3 - Developing Strategy

Question 1

Maccoby extremely base level definition of a leader

Answer 1

Someone with followers

Question 2

Define transformational leadership

Answer 2

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

Question 3

Two types of change leadership

Answer 3

Transformational (eg. Musk)
Transactional (eg. Bezos)

Question 4

Define transactional leadership

Answer 4

More concerned with making sure operational flow is appropriate to enable strategy to be achieved.

Transaction = motivation of followers by exchanging reward for performance

Question 5

Schoemaker - 6 key skills of successful strategic leaders

Answer 5

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 6

5 cumulative stages which build learning organisation

Answer 6

Personal mastery
Mental models
Shared vision
Team learning
Systemic thinking

Question 7

What is SWOT analysis used for?

Answer 7

Understanding of strengths and weaknesses of today position and perceived opportunities and threats of future as seen from that point

Question 8

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

Answer 8

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

Question 9

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

Answer 9

• 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 10

Micro-environment vs macro-environment

Answer 10

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 11

Micro-environment vs macro-environment - interest rate examples

Answer 11

Micro - negotiating loan with bank

Macro - central bank interest rates

Question 12

3 stages of supply chain

Answer 12

Inputs
Transformation process
Outputs

Question 13

4 elements within supply chain ‘inputs’

Answer 13

People
Categories
Material
Knowledge

Question 14

What is achieved through transformation process of supply chain?

Answer 14

Realisation of USP

Question 15

O’Connor and McDermott definition of ‘system’

Answer 15

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

Question 16

Three core constituents of a system

Answer 16

The whole
The parts
The connections between the parts

Question 17

Key benefit of understanding how a system is working

Answer 17

Easier understanding of why the system goes wrong

Question 18

Three stages of building system structure

Answer 18

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

Question 19

6 groups or people relevant in developing/implementing strategy

Answer 19

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 20

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

Answer 20

• 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 21

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

Answer 21

• 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 22

4 key roles of CoSec in strategy process per CGI:

Answer 22

• 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 23

4 core strategic actions

Answer 23

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

Question 24

Describe SWOT diagram

Answer 24

• 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)