IRM ERM M2U7 Strategy Flashcards
Strategy definition Hopkin & Thompson
a “statement of where the organisation wants to be in 3- or 5-years’ time, often defined by strategic objectives”.
Business strategy
Hopkin & Thompson (page 227) go on to state that:
“Business strategy is the statement of what the organization intends to achieve and how it plans to achieve it and is based on the decisions about the future of the organization. Establishing a detailed business strategy enables the organization to deliver its mission, objectives, strategy, and plans.”
Management models - organisational strategy
Ansoff model.
Business model canvas.
CORR (Customer, Offering, Resources and Resilience).
Management models - Validation
Validation – the testing of the strategic options the organisation has identified to enable the organisation to select the most appropriate strategy
SWOT (Strengths, weaknesses, opportunities, and threats).
Porters 5 forces.
PESTLE (Political, Economic, Social, Technological, Legal, Environmental).
Management models - Implementation
Implementation – the translation of the chosen strategy into objectives and tasks
VMOST (Vision, Mission, Objectives, Strategy and Tactics).
Value chain analysis.
Review and repurpose
Review and repurpose – the periodic review of existing strategies and objectives to ensure they remain fit for purpose
The BCG Matrix.
Kotter: Our Iceberg is Melting+.
McKinsey: 7S Model.
The perils of bad strategy
International Harvester strategy example not including grossly inefficient production facilities, or the fact that Harvester had the worst labor relations in US industry
Jack Welch : “We have found that by reaching for what appears to be the impossible, we often actually do the impossible.” But he also said, “If you don’t have a competitive advantage, don’t compete.”)
fuzzy strategic objectives
blue sky”—no one has a clue as to how to get there.
superficial abstraction—a flurry of fluff—designed to mask the absence of thought.
The inability to choose - Digital Equipment Corporation (DEC) example with 3 powerful executive personalities and 3 strategies
Good strategies underlying structure ex NVIDIA
good strategies, which have a basic underlying structure:
- A diagnosis: an explanation of the nature of the challenge. A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of the situation as being the critical one
The diagnosis: “We are losing the performance race.”.
- A guiding policy: an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.
“release a faster, better chip three times faster than the industry norm.”
- Coherent actions: steps that are coordinated with one another to support the accomplishment of the guiding policy.
it formed three development teams, which worked on overlapping schedules; it invested in massive simulation and emulation facilities to avoid delays in the fabrication of chips and in the development of software drivers; and, over time,
Ways to managing reputation risk?
Monitoring and managing stakeholder expectations is an ongoing effort.
Reputation risk occurs when performance does not match expectations, so you have to understand what stakeholders (customers, regulators, shareholders, employees) expect — and realize that those expectations tend to evolve over
time.
Companies are using external analysts and data sources to supplement their internal observations from, say, marketing and HR.
Why is reputation risk a top strategic concern
Reputation risk keeps business leaders up at night because it’s a meta risk. It can originate and spread from inside and outside the organization, at an alarming speed.
Adding to the concern is that some of these risks are beyond the company’s direct control. Respondents to the survey were less confident about managing risks from third-party/extended enterprise issues, competitive attacks, and hazards or other catastrophes than about managing risks they can control internally, such as those
related to regulatory compliance or employee misconduct.
4 Main Components of reputation - CASE
CASE - Capabilities, Activities, Standards & Ethics
