Consolidation of Processes and Steps Flashcards
[Megatrends] Examples
MEITU’D
- global Marketplace (blur categorisation; increasing interdependence)
- Economic power shift
- rise of the Individual
- enabling Technology
- Urbanisation and rise of the middle class
- changing Demographics [WAYP]
[VUCA] Volatility
D’COST
- Duration of outcome is unknown
- Cause is known
- Outcome-based: the outcome is volatile, not the event itself
- Shocks and Triggers: change is caused by shocks and triggers imposed by the environment
[VUCA] Overcoming Volatility
RAD
- Redundancy
- Agility
- Decoupling
[VUCA] Uncertainty
P’FRIK
- unPredictable future
- managers lack Foresight due to unpredictability
- Relationship between cause and effect is poorly understood
- Information investment is needed
- good Knowledge is lacking
[VUCA] Overcoming Uncertainty
Postures [SAR] and Moves [NOOB]
Postures:
- Shape the future
- Adapt to the future
- Reserve the right to play
Moves:
- NO regret moves
- Options
- Big bets
[VUCA] Complexity
Institutionalised and Individual
IIDU
- Imposed
- Inherent
- Designed
- Unnecessary
[VUCA] Overcoming Complexity
Within the company
- modelling
- better use of data
- better forecasting tools
- risk mitigation
- triangulation
In the environment
- adapt
- align to new environment complexity
[VUCA] Ambiguity
causal mechanism between cause and effect is unknown
- presence of unknown-unknowns
[VUCA} Overcoming Ambiguity
Experimentation
- Lab
- Quasi
- Field
- Natural
Systems thinking and understanding context
[Speed of Change] Challenge for Big Businesses
SMU PIT
- Scope of the industry hard to define
- learn from Mavericks
- identify and address Uncertainties
- adopt multiple Perspectives
- address risks with Initiative
- Time pacing
[Speedy of Change] Building Second-Order Capabilities. How many steps?
- Reading and Acting on Signals
- Experimentation
- Manage Complex Multi-company Systems
- Mobilisation and Motivation
[Speed of Change] Characteristics of Time Pacing
VPR
- strategic Vision
- Proactive
- Rhythmic
[Speed of Change] Managing Transitions. Which scenarios of transitions?
MAPE
- M&A
- Advertisement campaigns
- shifts in Product development
- Entering and leaving markets
[Disruption] Challenges for firms
B-ICE
- Bias: status quo, sunk cost, employee resistance
- Ignorance of other customers, only listening to current customers
- organisational Culture: VPR
- destruction of Existing capabilities
[Disruption] Dealing with Disruption
SIA
- new organisational Structure: when current processes don’t match
- spin out an Independent organisation: when values don’t match
- Acquire an organisation: which has VPR aligned
[Organisational Boundaries] Types of Organisational Boundaries
5 types
- Vertical
- Horizontal
- Stakeholder
- Demographic
- Geographic
[Organisational Boundaries] TCA: Governance
Market
Intermediate
Hierarchical
[Organisational Boundaries] Capability Consideration
CCA
- Collaboration with firms possessing capabilities
- Creating Capabilities
- Acquiring Capabilites
[Organisational Boundaries] Difficulties in Creating Capabilities
CHAP
- social Complexity
- Historical context
- causal Ambiguity
- Path dependence
[Organisational Boundaries] Difficulties in Acquiring Capabilities
V-RULL
- reduces the Value of desired capabilities
- costly to Reverse if undesirable
- Unwanted baggage
- costly to Leverage
- Legal constraints
[Organisational Boundaries] Goal of Boundary Spanning Leadership
DAC
- Direction
- Alignment
- Commitment
[Organisational Boundaries] Boundary Spanning Leadership
Managing Boundaries
- buffering
- reflecting
Forging Common Grounds
- connecting
- mobilising
Creating New Frontiers
- weaving
- transforming
to achieve the Nexus Effect
[Organisational Learning] Methods in Organisational Learning
Single Loop Learning
Double Loop Learning
Learning Organisations = learning orientations + facilitating factors
[Organisational Learning] Challenges in Double Loop Learning
SBP
- Status quo bias
- Bandwidth
- Power and social dynamics
[Organisational Learning] Learning Orientations
1 source. 4 focus, 2 modes
Knowledge source
Product-process focus
Learning focus
Value chain focus
Skills development focus
Documentation mode
dissemination mode
[Organisational Learning] Facilitating Factors
O-LEVElS
- climate of Openness
- involved Leadership
- continuing Education
- operational Variety
- Experimental mindset
- Systems perspective
[Analytics] Challenges in Analytics
D-HHAM
- type of Data to use: qualitative vs quantitative
- the need for a Hypothesis
- balancing Human touch with analytics
- transforming data into Actionable plans
- Modelling
[Scenarios and Options] Options
PICS
- exploring Possibilities
- Investment with no immediate returns
- Cost of creating, maintaining and exercising options need to be considered
- Strategic tool, foresight and flexibility
[Scenarios and Options] Creating Options
HPOPO
- uncover Hidden constraints
- establishing Processes to build new strategic options
- Optimising strategic portfolio: cost-benefit analysis
- combining Planning and Opportunism
[Scenarios and Options] Scenarios
scenarios are imagined futures
SAGE
- act as early warning Signals
- Assess robustness of core competencies
- Generate strategic options
- Evaluate risk and returns
[Scenarios and Options] Scenario Planning
OESCI
- Orientation
- Exploration
- Scenario and narrative creation
- options Consideration
- Integrating into current management processes
[Management Theory] Developing a Theory
OCH
- Observation and description of the phenomenon
- Categorisation of the phenomenon meaningfully
- Hypothesis generation to form a theory
[Integrative Thinking] Wicked Problems
IICCCI
Impossible to solve due to incomplete, contradictory and changing requirements that are difficult to recognise
Complex Interdependencies, therefore traditional reductionist approaches are unable to solve wicked problems
[Integrative Thinking] How many steps?
4 Steps: SCDR
- determining Salience
- analysing Causality
- envisioning the Decision architecture
- achieving Resolution
[Resilience] Characteristics of Resilience
CAR
- Change before the case for changing becomes desperately obvious (2nd order capabilities)
- Anticipate and adjust to deep secular trends (double loop learning, options and scenarios)
- Reinventing business models as circumstances change
[Resilience] Challenges and Solutions to Achieving Resilience
PICS
- Political: Liberating Resources
- Ideological: Embracing Paradox and understanding optimisation
- Cognitive: Conquering Denial, Philip Yeo, SEER strategies
- Strategic: Valuing Variety, BOB
~ learning from Biodiversity
~ Organisational ecology
~ Balancing the costs of valuing variety
[Agile Absorption] Types of Agility
SOP
- Strategic (leverage operational, game changing opportunities such as new products and services to new clients)
- Operational (seize opportunities within the same space, focused business model)
- Portfolio (resource allocation)
[Agile Absorption] Absorption
BODIS
- Buffering capacity: to weather volatility and fluctuations
- Offensive strategy: to outlast rivals
- Defensive strategy: to buffer against threats from competitors or changing environments
- Increase the chance of success for the company without offering the best product
- Secure an early lead and reinforce market position
[Agile Absorption] Sources of Absorption
PVC FEW
- Protected core market
- Vast size
- Customer lock-in
- low Fixed costs
- Excess staff
- War chest of cash
[Agile Absorption] Tips for Agile Absorption
FATS
- keep good Fats, trim bad Fats
- maintain culture of Agility
- manage Trade-offs
- Simultaneously maintain flexibility and speed
[Competing on the Edge] Firms are Complex Adaptive Systems
Firms: systems with numerous parts, agents and stakeholders, not a singular entity
Complex: interdependence give rise to self-organised behaviour, diverse interacting agents
- no central control: leaderless yet orderly
Adaptive: interactions generate changes
[Competing on the Edge] Competing on the Edge
allows a firm to CHANGE CONSTANTLY while letting a SEMI-COHERENT STRATEGY and direction emerge
[Competing on the Edge] Where do you want to go
addresses Semi-Coherence: DICUUP
- Diverse
- Inefficient
- Continuous
- Unpredictable
- Uncontrolled
- Proactive
[Competing on the Edge] How to get there
3 Steps
- The edge of chaos: structure vs chaos (EDA)
- The edge of time: past, present, future
- Time pacing
[Competing on the Edge] Laws of Competing on the Edge
10 Laws: SOL
Strategy (TORP)
1. strategy is Temporary: changes are opportunities, not threats
2. strategic Options: strategy is diverse, emergent and complicated
3. Reinvention is the goal
4. live in the Present: to maximise your current minimum structure
Organisation (SRT)
- Stretch out the past
- Reach into the future
- Time pace change
Leadership (GSR)
- Grow the strategy: to revamp
- drive the Strategy of business: not top-down
- Repatch businesses to markts: alignment and capture emerging opportunities
