Strategic management practices @ MBA

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Strategic management practices @ MBA

Text of Strategic management practices @ MBA

  • 1. Strategic Management in Practice
  • 2. Strategy Development
    • The Three Strategy Lenses
    • Strategy as Design
    • Strategy as Experience
    • Strategy as Ideas
  • 3. Exhibit 2.2 Patterns of strategy development Continuity Incremental Flux Transformational
  • 4. Exhibit 2.3 Strategic evolution and consolidation . Product launch Acquisition Divestment Overseas expansion Strategies evolve and inform strategic decisions, which in turn consolidate strategic direction Evolving strategic direction Strategic decisions e.g.
  • 5. Exhibit 2.4 Strategy development routes Unrealised strategy Intended strategy 3 5 Planned implementation 1 2 5 Realised strategy Strategy as outcome (of cultural and political processes) Imposed strategy 4
  • 6. Exhibit 2.7 The role of the paradigm in strategy formulation Opportunities and threats Strengths and weaknesses Performance Environmental forces Organisational capabilities THE PARADIGM Strategy
  • 7. Strategy development dimensions
    • Planning
    • Incremental
    • Cultural
    • Enforced choice
  • 8. The 6 key planning questions
    • Where are we now?
    • How did we get there?
    • Where are we heading?
    • Where would we like to be?
    • How do we get there?
    • Are we on course?
  • 9. STRATEGY DEVELOPMENT DIMENSIONS (1)
    • The Planning Dimension
    • strategies are the outcome of rational, sequential, planned and methodical procedures
    • definite and precise strategic objectives are set
    • the organisation and environment are analysed
    • potential strategic options are generated and the optimum solution chosen
    • defined procedures for implementation and the achievement of the strategic objectives are developed
    • the strategy is made explicit in the form of detailed plans
  • 10. STRATEGY DEVELOPMENT DIMENSIONS (2)
    • The Incremental Dimension
    • evolutionary but purposeful strategy development
    • strategy is developed as issues arise
    • strategy is continually adjusted to match changes in the operating environment
    • early commitment to a strategy is tentative and subject to review
    • strategic options are continually assessed for fit
    • successful options gain additional resources
    • strategic options are developed from existing strategies by experimentation and through gradual implementation
  • 11. STRATEGY DEVELOPMENT DIMENSIONS (3)
    • The Cultural Dimension
    • a way of doing things in the organisation guides strategic direction
    • strategies evolve in terms of a core set of shared assumptions based on past experience, values and beliefs held by the organisations members
    • - the selection of goals and objectives
      • the identification of strategic issues
      • the selection of information
      • the selection of strategies
  • 12. STRATEGY DEVELOPMENT DIMENSIONS (4)
    • The Enforced Choice Dimension
    • strategic choice is prescribed or limited by external forces which the organisation is unable to control or influence.
    • organisations respond to environmental imperatives.
    • strategic change is instigated from outside the organisation.
    • barriers in the environment severely restrict strategic mobility.
  • 13. Exhibit 2.6 Cultural frames of reference Functional/ divisional Organisational Professional (or institutional) National (or regional) Industrial/ sector (recipe) The individual
  • 14. Implications for strategy development
    • Intended & realised strategy
    • Strategic drift
    • Strategic management in uncertainty & complexity
  • 15. Exhibit 2.5 Incremental change Environmental change Incremental strategic change Time Amount of change
  • 16. THE PARADIGM
    • ... The beliefs and assumption held in common
    • and taken for granted in an organisation.
    • Edgar Schien ****
    • W. Williams ****
  • 17. Exhibit 2.8 Phases of strategic decision making Issue awareness Selection of solutions Solution development Issue formulation
  • 18. Exhibit 2.10 The cultural web Control systems Stories Symbols Rituals and routines The Paradigm Power structures Organisational structures
  • 19. Exhibit 2.11 The dynamics of paradigm change Source: Adapted from P. Grinyer and J-C. Spender, Turnaround: Managerial recipes for strategic success , Associated Business Press, 1979, p. 203 The paradigm Development of strategy Implementation Corporate performance Step 1 Tighter control Step 2 Reconstruct or develop new strategy if unsatisfactory Step 3 Abandon paradigm and adopt a new one
  • 20. Exhibit 2.13 Different approaches to strategic management Strategic Strategic intent Planning Incremental Encouraging intrapreneurship Simple Product Complex Product Unpredictable environment Predictable environment
  • 21. Exhibit 2.12 The risk of strategic drift Time Amount of change Phase 1 Phase 2 Phase 3/4 Incremental change Flux Transformational change or demise Strategic change Environmental change 1 5 2 3 4
  • 22. The Learning Organisation
    • Organisations where people are continually learning how to learn together
    • People who function together in an extraordinary way - trust one another -complement each others strengths compensate for each others limitations common goals larger than individual goals produce extraordinary results
    • The Fifth Discipline., the Art & Practice of the Learning Organisation, by Peter Senge
  • 23. The Learning Organisation
    • The Systems Approach
    • Systems Thinking
    • Team Learning
    • Personal Mastery
    • Mental Models
    • Building a Shared Vision
  • 24. THE BENEFITS OF FORMAL PLANNING SYSTEMS
    • A structured means of analysis and thinking about strategic problems.
    • Encouraging questioning and challenging of the taken for granted.
    • The involvement of people in strategy development.
    • Contributing to ownership and co-ordination of strategy.
    • A means of communication of intended strategy.
    • A means of control against agreed objectives .
  • 25. DANGERS AND PROBLEMS OF FORMAL PLANNING SYSTEMS
    • The neglect of cultural and political dimensions of organisations.
    • Delegating responsibility to specialists
    • Failure to achieve ownership of plans
    • Individuals understanding parts rather than the whole of plans
    • Detail rather than vision
    • Information overload
    • Strategy as the plan
    • The search for the mythical right strategy.
  • 26. STRATEGIC MANAGEMENT PROCESSES
    • Different organisations develop strategies according to their culture to suit their environment
    • We need to understand how strategies are developed and managed in our organisations and relate it to the learning on this subject.
  • 27. Summary - Understanding Strategic Development
    • Three lenses for making sense of strategy, Design, experience & ideas
    • Most often the process of strategy development is described as a result of analysis evaluation & planning systems carried out by top management objectively & dispass