Bower & Gilbert (2007)

Question 1

What is the article’s main argument in Bower & Gilbert (2007) (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 1

How companies “really” are run and the mismatch between stated strategy and real strategy. Strategy = where we put our resources

Question 2

What is the role of the organisational structure, according to Bower & Gilbert? (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 2

Knowledge is dispersed, power is dispersed, and roles and perspectives differ.

Question 3

What is the role of the decision-making process in deciding strategy, according to Bower & Gilbert? (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 3

Parallel levels, parallel functions, independence. Processes are iterative.

Question 4

According to Bower & Gilbert, what do they mean are the most important alignments within strategy? (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 4

Strategy statements must be in line with resource allocation, and who’s in charge of the resources.

Question 5

According to Bower & Gilbert, give examples of actors that are in control and how? (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 5

General managers, operational managers, customers and capital markets

Question 6

According to Bower & Gilbert, name 6 ways senior managers can direct their strategy by better understanding the Resource Allocation Process (RAP). (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 6

• Understand the people who request capital. Past records, judgment
• Compare to strategic objectives, not just ROI. ”Should we?”
• Conflicting views on strategy – intervene and align. ”Knowledge power and position power in the same room”
• Use operational managers to make sure divisions cooperate
• Calibrate divisional bottom-up ambitions, connect the dots
• Make sure you can circumvent the regular RAP

Question 7

According to Bower & Gilbert, what is the main leadership challenge in a big organization? (How managers’ everyday decisions create or destroy your company´s strategy?)

Answer 7

To give coherent direction to how resources are allocated and, by doing so, align the bottom-up processes with top- down objectives.