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Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation is positioning forces before the action –Implementation is managing forces during the action Implementing Strategies: Management Issues
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Overview 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 & Choice Contrasting strategy formulation and strategy implementation –Formulation focuses on effectiveness –Implementation focuses on efficiency Implementing Strategies: Management Issues
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Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation is primarily an intellectual process –Implementation is primarily an operational process Implementing Strategies: Management Issues
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Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation requires good intuitive and analytical skills –Implementation requires special motivation and leadership skills Implementing Strategies: Management Issues
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Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation requires coordination among a few individuals –Implementation requires coordination among many persons Implementing Strategies: Management Issues
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Strategy Analysis & Choice Strategy implementation – –Varies among different types and sizes of organizations Implementing Strategies: Management Issues
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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 Implementing Strategies: Management Issues
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Formulation to Implementation transition – –Shift in responsibility From strategists to division and functional managersFrom strategists to division and functional managers Management Perspectives
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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
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Managing Conflict Conflict – Disagreement between two or more parties on one or more issues
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Managing Conflict Conflict is not always “bad”Conflict is not always “bad” Absence of conflictAbsence of conflict –Signal 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 Conflict Conflict Management and Resolution –Avoidance –Defusion –Confrontation
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Matching 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 Structure Basic 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 Structure Basic 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 Change Resistance to change – –Single greatest threat to successful strategy implementation
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Managing Resistance to Change Change raises anxiety over fear of: –Economic loss –Inconvenience –Uncertainty –Break in status-quo
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Change Strategies Force Change StrategyForce Change Strategy Educative Change StrategyEducative Change Strategy Rational or Self-Interest Change StrategyRational or Self-Interest Change Strategy
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Creating a Strategy-Supportive Culture 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 Culture 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, buildings 3.Deliberate role modeling, teaching and coaching 4.Explicit reward and status system, promotion criteria 5.Stories, legends, myths about key people and events 6.What leaders pay attention to, measure and control 7.Leader reactions to critical incidents and crises 8.How the organization is designed and structured 9.Organizational systems and procedures 10.Criteria used for recruitment, selection, promotion, retirement
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Prioritising Implementation Root Cause (Fishbone analysis) From –To - Analysis Attractiveness – Difficulty Analysis Wishbone Analysis
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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
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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?
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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 Steps Establish objectives Identify actions (steps) required Identify & assess resources available Allocate accountabilities/responsibilities Plan monitoring & review activities
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Resource Allocation Resource Allocation – A central management activity that allows for strategy execution
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Resource Allocation Four types of resources – 1.Financial resources 2.Physical resources 3.Human resources 4.Technological resources
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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
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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
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