3 - Developing Strategy

Question 1

Maccoby extremely base level definition of a leader

Answer 1

Someone with followers

Question 2

John Adair says leadership falls at the triangulation of which three apsects?

Answer 2

Individual
Group
Task

Question 3

Transformational leader vs Transactional leader

Answer 3

Transformational - focus is on building strategic vision (eg. Musk)

Transactional - more concerned with ensuring operational flow is appropriate to enable strategy to be achieved (eg. Bezos)

Question 4

Schoemaker - 6 key skills of successful strategic leaders

Answer 4

Anticipate (changes or potential challenges)
Challenge ((questions one’s own and others’ views)
Interpret (complex and conflicting info)
Decide (after robust consideration process)
Align (various stakeholder expectations)
Learn (from previous successes and failures)

Question 5

Chapter 3 learning outcomes (5)

Answer 5

• Demonstrating an understanding of different leadership approaches to strategy
• Understand how to use a SWOT analysis to analyse an organisation
• Discuss the use of systems thinking within an organisation
• Consider the different roles that are required to develop and challenge strategy
• Understand the significance and important of the company secretary or governance professional role in the development of strategy

Question 6

5 cumulative stages which build learning organisation

Answer 6

Personal mastery
Mental models
Shared vision
Team learning
Systemic thinking

Question 7

What does SWOT stand for?
which are internal and external?

Answer 7

Strengths - internal
Weaknesses - internal
Opportunities - external
Threats - external

Question 8

Advantage of comprehensive SWOT analysis is to understand: (3) - tip - think of links between SWOT words

Answer 8

• How strengths combat weaknesses and avoid them becoming threats
• How optimal opportunities can be identified and be turned into strengths
• How strengths can be used to mitigate threats

Question 9

Micro-environment vs macro-environment

Answer 9

Micro-environment - external to the organisation but relatively close - something that should be considered closely in strategic thinking

Macro-environment - external to the organisation and usually outside direct control

Question 10

Micro-environment vs macro-environment - interest rate examples

Answer 10

Micro - negotiating loan with bank

Macro - central bank interest rates

Question 11

3 stages of supply chain

Answer 11

Inputs
Transformation process
Outputs

Question 12

4 elements within supply chain ‘inputs’

Answer 12

People
Categories
Material
Knowledge

Question 13

What is achieved through transformation process of supply chain?

Answer 13

Realisation of USP

Question 14

O’Connor and McDermott definition of ‘system’

Answer 14

An entity that maintains its existence and functions as a whole through the interaction of its parts

Question 15

Three core constituents of a system

Answer 15

The whole
The parts
The connections between the parts

Question 16

Key benefit of understanding how a system is working

Answer 16

Easier understanding of why the system goes wrong

Question 17

Three stages of building system structure

Answer 17

• Establish boundary - representing extremities of system we are considering
• Identify elements - core facets within boundary (people, documents, processes)
• Establish relationships - between elements

Question 18

6 groups or people relevant in developing/implementing strategy

Answer 18

CEO/Directors - setting strategy
Finance Dpt - Ensuring appropriate funding
HR Dpt - Appropriate people in place
External consultants - Satisfy particular or short term requirements
CoSec (separate flashcard)
Individuals (separate flashcards)

Question 19

3 benefits to having individuals involved in dev/implementation of strategy

Answer 19

• Better knowledge of day-to-day ops
• Working from latest ‘today’ position rather than when strat was conceived
• Workable solutions will be identified to ensure tasks are achieved

Question 20

3 downsides to having individuals involved in dev/implementation of strategy

Answer 20

• Lack of understanding of wider strategic vision
• Lack of confidential information required to understand LT vision
• Risk of negative reaction to short term failures

Question 21

4 key roles of CoSec in strategy process per CGI:

Answer 21

• Independent link between directors, chair, CEO
• Facilitation of info gathering and alignment of different interests
• Observation of directors and others within meetings (to identify weaknesses)
• Building independent oversight and history of strategic successes and failures

Question 22

4 core strategic actions

Answer 22

Analysis
Determining strategic direction
Mapping of strategy, route and resource
Optimising communication

Question 23

Describe SWOT diagram

Answer 23

• Strengths top left
• Weaknesses top right
• ‘Internal’ above these
• Opportunities bottom left
• Threats bottom right
• ‘External’ below these
• Arrow from bottom to top on left (showing that opportunities can lead to strengths)
• Arrow from top to bottom on right (showing that a non-resolved weakness can become a threat)