1. London Centre of Marketing ( LCM)
Level: Postgraduate Diploma in Business Management & Marketing
Module – Corporate and Business Management
Lecturer : Dr. SAMTA RAI
Dated – 31st Jan, 2011
Dr. Samta Rai 1 1

2. Challenges for Managing Strategy Development
LO3: Explain and assess the managerial processes needed to transform strategy into action and to evaluate strategy effectiveness
Topic
Challenges for Managing Strategy Development
Dr. Samta Rai 2 2

3. Challenges & implications
Strategy Development Processes
Processes of intended strategy development
Strategy vision, leadership and command
Strategic planning
Externally imposed strategies
Processes of emergent strategy development
Logical incrementalism
Resource allocation routines
Cultural processes
Political processes
Challenges & implications
Intended & realised strategy
The learning organisation
Uncertain and complex conditions
Dr. Samta Rai

4. Challenges for Managing Strategy Development
Managing Intended and Realised Strategy
Dr. Samta Rai

5. Strategy development routes
Emergent
Strategy
(4)
(3)
Intended
Strategy
(1)
Realised
Strategy
(2)
Unrealized strategy
Dr. Samta Rai

6. Challenges for Managing Strategy Development
In organisations, there may well be an intended strategy, agreed by senior executives, based on careful analysis and expressed in a formal document explaining the intended strategy in a systematic way with the
With the intention that this will be implemented ( see route 1).
However, much of what is intended follows route 2 and is unrealised – means it does not come about in practice or only partially so.
However, it could be also be that the processes that give rise to emergent
Strategy give rise to a realised strategy: that is, the strategy actually being followed by an organisation in practice ( route 3) rather than planned up front.
Dr. Samta Rai

7. Challenges for Managing Strategy Development
1. Managing Intended and realised strategy
Awareness - whether managers have taken steps to check if the intended and realised strategy are different?
There needs to be realistic expectations of the role of strategic planning.
The challenge of strategic drift
(Strategic drift is a gradual change that occurs so subtly that it is not noticed until it is too late
Managing emergent strategy
Dr. Samta Rai

8. STRATEGIC DRIFT
Amount Of
Change
Environmental change
T I M E
Strategic drift is the tendency for strategies to develop incrementally but fail to keep
With a changing environment.

9. Challenges for Managing Strategy Development
2. The Learning Organisation
The learning organisation is capable of continual regeneration from the
Variety of knowledge, experience and skills of individuals within a culture which encourages mutual questioning and challenge around a shared purpose or vision.
The main tenets of organisational learning are –
Managers facilitate rather than direct
Information flows and relationships between people are lateral as well as vertical.
Dr. Samta Rai

10. .
Organisations are pluralistic , where conflicting ideas and views are welcomed, surfaced and become the basis of debate.
Experimentation is the norm, so ideas are tried out in action and in turn become part of the learning process.
Dr. Samta Rai

11. 3. Strategy development in uncertain and complex conditions
In simple/static conditions – the environment is relatively straightforward to understand and is not undergoing significant change.
In dynamic conditions, managers need to consider the environment of the future, not just of the pasr.
In complex situations, managers face an environment that is difficult to comprehend. This may be because of the knowledge complexity of an industry. Or it may be because of organisational complexity.
Dr. Samta Rai

12. 3. Strategy development in uncertain and complex conditions
Simple
Static
Historical analysis
Forecasting
Decentralisation
of organisations
Scenario Planning
Experience & Learning
Dynamic

13. Motorola : an analogue history facing a digital revolution Pg 181
Case study
Motorola : an analogue history facing a digital revolution
Pg 181
Dr. Samta Rai

14. Thanks all
Dr. Samta Rai