly bureaucratic – “the process
becomes the goal”
* Separates thinking from doing
* Favors analysis over synthesis
* Difficult to link to operations
* Periodic process (yearly) versus
continuous change
* Slow
33
An alternative approach to “strategic planning” is that of emergent strategy
1. Logical Incrementalism
2. Political processes
3. Structures and systems
34
Logical Incrementalism
* Environmental uncertainty
* General goals (not specific
objectives)
* Experimentation
35
Political processes
* Position and personal
experience
* Competition for resources
* Relative influence of
stakeholders
* Different access to
information
36
Structures and systems
* Organizational systems as a
basis for making sense of
issues
* Organizational systems
provide bases of solutions to
strategic issues
37
How to generate strategic ideas:
Using “open strategy” to involve external and internal stakeholders
page 38
38
Central dilemmas of “open strategy”
- Dilemma of process
- Dilemma of commitment
- Dilemma of disclosure
- Dilemma of empowerment
- Dilemma of escalation
39
Dilemma of process
- Granting access to wider
sources of knowledge
- Compromising speed, flexibility
and control over the strategy
development process
40
Dilemma of commitment
- Creating commitment by
inviting contributions
- Undermining commitment due
to unmet expectations about
impact of contributions
41
Dilemma of disclosure
- Responding to expectations
about disclosure of strategy
information
- Undermining competitiveness,
trust and understanding
42
Dilemma of empowerment
- Granting wider audiences a say
in strategy developmen
- Burdening wider audiences with
the pressures of strategy
43
Dilemma of escalation
- Realizing benefits of openness
in selected areas of strategy
- Creating escalating expectations about increasing openness
44
Change Kaleidoscope
page 41
45
Dividing a change cycle into phases – Timing of change
page 42
46
Diffusion of change processes – “traditional”
page 43
47
Diffusion of change processes – “new”
Open strategy continued
page 44
48
Types of strategic change
page 45
49
Two complementary tasks of strategy evolution
- "Running the firm"
- "Changing the firm"
50
"Running the firm
Improvement of the positioning of existing businesses
Managerial mode:
Strategic planning (linked to budgeting)
Phases:
Formulation & Implementation
51
"Changing the firm"
Search for strategic initiatives related to the normative framework independent of existing structures
Entrepreneurial mode:
Evolutionary, experimental approach
Phases:
Variation, selection, retention
52
Factors contributing to failure
- Employee resistance
to change
- Inadequate resources and budget
- All other obstacles
- Management behavior not
supportive of change
53
Nearly 90% of respondents to a global survey of executives conducted
by MIT Sloan and Deloitte anticipate that their industries will be
disrupted by..
digital trends to a great or moderate exten
54
BUT
…only 44% say their organizations
are adequately preparing..
for the disruptions to come
55
The new digital edge: most firms envision fundamental transformations
56
this requires navigating a turbulent transition period
Potential profit path
of NYT during its
digital transformation--> decrease
57
Why not turn to the outside for help…?
Remember open innovation?
The big 4 or 5 digital natives could enter our industry any time to disrupt it. This forces us to
accelerate our own digital transformation and to
implement structures that allow collaboration
with external partners.
58
Digital strategy formulation
Guiding policy for the creation and appropriation
of value by exploiting digital technologies to
achieve long-term objectives
* Define scope of digital transformation
* Identify business model elements that
must be modified
59
Digital strategy implementation
How firms translate the digital strategy
formulated into a concrete plan and set of actions
