1 of 18
Term
Explain why corporate governance is important in strategy
implementation.
Give this one a try later!
The concept entails the ability to think continually about strategy and to create
synergy by sharing knowledge and ideas and by generating actions that will
continue positively to the whole organisation.
•Learning must be a continuous process
•Employees work and learn as a team
•Management development and personal growth are important
•Shared visions of the future
•Employees' skills are the most important asset in the organisation
•Reconsider organisational habits
,•Systems approach must be applied when analysing and viewing the business
environment
In the context of strategy implementation, corporate governance is the
responsibility of the Board of Directors to oversee the implementation of
strategy. The King reports on corporate governance and the Public Finance
Management Act (PFMA) is examples of corporate governance
guidelines/frameworks. Some reasons for its importance (there may be
additional reasons, but these are some of the main reasons why corporate
governance is important in strategy implementation):
• It focuses on sustainability.
• It ensures that adequate controls are in place.
• It promotes high ethical standards.
• It makes sure that reward systems are reasonable and beneficial to the
organisation.
• It aims at reducing the risk of failure.
Good corporate governance and corporate citizenship are equally
important in strategic planning and implementation. The board of directors
is responsible to ensure that management implements chosen strategies
and monitors that implementation. Strategy implementation should take
issues such as social responsibility, environmental responsibility,
stakeholder engagement and sustainability into account.
The strategic change process deals with identifying the areas where change has
to take place, managing resistance to change and using power and influence to
persuade members of the organisation to support the change. This implies that
the employees in the organisation accept the importance of continuous learning.
Managing change involves a process with four stages:
Identifying the areas of change - when a gap is identified between the desired
performance of the organisation and its actual performance. Once the need has
been determined, the source of the problem must be identified through
environmental analysis.
Managing resistance to change - change disrupts normality - employees and
managers resist change because of fear, uncertainty, and lack of interest or
different personal ambitions. Resistance to change is an obstacle to the
successful strategy implementation process. Various strategies exist to overcome
resistance to change.
, Power and influence - this stage involves persuading organisational members to
support the change. An appropriate organisational culture will support the
desired changes in strategy. Managers must have the necessary power to
implement the decisions that will bring about change. Managers need to use
their power to influence people and to bring about the necessary change.
The learning organisation - entails the ability to think continually about the
strategy and to create synergy by sharing knowledge and ideas, and by
generating actions that will contribute positively to the whole organisation. This
deals with continuous learning.
Time - how quickly the change is needed?
Scope - is it dramatic revolutionary change or moderate change?
Diversity - what is the level of homogeneity in the organisation?
Capacity - does the organisation have the capacity in terms of the resources
needed to change?
Readiness - are the employees ready for the change? Refers to the level of
resistance to change.
Capability - do the organisation's employees and managers have the capabilities
to implement the change?
Don't know?
2 of 18
Definition
The strategic change process deals with identifying the areas where
change has to take place, managing resistance to change and using
power and influence to persuade members of the organisation to
support the change. This implies that the employees in the
organisation accept the importance of continuous learning.
Term
Explain why corporate governance is important in strategy
implementation.
Give this one a try later!
The concept entails the ability to think continually about strategy and to create
synergy by sharing knowledge and ideas and by generating actions that will
continue positively to the whole organisation.
•Learning must be a continuous process
•Employees work and learn as a team
•Management development and personal growth are important
•Shared visions of the future
•Employees' skills are the most important asset in the organisation
•Reconsider organisational habits
,•Systems approach must be applied when analysing and viewing the business
environment
In the context of strategy implementation, corporate governance is the
responsibility of the Board of Directors to oversee the implementation of
strategy. The King reports on corporate governance and the Public Finance
Management Act (PFMA) is examples of corporate governance
guidelines/frameworks. Some reasons for its importance (there may be
additional reasons, but these are some of the main reasons why corporate
governance is important in strategy implementation):
• It focuses on sustainability.
• It ensures that adequate controls are in place.
• It promotes high ethical standards.
• It makes sure that reward systems are reasonable and beneficial to the
organisation.
• It aims at reducing the risk of failure.
Good corporate governance and corporate citizenship are equally
important in strategic planning and implementation. The board of directors
is responsible to ensure that management implements chosen strategies
and monitors that implementation. Strategy implementation should take
issues such as social responsibility, environmental responsibility,
stakeholder engagement and sustainability into account.
The strategic change process deals with identifying the areas where change has
to take place, managing resistance to change and using power and influence to
persuade members of the organisation to support the change. This implies that
the employees in the organisation accept the importance of continuous learning.
Managing change involves a process with four stages:
Identifying the areas of change - when a gap is identified between the desired
performance of the organisation and its actual performance. Once the need has
been determined, the source of the problem must be identified through
environmental analysis.
Managing resistance to change - change disrupts normality - employees and
managers resist change because of fear, uncertainty, and lack of interest or
different personal ambitions. Resistance to change is an obstacle to the
successful strategy implementation process. Various strategies exist to overcome
resistance to change.
, Power and influence - this stage involves persuading organisational members to
support the change. An appropriate organisational culture will support the
desired changes in strategy. Managers must have the necessary power to
implement the decisions that will bring about change. Managers need to use
their power to influence people and to bring about the necessary change.
The learning organisation - entails the ability to think continually about the
strategy and to create synergy by sharing knowledge and ideas, and by
generating actions that will contribute positively to the whole organisation. This
deals with continuous learning.
Time - how quickly the change is needed?
Scope - is it dramatic revolutionary change or moderate change?
Diversity - what is the level of homogeneity in the organisation?
Capacity - does the organisation have the capacity in terms of the resources
needed to change?
Readiness - are the employees ready for the change? Refers to the level of
resistance to change.
Capability - do the organisation's employees and managers have the capabilities
to implement the change?
Don't know?
2 of 18
Definition
The strategic change process deals with identifying the areas where
change has to take place, managing resistance to change and using
power and influence to persuade members of the organisation to
support the change. This implies that the employees in the
organisation accept the importance of continuous learning.
