Strategy II Slides

8/12/2019 Strategy II Slides

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LEGO Mindstorms: Case Themes

STRATEGY AND ORGANIZATION

1. Identifying the key variables in anorganization model and understanding howand to what extent they influence values andbehaviors

2. Evaluating the linkage between strategy andorganization in terms of:

-Fit-Sustainability

-Adaptability

Culture

Culture

Organizational variables

PersonalLeadership

Structure

SystemsPeoplePolicies

OrganizationalCapabilities

Source: Fry and Killing Strategic Analysis and Action, 3rd Edition - Figure 9.3


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The Innovators Dilemma

Expecting achievement-driven employees in a largeorganization to devote a critical mass of resources, attention,and energy to a disruptive project targeted at a small andpoorly defined market is equivalent to flapping ones arms inan effort to fly: It denies an important tendency in the wayorganizations work.

The evidence is strong that formal and informal resourceallocation processes make it very difficult for largeorganizations to focus adequate energy and talent on small

markets, even when logic says they might be big somedayClayton M. Christensen

Key ideas

1. The purpose of an organizational model isto create and support behaviors consistentwith strategic needs. This is the criticalissue in evaluating an organization.

Therefore, there is no such thing as a perfectorganization. There is just a perfect organization for a

strategy. For different strategies, different organizations


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Key Ideas (2)2. The values and behaviors that we

observe in an organization are the resultof a complex set of forces. Any plans forchange must comprehend this.

Key Ideas (3)

3. The choice of structure is a strategicchoice. The choice of strategy, itsformulation, will depend on structure.

Strategy and structure need to co-evolve

4. The fit between environment-

strategy-organization is dynamic When your environment changes, you

likely have to change your organization


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Strategic Analysis and Personal Action

Reading Environment, Strategy, Organization

and Leadership Position

Establishing priorities and developing an action

plan

The transition from entrepreneurial to

professional organization in a highly

value-centered and high-growth context

What to keep and what to change

Culture

Culture

PersonalLeadership Structure

SystemsStaffingPolicies

OrganizationalCapabilities

Source: Fry and Killing Strategic Analysis and Action, 3rd Edition - Figure 9.3

Key points

Strategies and business models embedded in strong

management or owner-manager values are a particular

challenge

Formalizing the organization while sustaining a highly-value

centered culture and context

Growth possible while keeping the culture?

How flexible and adaptable? Transferable?

On priorities: Strategy vs Organization

Difficult to fix strategy if the organization is sick

On becoming the leader

Being the CEO means being in front, so you depend on thosebehind you. Can you rely on them? or not?

To start, remember you have two ears and one mouth.

Strategic management

Assessing the

performance of

the organization

Establishing

strategic

orientations

Developing thecompetencies of

the organization

Implementing

change

Strategic

Management


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Implementation and action plan

Diagnosis

Urgency/performance

Proaction

Reaction

Crisis

Organizationalcommitment

Readiness/awareness

Capacity/ willingnessto change

Personal commitment

Am I ready? Can I?

Framework

Priorities Awareness and

readiness Organizational

changes Strategic changes

Style Directive or

participative Targets and tactics

options

Pace 100 days / 1 yr

Action Plan

Objective

Target

Tactic

Timing

Assessing strategic performance for actionThe first look: often a static perspective

X

Financial

performance

Market-based

performance

Execution

performance

Organizational

climate

Assessing strategic performance for actionAchieving a dynamic perspective

X

Proactive

Reactive

Crisis

Time

Performance

Action Priority Variables

BUILDING SUPPORT

Building awareness, skills

and commitment necessaryto support change

CHANGING THE

ORGANIZATION

Making the changes

required to support

strategic change

PUTTING STRATEGIC

CHANGES IN PLACE

Making the tangible

strategic changes

Source: Fry and Killing Strategic

Analysis and Action, 4th Edition


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Leadership Style

Source: Fry and Killing Strategic Analysis and Action, 4th Edition -Figure 11.1

Characteristics Benefits Risks

Directive D irect ive Assumes Initiator

understands problem, knowssolution, has power

Tactics focus on

communication of reasons,

instructions, expectations

Fast

E ff icient Economizes on

initiator time,

energy

Wrong diagnosis,

wrong remedy Passive or active

resistance

Pseudo change High after-the-fact

costs

Participative Participative Assumes that diagnosis and

remedy will be developed inchange process

Tactics focus on collaborativeexploration of causes,

development of remedies,building commitment

Effec ti ve Flexible

Develops and testsproblem and

people at sametime

Too slow Potential to run

off-track Avoidance of

tough decisions

The action plan

Objectives(Expected results

and metrics)

Target(s)(Who? Individuals

or groups?)

Tactics (How?Actions? Directive or

participative?)

Timing(When?)

1.

2.

3.


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Ohlson Canada

quipe Stratgie MBA

Dr. Serge Poisson - de Haro

Dr. Louis Hbert

Ohlson

Strategic Analysis and Personal Action

Your first GM job after the MBA The context of a troubles subsidiary with

growth and profits challenges

Your plan!

The first GM job

Understanding strategic context Strategy, competition, market

Understanding organizational context HQ

Stakeholders / key players

Business system and capabilities

Organizational variables

Understanding personal stakes First GM job

Time pressure Relationship with HQ and local management/staff

Moving forward

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Proactive

Reactive

Crisis

Time

Performance

The strategic context The action plan

Objectives(Expected results

and metrics)


or groups?)


participative?)

Timing(When?)

1.

2.

3.

Targets, Objectives, Tactics, Timing

PROACTIVECHANGE

REACTIVECHANGE CRISIS CHANGE

Objectives Develop support

and direction Organizational

Changes Buy time

MakeStrategicChanges

Targets Supporters Pivotal Groups External Internal

Style Participative Mixture Participative Directive

Timing Jog Run Sprint Sprint

Key pts

The first GM job Time pressure Need to digest lots of information, make a call and

start moving quickly Understanding the context to manage and

minimize personal risks

Understanding leadership in action What authority? What control? Manage one on one or a group?

Stay the course or implement change?


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Key pts (2)

Managing a sales subsidiary: Growth and profits

expectations at the HQ can be disconnected from the

local realities and facts

The local GM need to find ways to meet those

expectations considering local means and constraints

To the extent possible, the GM can use (and get!) HQ

resources, competences and support for implementing

locally

Managing local resistances and insure organizational

alignment


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2014-02-28

1

Montreal Racks

Strategic Analysis and Personal Action Reading Environment, Strategy, Organization

and Leadership Position

The case of a crisis situation Firm requiring a swift turnaround in a situation of

limited strategic capabilities and high urgency,where its ST survival is at stake.

Key points Building a turnaround plan

Buy time and addressing concerns of key stakeholders Developing a financial plan Get Ops back in shape and under control Reduce complexity and strategic scope Fix organization & HR

What a good plan must avoid Objectives without actions or tactics No priorities Actions or tactics with ambiguous or uncertain impacts No ultimate destination

Still, if the outcome of a turnaround is going to beextreme fragility, it may make little sense to proceed,

even if you can win the day...


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Key elements of turnaround strategies

Top management changes Strategic inertia of incumbent management Such changes precede downsizing

External advice and expertise Overcoming competence and capability gaps

Retrenchment Consolidation of strategic and financial situation Reducing the firm to position most likely to be successfull

Transformation Developing an entirely new strategic model Ouf!

Strategic managementAssessing the

performance of

the organization

Establishing

strategic

orientations

Developing the

competencies of

the organization

Implementing

change

Strategic

Management


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4

Assessing strategic performance for actionAchieving a dynamic perspective

X

Proactive

Reactive

Crisis

Time

Performance

Action Priority Variables

BUILDING SUPPORT

Building awareness, competenciesand commitment necessary

to support change

CHANGING THEORGANIZATION

Making changes

required to supportstrategic change

PUTTING STRATEGICCHANGES IN PLACE

Making tangible

strategic changes

Source: Fry and Killing Strategic

Analysis and Action, 4th Edition


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Potential Action Priorities

Variable Category Potential Objectives

Support Variables Improvements in awareness,

capability, willingness.

Organization Variables Implementation of changes in leadership,

structure, systems, staffing.

Strategy Variables Implementation of changes in goals,

product market focus, competitive

premise, business system focus.

Performance Variables Improved profits, revenues, market share,

costs, etc.

Source: Fry and Killing Strategic Analysis and Action, 4th Edition

The action planObjectives

(Expected results)


or groups?)


participative?)

Timing(When?)

1.

2.

3.


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Targets, Objectives, Tactics, Timing


PROACTIVECHANGE

REACTIVECHANGE CRISIS CHANGE

Objectives Develop support

and direction Organizational

Changes Buy time

MakeStrategicChanges

Targets Supporters Pivotal Groups External Internal

Style Participative Mixture Participative Directive

Timing Jog Run Sprint Sprint

Proactive Reactive Crisis

Prevailing ConditionsStrategic Performance Healthy Sliding Critical

Time Pressure L it tle Have to Get Started Urgent

Need for Change Uncertain Becoming Clearer Clear

Internal Commitment for Change Low Mixed High

Management Capability High Mixed Low

Summary Characteristics


Management Issues

Strategic Is Change Where to Start? Achieving rapidNecessary? pace of change

Organizational Lack of Dealing With Who to Rely Commitment Resistors On?

Personal Credibility Power History and

intersts; IOUs

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