Summary MNG3702 notes

1: Intro to strategy implementation 1.3 Intro  Focus is on how orgs implement, review & control business strats  Strategic planning - how strats were developed & chosen for impl to pursue orgs LT obj  Strategic impl considers impact of strategic decision on entire org, at all M levels across all functional areas  Strategic plans can only succeed if properly supported, coordinated & implemented by middle & lower M  All strategy-critical activities req for impl need to be coordinated & work together to achieve success, neglecting any will lead to less than optimal impl  Essential components of strat impl process 1. Strat is not about conducting business as usual, it’s about managing change & change initiatives 2. Orgs can’t change if they are unable to learn & adapt 3. Change is about changing culture of org 4. As part of strat implementation, org structure has to adapt to selected strategy 5. Strat deployment - process of managing strat impl process & strat initiatives that form NB part through programmes & projects 6. M need to ensure that appropriate strat review, evaluation & control mechanisms within org to prevent strats from failing  3 elements of strat implementation 1. Translation of strat & LT obj into guidelines for daily & ST activities of org members resp for impl; also translate strat & LT obj into annual obj 2. Ensuring appropriate functional strats & tactics for impl are in place 3. Ensuring necessary res, capabilities & distinctive competencies for impl are available & that relevant policies, procedures & systems, incl optimal reward systems for effective strat impl are in place  4 broad approaches to/ perspectives on strat impl 1. Strat impl as org structure views org as interrelated set of subsystems, which must be aligned, in balance & consistent for strat to be implemented successfully 2. Since strat is about change, perspective that strat impl is about managing planned change 3. Strat impl can be viewed as process of selecting & managing strategic initiatives that collectively contr towards achievement of strategic obj (strat deployment) 4. Strat impl as org adaptation suggests that orgs learn & adapt organically rather than part of formal process  Strat impl is about processes & actions to ensure all aspects of internal env are aligned with strategic direction & strat Ch 4 Process perspective of strat M  Traditional view of strat M is process with distinct stages & a static, linear process  Strat M is actually complex & dynamic discipline that considers env org operates in  3 phases of process 1. Strat formulation/ planning – conceptual phase consisting of env analysis & formulating strats 2. Strat impl/ execution – action phase where staff are tasked with impl strats 3. Strat control/ review – control/ monitoring phase where progress is monitored & feedback is provided 1 Strat formulation MNG3702 notes 2  Starting point where top M decide what to do  Top M conduct analyses of org & env it operates in to set strat direction, decide future of org & set overarching goals  M tools to set strat direction incl slogan, vision & mission statement, statement of strat intent  Analysis takes place & top M gather info about operations, res & capabilities of org; they scan env to ID opp & threats & & evaluate industry & comp  Once info collected & analysed, top M consider strat options & choose strat where fit btwn org & opp is strongest 2 Strat impl  Most challenging phase of strat M as selected strats need to be into action & req involvement of every1  Strats & rationale for selecting them needs to be comm to org & members should be told what strats & overarching obj are  Need to ensure there is understanding & buy in since support means more likely to succeed  Members must be motivated & energised towards achieving goals  Operationalising strat entails translation of overarching & strat obj into specific tasks  By translating strat obj into ST obj, org members become aware of their roles in strat success of org  Actions to impl strats are ensured through drivers like leadership, M & culture  Org culture infl impl coz if negative culture with no support for strat, will be challenging to impl  M can use rewards to drive strat impl by rewarding desired behav that contr to success  Org structure impacts impl coz if strat req quick decision making, bureaucratic structure with rep tape hampers impl  Structure shows lines of reporting & authority, & process & lines for strat impl  Org systems, processes & policies used to direct execution efforts & must be aligned with strat direction  L & M need to empower & enable empl to carry out tasks to impl strats, req allocation of fin, human, physical & info res 3 Strat control  Involves monitoring progress of strat impl, IDing probs & instituting corrective actions if req  Continuous process, as strats are impl, strat review takes place  Mainly involves top & mid M & feedback from review must serve as input in amendment of existing strats  Diff methods of strat review 1. Cont env scanning provides feedback on changes in env that may impact strat choices 2. Impl control is similar to operational control where deviations from plans are ID’d & addressed as they occur (corrections take place during strat impl) 3. Balanced scorecard can review strats New competitive realities – criticising process perspective of strat M  Process perspective o Linear process so complexities of env aren’t considered & dealt with sufficiently o Supports idea that only top M formulate strats & other levels only impl them  In practice o Strat M is more complex & dynamic, it’s not something org has, but what ppl in org do o Reality of strat M in contemporary busn env is messy & complex & should be crafted through process of input from all levels in org M levels in strat  3 levels of M - top, mid, supervisory/ functional M  Top M – CEO, BOD, senior M; set strat direction & analyse env; info gathered used to formulate strat  Middle & supervisory M – resp for execution of strats through M empl  Top M rely on mid M to ensure strats are impl, top M involved again in strat review Strat formulation 3 Strat direction of org  Clarifies overarching purpose & goals of org & indicate to stakeholders what org is about  Provides org & members with primary direction, & binds org members as cohesive unit  Forms starting point for carefully planned & impl strat ; provides focus & directs actions towards achieving same goal  Adv of having clear strat direction 1. Provides direction 2. Guides all org efforts towards achieving same goals 3. Binds org members to work towards achieving overarching goal of org 4. Comm to in/external stakeholders what org wants to achieve in LT 5. Guides decision making 6. Distinguishes org from others 7. Promotes sense of shared expectations 8. Contr to synergy among M & empl  Tools to set strat direction (direct actions & efforts of org over LT) 1. Vision statement  Dream of org; used as indicator of desired future position of org  Not realistic in literal terms as is overambitious, but powerful statement designed to motivate  Should ID direction & future of org & should be persuasive, credible & easily understood since entire org work towards it  Guidelines about what vision statement should be (no std format/ length) 1. Present clear pic of desirable future, something which org aspires to 2. Guide decision making but be flexible enough to allow org to respond to changes 3. Easy to comm, explain & understand 2. Mission statement  Purpose statement of org & states what org does & why it exists  Builds on vision statement & is in/external statement  Should indicate 3 core components 1. Prod/ service it offers 2. Market it hopes to serve 3. Method to deliver prod (tech)  Can also contain  Indication of commitment to stakeholders by incl how NB cust are, how org invests in empl/ builds relats with busn partners  Orgs orientation towards survival & growth expressed through stating their commitment towards economic obj  Org values are indication of how org plans to do busn  Org philosophy indicates how org plans to do busn  Process of formulating mission statement  Strat direction is LT & shouldn’t change for extended period  Since vision & mission statement are expression of strat direction, should remain unchanged except maybe for minor amendments  Drafting mission statement should involve as many ppl as possible to contr to acceptance  External consultant can be called in but must be created internally  Can proceed by 1. Orient those involved to what constitutes well-formulated mission 2. Brainstorm to generate ideas 3. Collate drafts & distr them to rest of team for feedback 4. Continue till agreement on mission 3. Strat goals  Need to translate overarching direction of org into goals with shorter time frame coz det by nature & level of complexity & rate of change in industry