Macmillan and Tampoe OUP Strategic Management Macmillan and Tampoe OUP (c) Macmillan & Tampoe 2001

A fast response strategic capability Adaptability A fast response strategic capability (c) Macmillan & Tampoe 2001

Managing Future Uncertainty Ansoff, Declerk and Hayes (1976) suggest Planned change Adaptive learning Planned learning (c) Macmillan & Tampoe 2001

Planned Change works if: Future is predictable or can be created by own actions Organization can shape the thinking of industry and markets i.e., a monopoly, near-monopoly or cartel Forces on the organization are predictable and slow in changing Organization has intimate knowledge of industry and market and can accurately predict behaviour of both (c) Macmillan & Tampoe 2001

Adaptability as Strategic Capability Adopt habits of a guerrilla army: Hone techniques Define different possible scenarios of engagement Define different approaches to handle each scenario Practise each approach until it is second nature To achieve this they need to: Put in place early warning systems Spread accountability and responsibility Built cultures that are tolerant of risk and change (c) Macmillan & Tampoe 2001

Adaptive Learning Accept that the organization needs to change to survive and grow Monitor environment and change to the changing environment Survival and growth requires the ability to exploit current strengths and develop new ones to exploit future opportunities Vital to understand: core competence Information flows Regularities and sources of turbulence (c) Macmillan & Tampoe 2001

Planned Learning Mixture of planned change and adaptive learning Apply planned change to predictable aspects of the business (e.g. cash cow exploitation) Apply adaptive learning to unpredictable elements (c) Macmillan & Tampoe 2001

Building planned adaptive organization Flexible information systems that can be grouped and regrouped to meet changing needs Leadership that mentors and facilitates Effective followers Flexible groupings of people Highly tuned sensors Innovation tolerant directors Strategic processes that are future alert Fast implementation capability Critical understanding of core competence and intellectual capital (c) Macmillan & Tampoe 2001