Strategic Thinking and Strategic management - Scanning under the PESTEL ... Millennium development goals ... STRATEGIC THINKING AND STRATEGIC MANAGEMENT AT THE

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  • PRESENTATION ON

    STRATEGIC THINKING AND

    STRATEGIC MANAGEMENT

  • By Dr. John Yabs, PhDSenior Lecturer, University of Nairobi, School of Business

    Area of Specialization : Strategic Management and International

    BusinessAuthor of : Strategic

    Management Practices; and International Business

    Operations in Kenya

  • BOOKS AUTHORED BY DR. JOHN YABS

  • TOPIC OF DISCUSSION:

    STRAGEIC THINKING AND

    STRATEGIC MANAGEMENT

  • PART I

    STRATEGIC THINKING

  • STRATEGIC THINKING

    What is strategic thinking?- It is a mental process

    that give priority to some ideas over others.

    It is using selective memory to give priority to

    some ideas that are relevant to the situation at

    hand

    Strategic Thinking is a planning process that

    applies innovation, strategic planning, and

    operational planning to develop business

    strategies that have a greater chance for success.

  • DEFINING STRATEGIC THINKING

    Strategic Thinking is a planning process that

    applies innovation, strategic planning and

    operational planning to develop business

    strategies that have a greater chance for

    success.

    Strategic thinking came as a distinct metal

    exercise of strategic planning: a process of

    identifying objectives and fulfilling them.

  • EXPLAINING STRATEGIC THINKING

    Strategic thinking is defined as a mental or thinking process applied by an individual in the context of achieving success in a game or other endeavor. As a cognitive activity, it produces thought.

    When applied in an organizational strategic management process, strategic thinking involves the generation and application of unique business insights and opportunities intended to create competitive advantage for a firm or organization

  • EXPLAINING STRATEGIC THINKING

    Strategic thinking includes finding and

    developing a strategic foresight capacity for

    an organization, by exploring all possible

    organizational futures, and challenging

    conventional thinking to foster decision making

    today

  • CRITICAL THINKING

    Critical thinking is clear, reasoned thinking

    involving critique. Its details vary amongst

    those who define it. According to Beyer (1995),

    critical thinking means making clear, reasoned

    judgments. During the process of critical

    thinking, ideas should be reasoned and well

    thought out/judged

  • CRITICAL THINKING

    It is the process of actively and skillfully

    conceptualizing, applying, analyzing,

    synthesizing, and evaluating information to

    reach an answer or conclusion

    It is disciplined thinking that is clear, rational,

    open-minded, and informed by evidence

    It is reasonable, reflective thinking focused on

    deciding what to believe or do

  • CRITICAL THINKING

    Critical thinking means making reasoned

    judgments that are logical and well thought out.

    It is a way of thinking in which you don't simply

    accept all arguments and conclusions you are

    exposed to but rather have an attitude involving

    questioning such arguments and conclusions.

    It requires wanting to see what evidence is

    involved to support a particular argument or

    conclusion.

  • PART II

    STRATEGIC MANAGEMENT

  • STRATEGIC PLANNING

    Strega management has its roots in the first

    function of management- Planning

    Planning is the start of every management

    function- organizing, staffing, leading, and

    controlling

    Strategic planning in the identification of

    objectives and providing means of ataining

    them

  • STRATEGIC PLANNING

    Strategic planning is an organization's process of

    defining its strategy, or direction, and making

    decisions on allocating its resources to pursue

    this strategy. It may also extend to control

    mechanisms for guiding the implementation of

    the strategy.

  • STRATEGIC PLANNING

    Strategic Planning try to answer the following

    questions:

    Where are we now?

    Where do we want to be?

    How do we get there?

    How do we measure our progress?

  • STRATEGIC PLANNING EXPLAINED

    Strategic planning involves setting goals,

    determining actions to achieve the goals, and

    mobilizing resources to execute the actions.

    A strategy describes how the ends (goals) will be

    achieved by the means (resources).

    The senior leadership of an organization is

    generally tasked with determining strategy.

  • STRATEGIC PLANNING EXPLAINED

    Strategic planning is a review and planning

    process that is undertaken to make thoughtful

    decisions about an organizations future in

    order to ensure its success.

    It is a process of identifying goals and

    objectives to be pursuit

  • OPERATIONAL PLANNING EXPLAINED

    Operational planning refer to the short term

    goals that are part of the overall strategic plan

    It answers the questions:

    Where are we now?

    Where do we want to be?

    How do we get there?

    How do we measure our progress?

  • PART III

    Strategic Planners and strategic

    thinkers

  • THREE LEVEL OF STRATIC MANAGEMENT

    EXECUTIVE LEVEL

    BUSINESS LEVEL

    OPERATIONAL OF FUNCTIONAL LEVEL

  • STRATEGIC PLANNERS AND STRATEGIC

    THINKERS

    Planners and Strategists: all those who hold

    positions of leadership who must think, decide

    and execute their decisions

    Planners and Strategists should learn to own

    the results of their decisions regardless of the

    positive or negative nature of the outcome

  • STRATEGIC PLANNERS AND THINKERS IN A

    UNIVERSITY

    The Council members individually and collectively

    The members of the senate

    Members of various committees and academic boards

    Members of faculties, schools and various divisions

    And all leaders of any other division identified as a strategic business unit

  • STRATEGIC MANAGEMENT IN PRACTICE

    At every strategic management level, every

    strategist must have requisite knowledge to be

    able to comprehend the matters at hand

    The interaction between the environment and

    organizations can be so complex that it

    requires analytical mind and a capacity to

    comprehend the intricacies between then.

  • STRATEGIC MANAGEMENT EXPLAINED

    Strategic management is the continuous process

    of creating, implementing and evaluating

    decisions that enable an organization to achieve

    its objectives.

    Formulation of Strategies and their execution is

    the duty of the executive level of any organization

    The attainment of financial and non financial

    goals, academic and non academic goals as well

    as societal expectations

  • FORMULATION OF A STRATEGY

    Environmental Scanning under the PESTEL

    Factors

    Internal Environmental Scanning

    Answering the questions: what, when, where,

    and how.

    Why now and what is expected of me or us

    collectively?

  • EXTERNAL ENVIRONMENTAL SCANNING

    What is the state of affairs in the industry, in

    the world, in the country Kenya?

    What do we want to achieve?

    How is the environment and how are the odds?

    What are the experiences of others and what

    model can we follow?

  • WORLDS ECONOMIC AND POLITICAL

    SITUATIONS

    According to US Population Census Estimates

    2015, World population in 2015 reached 7.3

    billion

    Leading most populated countries: China

    1,403 mln; India 1,290 mln; USA 325;

    Indonesia 256; Brazil 206; Nigeria 180;

    Ethiopia 90; Egypt 87; Tanzania 47; Kenya 42;

    Uganda 35;

  • WORLD POLITICAL AND ECONOMIC SITUATION

    IN 2015

    Political Activities that influence Educational

    development in the world

    Millennium development goals

    Economic Activities and their influence on

    culture and educational activities

    New political associations and political

    dispensations

  • HOW CAN ORGANIZATIONS REACT? GLOBAL

    STRATEGIC THINKING

    Globalization and interdependence of world

    economies: we must participate and join the

    comity of nations

    To guard against hegemonic tendencies of

    powerful nations and institutions like

    monopolies. Understand the theory of

    hegemony.

  • THE USA MODEL

    Population 325 million in 2015

    Super power and must keep ahead of the pack

    Resources both national and international

    World presence and a hand in every event and

    activity every where

  • THE CHINESE MODEL

    Population 1,403 million: China has opened its

    economy and many FDI go tyhere.

    They dont have enough resources and thus

    interest in Africa

    Chinese model of development: a friend in

    need is a friend in deed

  • THE INDIAN MODEL

    Population of 1,297 million. They practice Self-

    sufficiency in all sector of the economy

    India uses all available resources including NRI

    in diaspora

    Investment in institutions to produce requisite

    manpower

    Many countries are borrowing a lot from India

    as an economic model

  • THE KENYAN MODEL

    Population 42 million: each county has their

    owns figures for planning purposes.

    New political dispensation and county

    governments: each would like to have a

    University.

    Many universities are opening satellite

    campuses as expansion strategy.

  • MODELS OF POOR COUNTRIES

    Papua New Guinea

    The Islands of Kiribati and St Brigit's and

    Neville

    Tonga island

    Fiji islands

    Galapagos islands

    Haiti

  • PART IV

    STRATEGIC THINKING AND

    STRATEGIC MANAGEMENT AT THE

    LEVEL OF THE BOARD OF

    DIRECTORS IN AN INSTITUTION

  • FACTORS INFLUENCING THE QUALITY OF

    DECISIONS

    Composition of the board

    Contribution by individual members

    Collective thinking and quality of debate

    A right decision arrived at after debate is better

    than a right decision made by CEO alone

  • STRATEGIC MANAGEMENT IN UNIVERSITIES

    The practice of formulating strategies and

    implementation

    Challenges in Universities

    State of affairs in Universities and the stiff

    completion

    The scramble for higher education and to

    attract numbers

  • WEBOMETRIC RANGING OF UNIVERSITIES IN

    2015

    first 5 slots. U.Capetown, UNISA, U.Pretoria,

    U.Stellenbosch, U.Witwatersrand

    Leading Kenyan Universities according to the

    same webometric scales: UoN, Makerere,

    Daresalam, KU, and JKUAT and others

  • COMPETITION BETWEEN UNIVERSITIES

    What Universities should do?

    Challenges: Reducing government support;

    demands from stakeholders; increased

    autonomy and responsibilities

    Demand for quality decisions

  • POSSIBLE SOLUTIONS

    Efforts to Increase capacities and capabilities

    within universities and application of business

    process reengineering

    Strategic thinking and foresight in decision

    making

    Increased demand for quality decisions

    Increased capabilities of individual members of

    the board of directors

  • THE WAY FORWARD

    The dichotomy of thinking and acting

    Innovation of ideas and new ways of practicing

    management

    New approaches in solving routine problems

    and using innovation to solve new problems

  • INTERNAL ENVIRONMENTAL SCANNING

    Is our organizational structure conducive to

    new strategies?

    What internal advantages and competencies

    do we have?

    What are the specifics of our products?

    Is our corporate culture understood by all

    workers?

  • INTER-UNIVERSITY CHALLENGES

    Increased turnover of lecturers and poaching of

    good ones

    Luck of skills in specific in universities:

    strategic thinkers and foresight managers

    Hostile environment and luck of support from

    Central and County Governments

  • USING SERVICES OF EXPERTS

    Use of expert consultants with specific

    knowledge required by the University

    Continuous upgrading of skills and capabilities

    of individual members of staff and members of

    various committees;

    upgrading skills of managers and board

    members in the latest and best practices in

    industry.

  • PART V

    CONCLUDING REMARKS AND

    RECOMMENDATIONS

  • FOCUS ON THE EXECUTIVE LEVEL

    To improve the quality of decisions in the boards

    of directors it is influenced by: the composition;

    qualifications; institutional structures; the

    thinking of individual members; the role of the

    chairman; and the collective will of the board.

  • QUALITY OF CONTRIBUTIONS BY BOARD

    MEMBERS

    The quality of the contribution of individual

    members is influenced by: qualifications;

    experience; individual characteristics and

    predispositions; the willingness and passion to

    work.

  • CONDUCIVE ATMOSPHERE TO WORK

    Working conditions and auxiliary services

    received by members of the board

    Incentives to members of the board: gifts;

    tokens; appreciation; facilitation.

    The question of corruption and collation under

    the coalition phenomenon- kleptocracy

  • INTERESTS OF MEMBERS AND THE INTERESTS

    OF ORGANIZATIONS

    There should be efforts to merge or bring as close as possible the interests of the members of the executive board and those of the organization.

    All should think collectively to formulate long term plans and execute them to attain objectives

    That is the purpose of Strategic management in organizations.

  • THAT IS THE END

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