1. B301 Making Sense of Strategy Tutorial Four

2. Agenda Progress TMA3 Review of Block 4 and 04
Block 2 and 3 consolidation
Block 5 and implementation
TMA05

3. TMA03 (remember that one?)
Very much like the exam questions (might even be one)
Average score of 55
Q1 av 30
Q2 av 25
Examples = higher marks
No examples = fail
Answer both questions

4. TMA03 Q1 -1 Be clear about the question
Position selection and navigation
YOUR exploration of for and against
Very few writers disagree with Porter’s basic hypothesis regarding “caught in the middle” and the risks of trying do everything at the same time
Even Hitt, Ireland and Hoskisson explicitly accept the validity of the “caught in the middle” argument in their book (which many people claimed to have read)
Integrated or mixed strategies are best seen as a fifth variant – a fifth deliberately chosen approach
But integrated strategies don’t “disprove” Porter’s view.

5. TMA03 Q1 - 2
“Twenty-five years of empirical research has failed to resolve a basic strategy question. Does strategic purity pay?
Most theorists believe strategic purity—the extent to which a business pursues one type of generic strategy over another—contributes to better performance. By defining the strategy space consistent with the theory, and employing improved design and methods, our study of 2,351 businesses finds a significant relationship between strategic purity and performance.
Purity does appear to pay. Some variations in strategic purity and performance relationship were observed across four major industry sectors: manufacturing, construction, retail, and business services. But in all instances pure strategies never did less well, and often did better than hybrid strategies.”
Thornhill, S. and White, R. E. (2007), Strategic purity: A multi-industry evaluation of pure vs. hybrid business strategies. Strat. Mgmt. J., 28: 553–561. doi:  /smj.606
And there are numerous “real life” examples (some people used them)

6. TMA03 Q2 Decisions and more decisions?
Whether to use one or two models?
Which ones to choose – rational, political, sense making?
Whether to use examples which the guidance demands?
Use the reader material? Eisenhardt / Hammond
Shall I ignore the essay structure?

7. Block 4
Reflections please

8. TMA04 (how could you forget this one?)
Generally well done
Some issues where people didn’t answer the question asked – even with lots of guidance on offer
Remember that “critical thinking” doesn’t simply mean negative thinking. The aims of the course include:
thinking strategically in the context of a case study (learning outcome 7)
critical thinking, analysis and synthesis; including identifying and questioning assumptions, weighing evidence appropriately, identifying and challenging false logic or reasoning, and generalising in a way which recognises the limits of knowledge in strategy (learning outcome 8)
evaluation and comparison of competing perspectives from a variety of sources, including some informed by current issues or research developments (learning outcome 9)
the ability to argue relevantly and justify a point of view (learning outcome 10).

9. Block 2 refresh - quiz
Questions on day

10. Block 3 refresh - quiz
Questions on day

11. BREAK

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

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

14. “We have a ‘strategic’ plan. It’s called ‘doing things
“We have a ‘strategic’ plan. It’s called ‘doing things.’ ” Herb Kelleher, Southwest Airlines

15. 80% of change programmes fail to deliver as expected

16. Getting Strategy Execution Right

17. 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

18. 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
Reading 16
B203 Tutorial 2 18 18

19. 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)

20. Facilitating Implementation – Gantt Chart
However:
“Unfortunately, no GANTT chart survives contact with reality. No plan can anticipate every event that might help or hinder a company trying to achieve its strategic objectives”
Sull et al. (HBR March 2015 p.61)
So always useful to add in some buffer time for delays and contingencies
What is YOUR Gantt chart to the end of B301?

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

22. Strategists as People
Senior Managers
Middle Managers

23. 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
Where does your organisation fit?
(Mintzberg 1979)
See expansion in B5 p59

24. 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

25. 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

26. Parallel Structures
Organisations create supplemental network structures to compliment the formal primary structure
Employees switch between the two types of structures depending on their respective tasks
Exploitation and exploration are addressed by the same employees, but in different structural environments

27. 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)?
B203 Tutorial 2 27 27

28. Balogun and Hope Hailey
Scope of Change
Transformation Realignment
Evolution
Adaption
Revolution
Reconstruction
Nature of Change
Big Bang Incremental
Balogun and Hope Hailey (2008)
B203 Tutorial 2 28 28

29. Hrebiniak’s model for implementing strategic change

30. TMA 05 – 6 April 2017
Selecting concepts from Block 5 as appropriate to your discussion, explain some common barriers to successful strategy implementation and how they may be overcome with regard to the BRF 2015 strategy for Brasil Foods (evaluated in TMA 04).
You should write your answer as a report from the perspective of an independent strategy consultant to the board of directors – but with appropriate academic referencing. Ensure that you make relevant and critical use of your selected concepts.
2500 words

31. TMA 05 Guidance
This question requires you to make it clear what aspects of the BRF 2015 strategy you think are likely to be problematic in implementation and what recommendations you would make to overcome such implementation problems. You also need to demonstrate how both problems and solutions relate to material in Block 5. The concepts you choose (both to clarify problems and suggest solutions) can be from anywhere in the Block but part of the challenge of the assignment is to demonstrate your ability to select them appropriately and apply them with critical understanding, and practicality.

32. Final Thoughts?