Chapter 15

Question 1

Structures

Answer 1

Gives people formally defined roles, responsibilities and lines of reporting.

Question 2

System

Answer 2

Support and control people as they carry out structurally defined roles and responsibilities.

Question 3

Implementation

Answer 3

Refers to the translation of a chosen strategy into organisational action in order to achieve strategic goals

Question 4

Hard implementation

Answer 4

Structures and Systems because their key features can be precisely designed and they are objective rather than subjective.

Question 5

Functional structure

Answer 5

The functional structure divides responsibilities according to the organisations primary specialist roles such as production, marketing and finance.

Question 6

Divisional structure

Answer 6

A divisional structure is built up of separate divisions based on products, services or geographical areas.

Question 7

Matrix structure

Answer 7

A matrix structure combines different structural dimensions (axes) simultaneously, for example, product divisions and geographical territories or product divisions and functional specialisms.

Question 8

Agile teams

Answer 8

Agile teams are small, entrepreneurial groups given the autonomy to respond quickly to the needs of (internal or external) customers.

Question 9

Planning systems

Answer 9

Planning systems govern the allocation of resources and monitor their utilisation. However, planning systems can be too rigid and fail to anticipate rapid change: planning may therefore reduce flexibility.

Question 10

Three corporate strategy styles (emphasis on planning)

Answer 10

Framework with planning influence on vertical axis and business unit accountability on horizontal axis.

The strategic planning style: The strategic planning style combines both a strong planning influence on strategic direction from the corporate centre with relatively relaxed performance accountability for the business units.

The financial control style: involves very little central planning. The business units each set their own strategic plans, probably after some negotiation with the corporate centre, and are then held strictly accountable for results.

The strategic control style: Is in the middle, with a more consensual development of the strategic plan between the corporate centre and thje business units and moderate leveles of business unit acccountability.

Question 11

Performance targeting systems

Answer 11

Focus on the outputs of an organisation such as service levels, product quality, revenues or profit.

Common problems; Inappropriate measures, inappropriate target levels, excessive internal competition etc.

Question 12

Balanced scorecard and strategy mapping

Answer 12

Strategy maps links different performance targets into a mutually supportive causal chain supporting strategic objectives.

Question 13

Market systems

Answer 13

Market systems typically involve units contracting for input from other parts of an organisation (like a buyer) and, in turn, accepting contracts for providing outputs to other parts of an organisation (like a supplier). May guide internal units to actions consistent with the strategy.

Question 14

Soft implementation

Answer 14

Soft implementation includes cultural change, sensemaking and procedural justice.

Question 15

Cultural change

Answer 15

Organsational culture refers to the taken-for-granted assumptions and behaviours of organisational members.

Change in strategy will typically need matching by changes in culture:

Could be seen as a step-by-step process.

• Determine the required culture, analyse the gap between the existing culture and the required culture, develop a plan to bridge the gap, implement the plan (four Rs, recruitment, retraining, reward and reinforcement), review the culture change.

“It is not what senior leader say but what they do that ultimately sets the culture” - John Kotter, Harvard Business School.

Question 16

Sensemaking

Answer 16

Strategic sensemaking is the cognitive and emotional process through which managers understand, interpret and make coherent their changing environments.

Managers have to make sense of the strategies that they are responsible for implementing. Communication does not necessarily imply understanding.

Successful strategy sensemaking, following process:

The fracturing, or breaking down, of old ways of understanding the organisations strategy. The differentiated understanding of the new strategy, according to the local sensemaking of particular groups of managers. The mutual adjustment of differentiated understandings as managers come to sufficient consensus to work together as a coherent organisation, at the same time as retaining the local interpretations required to deal with specific circumstances.

Question 17

Procedural justice

Answer 17

Procedural justice refers to the fairness of the process by which decisions are made. Implies that the perceived fairness matters aswell.

Three important elements; engagement, i.e. involving individuals in decisions that affect them, both by asking for their input and allowing debate. Explanation, meaning that everyone affected by a decision understands why it was made that way and why some ideas and inputs were finally overridden. Clarity of expectations, in other wors, individuals have a firm understanding of what is expected of them, before, during and after decisions are made.

Procedural justice is important to secure the commitment and loyalty of all stakeholders involved in implementing the strategy, these stakeholders might include subcontractors and suppliers, for example, but employees and managers are typically particularly important.

Question 18

Strategic alignment

Answer 18

Strategic alignment refers to how strategy and organisation should flow logically from the organisations central goals (or purpose or mission).

Question 19

Strategic configuration

Answer 19

Are the set of organisational desing elements that fit together in order to support the intended strategy.

Question 20

The McKinsey 7S

Answer 20

A framework that highlights the importance of fit, not just with strategy and structure, but also with systems, staff, style, skills and superordinate goals. All seven elements have to be configured together to achieve effectiveness.