from: gerry johnson and kevan scholes exploring corporate strategy 5th edition 1999 stakeholders...
TRANSCRIPT
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Stakeholders
stakeholder expectations and organisational purposes
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Objectives Students are to be able to evaluate the power and
levels of a variety of pertinent stakeholders of organisations.
Students are to be able to evaluate the interest levels of a variety of pertinent stakeholders of organisations.
Students are to be able to use their evaluation of the power and interest levels of a variety of pertinent stakeholders of organisations, to show how strategies can impact upon and be impacted upon by a variety of stakeholder groups.
Students are able to show how management styles play a role in stakeholdering.
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Strategicanalysis
Strategicchoice
Strategyimplementation
Exhibit 1.4 A summary model of the elements of strategic management
Expectationsand purposes
Organisationstructure and
design
Managingstrategicchange
Resourceallocation and
control
Strategicoptions
Basesof strategic
choice
Strategyevaluation and
selection
Resources,competencesand capability
Theenvironment
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Organisational purposes• Mission• Objectives
Exhibit 5.1 Influences on organisational purposes
Corporate governance• Whom should the organisation serve?• How should purposes be determined?
Business ethics• Which purposes should
be prioritised?• Why?
Cultural context• Which purposes are prioritised?• Why?
Stakeholders• Whom does the organisation serve?
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STAKEHOLDERS
“Those who depend on the organisation for the realisation of some of their goals and in turn the organisation depends on them for the full realisation of its goals”
•Customers•Competitors•Government•Suppliers•The community•Employees•Lenders
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
CORPORATE GOVERNANCE AND STAKEHOLDERS
Shareholders widespread or close? institutional intermediaries? bankers? cross-shareholding?
Employees Co-determination, shareholders or employees?
Lenders partners or “contractors”?
Customers Caveat Emptor, market pressure or regulation?
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
(a) Within organisations Hierarchy (formal power),
e.g. autocratic decision making Influence (informal power),
e.g. charismatic leadership Control of strategic resources,
e.g. strategic products Possession of knowledge and skills,
e.g. computer specialists Control of the environment,
e.g. negotiating skills Involvement in strategy
implementation,
e.g. by exercising discretion
(b) For external stakeholders Control of strategic resources
e.g. materials, labour, money Involvement in strategy implementation,
e.g. distribution outlets, agents Possession of knowledge (skills),
e.g. subcontractors Through internal links,
e.g. informal influence
Exhibit 5.6a Sources of power
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
(a) Within organisations Status Claim on resources Representation Symbols
(b) For external stakeholders Status Resource dependence Negotiating arrangements Symbols
Exhibit 5.6b Indicators of power
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Growth vs profitability Short term vs investment Control vs professional managers Ownership vs funding Ownership vs accountability Efficiency vs jobs Mass appeal vs quality
Exhibit 5.3 Some common conflicts of expectations
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Exhibit 5.5 Stakeholder mapping: the power/interest matrixSource: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991
Low High
Low
A
Minimaleffort
B
Keepinformed
High
C
Keepsatisfied
D
Keyplayers
LEVEL OF INTEREST
POWER
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STAKEHOLDER MAPPING- SOME GUIDELINES
Positioning related to specific strategies Stakeholders may need to be sub-divided Distinguish the role for the individual Identify “political” priorities by:
plot how stakeholders would line up plot how stakeholders would need to line up identify mismatches include key maintenance activities
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STAKEHOLDER MAPPING- ‘test’ questions
Power“If I were to pursue this strategy with disregard to theviews of this stakeholder could they stop me?”
Interest
“How high is this strategy in their priorities - are they
likely to actively support or oppose this strategy?”
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STAKEHOLDER MAPPING- typical maps
Typical Map Dangers PrioritiesBattleground ‘Limbo’ Supporter dominates
Opponents retreatStalemate
Dream Ticket Complacency Keep informedKeep Satisfied
Lost Cause Lose ‘the war’ Change orientationRetreat
Lone Champion Champion Lost Broaden supportDogged Opponent Opponent prevails Change orientation
Sidepayments)Reduce powerFind Champion
Political Trap Stakeholder re-positions
Maintain in positionSeek Champion
Worthy cause No leversDrain resources
Keep informedHelp organise
Timebomb Negative lobbying Maintain positionAutocrat’s Dream Complacency Proceed
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Management Styles
We need to consider how management styles differ when dealing with each stakeholder
group
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Low High
Low
Direction/edict style
Regular general
communication
Symbolic signalling
Direction education style
Regular general
communication
Symbolic signalling
High
Education/intervention style
Personal memoing
Face to face
Participation/intervention
style
Face to face
communication
Power
Stakeholders and management styles
Level of interest
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
STYLE MEANS/CONTEXT BENEFITS PROBLEMS CIRCUMSTANCES OFEFFECTIVENESS
Education and Group briefings assume Overcoming lack of Time consuming communication internalisation of strategic (or mis)information Direction or progress
logic and trust of top may be unclear management
Collaboration/ Involvement in setting the Increasing ownership Time consuming participation strategy agenda and/or of a decision or Solutions/outcome
resolving strategic issues process May improve within existing by taskforces or groups quality of decisions paradigm
Intervention Change agent retains Process is Risk of perceived Incremental or non-crisis co-ordination/control guided/controlled manipulation transformational change delegates elements of but involvement change takes place
Direction Use of authority to set Clarity and speed Risk of lack of Transformational change direction and means of acceptance and ill- change conceived strategy
Coercion/edict Explicit use of power May be successful in Least successful Crisis, rapid through edict crises or state of unless crisis transformational change
confusion or change in establishedautocratic cultures
Incremental change or long-time horizontal transformational change
Exhibit 11.6 Styles of managing strategic change
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Activity Read Johnson & Scholes (1999) section 5.3.2 of the text and
illustration 5.4 for practical advice on how to undertake a stakeholder mapping.
AND
Carry out a stakeholder mapping exercise for the Granada buy out of Forte Hotels. Support this with researched evidence (newspaper articles, journal articles, web searches etc.) Bring it to the seminar for discussion.
OR Read the Sheffield Theatres Trust case study on page 670-84, Johnson
& Scholes, 1999, Exploring Corporate Strategy 5th Ed. And carry out a stakeholder mapping exercise.
OR
Carry out a stakeholder mapping exercise for an hospitality/tourism organisation and strategy/scenario of your choice. Support this with researched evidence (newspaper articles, journal articles, web searches etc.) Bring it to the seminar for discussion.
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MORETON UNIVERSITY
A case study
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Low High
Low
High
POWER
LEVEL OF INTEREST
A
Students
DDirector C (-)
Vice Chancellor (0)
Chairman (-)
BDirector A (+)Competitor X (-)Principal F (-)
CFunding Body
Director E
Director S
COMPUTER SERVICES - ‘monopolist’ strategyMap A - current situation (1998)
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
Low High
Low
High
POWER
LEVEL OF INTEREST
A
Students
DDirector A (+)Director S (+)Director C (-)Vice Chancellor (+)
BCompetitor X (-)Principal F (0)
CFunding Body
Director E
Chairman
COMPUTER SERVICES - ‘monopolist’ strategyMap B - the preferred situation
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MORETON UNIVERSITY- political priorities (monopolist strategy)
Dilute power of Director ‘C’
Lobby Directors ‘E’ and ‘S’ to increase interest
Director ‘A’ now on Governing Body
Inform Chairman of difficulties elsewhere
Improve service to colleges - silence Principal ‘F’
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
MORETON UNIVERSITY
- assessment of power
INTERNAL STAKEHOLDERSIndicator Director A Director C Director S ChairmanStatus H H H HResources L H M N/aRepresentation
L L L H
Symbols M H M HEXTERNAL STAKEHOLDERS
Indicator FundingBody
Principal F Students
Status H M LResourceleverage
H L M
Negotiation H L LSymbols H M L
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Political Battleground
+ + +
- - -
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Dream Ticket
+ + +
+ + +
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Potential Lost Cause
- - -
- - -
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Lone Champion
+
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Dogged Opponent
__
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Political Trap
? ? ?
? ? ?
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Worthy Cause
+ + +
+ + +
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Political Timebomb
- - -
- - -
From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999
The Autocrat’s Dream
? ? ?
? ? ?