strategy analysis & choice
DESCRIPTION
Implementing Strategies: Management Issues. Strategy Analysis & Choice. Contrasting strategy formulation and strategy implementation Formulation is positioning forces before the action Implementation is managing forces during the action. Overview. Aligning People Behind Strategy - PowerPoint PPT PresentationTRANSCRIPT
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation is positioning forces before the action
– Implementation is managing forces during the action
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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OverviewOverview
• Aligning People Behind Strategy• Managing Conflict• Organizational structures• Managing change• Organisational culture• Stakeholder analysis• Implementation steps• Managing Knowledge & technology
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation focuses on effectiveness
– Implementation focuses on efficiency
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation is primarily an intellectual process
– Implementation is primarily an operational process
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation requires good intuitive and analytical skills
– Implementation requires special motivation and leadership skills
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation
– Formulation requires coordination among a few individuals
– Implementation requires coordination among many persons
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Strategy implementation –Strategy implementation –
– Varies among different types and Varies among different types and sizes of organizations sizes of organizations
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Strategy Analysis & ChoiceStrategy Analysis & Choice
Strategy implementation Actions –Strategy implementation Actions –
– Altering sales territoriesAltering sales territories– Adding new departmentsAdding new departments– Closing facilitiesClosing facilities– Hiring new employeesHiring new employees– Cost-control proceduresCost-control procedures– Changing advertising strategiesChanging advertising strategies– Building new facilities Building new facilities
Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues
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Formulation to Implementation Formulation to Implementation transition –transition –
– Shift in responsibilityShift in responsibility• From strategists to division and From strategists to division and
functional managers functional managers
Management PerspectivesManagement Perspectives
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Aligning People Behind StrategyAligning People Behind Strategy
• Strategy would be difficult to implement if there is resistance
• Requires two area: - Relationship Management: support change
agents & supporters; don’t alienate gatekeepers & others
- Need key influencing skills: keep momentum towards change & coalition building
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Managing ConflictManaging Conflict
Conflict –Conflict –
Disagreement between two or more parties on one or more issues
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Managing ConflictManaging Conflict
• Conflict is not always “bad”Conflict is not always “bad”• Absence of conflictAbsence of conflict
– Signal indifference or apathySignal indifference or apathy• Can energize opposing groups to actionCan energize opposing groups to action• May help managers identify problemsMay help managers identify problems
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Managing ConflictManaging Conflict
Conflict Management and Resolution
– Avoidance– Defusion– Confrontation
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Matching Structure with StrategyMatching Structure with Strategy
Changes in Strategy Changes in Structure
1. Structure largely dictates how objectives and policies will be established.
2. Structure dictates how resources will be allocated
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Basic Forms of StructureBasic Forms of Structure
1. Functional Structure• Groups tasks and activities by business
function
2. Divisional Structure• Decentralized and organized by
geography, product, customer, or process
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Basic Forms of StructureBasic Forms of Structure
3. Strategic Business Unit Structure (SBU)• Groups similar divisions; delegates authority
and responsibility to SBU executive
4. Matrix Structure• Most complex of all designs. Depends upon
both vertical and horizontal flows of authority and communication
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Managing Resistance to ChangeManaging Resistance to Change
Resistance to change –Resistance to change –
– Single greatest threat to successful Single greatest threat to successful strategy implementationstrategy implementation
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Managing Resistance to ChangeManaging Resistance to Change
Change raises anxiety over fear of:Change raises anxiety over fear of:
– Economic lossEconomic loss– InconvenienceInconvenience– UncertaintyUncertainty– Break in status-quoBreak in status-quo
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Change StrategiesChange Strategies
• Force Change StrategyForce Change Strategy• Educative Change StrategyEducative Change Strategy• Rational or Self-Interest Change Rational or Self-Interest Change
StrategyStrategy
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Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture
Strategists should strive to preserve, emphasize, and build upon aspects of existing culture that support new strategies.
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Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture
Elements linking culture to strategy:
1. Formal statements of philosophy, charters, etc. used for recruitment and selection, and socialization
2. Designing of physical spaces, facades, buildings3. Deliberate role modeling, teaching and coaching4. Explicit reward and status system, promotion criteria5. Stories, legends, myths about key people and events6. What leaders pay attention to, measure and control7. Leader reactions to critical incidents and crises8. How the organization is designed and structured9. Organizational systems and procedures10. Criteria used for recruitment, selection, promotion, retirement
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Prioritising ImplementationPrioritising Implementation
• Root Cause (Fishbone analysis)• From –To - Analysis• Attractiveness – Difficulty Analysis• Wishbone Analysis
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Implementation StrategyImplementation Strategy
• Force-Field Analysis• Stakeholder Analysis: Steps: - identify key stakeholders - evaluate whether they have high,
medium or low influence on the strategy - evaluate whether they are for, against
or neutral
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Stakeholder Analysis: Next StepStakeholder Analysis: Next Step
• Can new stakeholders be brought in/old stakeholders removed to improve support?
• Boost influence of “for” stakeholders?• Reduce influence of “against”
stakeholders• Coalition of “for” stakeholders possible?
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Stakeholder Analysis (contd)Stakeholder Analysis (contd)
• Can coalition of “against” stakeholders prevented?
• Can the project be reformulated to make it acceptable?
• Possible to bring abroad “against” stakeholders by including their prized areas?
• Need to redefine project?
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Planning Implementation StepsPlanning Implementation Steps
• Establish objectives• Identify actions (steps) required• Identify & assess resources available• Allocate accountabilities/responsibilities• Plan monitoring & review activities
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Resource AllocationResource Allocation
Resource Allocation –Resource Allocation –
A central management activity that A central management activity that allows for strategy executionallows for strategy execution
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Resource AllocationResource Allocation
Four types of resources –Four types of resources –
1. Financial resources2. Physical resources3. Human resources4. Technological resources
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Knowledge & Technology - Knowledge & Technology - EffectsEffects
• Business strategy: creates new opportunities, e.g., services available over the net instead of in person
• Culture: more innovative and open culture due to electronic info dissemination (free-flow of info)
• Organizational structure: Flatter & fluid
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Knowledge & Technology – Knowledge & Technology – Effects (contd)Effects (contd)
• Management: unstructured management processes possible with info on net, etc
• Work: all professional work includes IT component
• Workplace – de-centralised; can work from home