Strategy Framework

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Contents

Strategic Advantage

  • Business - Position/Strategy/Intent/Synergies/make or Buy
  • Organizing - organic bureaucratic/ collaborative or autonomy/ coordination responsivesness / control or out of the box

Strategy and Practice

  • Culture - competitive or collaborative / entrepreneurial or exploititive / national differences / devloping or emergent
  • Governance - stakeholder mgt / partnerships / competitive domain / structural finance
  • Problem based approach
  • Use ref's models frameworks, concepts
  • Presentation
    • Focused and structured scripts
    • Synthesize findings
    • Compare and contrast and use judgement
    • Show awareness of limitations of analysis
  • 1. Analyze problem (not summarize case)
  • 2. Suggests frameworks
  • 3. Synthesize frameworks and develop solution
  • 4. Implement


Strategy and Practice 1 - Introduction

Summary - Going beyond the simple either or to investigate the paradoxical. Big and nimble. Global and local, customization and low cost. Post-modern reeds model signifies identities, differentiators that people require - brand, design, tailoring. customization.

Goes beyond the positioning principals of SA to explore the what where and why of strategy


Mintzberg - Crafting Strategy - the process of strategy is more important the planned part of strategy

De Witts Strategic Tensions or Paradoxes Ways to craft Strategy

Strategy and Practice 2 - Corporate Character

Summary - Strategy as Ethos. Strategy is developed form the image, identity and personality of an organization. Your strategy must be true to your corporate identity otherwise it will be seen as inauthentic

Strategy and Practice 3 - Living Strategy

Summary - Organizations are living organisms. Strategy is developed and influenced by the organization's structures, culture, past and present and future. Knowledge is embedded in the organization and evidenced in relationships and interactions. It's hard things such as assets and soft things such as culture. Increasing social capital is more valuable than physical capital assets

  • de Geus - The Living Company
  • Perceive - Embed - Conclude - Act'

Drivers on new Knowledge economy - Globalisation, Deregulation, Technology, Innovation

Senge - The Fifth Discipline - The Fifth Discipline is systems thinking@@ - seeing things as a whole, connected not discrete

Communities of Practice

Strategic NarrativesStrategic Tensions see Ways to craft Strategy

Theory X Theory Y

Disintermediation of Knowledge - proprietary links give value to the collaborative value chain

HQ Archetypes - mentor(ABB parenting style), leader(Shell Provide strategy but not decisions, trainer(Unilever reach want parents thinks they should know), lion tamer(Hanson - meet specific targets) - Cultural and country issues

Resource Based View

Porter's Diamond of National Advantage

Cognitivism v Autopoiesis Cognitivism is more bounded rataionality - best practice

Mintzberg- Organigraphs

Emergent Strategy

Foucault - power and networks. http://www.Theyrule.net

Nonaka

Helming

Three Anecdotes

Strategy and Practice 4 - Future Focused Strategy

Summary - Strategy develops both from Intent and Anticipation. Intent assumes an inside out view. Anticipation is more of an outside in emergent view

Build scenarios

Strategy Under Uncertainty

Strategy and Practice 5 - Innovation-Based Strategy

Summary - Creativity is not necessarily creating some new ie sliced bread creative but neither the bread or slicing was innovated

  • Use new forms of organizational structures to foster creativity - N-form
  • New forms or oganizing Structures - delayering, decentralizing. Processes vertical/horizontal, IT. Boundaries Outsource, JV's etc
  • Hypercompetitiion - Daveni

Prahalad and Hamel - disintegrartion of traditional ways of working due to Globalization, technology/deregulation/innovation

  • information based age - Drucker
  • Galbraith - 6 shapers or organizational forms
  • novel forms of recombination of processes
  • Denison's Unified proicess-based theory of organizational form - value chain and networks
  • Dualism organizing - hierarchy os preserved but new co-ordination mechanisms
  • Grant - Organizations as institutions for integrating knowledge - while recognizing the barriers to transferring knowledge
  • Myerson - Swift Trust - emotion and the network - can work more quickly if team members trust the information they receive

Parenting Style

Strategy and Practice 6 - Acquisition-Based Strategy

Summary - M&A's are made up of explorers and exploration who have different styles who steer their companies in search of gold. M&A should be viewed from the perspective of Capital, Strategic mgt, organizational behavior, process

  • pre-implementation frameworks simplify complex reality
  • Integration - empahsis on exploration
  • Espoused rationale v agency
  • Complex motives for M&A

Agency Theory Strategic Advantage Approach - Directional Policy Matrices, Fit and Alignment

Strategy as Practice Approach

  • Bresman - task integration and human integration
  • M&A's across borders - Corus. BP/Amoco - Vodaphone/Mannessman Mercedes/Chrysler Forte/Granda Nestle/Rowntree

Integration issues

  • Exploration cycle - motivation, launch, style(Shackelton/Scott) etc, possession, realizing value
    • Complexity of motives - not just financial
    • Cycle of M&A, multivariate analysis

Jensen Free Cash Flow theory

Strategy and Practice 7 - Thinking and Acting Strategically

orientation and animation

Acting Strategically

Thinking and acting strategically inevitably means strategic change

Mintzberg, strategic planning is about analysis (breaking down a goal into steps, designing how the steps may be implemented, and estimating the anticipated consequences of each step). On the other hand strategic thinking is about synthesis, about using intuition and creativity to formulate an integrated perspective, a vision of where the organization should be heading. Mintzberg stated that most people have the assumption that strategic planning, strategic thinking, and strategy making are synonymous

Beinhocker, E.D. & Kaplan, S. (2003). The real value of strategic planning. Sloan Management Review.

The Real Value of Strategic Thinking, (2003) published in Sloan Management Review proposes the idea that few strategic decisions are made in the context of a formal process because a company's most important strategic decisions are made as developments unfold. The authors contend that companies that achieve success use strategic planning not to generate strategic plans but as a learning tool to create a preparedness within an organization to make strategic decisions as the need arises. According to authors Kaplan and Beinhocker, the goal of the strategic planning process should be to make sure that the key decision makers " have a solid understanding of the business, share a common fact base, and agree on the important assumptions" (p.8). When managers have this foundation, good strategic decisions can be made throughout the year. The authors argue that the utility of strategic planning is really whether the participants are better prepared for the real-time job of strategic decision making. Understanding their business, armed with a common fact base and agreement on important assumptions prepared the executives to make sound strategic decisions that in retrospect, were the correct ones.

The conclusion drawn in the article is that strategic planning for the sake of preparing plans is unjustified and leaves managers unprepared to make sound decisions as the need occurs. By repositioning strategic planning as a learning process formal strategic planning will prepare managers to make better strategic decisions


Summary - D-M is not seen as an internal planned process. Its is subject to contextual and uncertain influences but doesnt replace the need for D-m entirely. In fcat D-m can be enhances by understanding the context and then acting

  • Mitzberg's Plan Ploy Pattern Position, Perspective
  • De Witt - Tame and Wicked Complex, interconnected, no one solution, agency
  • Pettigrew- Decision-Making and Change
  • Structure-strategy-Structure
  • scenario building Game Theory Sensitivity Analysis Real Options
  • Capabilities v knowledge of new mkts Low/low none reactive only. High/High identify and make decision
  • Cohen Chaotic Process Perspective - decision are influenced by and influencing other decision - in an unstructured way - need to work within the chaotic environment and not order it.
  • Schein - Organizational Culture and Decision-Making - myths, history etc
  • D-M and performance - duration and success, receptivity and knowledge base of mgrs
  • D-M and performance
  • right diagnosis, wrong treatment
  • wrong diagnosis
  • right diagnosis and solution but irreversible
  • duration of D-m process 4- 24 months but highly contextual

BUT most variances in changes in profitability cannot be explained by managers actions or Industry effects - the expained effects can be explained by explicit approaches to Strategy - the rest need to explained by post modern approaches - exploration, tacit, paradoxes, ethos, vovelty creativity, ambiguity etc can not be summarized or generalized but can be synthesized pulled together - to create fruitful avenues to explore not prescriptive

Sony/Google/ Honda/ IKEA/ ABB/Toyota/Ford

Strategy and Practice 8 - Corporate Governance

Corporate Governance

Summary - Governance is about control ethical business practices, wider environmental considerations, legal and industry standard regulations. Companies either regulate themselves or by the stakeholders or owners, or legal bodies

  • Big impact on strategy issues
  • Agency v stakeholder theory
  • Combined code
  • SOX


  • Higgs incorporates the Cadbury, Greenbury and Turnbill codes
  • How much governance - Freidman. Orgs should only pursue an economic motive - has pulled socities out of poverty despite greed, unethical behaviour etc
  • who governs and how much and how
    • diluted and concentarted control. Priovate / Public / non-profit
    • Agency Theory - stock options, duality of CEO/Chairman v Stakeholder Theory
    • Board shapes or approves? What is a good/bad baord - Mcnulty
    • BSC and other measures
    • TBL - People,Planet Profits
    • CSR - Duty of case to all stakeholders

UK v US - SOX -Watering down SEC Nasdaq v LSE

  • Turnbills and risks - strategic, financial, compliance, operational, legal, HR, CSR

Ethics and J&J, Firestone

Strategy and Practice 9 - Strategies For Managing Change

Summary - Organizations strategy is a result of process embedded in a context. Link between formulation and implementation is not linear - they are both part of the process. Human context cannot be ignored even though it does not mean acquiescing to it. The implementation process is subject to different filtering and changes brought about by power and politics.

  • there are different type - evolutionary v revolutionary (continuous discontinuous - sporadic)
  • strategic tensions
    • Content / Context / Process
  • Change comes from the top down - Kotter. But it can also come from the organization itself
    • Kotters 8 steps for implementing strategy change management framework
    • Pettigrew and Whip Managing Change Factors
    • Identify Compelling reason for change - urgency, communicate, politics (Tushman), short-term wins
    • Strategic Tensions - Content/Context/Process
    • Techniques Gap(RBV)/Stakeholder(changes that satisfy stakeholders)/adapative (contingency) / analytical (positioning)
    • Scope and scale - CI/BPR
    • Dunphy and Stace - Style v Scale, Participative v Dictatorial. Kotter: Educate where possibel and use people to implement. Explicit - forced when you have not got the time to carry people with you
    • Change and continuity

Strategy wheel

Ethos, organizing, intention and anticipation are about centring, - coherence and continuity Creativity, orchestrating km, - control our destinies by decentring but maintaining co-ordination Exploration, systems thinking, power and process - thinking beyond conventional boundaries Decision making - not letting frameworks and semanticism prevent us from taking action


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