Strategy Management Processes:

Aylin ATES-CANTWELL 17th Jan 2006

Strategy Management Processes: A Comparison Study Of Existing Strategy Models Of

Managing The Trade Off Between Building New Strategy And Refining Existing Strategies

PhD Student: Aylin Ates-Cantwell

Supervisors : Prof. Umit Bititci & Dr. Jill MacBryde

PhD Starting Date: 01/03/2005

University of Strathclyde, DMEM, Centre for Strategic Manufacturing, Research Presentation Day


Key Topics:

Background Inspirational starting points to this research Proposed direction (objectives, research focus)Gap / Contribution Consideration of the research methodology Publications


Background•The ongoing research project to answer ‘what makes the successful companies different?’(Understanding and Managing the Manage Processes project)• ‘Closing the productivity gap in the UK’ Project.

– how actually UK companies trade-off between increasing efficiency and effectiveness through the adoption of better practices and fundamentally changing their strategic position.(Closing the Gap Research Proposal, 2005)

So what are these Manage Processes?

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CIMOSA Business Architecture, Childe et al, 1994;

McCallum & Bititci, 2004


Industrial Problem

What makes companies create and sustain competitive advantage?– Tesco re-deployed their Balanced Scorecard within days of

Wallmart’s takeover of Asda– Highland Spring changed to a winning business formula

(brand management) they are the most successful mineral water company in the UK

Some companies are good at this and some are not – what is the Secret?

– The processes behind these actions– The factors that make these processes capable

‘Performance Indicators for Sustainable Competitive Advantage: The Next frontier’ pres. (Bititci et al.)


Background (cntd.)

Manage processes are performed by top management level in an organisation and deal with orchestrating, executing, defining goals and needs for shifting direction, foreseeing the future state of

the business, developing strategies and making sure to put them in practice, allocating resources and supporting and enabling people who perform the

operational and support processes. Manage processes do all of these by ensuring to stay competitive and to survive on the long term.

Adopted from Peters & Waterman, 1995; McCallum & Bititci, 2004


Point of Departure•Deming’s PDCA cycle, Scientific Management•Bal’s (1998) perspectives

– Functional– Behavioural– Organisational– Resource based– Decisional– Informational

• Descriptive model • Normative best practice model

Models and Standards for TQM presentation, CSM Lecture Notes; Bititci


Point of Departure (cntd.)Level0

MANAGE PERFORMANCE

Level1.1Level1.2 Level1.3

DESIGN & IMPLEMENT PMP OPERATE PMP REVIEW PMP

Level2.3.1 Level2.3.2 Level2.3.3

REVIEWPMS

REVIEW INFRA.

REVIEW P & ORG

Collect perf. data Assure data

integrity Analyse and

report performance

Monitor external environment

Define and set targets and priorities

Compare perf. levels to targets

Plan performance improvements

Bargain for resources

Implement perf. Improvement plan

Inform strategy

Level2.1.1 Level2.1.2 Level2.1.3

Define business structures and business processes

Define business perf. Priorities

Evaluate the current PMS

Define measures and cause & effect relationships

Decide how to collect data

Design perf. Reporting format

Test and adjust PMS

Implement PMS

Level2.1.4

DESIGN & IMPLEMENT

PMS

DESIGN & IMPL. INFRA.

DESIGN & IMPL. P & ORG

DESIGN & IMPL. BEHAVIOUR

Level2.3.4

REVIEW BEHAVIOUR

Define behavioural expectations

Implement change program

Specify Infra requirements

Compare current Infra

Identify development needs

Compile Infra development plans

Select Infra Implement

Infrastructure

Define and implement Process owners and teams

Define roles and responsibilities

Identify education and training needs

Establish reward, recognition system to foster perf. Improvement

Training on PMS

Design and Implement Activities are intended to be one off activities per life cycle. PMP is redesigned following the review process.

Operate Activities are intended to be continuous throughout the life cycle

The following activities include all four perspectives of PMP (i.e., PMS, Infra, Behaviour, P&O)

Review Activities are intended to be continuous activities throughout life cycle to address two questions:

1. Are we using the PMP correctly?2. Have we designed the PMP correctly?

Outputs of the review activities will result in

1. detail changes to how an org. uses the PMP, or 2. results in redesign of the PMP

(Manage-Processes Project, 2005)


Point of Departure (cntd.)Activity Low Medium High References

Review Performance Management Process

This review cycle is normally calendar based to coincide with the strategy review process, but significant events in the external or internal environment of the business can cause reviews to take place as required.

Scientific Management; Deming, 1986; Neely and Kennerly, ????

Lingle and Schiemon, 1996; Ghalayini and Noble, 1996; Johnson et al., 2002; Kaplan and Norton, 2001; Martinez; Kennerly and Neely, 2002, 2003

(Manage-Processes Project, 2005)


Proposed Direction/Objectives• Develop a rigorous understanding of strategy management processes from both existing theory and practice.• Find out whether managers’ decisions on strategic trade-offs are effected by external knowledge on business landscape changes or not. Articulate the relationship if it exists.• Identify the factors and processes that effect and shape company behaviour about strategic trade-offs.• Describe typical patterns.• Have a good understanding of the likely degrees of variation.• Correlations will be articulated in order to establish relations between particular patterns and their consumed outcomes in terms of trade offs and a range of contextual variables. (Easterby-Smith et al. 2004)• Build hypotheses and specific research questions • Test hypotheses


Contribution• Donaldson (2001) argues that causal regularities arise from situational constraints posed by both material and non-material factors. I see there is a gap in knowledge about how companies go about making these trade-offs in terms of activities, processes and capabilities. I also want to look at the regularities and patterns about determinants and constraints on these strategy review processes. • Contribution in the direction of extension and testing out of a theory (Business process view) into new areas (Strategy management) ...contribution to theory• Recommendations to companies. ...contr. to practice


Research Design (cntd.)•Reading subject literature (Minzberg, Johnson, HBR etc.)•Using extant research (secondary data) (i.e. PROPHESY (Acur, 2001), Cambridge Approach (Platts & Gregory) )•Accessing data (i.e. Shell Strategy Process, IBM Strategy Process, Nokia Strategy Process)•Formulate dimensions of strategic trade-off decisions as initial hypothesis•Conduct Descriptive survey

– Dependent Variable (DV): Managers’ decision on either building new strategy or refining existing ones

– Independent Variable (IV): Being aware of the need for building new strategies in case of change in business landscape / opportunities / threats / new trends in business

•Case studies and Interviews (disembody the underpinning factors, constraints and resources effecting company behaviour in a certain way)•Collect data (raw and secondary data)•Delphi technique to capture expert opinion, Cognitive mapping to map interviews and articulate the causality relationships•Data Analysis (Correlation and Regression Analysis)•Writing Up

Luck!!Feasible


Publications Business Process Approach to Management Practices: A

Study on Characteristics of Manage – Processes to be submitted for EURAM 2006 Oslo, Norway. Manage processes have both hard and soft aspects, Manage

processes are influenced by attributes and abilities of individual managers (Human Skills), Relational and holistic nature of manage processes, Manage processes operate in highly uncertain and complex environments, Universal and convergent nature of management functions, Evolving nature of manage processes

Modelling of the Manage Processes: A Study of Methodologies, Tools and Techniques to be submitted for EUROMA 2006,Glasgow, Scotland.

A comprehensive analysis of a sample of selected BP modelling tools/techniques and methodologies are investigated in order to identify the shortfalls within existing tools.


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Documents

Strategy Management Processes: