3 - Developing Strategy Flashcards
Maccoby extremely base level definition of a leader
Someone with followers
Define transformational leadership
Leader focuses on building vision, creation of identity and empowerment and development of culture. Impact of key individual is clear to see, as is the gap created when that driving force leaves organisation
Two types of change leadership
Transformational (eg. Musk)
Transactional (eg. Bezos)
Define transactional leadership
More concerned with making sure operational flow is appropriate to enable strategy to be achieved.
Transaction = motivation of followers by exchanging reward for performance
Schoemaker - 6 key skills of successful strategic leaders
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)
5 cumulative stages which build learning organisation
Personal mastery
Mental models
Shared vision
Team learning
Systemic thinking
What is SWOT analysis used for?
Understanding of strengths and weaknesses of today position and perceived opportunities and threats of future as seen from that point
What does SWOT stand for?
which are internal and external?
Strengths - internal
Weaknesses - internal
Opportunities - external
Threats - external
Advantage of comprehensive SWOT analysis is to understand: (3) - tip - think of links between SWOT words
- 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
Micro-environment vs macro-environment
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
Micro-environment vs macro-environment - interest rate examples
Micro - negotiating loan with bank
Macro - central bank interest rates
3 stages of supply chain
Inputs
Transformation process
Outputs
4 elements within supply chain ‘inputs’
People
Categories
Material
Knowledge
What is achieved through transformation process of supply chain?
Realisation of USP
O’Connor and McDermott definition of ‘system’
An entity that maintains its existence and functions as a whole through the interaction of its parts
Three core constituents of a system
The whole
The parts
The connections between the parts
Key benefit of understanding how a system is working
Easier understanding of why the system goes wrong
Three stages of building system structure
- Establish boundary - representing extremities of system we are considering
- Identify elements - core facets within boundary (people, documents, processes)
- Establish relationships - between elements
6 groups or people relevant in developing/implementing strategy
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)
3 benefits to having individuals involved in dev/implementation of strategy
- 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
3 downsides to having individuals involved in dev/implementation of strategy
- Lack of understanding of wider strategic vision
- Lack of confidential information required to understand LT vision
- Risk of negative reaction to short term failures
4 key roles of CoSec in strategy process per CGI:
- 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
4 core strategic actions
Analysis
Determining strategic direction
Mapping of strategy, route and resource
Optimising communication
Describe SWOT diagram
- 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)
