Delivery Flashcards
What to do to modify an organisation’s strategy?
Its configuration/alignment in relation to Structure, People, Processes, and Systems must change
Levels of change in strategy
- Modification of existing (Incremental changes within same culture)
- Execution of new strategy (substantive changes within same culture)
Three types of organisation-building actions for good strategy implementation
- Staffing (e.g. strong management team)
- Building/strengthening core competences and capabilities
- Match organisational structure to strategy
Actions to modify staff for strategy execution
- Retraining (skills, knowledge)
- Change work environment and climate
- Set boundary control systems
Actions to build/strengthen capabilities and competences
- Develop strategy-critical value chain activities
- Refresh and renew capabilities to align with changing conditions
- Build through internal development, MandA or collaboration
Actions to match structure with strategy
- Outsource vs in-house
- Matrix structure
- Facilitating collaboration (appoint relationship managers)
Control systems
Gives accurate and timely information in terms of performance
Simons’ control levers
- Diagnostic control systems
- Belief systems
- Boundary systems
- Interactive control systems
Diagnostic control systems
Track progress against strategically significant goals. Adjust based on periodic feedback and realign processes.
Boundary systems
Minimum standards or codes of ethical conducts (limits of acceptable activity)
Interactive control systems
Sense and respond to threats and opportunities in organisation’s environment (e.g. trends in consumer behaviour and competitor moves)
Making alliances/collaborations work
- Appointing relationship managers: cross-organisation ties for proper communication and coordination
- Contractual safeguards (non-competing clauses)
- Benefit both sides
- Create system for managing alliances (e.g. decision-making procedures, templates, manuals)
- Learning incorporated into company’s routines and practices
Evaluating strategy (3 tests)
- Fit test: how well does strategy fit the organisation’s situation?
- Competitive advantage test: can the strategy help the organisation achieve a sustainable competitive advantage?
- Performance test: is strategy producing good organisational performance?
Execution of differentiation strategies (structure)
- Cross-functional development teams
- Complex matrix structures
- Intense pockets of innovation
Execution of differentiation strategies (management control systems)
- Broad decision-making guidelines
- Freedom within guidelines
- Policy of experimentation
