Strategy Analysis & Choice

1. 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

2. Overview • Aligning People Behind Strategy • Managing Conflict • Organizational structures • Managing change • Organisational culture • Stakeholder analysis • Implementation steps • Managing Knowledge & technology

3. Implementing Strategies: Management Issues Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation • Formulation focuses on effectiveness • Implementation focuses on efficiency

4. Implementing Strategies: Management Issues Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation • Formulation is primarily an intellectual process • Implementation is primarily an operational process

5. Implementing Strategies: Management Issues Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation • Formulation requires good intuitive and analytical skills • Implementation requires special motivation and leadership skills

6. Implementing Strategies: Management Issues Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation • Formulation requires coordination among a few individuals • Implementation requires coordination among many persons

7. Implementing Strategies: Management Issues Strategy Analysis & Choice Strategy implementation – • Varies among different types and sizes of organizations

8. Implementing Strategies: Management Issues Strategy Analysis & Choice Strategy implementation Actions – • Altering sales territories • Adding new departments • Closing facilities • Hiring new employees • Cost-control procedures • Changing advertising strategies • Building new facilities

9. Management Perspectives Formulation to Implementation transition – • Shift in responsibility • From strategists to division and functional managers

10. Aligning 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

11. Managing Conflict Conflict – Disagreement between two or more parties on one or more issues

12. Managing Conflict • Conflict is not always “bad” • Absence of conflict • Signal indifference or apathy • Can energize opposing groups to action • May help managers identify problems

13. Managing Conflict Conflict Management and Resolution • Avoidance • Defusion • Confrontation

14. Matching Structure with Strategy Changes in Strategy Changes in Structure • Structure largely dictates how objectives and policies will be established. • Structure dictates how resources will be allocated

15. Basic Forms of Structure • Functional Structure • Groups tasks and activities by business function • Divisional Structure • Decentralized and organized by geography, product, customer, or process

16. Basic Forms of Structure • Strategic Business Unit Structure (SBU) • Groups similar divisions; delegates authority and responsibility to SBU executive • Matrix Structure • Most complex of all designs. Depends upon both vertical and horizontal flows of authority and communication

17. Managing Resistance to Change Resistance to change – • Single greatest threat to successful strategy implementation

18. Managing Resistance to Change Change raises anxiety over fear of: • Economic loss • Inconvenience • Uncertainty • Break in status-quo

19. Change Strategies • Force Change Strategy • Educative Change Strategy • Rational or Self-Interest Change Strategy

20. Creating a Strategy-Supportive Culture Strategists should strive to preserve, emphasize, and build upon aspects of existing culture that support new strategies.

21. Creating a Strategy-Supportive Culture Elements linking culture to strategy: • Formal statements of philosophy, charters, etc. used for recruitment and selection, and socialization • Designing of physical spaces, facades, buildings • Deliberate role modeling, teaching and coaching • Explicit reward and status system, promotion criteria • Stories, legends, myths about key people and events • What leaders pay attention to, measure and control • Leader reactions to critical incidents and crises • How the organization is designed and structured • Organizational systems and procedures • Criteria used for recruitment, selection, promotion, retirement

22. Prioritising Implementation • Root Cause (Fishbone analysis) • From –To - Analysis • Attractiveness – Difficulty Analysis • Wishbone Analysis

23. Implementation 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

24. Stakeholder 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?

25. 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?

26. Planning Implementation Steps • Establish objectives • Identify actions (steps) required • Identify & assess resources available • Allocate accountabilities/responsibilities • Plan monitoring & review activities

27. Resource Allocation Resource Allocation – A central management activity that allows for strategy execution

28. Resource Allocation Four types of resources – • Financial resources • Physical resources • Human resources • Technological resources

29. Knowledge & Technology - Effects • 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

30. Knowledge & Technology – 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