Strategy Analysis & Choice

Strategy Analysis & ChoiceStrategy Analysis & Choice

Contrasting strategy formulation and Contrasting strategy formulation and strategy implementationstrategy implementation

– Formulation is positioning forces before the action

– Implementation is managing forces during the action

Implementing Strategies: Implementing Strategies: Management IssuesManagement Issues

OverviewOverview

• Aligning People Behind Strategy• Managing Conflict• Organizational structures• Managing change• Organisational culture• Stakeholder analysis• Implementation steps• Managing Knowledge & technology



– Formulation focuses on effectiveness

– Implementation focuses on efficiency




– Formulation is primarily an intellectual process

– Implementation is primarily an operational process




– Formulation requires good intuitive and analytical skills

– Implementation requires special motivation and leadership skills




– Formulation requires coordination among a few individuals

– Implementation requires coordination among many persons



Strategy implementation –Strategy implementation –

– Varies among different types and Varies among different types and sizes of organizations sizes of organizations



Strategy implementation Actions –Strategy implementation Actions –

– Altering sales territoriesAltering sales territories– Adding new departmentsAdding new departments– Closing facilitiesClosing facilities– Hiring new employeesHiring new employees– Cost-control proceduresCost-control procedures– Changing advertising strategiesChanging advertising strategies– Building new facilities Building new facilities


Formulation to Implementation Formulation to Implementation transition –transition –

– Shift in responsibilityShift in responsibility• From strategists to division and From strategists to division and

functional managers functional managers

Management PerspectivesManagement Perspectives

Aligning People Behind StrategyAligning 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

Managing ConflictManaging Conflict

Conflict –Conflict –

Disagreement between two or more parties on one or more issues


• Conflict is not always “bad”Conflict is not always “bad”• Absence of conflictAbsence of conflict

– Signal indifference or apathySignal indifference or apathy• Can energize opposing groups to actionCan energize opposing groups to action• May help managers identify problemsMay help managers identify problems


Conflict Management and Resolution

– Avoidance– Defusion– Confrontation

Matching Structure with StrategyMatching 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

Basic Forms of StructureBasic 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

Basic Forms of StructureBasic 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

Managing Resistance to ChangeManaging Resistance to Change

Resistance to change –Resistance to change –

– Single greatest threat to successful Single greatest threat to successful strategy implementationstrategy implementation

Managing Resistance to ChangeManaging Resistance to Change

Change raises anxiety over fear of:Change raises anxiety over fear of:

– Economic lossEconomic loss– InconvenienceInconvenience– UncertaintyUncertainty– Break in status-quoBreak in status-quo

Change StrategiesChange Strategies

• Force Change StrategyForce Change Strategy• Educative Change StrategyEducative Change Strategy• Rational or Self-Interest Change Rational or Self-Interest Change

StrategyStrategy

Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture

Strategists should strive to preserve, emphasize, and build upon aspects of existing culture that support new strategies.

Creating a Strategy-Supportive Creating a Strategy-Supportive CultureCulture

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, buildings3. Deliberate role modeling, teaching and coaching4. Explicit reward and status system, promotion criteria5. Stories, legends, myths about key people and events6. What leaders pay attention to, measure and control7. Leader reactions to critical incidents and crises8. How the organization is designed and structured9. Organizational systems and procedures10. Criteria used for recruitment, selection, promotion, retirement

Prioritising ImplementationPrioritising Implementation

• Root Cause (Fishbone analysis)• From –To - Analysis• Attractiveness – Difficulty Analysis• Wishbone Analysis

Implementation StrategyImplementation 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

Stakeholder Analysis: Next StepStakeholder 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?

Stakeholder Analysis (contd)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?

Planning Implementation StepsPlanning Implementation Steps

• Establish objectives• Identify actions (steps) required• Identify & assess resources available• Allocate accountabilities/responsibilities• Plan monitoring & review activities

Resource AllocationResource Allocation

Resource Allocation –Resource Allocation –

A central management activity that A central management activity that allows for strategy executionallows for strategy execution

Resource AllocationResource Allocation

Four types of resources –Four types of resources –

1. Financial resources2. Physical resources3. Human resources4. Technological resources

Knowledge & Technology - Knowledge & Technology - EffectsEffects

• 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

Knowledge & Technology – Knowledge & Technology – Effects (contd)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

Documents

Strategy Analysis & Choice