B301 Block 5: Strategic Implementation Barriers to implementation Strategists as People Structure and Strategy Managing Strategic Change

Block 5 explores ‘Implementation’ Analysis Choice Johnson and Scholes’ (2006) Implementation

Block 5 overview Unit 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 structures balanced 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)

Alexander’s five key obstacles Key tasks are not defined in enough detail Problems requiring intervention by top management were not communicated to them fast enough Changes in roles and responsibilities were not clearly defined The key formulators of the strategic decision did not play an active enough role in implementation Major problems surfaced during implementation, which had not been identified beforehand

Hrebiniak’s consulting experience revealed obstacles managers have to overcome Managers are trained to plan not execute Let the ‘Grunts’ handle execution Planning and execution are interdependent Implementation takes longer than formulation Execution involves more people than formulation Unit 1 (introduction). Unit 4 (Reading 16) 5 B203 Tutorial 2 5

Facilitating Implementation – Critical Path Analysis Set up ordering systems (20) Send off first orders (5) Confirm agreement (2) Carry out minor works (20) Install racking (10) Receive Stock Decide layout etc (10) Confirm lines (5) Install signage (7) Decide Staffing (2) Recruit and train staff (18)

Facilitating Implementation – Gantt Chart

Control Loop Possible action: Adjust task/resources Possible action: Set objectives and establish standards of performance Plan tasks, identify performance measures, carry out tasks Monitor progress and compare performance to standards Act on results of monitoring and take corrective action if necessary Possible action: Adjust task/resources Possible action: Do nothing

Control loops and ‘out of the box’ Difference between single and double loops Argyris and Schon (1978) double loops show strategic learning and critical thing: question the firm’s goals Morgan’s (1986) proposals for developing DL learning

Hickson et al (2003) Factors in successful strategic implementation ‘Planned’ and ‘prioritised’ options Planned: based on experience Prioritised: based on ‘readiness’ Case study of glass manufucturing

Strategists as People Jarzabkowski et al (20007) Regner (2003) on managers Raes at al (2011) on strategic interaction Wright et al’s (2008) six questions about strategy consultants Strategy as a ‘social activity’ Senior Managers Middle 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)

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

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 contexts

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)

Temporal Separation Organisations change back and forth between different corporate structures Decentralisation is used to ignite innovation and change: centralisation to increase coordination and efficiency Exploitation and exploration are emphasized sequentially rather than simultaneously

Structural Separation Organisations are divided into two (or more) separate units with different structures at the same time Flexible ‘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 units

Parallel Structures Organisations create supplemental network structures to compliment the formal primary structure Employees 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 environments

Managing Strategic Change What 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)? 18 B203 Tutorial 2 18

Balogun and Hope Hailey Scope of Change Transformation Realignment Evolution Adaption Revolution Reconstruction Nature of Change Big Bang Incremental Balogun and Hope Hailey (2008) 19 B203 Tutorial 2 19

Hrebiniak’s model for implementing strategic change