Strategic Decision-making

The importance of Strategic Developments   Making improvements is not enough   Rapid change requires radical ideas   Strategy is now a medium rather than a long term view   Flexibility and transformation speed key to success

The Traditional Organisation Strategic Decisions Tactical decisions Operational Decisions Impact Time

The Alternative Organisation Functional Staff General Manager Team C Team A Team B Contract Staff

Which comes first – Strategy or Decision- making? GMGM F& B Ac cn Ac co unt s Sal es HR Hierarchy established for many years - difficult to change or adapt. Decision-making has to develop and emerge from this structure Functions also hierarchical - decision-making is time consuming Structure is flatter and flexible Strategy determines shape, size and attributes of the functions Functions operate in teams rather than departments The Traditional Organisation The Alternative Organisation

The Nature of Decision-making The Rational Model The Normative Model The Group Decision-making Model

The Rational Model 1. 1.Recognise a problem 2. 2.Search for Information 3. 3.Evaluate Alternatives 4. 4.Make a decision 5. 5.Evaluate post-decision

The Normative Model 1. 1.Leader takes known information and then decides alone Leader gets information from followers, and then decides alone Leader shares problem with followers individually, listens to ideas and then decides alone Leader shares problems with followers as a group, listens to ideas and then decides alone Leader shares problems with followers as a group and then seeks and accepts consensus agreement.

The Group Decision-making Model Unanimity requires everyone to agree on a given course of action. Majority requires support from more than 50% of the members of the group. Consensus requires majority approval on action, and those who have differing views being happy to go along with the decision Sub-committees assigns responsibility for evaluation to a sub-set of a larger group, and then the main group discusses and approves

Force-Field Analysis Decision Forces ForForces Against

SWOT analysis Strengths Opportunities Threats Weaknesses

PESTLE analysis  P  P olitical  E  E conomic  S  S ocial  T  T echnological  L  L egislative  E  E nvironmental

The Manager as a Conductor The Manager can be seen by all players – has direct communication The Manager can be seen by all players – has direct communication Each player has a contribution to the overall success Each player has a contribution to the overall success The team has to play in harmony from a score (plan) The team has to play in harmony from a score (plan) The conductor controls the pace, speed and intensity of the production The conductor controls the pace, speed and intensity of the production The composition (Structure) of the orchestra depends on the piece being played The composition (Structure) of the orchestra depends on the piece being played