London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing Module – Corporate and Business Management Lecturer : Dr. SAMTA RAI Dated – 31st Jan, 2011 Dr. Samta Rai 1 1

Challenges for Managing Strategy Development LO3: Explain and assess the managerial processes needed to transform strategy into action and to evaluate strategy effectiveness Topic Challenges for Managing Strategy Development Dr. Samta Rai 2 2

Challenges & implications Strategy Development Processes Processes of intended strategy development Strategy vision, leadership and command Strategic planning Externally imposed strategies Processes of emergent strategy development Logical incrementalism Resource allocation routines Cultural processes Political processes Challenges & implications Intended & realised strategy The learning organisation Uncertain and complex conditions Dr. Samta Rai

Challenges for Managing Strategy Development Managing Intended and Realised Strategy Dr. Samta Rai

Strategy development routes Emergent Strategy (4) (3) Intended Strategy (1) Realised Strategy (2) Unrealized strategy Dr. Samta Rai

Challenges for Managing Strategy Development In organisations, there may well be an intended strategy, agreed by senior executives, based on careful analysis and expressed in a formal document explaining the intended strategy in a systematic way with the With the intention that this will be implemented ( see route 1). However, much of what is intended follows route 2 and is unrealised – means it does not come about in practice or only partially so. However, it could be also be that the processes that give rise to emergent Strategy give rise to a realised strategy: that is, the strategy actually being followed by an organisation in practice ( route 3) rather than planned up front. Dr. Samta Rai

Challenges for Managing Strategy Development 1. Managing Intended and realised strategy Awareness - whether managers have taken steps to check if the intended and realised strategy are different? There needs to be realistic expectations of the role of strategic planning. The challenge of strategic drift (Strategic drift is a gradual change that occurs so subtly that it is not noticed until it is too late Managing emergent strategy Dr. Samta Rai

STRATEGIC DRIFT Amount Of Change Environmental change T I M E Strategic drift is the tendency for strategies to develop incrementally but fail to keep With a changing environment.

Challenges for Managing Strategy Development 2. The Learning Organisation The learning organisation is capable of continual regeneration from the Variety of knowledge, experience and skills of individuals within a culture which encourages mutual questioning and challenge around a shared purpose or vision. The main tenets of organisational learning are – Managers facilitate rather than direct Information flows and relationships between people are lateral as well as vertical. Dr. Samta Rai

. Organisations are pluralistic , where conflicting ideas and views are welcomed, surfaced and become the basis of debate. Experimentation is the norm, so ideas are tried out in action and in turn become part of the learning process. Dr. Samta Rai

3. Strategy development in uncertain and complex conditions In simple/static conditions – the environment is relatively straightforward to understand and is not undergoing significant change. In dynamic conditions, managers need to consider the environment of the future, not just of the pasr. In complex situations, managers face an environment that is difficult to comprehend. This may be because of the knowledge complexity of an industry. Or it may be because of organisational complexity. Dr. Samta Rai

3. Strategy development in uncertain and complex conditions Simple Static Historical analysis Forecasting Decentralisation of organisations Scenario Planning Experience & Learning Dynamic

Motorola : an analogue history facing a digital revolution Pg 181 Case study Motorola : an analogue history facing a digital revolution Pg 181 Dr. Samta Rai

Thanks all Dr. Samta Rai