B301 B lock 5: Strategic Implementation - PowerPoint Presentation

Slide1

B301Block 5: Strategic Implementation

Barriers to implementationStrategists as People Structure and Strategy Managing Strategic ChangeSlide2

Block 5 explores ‘Implementation’

Analysis

Choice

Johnson and Scholes’ (2006)

ImplementationSlide3

Block 5 overviewUnit 1: Barriers (Alexander 1985 & Hrebiniak 2006); Tools: CPA, Gantt charts, Control loop, double loop learning. Hickson et al 2003 planned/prioritised implementation. Success factors

Unit 2: People: Regner (2003) summarised; middle manager functions; TMT/MM interaction (Raes et al., 2011) – decision/implementation quality; consultants.interface of senior/middle management reading 14 (Raes et al.)U3: Structure and strategy; low/high context structural discourse; Mintzberg on structure; Raisch on real-life structuresbalanced structures reading 15 (

Raisch

)

U4: Change: causes and nature of change (planned, incremental, punctuated equilibrium); scale/scope of change (

Balogun

and Hope-Hailey, 2008), implementation model (

Hrebniak

, 2006)Obstacles to implementation reading 16 (Hrebiniak)Slide4

Alexander’s five key obstaclesKey tasks are not defined in enough detailProblems requiring intervention by top management were not communicated to them fast enough

Changes in roles and responsibilities were not clearly definedThe key formulators of the strategic decision did not play an active enough role in implementationMajor problems surfaced during implementation, which had not been identified beforehandSlide5

Hrebiniak’s consulting experience revealed obstacles managers have to overcome

Managers are trained to plan not executeLet the ‘Grunts’ handle executionPlanning and execution are interdependentImplementation takes longer than formulation

Execution involves more people than formulation

Unit 1 (

introduction). Unit

4

(Reading

16)

5Slide6

Confirm agreement (2)

Receive Stock

Carry out minor works

(20)

Install racking

(10)

Facilitating Implementation –

Critical Path Analysis

Set up ordering systems (20)

Recruit and train staff (18)

Confirm lines (5)

Decide Staffing (2)

Send off first orders (5)

Decide layout

etc

(10)

Install signage (7)Slide7

Facilitating Implementation – Gantt ChartSlide8

Control Loop

Possible action:Adjust task/resourcesPossible action:Do nothingSlide9

Control loops and ‘out of the box’Difference between single and double loopsArgyris and Schon (1978) double loops show strategic learning and critical thing: question the firm’s goals

Morgan’s (1986) proposals for developing DL learningSlide10

Hickson et al (2003)Factors in successful strategic implementation‘Planned’ and ‘prioritised’ optionsPlanned: based on experiencePrioritised: based on ‘readiness’

Case study of glass manufucturingSlide11

Strategists as PeopleJarzabkowski et al (20007)Regner (2003) on managersRaes at al (2011) on strategic interactionWright et al’s (2008) six questions about strategy consultants

Strategy as a ‘social activity’Senior ManagersMiddle Managers (beyond the ‘classical’ view)Interaction of senior and middle managers (Raes et al)Strategy consultants: questioning some assumptions, and Wright et al’s 6 questions (2008)Slide12

Senior and middle manager interactions (Raes et al, 2011)Slide13

Structure discourse (more on discourse coming up in Block 6)A different way of thinking about strategy‘Ontological’: the nature of what is taken as ‘reality’Child (2000) ‘low’ and ‘high’ contexts‘Low’: assumes a ‘best practice’. Friedman’s (2006) view that globalisation is ‘flattening‘ the world. Mimetic isomorphism in organisations: same for strategies?.

‘High’: (Segal Horn and Faulkner, 2012) recognition and focus on specific contexts, embracing ‘messiness’Geppert at al (2002 )consider hybrid contextsSlide14

Mintzberg’s six ‘ideal’ structural types

Simple Structure

Machine

Bureaucracy

Professional Bureaucracy

Divisionalised

Form

Adhocracy

Missionary

Key part

Strategic apex

Technostructure

Operating core

Middle line

Support staff

Ideology

Coordinating mechanism

Direct supervision

Standardisation of work processes

Standardisation of skills

Standardisation of outputs

Mutual adjustment

Standardisation of norms

Dominant pull to:

centralise

standardise

professionalise

balkanise

collaborate

evangelise

(Mintzberg

1979)Slide15

Temporal Separation

Organisations change back and forth between different corporate structuresDecentralisation is used to ignite innovation and change: centralisation to increase coordination and efficiencyExploitation and exploration are emphasized sequentially rather than simultaneouslySlide16

Structural Separation

Organisations are divided into two (or more) separate units with different structures at the same timeFlexible ‘innovative units’ explore new areas for growth, while more formal ‘operational units ensure efficient organisations in the existing businesses

Exploitation and exploration are addressed by different employees and organisational unitsSlide17

Parallel Structures

Organisations create supplemental network structures to compliment the formal primary structureEmployees switch between the two types of strucutres

depending on their respective tasks

Exploitation and exploration are addressed by the same employees, but in different structural environmentsSlide18

Managing Strategic ChangeWhat is the difference between the planned and the incremental view of change?

What is ‘punctuated equilibrium’?According to Balogun and Hope Hailey (2008) what are the four types of strategic change (depending on the nature and scope of change)?18Slide19

Balogun and Hope Hailey

19

Evolution

Adaption

Revolution

Reconstruction

Transformation Realignment

Big Bang Incremental

Scope of Change

Nature of Change

Balogun

and Hope Hailey (2008)Slide20

Hrebiniak 2006

Hrebiniak’s model for implementing strategic change